Buying a shipping container can be a great investment, but it’s important to be aware of potential scams in the market. With the rising popularity of using containers for storage, housing, and business, scammers have found opportunities to deceive unsuspecting buyers.
These scams can lead to financial loss and a lot of frustration. By understanding common tactics used by scammers and knowing how to identify and prevent, you can protect yourself and make informed decisions.
In this article our aim is to educate you on the common shipping container scams and provide practical tips on how to avoid them. By staying informed, you can make a confident and safe purchase, ensuring that your investment meets your needs and expectations.
What Are Shipping Container Scams?
Shipping container scams involve fraudulent activities where scammers try to trick buyers into paying for containers that either don’t exist or are not as described. These scams can lead to significant financial loss and frustration for buyers.
Why Are Shipping Container Scams Increasing?
Given that more people are interested in buying shipping containers as they become more popular, we need more stock. This has in turn increased the demand of fake individuals of goods who wish to exploit the buyers. This is because the internet provides these scammers with an opportunity to develop fake advertisements and websites.
Common Types of Shipping Container Scams
Shipping container scams can catch even the most careful buyers off guard. Here are some common scams to watch out for:
1. Fake advertisement Scam
Fake advertisements are one of the most common scams in the shipping container market. Scammers use online advertising platforms like Facebook, LinkedIn, Instagram and Google. And create attractive ads that offer very low prices to attract buyers.
How Fake Advertisements Work
Attractive Deals:
Scammers post ads for shipping containers for sale at prices that are much lower than the market rate. These deals seem too good to pass up and are designed to attract as many buyers as possible.
Professional-Looking Listings:
These ads often come with professional-looking photos and detailed descriptions to make them seem credible. They might even use photos stolen from authorized sellers.
Limited-Time Offers:
To pressurize the buyer to make a quick decision, scammers often claim the deal is for a limited time or that there are only a few containers left.
Fake Reviews and Testimonials:
Some fake ads include reviews and testimonials from supposed satisfied customers to build trust.
How to Identify Fake Advertisements Scam
Unbelievably Low Prices:
If the price of the container is significantly lower than the market, it could be a red flag. Scammers use low prices to attract buyers quickly.
Lack of Contact Information:
Genuine sellers will provide clear contact information, including a physical address and phone number. Be aware of ads that only offer an email address or have no contact details at all.
Pressure to Act Quickly:
Scammers use tactics to rush your decision, like saying the offer is about to expire or that there are only a few containers left.
No Option to Inspect:
Authorized sellers will allow you to inspect before buying a shipping container. If the seller refuses or makes excuses, it’s a red flag.
How to Avoid Fake Advertisements Scam
Research the Seller:
Look up the seller’s name and contact details online. Check for reviews or any reports of scams.
Verify the Listing:
Use image search to see if the photos in the ad appear elsewhere on the internet. This can help you spot stolen images.
Ask for More Information:
Request additional photos, details, and the container’s serial number. An authorized seller will provide this information without hesitation.
Avoid Upfront Payments:
Don’t pay the full amount upfront, especially if you haven’t inspected the container. Use secure payment methods like credit cards that offer fraud protection.
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2. Fake Websites Scam
Also scammers create a fake website that looks real with lots of fake reviews tricking you into believing you’re dealing with a real company. To steal money from whoever is looking to buy a shipping container.
What Are Fake Websites?
Fake websites are online platforms set up by scammers to imitate real businesses. These sites are designed to look professional and trustworthy, often featuring stolen logos, copied content, and fake testimonials. The goal is to tempt you into making a purchase a shipping container or providing personal information.
How Fake Websites and Listings Work
Professional Appearance
Scammers design websites that look professional and trustworthy. They use logos, high-quality images, and detailed descriptions to make the site appear genuine.
Lack of Contact Information
An authorized business will have clear contact information, including a physical address, phone number, and professional email. Be aware if this information is missing or seems fake.
No Secure Payment Options
Be aware if the website only accepts untraceable payment methods like wire transfers or cryptocurrencies. Authentic businesses typically offer secure payment options like credit cards or PayPal.
