The South African Institute of Auctioneers (SAIA) has issued a warning regarding an increase in social media scams, particularly on Facebook Marketplace.
Fraudsters are targeting individuals by advertising items, notably vehicles, at prices well below market value or by offering reservations before auctions.
These scams typically involve perpetrators posing as legitimate auctioneering firms and using internet-sourced images of vehicles to lure unsuspecting buyers.
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They then demand substantial upfront deposits to “reserve” these vehicles, falsely claiming the reservation prevents the item from going to auction.
“One clear sign of a scam is a set price for auctioned items,” says Sonja Styger, chief administration officer at SAIA.
“Under South African law, assets sold at auction cannot have fixed prices. The final price is determined by the highest bid when the auctioneer’s hammer falls.”
Styger notes that these scams are becoming increasingly sophisticated, often operating like fully functional businesses with evolving methods to ensnare victims.
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She urges buyers to exercise extreme caution when purchasing assets on social media, emphasising that deals that seem too good to be true usually are.
The SAIA maintains a register of legitimate auctioneers and offers assistance in verifying the authenticity of social media advertisements.
Styger advised buyers to conduct thorough research or contact SAIA before making any financial commitments, noting that scammers are known to counterfeit existing auctioneers’ websites, populating them with fraudulent details to deceive buyers.
For more information and verification services, visit the SAIA website at www.auctioneering.co.za
