Contractors… Watch out for fake property owners?

I got contacted by someone claiming to own a property and they needed siding and windows done. Said they’d just bought it and wanted me to measure the windows, doors, and siding. They even gave me an address and told me to head over to measure everything.

The whole thing seemed off, so I called the building department and the listing agent. Turns out the property is still owned by someone else, and they aren’t looking to get work done at all. The ‘owner’ who contacted me kept insisting on paying a deposit right away using a credit card. They even wanted to know which payment system I used, like QuickBooks or Clover reader.

Not totally sure what they were after, but this person was definitely not the real owner, and they were offering a 20% down payment on $80,000… just feels like a scam. Anyone else dealt with this?

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This sounds like the kind of scam where they ‘pay’ a deposit, cancel the job, and ask for a refund. You’d send the refund only to find out the payment was fake, or if it was real, it was made with a stolen card.

I’ve heard of this scam. They use a stolen card and try to get you to pay a ‘third party’ who’s really the scammer. They probably ask about the credit card system you use because it helps them work the scam.

It’s surprising that scammers are going big with huge credit card charges lately. You’d think credit processors would flag such large amounts.

@Landon
They might even be using a money mule to handle payments and pass along the funds to them.

This is probably like the scams done to small businesses… bakers, caterers, florists, and even musicians. They ask for a big order, you start preparing, and then they fake the payment.

They’re targeting contractors, likely hoping for a big payout since large amounts are common in this line of work. Good job on double-checking and finding out it was a scam!

This exact thing happened to me and my business. I posted about the scam and how they operated here:

***SCAMMER’S MESSAGE IN YELLOW TEXT.

https://www.thisforum.com/r/RoofingSales/s/3yoNPwLS5u

Sounds like a fake payment scam for sure.

JAMESZ said:
Sounds like a fake payment scam for sure.

Yep, I’ve seen a lot of these types of scams around here lately.

This happened to me a few years back. Same story – someone wanted work done on a house up for sale, provided info, said they’d pay with a card.

I played along and agreed, but it got shady real fast. I ended up reporting the card as stolen and told the scammer I’d used it to buy a huge TV. The scammer was furious and threatened to call the police. I just laughed because the card was already reported.

Bet it’s a refund scam.

Saw something like this on Judge Judy. A contractor started tearing out a driveway before finding out it was a scam. They tried to argue they shouldn’t have to fix it because they were scammed, but they lost the case. The judge wasn’t buying it.

@therapyabusesurvivor
I remember seeing that! The real property owner wasn’t happy at all.

Classic stolen credit card trick. They pay, then cancel, and claim they had to cancel the card. They ask for a refund via Zelle. The original payment gets pulled back because the card was stolen, and you’re left holding the bag.

I run a rental business and have seen people try this a lot. We had to set up safeguards to keep scammers from getting through.

@jacobcatley
What’s your process to stop these types of scams?

Scammers are targeting small businesses like bakers, caterers, cleaners, and landscapers a lot now. If you have friends or family with a small business, warn them. They often pretend they’re setting up a big event or needing cleaning at a vacant property, and then try to overpay and get you to send money to their so-called ‘third party.’

They usually can’t talk on the phone (so you can’t hear their accent or that they’re using translation software), and only use text apps. They won’t meet in person and always want to pay upfront. The checks are often fake, or they use ‘e-checks’ (which don’t really exist and are a scam tactic).

For safety, insist on meeting them in person, never take checks from people you don’t know, and don’t send any money to third parties on their behalf. Stick to secure payment methods where you can confirm the money. And if they say they can’t do that, it’s likely a scam.

Scammers target people all over with this. They look for a small town online and start trying to fool people there. Just be careful out there, especially with mobile deposit apps – those can delay catching the fake check. The scammers know it’s easier to slip by with these apps because they don’t show up as fast as a real person at a bank might flag it. Only use mobile deposits with trusted sources, like family or known companies.

For anyone running a business, set clear payment policies and only allow secure payment methods. If they refuse to pay in person or with verified apps, that’s a red flag. And avoid peer-to-peer payments like Zelle or CashApp unless it’s someone you absolutely know. Stick to business accounts with protections!