Dumpster Rental Scam Targeting Companies and Consumers
Unfortunately, we recently fell victim to a sophisticated scam that's becoming increasingly common in our industry. This experience has not only made us more vigilant but also compelled us to share our knowledge to protect both our fellow businesses and valued customers.
How the Dumpster Rental Scam Work
Scammers are posting fake ads on platforms like Craigslist and Facebook Marketplace, offering dumpster rentals at suspiciously low prices. Here's how the scam works:
- The scammer posts an ad for cheap dumpster rentals.
- Unsuspecting customers pay for the service, often via Zelle or other quick payment methods.
- The scammer then contacts a legitimate dumpster rental company and uses a stolen credit card to pay for the service.
- The dumpster is delivered to the customer, who believes they've gotten a great deal.
- Days or weeks later, the owner of the stolen credit card discovers the fraudulent charge and initiates a chargeback.
- The legitimate dumpster rental company loses money on the rental and faces potential fees from the chargeback.
Tips for Dumpster Rental Companies
Having fallen victim to this scam once, we did our research and have found out that it's happening nationwide. We now approach each rental request with a heightened sense of caution, particularly when dealing with unfamiliar or suspicious phone numbers. Here are some tips that can help you:
- Be cautious of orders from unfamiliar or out-of-area phone numbers.
- Use online tools like feecarrierlookup.com to verify the origin of phone numbers. Be especially wary of VOIP numbers from locations that don't match the delivery address
- Implement stricter payment verification processes, especially for new customers.
- Consider requiring a copy of the credit card and a form of ID for first-time rentals paid by credit card.
- Train your staff to recognize potential red flags, such as rushed orders or customers who seem unfamiliar with dumpster rental processes.
Perhaps most importantly, we've learned to trust our instincts. If a rental request raises red flags or seems unusual in any way, it's crucial to dig deeper and verify the customer's legitimacy.
Protecting Consumers
While this scam primarily targets rental companies, consumers aren't immune to its effects. As more companies become aware of this fraudulent activity, they're implementing stricter verification processes for new customers.
This means that consumers who unknowingly engage with scammers may find themselves out of pocket and without the dumpster rental service they need.
- Research the company thoroughly before making a payment.
- Be wary of prices that seem too good to be true.
- Check the company's website and look for reviews from multiple sources.
- When possible, use a credit card for payment, as it offers more protection against fraud than cash transfer services.
- If you're unsure, contact the company directly using a phone number from their official website, not from an online ad.
Remember, if a deal seems too good to be true, it probably is.
Staying Vigilant
By staying informed and vigilant, we can work together to stop these scammers and ensure that honest businesses and consumers are protected. If you have any questions about our services or concerns about potential scams, please don't hesitate to contact us at R&L Dumpsters. Your safety and satisfaction are our top priorities.