Merchandise Scams: Don’t Let “Too-Good-to-Be-True” Deals Empty Your Wallet
According to Experian, business-to-business fraud costs U.S. companies more than $50 billion each year—merchandise scams are a prime culprit, stalling projects and draining budgets before you even know it. Here’s how these schemes work and how you can shield your bottom line.
How These Schemes Unfold
- Phantom suppliers. You pay a deposit or full invoice—but the “company” disappears, goods never arrive, and refunds are impossible.
- Counterfeit products. What shows up is cheap knockoffs, not the branded equipment you ordered.
- Advance-payment traps. Scammers demand wire transfers or prepaid cards only cutting off all traceability.
Spotting the Warning Signs
- Bargain-basement prices undercutting every competitor by 30–50%
- No formal contracts or use of generic email domains (e.g., @gmail.com)
- Pressure tactics (“Only 10 units left act now!”)
Shield Your Bottom Line
- Vet every vendor. Check business registrations, request three references and confirm physical addresses.
- Start small. Order a sample or pilot shipment before committing to large volumes.
- Use formal POs & contracts. Set clear delivery dates, quality specifications and payment schedules.
- Stage payments. Link deposits to project milestones—release the final payment only after inspecting the goods.
- Report scams. If you suspect fraud, file at the FTC Complaint Center or visit our Security Center for guidance.
By staying aware and cautious, you can better protect yourself from evolving identity theft scams in 2025. Always double-check before acting—if something feels off, it probably is!