Car Attachment Scams: Real Cases and 12 Red Flags

Real car attachment frauds reported in India

The Deccan Herald reported these cases from Bengaluru. The same tricks can show up in any city.

• 150 cars leased (2021). A Bengaluru travel company leased around 150 cars from owners on a fixed monthly rent. It paid rent for a few months. Then the office shut and the phones went off. Police said the cars had been sold in Tamil Nadu and Andhra Pradesh using fake documents. The operator was later arrested in Mumbai.
• 70 rented cars sold (2022). A cab driver who turned "travel agent" pulled in owners with the promise of regular monthly or weekly rent, then illegally sold about 70 of their cars.
• 24 cars recovered. A travel agency manager paid rent on a few cars to win trust, collected more cars, sold them and ran.
• Cars pledged for loans (2023). A cab driver used fake documents to pledge rented cars for loans. He paid owners small amounts every two or three months so they would not complain.

12 red flags before you attach your car

1. The agent will not tell you the name of the company or office where your car will work.
2. No written agreement. Or there is one, but you are rushed to sign it without reading.
3. You are told to hand over the car and keys and stay away while the agent "manages" it.
4. They want the original RC, insurance or permit. Copies should be enough.
5. Promises of huge guaranteed monthly income, with nothing said about km, hours, fuel or who pays the driver.
6. A big fee or deposit up front, before you have seen any client or contract.
7. A very long lock-in. If the agreement ties your car up for several years and asks for a long notice period before you can leave, ask yourself why they need you stuck for that long.
8. Rent in cash, or late, or "every two or three months".
9. No GST number, no company registration, no address you can check. Only a phone number.
10. "White plate is fine, no permit needed." It is not fine. Using a private car for hire is not legal, and it can void your insurance.
11. Being asked to remove or switch off the GPS.
12. Pressure to bring more cars or refer friends when you have not been paid properly yourself.

What to do if you have been cheated

1. Find your car on GPS right away, and call the client site where it was supposed to be working.
2. Collect your agreement, payment records, chats, trip logs and whatever details you have on the agent.
3. File a complaint at your local police station. If online payment fraud is involved, report it on the National Cyber Crime Reporting Portal or call 1930.
4. Tell your insurer, and your financier if the car is on loan.
5. Check VAHAN for any change in ownership and inform your RTO in writing.