A more and more common offer is hitting some fire and security installing companies and equipment resellers. The offer often arrives in the form of an email with a request to purchase a number of pieces of specialized equipment, such as smoke detectors or security cameras.
The offer comes like a business God-send: A buyer willing to pay full price for a high number of units, willing to pay for fast shipping and ready to pay immediately by credit card. It sounds too good to be true, and apparently it is.
According to a number of businesses who have seen the scam arrive in their in-boxes, the criminals have the reseller, distributor or installer sell them the equipment, ship it overnight, and pay by a bogus credit card. The goal, apparently, is that by the time the credit card companies flag the transaction as bogus, the equipment is already in the hands of the bad guys, and you're stuck with a loss on possibly hundreds of units. The equipment ends up in online auctions and online classified advertisements, and you're left empty-handed.
"They get you to ship them overnight and then the credit card charge is cancelled," explained Robin Phillips, the fire systems manager with a large, Texas-based fire detection systems installer, who keeps a close eye out for such scams targeted toward his staff. "By the time you find out, they have closed up shop and have your detectors, and are on their way to selling them on eBay or other auction sites."
Recent emails from members of a national alarm installing association indicate that the scams are continuing to hit a number of installing and reselling companies. Fortunately, most respondents report that they have not been fooled.
Identifying the Scam
Often the scams first arrive in a generic manner, addressed simply to sales and request a product that you may have listed on your website. Sometimes the scammers don't even list a specific product, but are just seeking a price. The M.O. of the scammers is to find a total cost including shipping (often overseas) and then to provide credit card payment information via email.
Typically written generically by those without a mastery of English, the scams come across as awkward. Most often, the buyer knows very little about the product he/she is ordering. The best identification, of course, is that a theoretical customer (the scammer) is willing to pay full retail price, plus expedited shipping and willing to work with a company that he or she has never done business before.
The overseas nature of these scams, of course, makes them exceedingly difficult to prosecute, and the most that most businesses who fall for the scam can hope for is that their shipping company can catch the shipment before its delivered and that they will be able to return the equipment overage to the vendor. Some have reported that they were completely taken by the scam, while others were able to recover the equipment from the shipper.
A real-world scam
One security and fire protection company provided SecurityInfoWatch.com with the actual email trail of a potential scam that was caught before units were shipped. Here is how it worked in its progression (privacy information removed by SecurityInfoWatch.com). The scammer asked for a number of smoke detectors, but no brand was initially specified.
The salesperson, eager to make a sale, replied to the scammer's email:
We have [item brand name removed] smoke detectors. There are several models. Do you have a specific model in mind? Are you trying to meet a specification? Or do you just have a specific application in mind? The more information, the better.
The scammer then replied:
Thnaks for the quick email so i want you to order them overnight while bear for all charges including below items:
BRAND NAME{item name and model removed by SIW }
Photoelectric smoke detector 2wire with base 24volts
QTY:200UNITS
so when the materials is ready i will like to instruct Fedex driver to come for the picking up at your location with FedeX account so i want you to get back to now so that i can forwards you my credit cards account for you to bill instantly.and get back to me now with the total cost now asap.
I would be happy to hear from you about this product. Waiting to hear from you ASAP.
ADDRESS DETAILS:
[address removed by SecurityInfoWatch]
Thanks and god bless you.
Cole Mike
The salesperson wrote back:
The unit cost of the [item name and model removed] smoke detector is $63.00. However with quantity 200-units you are entitled to an 18% discount from list. Your net cost is $51.66 ea. Total cost for 200-units would be $10,332.00, + freight. Unfortunately, we do not have 200-units in stock. I checked with the manufacturer, they are available off the shelf. Allowing for shipping from the factory to our location then forwarding to your location, the best delivery schedule I could offer would be next week, Tuesday or Wednesday. If your need is critical enough to pay any amount for freight, maybe we could get them to you on Monday. Let me know how you wish to proceed.
The scammer, clearly eager to get on with the transaction wrote back to the fire systems salesperson (credit card numbers stripped out by SIW edit staff for privacy):
Thanks for your quote,Kindly charge $2000 on each card.After you have charges $2000 on each card and recharge the 4cards and get back to me with confirmation asap. Card Type........Master Card
Name On Card....Cole Mike
Card Number.......XXXX XXXX XXXX XXXX
Exp Date............ 03-2009
Cvv.....................886 Card Type........Master Card
Name On Card.....Cole Mike
Card Number....... XXXX XXXX XXXX XXXX
Exp Date............ 05-2008
Cvv.....................961 Card Type........Master Card
Name On Card.....Cole Mike
Card Number...... XXXX XXXX XXXX XXXX
Exp Date............ 02-2008
Cvv.....................677 Card Type........Master Card
Name On Card.....Cole Mike
Card Number...... XXXX XXXX XXXX XXXX
Exp Date............ 02-2008
Cvv.....................414 I await for you to email me the confirmation.
Thanks
Cole Mike
Fortunately, for this company, the credit cards did not clear, and the order was canceled before the installer/reseller could be stuck with a loss on 200 units.
To see what the scam looks like from another almost-victim, one scammer's emails were published along with the potential business partner's response.
As you check your inbox, likewise, don't fall for the benefactor with $63 million in African or Iraqi funds who wants to transfer the money to the U.S. using your bank account, the so-called 419 scams. If you're inclined to have a little fun at the expense of these scam artists, check out Scamorama.com, which is a site filled with jovial tales of getting even with the scammers.
