The vehicles were being sold in Greater Manchester via at least three accounts after having their details switched with legitimate cars.
Among the victims was a retired police officer who lost £17,000 buying a Mercedes from a seller in Rochdale.
He said he reported the incident to the police, but no action was taken. Police said the decision is being reviewed.
Former police officer Graham Murray lost his money after buying a Mercedes C-class in Rochdale two months ago, leaving him "devastated".
He said he reported the case to police and has questioned why the fraudulent eBay sellers have not yet been caught.
"The police have known about this gang since January," he said.
"As a former police officer I'm absolutely disgusted. How can you have any trust in the police?"
Car cloning is often used as a method to sell stolen cars.
The vehicle is given the identity of another, similar legitimate car, including licence plates, chassis numbers and accompanying documentation.
It means even if the buyer runs an online background check, the details will appear correct.
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