Fraudulent Credit Card Scams Rock Trailer Dealer
Community
Trailer dealerships from various areas of the country have
reported repeated credit card scams that seemingly appear to be
connected.
Several North American Trailer Dealer Association (NATDA)
members brought the association’s attention to a repeated
fraudulent credit card scam. So far, the vast majority of those
affected have been in the Southeast and Midwest, but it would not
be farfetched to think that the areas could expand further west.
One dealer member in Wisconsin, speaking in anonymity, told
NATDA of the way in which they were contacted. In late
September, an individual purchased a trailer via credit card over
the phone. Instead of picking the unit up himself, he paid for a
local tow company to pick up the trailer and deliver it to Chicago.
Not too long after, the same individual purchased another trailer,
claiming that it was for his business partner at M&M Landscape
and Roofing. Through all of this, he was able to provide consistent
information over the phone.
The towing company, as promised, showed up on time, picked up
the trailer and delivered the unit to its buyer in downtown Chicago.
Shortly thereafter, the dealership was notified of chargebacks due
to a fraudulent credit card and that the money would be coming
out of its account. Upon getting the local police involved and
speaking with others that were affected, the dealership identified
a few common occurrences in most cases.
For these dealerships, the fraudulent individual paid
over the phone using a credit card that was connected
to Chase, Bank of America or CitiGroup.
The individual always had a local towing company pick
up the unit.
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The Wisconsin dealership, though understandably upset, has
received help in the form of Chase’s fraud division. According to
them, there had already been 40+ accounts of fraud related to
the same cell phone number the Wisconsin dealership provided.
Luckily, the dealership’s insurance provided protection as well,
though it acknowledged that many dealers it spoke with were not
covered.
Also speaking in anonymity, a dealership in Virginia reported to
the NATDA that the same scam happened to them. Again, a local
transport company was used to pick up the trailers.
What can you do to protect yourself against fraudulent credit
card scams?
Unfortunately, sending a transport or another person to pick up
a unit is fairly common practice with businesses. However, the
local police in Woodbury, IN informed NADTA of the following
four tips to help:
NATDA Magazine www.natda.org