In the first quarter of 2023, construction machinery sales fraud increased by 300%, with losses to construction companies exceeding £100 million a year.
What is the reason for this? Never before have there been so many online platforms for buying and selling construction equipment. Where there are numerous opportunities, there are also people looking for easy and quick money from naive buyers.
In the past, the main problem for buyers was inaccurate descriptions of the condition of machines. Today, however, scammers are copying photos of real sellers, listing the equipment as their own, offering it for an extremely low price – often less than 50% of the value of a similar machine. Of course, the deposits go into another account and the real seller has no idea.
Such listings used to appear mainly on Gumtree, but now Facebook Marketplace and eBay are also full of scams. Both platforms do not sufficiently verify sellers, and many accounts are simply stolen without their owners even knowing about it.
How can you spot a suspicious ad?
Look out for:
- Attractive price,
- Contact only by email or Messenger,
- No possibility to see the machine in person,
- Pressure from the seller – someone else allegedly also wants to buy,
- No possibility to see the rating plate,
- The seller changes the reasons why the machine cannot be seen.
How to avoid being scammed?
- Always try to see the machine in person. If this is not possible, ask for a video interview at the location of the equipment.
- Ask for pictures of the serial plate and check with the TER system that the machine is not reported stolen.
- Never make a deposit without seeing the machine in person.
- Check Google reviews of the company.
Despite applying these rules, you can still make a mistake. Rafal Sykut, a construction machinery exporter from RS Machinery Ltd, recalls a situation when a buyer wanted to sell a Kubota KX027 excavator. Despite all checks being positive, it turned out that the machine had been rented from a rental company and the seller was trying to sell it without a title.
Buy safely from verified machinery dealers
We recommend that you only buy construction machinery from verified sources such as RS Machinery Ltd in Luton. Every machine comes with a TER and PDI inspection certificate, ensuring a safe transaction and peace of mind that everything has been reliably inspected. In addition, RS Machinery offers a 30-day guarantee on used machinery, which is rare in the market.
Buying by leasing is another way to reduce risk, as the lender does most of the background check on the machine, giving the buyer peace of mind.
Check out the company before buying
Checking a company’s reviews on Google is a good way to make sure you know who you are dealing with and whether it is worth the risk. Experts predict theft to increase by another few per cent next year. Remember to avoid basic mistakes and be vigilant when you see a particularly bargain offer.