How to Protect Yourself from Fake websites scam:
Do Your Research
Before buying a shipping container, research the company. Look for reviews, check their social media presence, and see they are listed or not on reputable business directories.
Verify Contact Information
Call the provided phone number and email the contact address to see if you get a response. An authentic business should respond promptly.
Check for Secure Payment Options
Use secure payment methods that offer buyer protection. Avoid making payments through wire transfers or other untraceable methods.
Check for Secure Website Indicators:
Ensure the website has security features like HTTPS in the URL and a padlock icon in the address bar, indicating it’s a secure site.
3. Non-Existent Inventory Scam
The non-existent inventory scam is one of the most common shipping container scams. In a non-existent inventory scam, the scammer pretends to have shipping containers for sale that don’t actually exist. They create convincing listings on websites or online marketplaces, complete with attractive photos and detailed descriptions. These listings can look very authentic, making it hard to tell they’re fake.
How to Identify Non-Existent Scam
Upfront Payment Requests
The seller asks for full or partial payment before you can inspect the container or before delivery. They might insist on quick payment to secure the “deal.”
Lack of Physical Address
The seller doesn’t provide a physical address or offers an address that doesn’t check out when you search for it.
Limited Communication
Scammers often communicate only through email or messaging apps and avoid phone calls or face-to-face meetings.
No Option to Inspect the Container
Authorized shipping container suppliers will usually allow you to inspect the container before purchase. If a seller refuses or makes excuses, it’s a red flag.
How to Avoid Non-Existent Scam
Research the Seller
Look up reviews and ratings of the seller. Check their website and verify their contact information. A reputable seller will have a history of satisfied customers.
Request Detailed Photos and Information
Ask for recent photos of the container, including any identifying marks or numbers. A scammer may hesitate to provide these.
Inspect the Container
Whenever possible, inspect the container in person before making any payment. This helps ensure you’re getting what you’re paying for.
Verify the Business
Ensure the seller has a physical address and valid contact information. Verify the address through a quick online search or by using a map service.
Ask for References
Request references from previous customers. Genuine sellers should be able to provide this without hesitation.
Avoid Upfront Payments
Don’t pay anything before you have seen the container or verified its existence. Use secure payment methods that offer buyer protection.
4. Bait and Switch Scam
The bait and switch scam is a common tactic used by scammers to deceive buyers into purchasing a shipping container that is not as advertised. Here’s how it works and what you should watch out for:
How the Bait and Switch Scam Works
Attractive Advertisement:
Scammers create a listing or advertisement showcasing high-quality shipping containers for sale at a very appealing price. The container in the ad looks perfect for your needs, with clear photos and detailed descriptions.
Hooking the Buyer:
Interested buyers reach out, excited about the deal. The scammer may provide more photos and details, all of which make the container look ideal.
Payment and Commitment:
Once you express interest, the scammer will encourage you to make a payment or deposit to secure the deal. They might use high-pressure tactics, insisting that other buyers are interested and you need to act fast.
Switching the Product:
Once the payment is made, the scammer delivers a container that is significantly different from what was advertised. It may be in poor condition, the wrong size, or even damaged.
Scammer Disappears:
When you try to contact the seller to complain or get a refund, they are unresponsive. The scammer has taken your money and disappeared, leaving you with a subpar container.
How to Avoid the Bait and Switch Scam
Inspect Before Buying:
Before buying a shipping container, always inspect the container in person and then make a payment. If an in-person inspection isn’t possible, ask for a live video tour of the container or request detailed photos from multiple angles, including the interior and exterior.
Verify the Seller:
Research the seller thoroughly. Check for reviews, testimonials, and any red flags. Trustworthy sellers will have a positive reputation and verifiable contact information.
Ask for Documentation:
Request documentation that verifies the container’s condition and ownership. Genuine sellers should be able to provide this without hesitation.
