The USDA Agricultural Marketing Service's Perishable Agricultural Commodities Act (PACA) Division has recently received a significant increase in allegations of fraudulent activity involving individuals and entities falsely claiming to be licensed PACA members and legitimate produce buyers. These fraudsters place orders for fruits and vegetables, divert the load to an unknown location, and then fail to pay for the produce.
In these schemes, fraudulent purchasers order product and in most instances arrange for its transport. However, when the shipper invoices the company believed to have purchased the produce, the company confirms it never placed the order or received the product. By the time the shipper begins verifying email addresses, phone numbers, names, and titles, it becomes clear the transaction was fraudulent, and the shipment was stolen. Often, these impersonators use the names of established companies, including the names of personnel within the company, to carry out the deception.
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Shippers are strongly encouraged to verify the specifics of any potential transactions in advance. Before completing a sale:
- Confirm buyer details such as delivery destination, company personnel and contact information.
- Be on alert for slight differences in phone numbers and email addresses of potential buyers, such as subtle misspellings or extra characters.
- Cross-check buyers' information with the PACA license search tool and other trusted industry resources.
To report suspected fraudulent activity, email [email protected]. Industry members are also encouraged to report any stolen shipments to local law enforcement.
For more information:
USDA
Tel: +1 (800) 495-7222
https://www.ams.usda.gov/rules-regulations/paca
