SOUTH African fraudulent schemes ravage today's container market, victimising the working poor, reports Johannesburg's Citizen newspaper.
Non-existent used shipping containers are being sold in online scams as bargain-basement homes or crude business sites, but are not delivered after the money is paid, said the report.
Estimates set daily losses at ZAR500 (US$2,600) rands in an industry that's worth around ZAR500 million to the economy annually.
Kobus Lombard, of East Rand Containers, said that the current surge in fraudulent activity is exceptionally well organised and immensely hard to track.
Scammers advertise more than legit businesses and spend much on Google ad campaigns to lure buyers.
'The money spent on these campaigns dwarfs anything that legitimate role players are able to afford,' said Mr Lombard.
Used containers are used in a multitude of ways, from mobile clinics through to housing and primitive retail outlets.
'And it's usually the people who cannot afford to lose the money, the person who saved to open a spaza, entrepreneurs, who become ensnared in this scam,' Mr Lombard said.
Prospects or marks are sold a pipe dream of affordable containers priced between ZAR15,000 and ZAR20,000 and required to place a 50 per cent deposit upfront prior to delivery.
'Of course the delivery never happens, but the criminals have the money,' said Mr Lombard who added that legitimate containers would sell for more than ZAR30,000 each.
Chad Thomas, of IRS Forensic Investigations, said container scams have been around for years.
'We have investigated everything from container theft through to investment scams into nonexistent shipping companies, through to similar activity that is presently enjoying a resurgence,' he said.
Websites along with concomitant advertising campaigns are put up and taken down as and when they are bust, Thomas said, and it's almost impossible to trace the source because the syndicates are slick.
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Non-existent used shipping containers are being sold in online scams as bargain-basement homes or crude business sites, but are not delivered after the money is paid, said the report.
Estimates set daily losses at ZAR500 (US$2,600) rands in an industry that's worth around ZAR500 million to the economy annually.
Kobus Lombard, of East Rand Containers, said that the current surge in fraudulent activity is exceptionally well organised and immensely hard to track.
Scammers advertise more than legit businesses and spend much on Google ad campaigns to lure buyers.
'The money spent on these campaigns dwarfs anything that legitimate role players are able to afford,' said Mr Lombard.
Used containers are used in a multitude of ways, from mobile clinics through to housing and primitive retail outlets.
'And it's usually the people who cannot afford to lose the money, the person who saved to open a spaza, entrepreneurs, who become ensnared in this scam,' Mr Lombard said.
Prospects or marks are sold a pipe dream of affordable containers priced between ZAR15,000 and ZAR20,000 and required to place a 50 per cent deposit upfront prior to delivery.
'Of course the delivery never happens, but the criminals have the money,' said Mr Lombard who added that legitimate containers would sell for more than ZAR30,000 each.
Chad Thomas, of IRS Forensic Investigations, said container scams have been around for years.
'We have investigated everything from container theft through to investment scams into nonexistent shipping companies, through to similar activity that is presently enjoying a resurgence,' he said.
Websites along with concomitant advertising campaigns are put up and taken down as and when they are bust, Thomas said, and it's almost impossible to trace the source because the syndicates are slick.
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