Use Secure Payment Methods:
Avoid making full payment upfront, especially through untraceable methods like wire transfers. Use payment methods that offer buyer protection, such as credit cards or escrow services.
5. Phishing Scams
Phishing scams are one of the more common and dangerous types of fraud when buying shipping containers. Phishing scams involve scammers sending emails or messages that appear to come from authorized sources, such as trusted sellers or reputable companies. These messages are designed to trick you into providing personal information or making payments.
How Phishing Scams Work
Fake Emails and Messages:
Scammers send emails or messages that look like they are from reputable shipping container sellers or companies. These communications often use official-looking logos and language to appear authentic.
Links to Fake Websites:
These emails or messages usually contain links to websites that look real but are designed to steal your information. When you click on these links, you may be prompted to enter sensitive information such as your credit card number, bank details, or personal identification.
Attachments with Malware:
Some phishing emails come with attachments that, when opened, install malware on your computer. This malware can steal information or damage your system.
How to Identify Phishing Scams
Check the Sender’s Email Address:
Genuine companies have official email addresses. Be aware of addresses that look suspicious or don’t match the company’s domain.
Look for Generic Greetings:
Phishing emails often use generic greetings like “Dear Customer” instead of your name.
Urgent or Threatening Language:
Phishing emails often use urgent language, such as “Your account will be suspended” or “Immediate action required,” to pressure you into providing information quickly.
Check for Spelling and Grammar Mistakes:
Many phishing emails contain spelling and grammar errors, which are less common in authentic communications.
How to Protect Yourself from Phishing Scams
Don’t Click on Suspicious Links:
If you receive an email or message that looks suspicious, don’t click on any links. Instead, go directly to the company’s website by typing the URL into your browser.
Verify the Source:
If you’re unsure about an email, contact the company directly using contact information from their official website.
Use Security Software:
Keep your computer and devices protected with up-to-date security software that can detect and block phishing attempts.
Report Suspicious Emails:
If you receive a phishing email, report it to your email provider and the company being impersonated. This helps prevent others from falling victim to the scam.
What to Do If You Fall Victim to a Scam
If you find yourself the victim of a shipping container scam, it’s essential to act quickly and take the right steps to minimize your losses and prevent others from falling into the same trap. Here’s what you should do:
Reporting the Scam
First things first, report the scam to the appropriate authorities. This not only helps in potentially recovering your money but also prevents others from being scammed.
Contact Local Law Enforcement:
File a report with your local police department. Provide them with all the details of the transaction, including any communications with the scammer and proof of payment.
Report to the Federal Trade Commission (FTC):
The FTC collects information about scams and may take action against the scammers. Visit their website at www.ftc.gov to file a complaint.
Notify Your Bank or Credit Card Company:
If you made the payment using a credit card or bank transfer, inform your bank immediately. They might be able to reverse the charge or provide guidance on next steps.
Seeking Legal Help
Gather All Evidence:
Collect all documentation related to the transaction. This includes emails, receipts, screenshots of the listing, and any other communication with the scammer.
Consult with a Lawyer:
Reach out to a lawyer who specializes in fraud or consumer protection. They can offer advice on your legal options and help you understand the best course of action.
Sharing Your Experience
Leave Reviews and Warnings:
Post reviews and warnings on websites, social media, and forums where potential buyers might look for information. This helps others avoid falling for the same scam.
Report to Consumer Protection Agencies:
Agencies like the Better Business Bureau (BBB) track and report on scams. File a report with them to help build a case against the scammers.
Educate Others:
Use your experience to educate others about the warning signs of scams and how to avoid them. Your knowledge can make a difference.
Conclusion
Buying a shipping container is a smart move for storage or other projects, but it’s crucial to be aware of potential scams. Do your homework on the seller, inspect the container before buying, and use secure payment methods. Be cautious of deals that seem too good to be true and always check for proper documentation and certifications.
If you unfortunately fall victim to a scam, report it to the authorities and seek legal help. Sharing your experience can also help others avoid similar issues. By staying informed and cautious, you can confidently navigate the market and make a safe purchase.