Targeted Scams: Scammers Don’t Always Cast a Wide Net

In recent months, DATCP has reported several scams that are targeting specific groups and people. Many people think scammers “cast a wide net” hoping as many people as possible encounter the scam and are convinced by it. But if a scam is too generic, consumers may catch on and ignore it. So, scammers change course and use the opposite strategy. By targeting a relatively small group or even specific individuals, they can design their scam to be more detailed and convincing.

An example of a targeted scam was reported to DATCP in late August this year. A scammer posed as a farm equipment business and sold (fake) equipment to a farmer, who spent over $17,000 on a bulldozer only to end up empty-handed. These scammers have been reported nationwide and post their fake listings to social media and online classified ads, sometimes impersonating real businesses, to draw in farmers. They use real-looking images, include real product specifications and details, and send purchase agreements and invoices that seem legitimate. The scammer requests payment through a method that is irreversible – in the case reported to DATCP, a wire transfer – then schedules a delivery date with the farmer. But the equipment never really existed and is never delivered. By the time the farmer realized they had been scammed, it was too late to recover their money or identify the scammer.

Compared to the general population, there are not a large number of farmers in Wisconsin – but this means that a scammer can take advantage of that small group’s particular concerns, needs, and vulnerabilities to create a convincing scheme. And because they can steal thousands of dollars or more from a single scam victim, it is well worth the scammer’s extra time and effort.

So how can consumers and farmers avoid these and other highly-targeted imposter scams?

· Before buying based on any ad, do the research. Social media companies don’t always vet ads, so just because something appears in an ad does not mean it is legitimate. Search online for the company name plus “scam” or “complaint,” check if the company appears to have multiple websites or social media profiles, and verify that the real company’s contact information is accurate.

Know that the top search results might be paid ads. Sometimes scammers place these and impersonate a real business, but use their own contact information or website. Scroll past those ads to the unpaid search results.

· Never send money to anyone who demands payment by wire transfer, gift card, cryptocurrency, or payment app. Scammers prefer these methods because once they’ve collected the money, it’s almost impossible to get it back.

· See the product being sold in person whenever possible. Scammers rely on potential buyers sending money before they have a chance to see the product for themselves. If feasible, consumers should make the transaction in-person or at least visit the seller to confirm the product is real.