Please be aware that Facebook Marketplace scams are running rampant in our industry. This scam typically involves a fraudster who offers products at a discounted rate on Facebook Marketplace and convinces unsuspecting customers to make a purchase. The scam unfolds when the fraudster, after receiving payment, places an order with a legitimate retailer, using the customer’s information, and then cancels the payment, leaving the retailer to bear the financial loss.
NRLA also continues to hear about the traditional credit card scam in which fraudsters utilize a third party, often unknowingly, to pick up materials from the retailer while making it seem like a legitimate transaction. Both scams work in a similar way:
Initial Order Placement: Scammers contact a retail lumber dealer, usually through phone or online communication, to place a sizable order of lumber or construction materials. They may use stolen or fraudulent credit card information to make the purchase.
Pickup: To create the illusion of a legitimate transaction, the scammers sometimes arrange for a third party, who is unaware of the fraudulent activity, to pick up the ordered materials from the retail store. This third party is often presented as a representative of the scammer’s construction or contracting business. There are also many situations where the scammers request delivery from the retailer to a site.
Payment Authorization: The payment for the order goes through initially, and the materials are released. The retail lumber dealer believes the transaction is legitimate.
Chargeback Fraud: After the materials have been picked up or delivered, the processing company typically initiates a chargeback on the credit card used for the purchase, claiming that it was unauthorized or fraudulent.
Below is a letter you can share with your staff alerting them to this issue:
Dear Retail Team,
We would like to bring to your attention a recent incident that occurred. Please read this carefully, as it is essential for all of us to be aware of the situation and to ensure it does not happen again.
One of our customers recently purchased 100 sheets of 5/8 T@G from an individual on Facebook Marketplace. The customer was attracted to this offer due to a discounted rate and the promise of delivery. However, the person on Facebook Marketplace who had made the sale, then placed an order with our company and paid for it using a credit card. The order was shipped to the customer’s shop located here in town as per their instructions.
Immediately after our delivery was made to the customer’s shop, the individual from Facebook Marketplace canceled the payment on their credit card to us, leaving us at a significant loss. This incident highlights the importance of verifying payment authenticity and ensuring that transactions are legitimate before shipping products. We must exercise caution and adhere to the following guidelines:
Payment Verification: Always verify the authenticity of payments received before processing an order. This involves checking for unusual or suspicious payment methods, and confirming that payments have been successfully processed.
Order Confirmation: Double-check order details and confirm with customers, especially if any irregularities are detected. Communication with customers can help prevent unauthorized transactions.
Documentation: Maintain clear and accurate documentation of transactions, including payment confirmations and customer communications.
Red Flags: Be vigilant about red flags, such as rush orders, changes in delivery addresses, or unusual payment methods. If something seems off, don’t hesitate to reach out to your supervisor or the management team.
Customer Service: Always prioritize exceptional customer service. Promptly respond to customer inquiries, address their concerns, and ensure they feel valued.
We understand that this incident may have a financial impact on our business. However, with proper measures in place, we can minimize the risk of such occurrences in the future. Please share this information with your colleagues and teammates to ensure that everyone is aware of the situation and is prepared to take the necessary precautions. If you encounter a situation that raises concerns or suspicions, do not hesitate to reach out to the management team immediately.
Thank you for your dedication to our company, and for your continued commitment to providing excellent service to our valued customers.
If you have any questions or need further guidance, please don’t hesitate to reach out to your supervisor or the management team.
Sincerely,
Your Name
About the Northeastern Retail Lumber Association (NRLA)
The NRLA was established in New York in 1894 by a small group of pioneering lumbermen who recognized the value of cooperation. Today, the NRLA is an 1,160 member association representing independent lumber and building material suppliers and associated businesses in New York, New Jersey, Pennsylvania, Delaware, Maryland, Washington, D.C., and the six New England states. Throughout our history, NRLA has provided leadership, support and community for lumber and building material dealers throughout the Northeastern United States. NRLA is an industry leader in education, legislative and regulatory reform, and member programs and services. We also produce the industry’s largest regional trade show, Lumber and Building Material Expo; as well as the IDEAS Show.
While the world has changed dramatically since 1894, NRLA’s mission has remained constant: “To unite, lead, represent, train, and provide a forum for the successful evolution of the independent lumber and building material dealers in the Northeast.”
NRLA is affiliated with ABMA (American Building Materials Alliance), which helps advocate on federal issues specific to the building material industry.
