Several Irish machinery dealers have told the Irish Farmers Journal in recent weeks that dealerships are continuing to be targeted by fraudulent payment transactions.

Over the past few years, there have been a growing number of cases of farm machinery dealers falling victim to payment scams in relation to sales of machinery. The Irish Farmers Journal understands that these sales were generally based on responses to online ads, with the fraudulent buyers not previously known to the dealers.

After agreeing a price, payment is made by credit card with the details taken over the phone and delivery arranged via a courier.

In some cases, when the courier contacted the buyer to arrange the delivery, they were told to deliver to a different derelict address or in other cases, the buyer sent their own courier to collect the goods at the dealer’s premises.

Fraudulent

According to the dealers, who wish to remain anonymous, the problem arises within a few weeks of the transaction when the payment services provider notifies the dealer that the payment has been refused, as it was a fraudulent transaction. The full amount is to be charged back to the dealer, who is left out of pocket.

One dealer explained: “I received a call in the days before Christmas from a guy who wanted to buy an agitator.

“We agreed a price and he rang back on the 30 December in a big panic, saying he needed the machine quickly. He paid for the machine by credit card over the phone and sent down a courier.

“A man met the courier that evening at a crossroads near Birr in Co Offaly. When the courier arrived, the man, who was wearing a mask and had his hood up, told the driver he had COVID-19 and to stay well back. Once the payment was declined a few weeks later, I went to the guards but they’ve had no luck. I’m now down €7,500 as a result.”

How to avoid Card Not Present (CNP) scams

It is believed that over 60% of all fraud on Irish based payment cards takes place in a CNP environment.

According to the Banking and Payments Federation of Ireland, retailers that accept cards in a CNP environment are required to adhere to a different set of terms than one which accepts cards in a face-to-face environment only.

The following advice for machinery dealers is from the FTMTA.

To minimise your risk:

  • Check out any potential suspicious customers. If you are not comfortable, don’t proceed with the sale.
  • Verify the address by getting a copy of a utility bill or driving licence.
  • Is the payment card in the customer’s name? If the answer is no, do not proceed with the transaction.
  • Check if the delivery address has been used previously at your business but with different card details, contact names and/or phone number.
  • Check if the payment card number has been used previously at your business, to purchase goods for an address different to that being provided in the current sale.
  • Call your payment services provider and ask them to check the name and address of the cardholder with the card issuer. The issuer should confirm the contact details of a customer.

    • Other checks:

  • Use a caller display service to confirm which telephone number a customer is calling from.
  • Be aware when the customer has trouble remembering their address or details.
  • Use a courier of your own to make delivery and make sure the courier only delivers to the address that you have been given. The courier should get signed proof of delivery.