Used-Car Certifications Often Not Meaningful
by Anthony Giorgianni
Last updated May 2022

Dealers promise rigorously inspected rides and peace-of-mind warranties, but we found some consumers get rebuilt wrecks and even a former crash-test vehicle.

Most used-car shoppers find the process a stressful ordeal filled with possible perils. They worry they’ll end up with an unreliable vehicle, and they don’t feel comfortable dealing with car salespeople: A 2022 Gallup poll found them to be the second-most-hated profession in the U.S.; only lobbyists fared worse. Worst of all, supply-chain problems for new-car factories have created a surge in demand for used ones—during the first quarter of 2022, average prices for secondhand rides were up 35 percent compared to the previous 12 months. Competition is so stiff that many used cars are purchased sight unseen by desperate buyers.

To reassure used-car buyers worried about getting stuck with a lemon, manufacturers in the 1990s began offering “certified” used cars. They’re marketed as the crème de la crème of the secondhand auto world and even come with manufacturer-backed warranties.


But our research uncovered that certified labels don’t guarantee vehicles won’t have serious hidden mechanical or structural problems. We were astonished by some of the flaws we discovered, many that should have been noticed during promised inspections. We also found certified cars that were totaled wrecks that were rebuilt and resold, and even an SUV previously owned by the government and used in crash tests.


Because manufacturers count on their dealers to conduct the promised inspections needed to certify vehicles, certification labels are only as reliable as the diligence of the dealerships and their mechanics in doing the screening tasks and fixing any problems they find. And our research indicates they’re not always diligent. . . .

(Read the whole thing at https://www.checkbook.org/puget-sound-area/used-car-certifications-often-not-meaningful/)

New Analysis Finds Consumers Reported Losing More than
$1 Billion in Cryptocurrency to Scams since 2021

Most of the Losses Consumers Reported were to Bogus Cryptocurrency Investment Scams

Consumers reported losing over $1 billion to fraud involving cryptocurrencies from January 2021 through March 2022, according to a new analysis from the Federal Trade Commission. Fraud reports suggest cryptocurrency is quickly becoming the payment of choice for many scammers, with about one out of every four dollars reported lost to fraud paid in cryptocurrency.

The FTC’s latest Consumer Protection Data Spotlight finds that most of the cryptocurrency losses consumers reported involved bogus cryptocurrency investment opportunities, which totaled $575 million in reported losses since January 2021. These scams often falsely promise potential investors that they can earn huge returns by investing in their cryptocurrency schemes, but people report losing all the money they “invest.”
After cryptocurrency investment schemes, the next largest losses reported by consumers were on:

• Romance Scams: These often involve a love interest who tries to entice someone into investing in what turns out to be a cryptocurrency scam.
• Business and Government Impersonation Scams: Reports show these scammers often target consumers by claiming their money is at risk because of fraud or a government investigation and the only way to protect their cash is by converting it to cryptocurrency.

Reports suggest that cryptocurrency-related scams often begin on social media. Nearly half of consumers who reported a cryptocurrency related scam since 2021 said it started with an ad, post or message on a social media platform.
People ages 20 to 49 were more than three times as likely as older age groups to have reported losing money to a cryptocurrency scam. Older age groups, however, reported losing more money when they did report a cryptocurrency-related scam.

Some of the red flags consumers should watch out for include:

• * anyone who claims they can guarantee profits or big returns by investing in cryptocurrency;
  
• * people who require you to buy or pay in cryptocurrency;
  
• * and a love interest who wants to show you how to invest in cryptocurrency or to send them cryptocurrency.
  

The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

Anyone who has EVER thought of "investing" in cryptocurrency or "non-fungible tokens" (NFTs) should watch this priceless expose.

Pat Dennis @patdennis

Sick of people calling everything in crypto a Ponzi scheme. Some crypto projects are pump and dump schemes, while others are pyramid schemes. Others are just standard-issue fraud. Others are just middlemen skimming off the top. Stop glossing over the diversity in the industry.