Bill, a retiree building his retirement home, was looking to purchase a storage container online. He was initially cautious due to the shady nature of the container and related industries and even investigated the first company he considered, finding red flags like a recently established business, a new website registration, and an unfamiliar payment method, which led him to abandon that deal.
He then found a local Arizona company on Facebook Marketplace. He visited their facility, which seemed legitimate, and agreed to a modified container for $8,150. He paid $7,800 via bank wire transfer to avoid a credit card fee and $350 via credit card for the painting. A delivery date was set a couple of weeks out, but he never heard from them. Upon revisiting their office, which felt unsettling, he was given a new delivery date that was also missed. They then became unresponsive to all forms of communication.
Bill realized he had been scammed out of $7,800. He feels like a fool despite his initial efforts to be careful. Because he paid via bank wire, his bank offered no recourse. His next step is legal action, but he's concerned about the potential costs outweighing the recovery. He has filed complaints with the BBB, the FBI's IC3, and the Arizona State Attorney General and has left online reviews to warn others.
Key takeaways:
- Even cautious and informed consumers can fall victim to scams. Bill did his initial research and avoided one potential scam, highlighting that scammers are constantly evolving their tactics.
- Physical locations and seemingly legitimate businesses can still be fronts for scams. The existence of a physical facility and customization work didn't guarantee the company's honesty.
- Paying via bank wire transfer offers significantly less protection than using a credit card. Once the funds are transferred, recovery is often impossible through the bank. Bill was able to recover the small credit card charge.
- Avoid pressuring yourself to save small fees by using less secure payment methods for large transactions. The 3.5% credit card fee would have been a small price to pay for the added security.
- Lack of a clearly written and firm delivery date on a receipt, even if delivery is "included," can be problematic in case of disputes. Always insist on a specific delivery timeframe in writing.
- Unresponsiveness after payment is a major red flag. Legitimate businesses maintain communication with their customers.
- The best price is often a sign of a scam, but even higher prices don't guarantee legitimacy. Bill paid a premium for a customized container, yet still got scammed.
- Reading the terms and conditions of a business, even local ones, can reveal potential red flags and business practices. Bill realized after the fact that the terms would have deterred him.
- Legal action to recover relatively smaller amounts like $8,000 can be costly and uncertain, potentially making it not financially viable for victims. Scammers may be aware of this deterrent.
- Reverse image searches are a valuable tool to verify the authenticity of product photos, including containers and even profile pictures on marketplaces.
- Cash on delivery should be pursued whenever possible, especially for high-value items, allowing inspection before payment.
- Document all communication (emails, texts, receipts) as it will be essential if legal action is pursued.
- Reporting scams to various agencies (BBB, IC3, State Attorney General) is important, even if immediate recovery isn't guaranteed, as it helps track and potentially prosecute scammers and warn others.
- Sharing your experience and leaving online reviews can help warn other potential victims.
