Dealerships are often targets of scam artists, and there's a new con game that's making the rounds, says Carl Woodward of Woodward & Associates, a Bloomington, IL, CPA firm with 200 dealership clients.
The latest rip-off has an international twist.
Woodward says the swindle works this way:
Someone from outside of the United States orders a substantial amount of auto parts, pays for them with a charge card and has them shipped aboard.
Once the parts have left the country, the charge card payment is dishonored and the dealership has lost the parts and the payment from the charge card company.
“I would advise dealers and their parts managers not to ship or sell parts out of their immediate area until they know for sure they will be paid for sure,” says Woodward. “Accepting a charge card payment is not a sure way of collecting on the sale of parts.”
He adds, “I have seen this happen three times recently.”
