Watch out for fake dealer sites
Keep your data and identity safe
Tips to protect yourself and your operation
Online equipment sales are on the rise, and just as the e-commerce landscape has expanded and become more sophisticated, so have cyber scammers.
“We’ve seen waves of fraudulent activity come and go, but it spikes from time to time so it’s always a good idea to use caution when purchasing equipment online,” says Kara Figi, vice president of AgDirect business development. “Anyone can be at risk, so it’s important not to let your guard down.”
Industry-wide, equipment fraud is now being reported across various channels including dealerships, auctions and private party transactions.
“It’s not surprising scammers have tried to tap into the auction market to prey on the sense of urgency involved in those types of sales,” Figi says. “AgDirect’s lien search process for private party financing helps us uncover if something doesn’t fit the bill, but instances of fraud from either sector are great scenarios to learn from to help our customers remain vigilant.”
“If the deal seems too good to be true, then it probably is,” Figi adds. “Fake dealer sites and stolen identities continue to be the two biggest areas where we see fraudulent activity.”
Watch out for fake dealer sites
Today, buyers are willing to purchase equipment from multiple states away when they can’t find the machinery they need locally, and bad actors have capitalized on that trend. Scammers will impersonate dealers, sometimes posing as former legitimate businesses, to trick buyers into believing the fraudulent site is reputable.
The original website domain may be confiscated to make it seem trustworthy, or in other cases, machinery listings may be lifted from other sites. The site may also feature pictures of a real dealership or equipment from an existing lot.
When dealing with fake dealerships, phone calls are often forwarded to a voicemail, allowing scammers to monitor calls and prepare fabricated responses. The bad actors then follow up by calling back potential buyers, skillfully gaining their trust and persuading them to wire funds for an asset that will never be delivered.
“Often it is several days later, when the equipment doesn’t show up and the fake dealer no longer returns phone calls before the buyer realizes they have been scammed and their money is gone,” says Figi.
“AgDirect can add a lot of value in helping customers vet dealers and confirm their validity. Using asset verification tools, we can detect whether a photo of equipment is real or if it has been manipulated in any way,” she shares. “We monitor every single deal and have safeguards in place to give buyers confidence as more sales are conducted online.”
Keep your data and identity safe
Identity theft is another area posing a threat to dealers and customers. In the agricultural equipment and financing space, scammers are using stolen identities and information to book loans and purchase equipment they then sell to someone else.
Data security is of the utmost importance at AgDirect. That’s why as an equipment financing leader, AgDirect continues to implement fraud protection tools including identify verification software.
“Every customer who submits an online application with us is automatically sent a link to provide a photo of their driver’s license as well as a selfie image,” says Figi. “Within a few seconds, the system will scan the images and tell us if they are a match.”
Tips to protect yourself and your operation
Unfortunately, scammers know how to take advantage of a situation and feed on the emotion involved with making a big machinery purchase.
The promise of low prices or the sale of a rare piece of equipment are two triggers that are often used to target buyers in fraudulent schemes. Both scenarios can cause buyers to fall victim to bait and/or switch tactics:
Bait: A too good to be true ‘for sale’ price can mislead the purchaser to think they are getting a good deal and will be rushed to close the transaction. In reality, there is nothing tangible for sale – just a phony transaction.
Switch: A legitimate transaction is about to occur, and all of a sudden, the wiring instructions change. The bad actor has compromised one of the seller’s email accounts and is waiting for an opportunity to interject new wiring instructions at the last minute.
Here are some of the steps you can take to protect yourself and your operation against online equipment scams:
Ask Questions
• How confident are you in the seller?
• Have you worked with them before?
• Have you met the seller in person or seen the equipment in person?
• Is the seller pushing you to act quickly and wire money?
Investigate
• Research the seller by name and verify who owns the company website or when it was created. Keep an eye out for any reports of recent scams in your search results.
• Reference the Better Business Bureau to verify it is a recognized business entity and that the company hasn’t been compromised.
• Pull up the address of the seller on Google Earth, or better yet visit the seller in person to confirm a brick-and-mortar location exists.
• Insist on seeing the equipment. Request a video call to view the equipment when shopping from a distance or ask a trusted third party to inspect it on your behalf.
Consult with Others
• Read online comments from other buyers or reach out to other known buyers who have made a purchase with the seller before. Be wary of fake customer reviews.
• Research the seller and products independently and compare prices with other websites to ensure legitimacy.
• Leverage the knowledge and relationships of your nearest AgDirect territory manager or other dealers in the area to determine whether the equipment is coming from a reputable seller.
Other Best Practices
• Never transfer money to someone you don’t know. A demand for wired funds can be a red flag.
• Safely store documents that have your personal information, including financial documents.
• Contact your credit bureau to lock or freeze your credit to prevent unauthorized access to your credit reports.
In addition to maintaining high security standards, AgDirect uses technology and countermeasures to help identify and prevent fraud so you can buy equipment more confidently knowing additional steps have been taken to protect you.
The Federal Trade Commission and Federal Bureau of Investigation offer additional tips and resources for avoiding and reporting cyber scams and other fraudulent activity.
AgDirect offers competitive rates and terms for both new and used equipment. Apply online, check rates, quote payments and compare options at agdirect.com or using the free AgDirect Mobile app available for download from the App Store and Google Play*. Or learn more about AgDirect equipment financing by locating your nearest AgDirect territory manager or contact the AgDirect financing team at 888-525-9805.
*Your mobile carrier’s messaging data rates apply. The App Store is a service mark of Apple, Inc. Google Play is a trademark of Google, Inc.