Beware of produce scammers—USDA alerts of increased imposter fraud activity
The USDA Agricultural Marketing Service’s Perishable Agricultural Commodities Act (PACA) Division informed that it has received a significant increase in produce scam activity.
Complaints involve individuals and entities falsely claiming to be licensed PACA members and legitimate produce buyers. The fraudsters steal merchandise by placing orders for fruits and vegetables, diverting the load to an unknown location, and then failing to pay for the produce.
How produce scams work
In these schemes, fraudulent purchasers order products and, in most instances, arrange for their transportation.
These impersonators often use the names of established companies, including the names of personnel within the company, to carry out the deception. This makes it more difficult to identify the scam, as big companies with a strong and verifiable presence in retail and media tend to be trusted more blindly.
The fraud continues when the shipper invoices the company they believe to be the buyer, and the latter confirms it never placed the order or received any product. By the time the shipper begins verifying basic information such as email addresses, phone numbers, names, and titles, they realize the transaction was fraudulent and the shipment has been stolen.
USDA recommendations to prevent produce scams
The government agency is strongly encouraging shippers to verify the specific details of any potential transactions in advance.
They specifically suggest that before completing a sale, produce sellers should confirm buyer details such as delivery destination, company personnel, and contact information. The entity also advises shippers to be on high alert for slight differences in phone numbers and email addresses of potential buyers, such as subtle misspellings or extra characters.
Finally, the USDA provides a PACA license search tool and other trusted industry resources that sellers should use to cross-check buyers’ information.
The agency is encouraging industry actors to report any suspected fraudulent activity by calling local law enforcement and emailing PACAInvestigations@usda.gov.
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