Title skipping fraud is illegal and occurs when a fraudster buys a vehicle without officially transferring the title to their name, then “skips” the title to a new owner without ever paying taxes or fees or registering the vehicle in their own name. This exposes the original seller to potential liability for accidents, damage, injuries, or traffic violations since they technically remain the legal owner until the title is officially transferred.
Alternatively, the actual fraudster could turn around and accuse the original seller of fraud and try to claw back their payment by asserting that the original seller collected money, yet then sold the vehicle to a different person.
We use advanced buyer screening procedures to filter out bad actors and protect our customers. Fraudulent transactions are a hassle for everyone involved even if you do nothing wrong. It's important to remember that any type of direct payment puts you at risk—even a cash payment deposited into your bank account at your bank.