Motor dealers across the country have been warned of a new scam that has already resulted in at least one high-value Mercedes-Benz being taken from a dealer's premises.
The Society of the Irish Motor Industry (SIMI) has issued a warning to its members after it became aware that fraudsters were entering dealerships masquerading as finance house representatives.
Although there has been a spate of attempted frauds over the past two months by what is believed to be the same man, a new wave of copycat attempts has now begun.
In the most recent incidents, fraudsters targeted several dealerships as far apart as counties Donegal and Waterford, and have been successful at least once. After conning a dealer in the southeast, the gang drove away in a Mercedes C200.
The confidence tricksters, who carry authentic looking business cards and documentation, target dealerships in an attempt to obtain a car under the pretence that it is an authorised company vehicle.
"The person committing this fraud certainly has a degree of insider knowledge about the relationships between dealers and finance houses," explained Seamus O'Tierney, from the Irish Finances Houses Association.
"He introduces himself as a newly appointed regional manager of a finance house who has come to order his new car. Some dealers have taken him at face value. It's a very clever scam."
The conmen, who appear to know which dealerships have agreements with which finance houses, order a car and then say they will return to collect it when the paperwork is complete. The conman then returns, often when the company accountant has left for the day, to collect the car with forged copies of paperwork confirming payment has been made into the dealer's account. Some salesmen, unable to check that payment has been made and believing everything is in order, have passed over the keys.
Although to a layperson it may sound far-fetched to be able to obtain a car from a dealer without paying for it, it is accepted practice for large companies, such as financial institutions, to order vehicles from dealers to whom they are well known and have a track record with, and to receive an invoice at a later date or to transfer money directly into a dealer's account.
The conmen appear to be using their insider knowledge of the motor and finance industries to capitalise on these practices. Also working to the fraudsters' advantage is the fact that, as competition becomes fiercer, dealers are becoming increasingly keen to secure the business of major companies.
This eagerness can make some of them more susceptible to such fraud attempts.
Targeted dealers who have become suspicious of the con men reported that after they had called the telephone number on the business cards they have heard genuine sounding answering machine out-of-office replies from a well-known reputable finance house.
However, most have refused to allow a car to be driven away until they have carried out further checks.
"The conmen seem to have a good working knowledge of the motor industry and are very polished in their performance," said Alan Nolan, SIMI deputy chief executive. "We are warning all of our members to be extra vigilant and be on the lookout for this type of fraud."