Taylor McKenzie: Construction Equipment Scam Target Firms in Japan and Other Countries

Ellie Jung 3 aastat tagasi 0

Construction services is one of the most lucrative industries not only in Asian countries like Japan and China but also all in other countries in the world. The development of different structures is a good sign of progress for the country’s economy. When it comes to construction development, one of the most important factors is the construction equipment that will be used for building.

Due to the rising rate of construction projects, it is not surprising that investors and entrepreneurs would like to venture into this type of industry. However, it has also become a way for people working behind some scam to use it as their ploy to extort money.

Firms and lawyers who have fallen victim have filed their complaint to stop this fraud business scheme. The crooks behind the scam use a construction machine purchase to get the attention of firms. Recently, a Nova Scotia firm has been a victim of the said purchase scam. As part of their fraud scheme, they send an email inquiring the firm to handle a Professional Services Agreement (PSA) for the equipment they are about to sell. The person who contacted the firms used actual names and details to pretend as a member of legitimate companies.

Avoiding scams

Purchase scam for construction equipment is one of the types of scam attempts that has become extremely common nowadays. Scammers send out thousands of versions of their email and use hundreds of registered company names and active lawyer or broker names to conceal their true identities and bad motives.

To give an air of legitimacy, they use online directories to get the contact details of the valid companies they mention in their emails. They even attach bogus electronic supporting documents such as Guarantor form and personal IDs to look genuine and also to increase their chances of getting noticed.

Before a trust account is debited, the people behind the fraud transaction send the victims with bogus cheques and trick them into performing proper verification processes. To ensure that anyone doesn’t become a victim of the purchase scam, it is better to review and verify all the details sent out by the potential client. No need to rush and just take your time in checking the necessary details and requirements. It can be a red flag if a seller refuses to show the equipment and attempts to route all transactions through a third-party payer. In case the transaction proceeds, ask for bank account information and other details that can help in verifying the client’s company authenticity.

A lot of scammers are trying to take advantage of different firms in western countries like USA and Canada. They have fallen victims to this scam and it’s possible that Asian countries like Japan with a good list of firms can be the next target of scammers.