The following is my first blog on my new, revamped site. I hope the discussion it spurs is informative. Enjoy this and upcoming blog posts.
Hey folks, it’s crazy how these scammers keep finding new ways to pull a fast one on us. So, here’s the scoop – there’s a sneaky scam going on in the online auction world that’s hitting our industry. If you’re into online auctions, you might want to grab a seat and listen up.
Basically, these scammers kick things off from overseas. They set up a fake website that looks like a legit auction site. I’m talking convincing – with all the usual photos and descriptions you’d expect. Often, they’re swiping pics from a real auction site just to add to the deception.
Once their fake site is ready to roll, they throw it up online with a domain that’s designed to look like it belongs to a real auction company. They even go as far as snagging a domain name that’s eerily similar to a legit former auction site. Why? Well, they’re banking on the fact that some folks might recognize the name and think it’s all legit. Sometimes, there are even positive reviews floating around online about the former company.
Now, these scammers are lurking on social media, targeting ads straight at folks like you and me who might be interested in buying. Once they reel you into their site, it’s a full-blown fake auction experience.
Here’s the kicker – they don’t want you checking out the equipment in person. They spin a tale about why you can’t see it firsthand. But no worries, they promise to deliver it to your doorstep, and if it’s not up to snuff, they’ll pick it up, no charge.
To sweeten the deal, they might throw in a “buy-it-now” option. The price is usually too good to pass up, making you feel like you’ve got to snatch it before someone else does.
But, you know the saying – if it sounds too good to be true, it probably is. Heard that one before?
If, unfortunately, you fall for their trap, they’ll shoot you an email asking you to wire funds. Once they see the money’s in, you’ll get an email, confirming they got the funds, and they’ll say someone will reach out to confirm the shipment date. Spoiler alert – that call or email never comes. And by now, your hard-earned cash is probably converted into untraceable cryptocurrency and long gone, leaving you high and dry.
I got wind of this scam early in 2023, and let me tell you, it hit me where it hurts – in the wallet. Without realizing it, I wired $25,000 for a compact telehandler I thought was in Nebraska. The whole story was that it was a bank repo, and they threw in free shipping within 1,000 miles. Sounded great, right? They even guaranteed a full refund if it wasn’t as advertised.
Since then, I’ve heard of a couple of others who got caught up in this same type of mess. There’s a farmer from South Dakota who got hit for over $80,000, and another person from out east who lost $40,000. On a brighter note, I heard about a guy who sniffed out the scam when they tried to sell him a camper – dodged that bullet.
So how do we steer clear of falling for these types of scams?
Unfortunately, online scams are becoming increasingly sophisticated, and it’s crucial for individuals to be vigilant and cautious when engaging in online transactions, especially when large sums of money are involved. Here are some general tips to help protect yourself and others from falling victim to similar scams:
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Research the Auction Platform:
- Before participating in an online auction, thoroughly research the platform. Use reputable and well-known auction websites with a history of positive reviews and transactions.
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Verify Contact Information:
- Confirm the contact information provided by the auction site. Look for a physical address, phone number, and email address. Be wary if the only contact method is through email or if the information seems suspicious.
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Check Website Security:
- Ensure that the website uses secure and encrypted connections. Look for “https://” in the URL and check for a padlock icon in the address bar.
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Examine the Website URL:
- Be cautious of websites with URLs that are similar to, but not exactly the same as, well-known auction sites. Scammers often create domains that mimic legitimate sites.
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Physical Inspection:
- Insist on inspecting the item in person before making any payment. Legitimate sellers should be willing to provide a physical address where the item can be viewed.
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Be Skeptical of Too-Good-to-Be-True Deals:
- If a deal seems too good to be true, it probably is. Scammers often use low prices to lure victims into making quick decisions without proper due diligence.
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Avoid Wire Transfers to Unfamiliar Parties:
- Be cautious about making payments via wire transfer, especially to unfamiliar parties. Consider using secure payment methods, such as credit cards or reputable online payment platforms, which may offer some level of buyer protection.
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Independently Verify Information:
- Verify the details provided independently. Contact the purported auction company using contact information obtained from a reliable source, not just the information provided on the website.
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Educate Others:
- Share your experience and the warning signs of scams with friends, family, and colleagues. Education is key in preventing others from falling victim to similar schemes.
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Report Suspicious Activity:
- If you encounter a suspicious website or believe you have encountered a scam, report it to the relevant authorities or the platform hosting the auction.
If you suspect something is rotten, try a reverse image search which might tip you off when they are using someone else’s photos. Here is an article from Popular Science on how to do a reverse image search: https://www.popsci.com/diy/how-to-reverse-image-search/
Remember that scammers often exploit the trust and eagerness of individuals seeking good deals. By staying vigilant and following these precautions, you can reduce the risk of falling victim to online scams.
Have you fallen for a similar scam? Share your experience in the comments below. Hopefully, by talking about it we can help someone else avoid a similar fate.
