A new scam tactic has emerged at retail lumberyards, where impostors pose as representatives of your contractor or builder customers to place fraudulent orders.

This step-by-step outline helps illustrate how the scam unfolds and what measures can be taken to mitigate such risks in the future:

  1. Initial Contact:
    • A person claiming to be a representative of one of your contractor customers contacts your business to place an order. They provide details that make the order appear legitimate.
  2. Verification Attempt:
    • Your counter staff recognizes the customer’s name and an account in your system, which gives credibility to the order. As a result, they approve the sale to go on account.
  3. Delivery Arrangement:
    • A driver from a common carrier arrives to pick up the ordered materials. They load up the goods and leave.
  4. Repetitive Scam:
    • The same individual continues to place additional orders on the same account for the supposed job over the next few days.
  5. Discovery of the Scam:
    • At the end of the month when you conduct your billing, your legitimate customer contacts you to report that they did not place any such orders or receive any materials.
  6. Realization of Loss:
    • It becomes evident that the earlier orders were fraudulent, and your business has suffered a financial loss due to the released materials not being paid for.
  7. Advice for Prevention:
    • It is recommended to start verifying more rigorously who is picking up materials for orders from contractors and builders. This step can help prevent similar scams in the future by ensuring that all orders are legitimate and authorized directly by the customer.

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.