Browse the internet today and you will begin to notice a disturbing pattern; scam alerts, police chases, court arraignments, fraud victims, foul play and hundreds of thousands of shillings missing. Welcome to the world of scammers.
Scamming has become a thriving enterprise in today’s digital world where buyer information is readily available.
Unfortunately, this criminal activity has spread its tentacles into the shipping containers industry much like in information technology, motor vehicle, forex trade, mobile banking and real estate.
For over a decade, we’ve been receiving reports from innocent individuals who have fallen victim to these scams losing significant sums of money.
The perpetrators are usually clever, pretentious characters masquerading as shipping container sellers primarily in Nairobi and Mombasa.
Why Has Scamming Hit Kenya’s Shipping Containers Industry?
The demand for shipping containers has risen significantly in the last decade. Buyers obtain containers and use them for storage and transportation of goods.
Still, more Kenyans are taking advantage of the container fabrication technology which provides fast, cost-friendly building solutions in the form of container houses, offices, clinics, commercial stalls, ablution blocks, schools and classrooms and more.
Unfortunately, scammers have taken advantage of this growing demand. These con artists often present themselves as legitimate sellers, both online and in person.
Some even have well-developed websites and expertly designed-business cards. Also, they may maintain significant social media presence on pages such as Facebook, X, Instagram, YouTube and Tik Tok.
With well-organized appearances, it is difficult for potential buyers to differentiate the sheep from the wolves.
How Do I Identify a Potential Container Scammer?
This is perhaps the most difficult part of the purchasing process.
Fraudsters have developed ways that are almost impossible to capture especially for an ordinary buyer.
Yet it is important to get value for your hard-earned money.
While there are many shady practices by frauds, we have listed the most common ones that should help you realize the possibility of a scam in progress;
Scammers Often Offer Containers at Below-Market Prices
One of the most common tactics employed by scammers is offering prices that are way below the market value. The goal is to draw quick attention of the buyer.
Genuine dealers typically sell containers within a narrow price range usually differing by between Ksh. 10,000 and Ksh. 20,000.
If you come across a deal that is significantly cheaper than the market average, it’s likely a scam.
Scammers Often Request Unusual Forms of Payment
Legitimate dealers will maintain a calm and professional demeanor throughout the sales process.
They will not pressure you into making hasty decisions or accepting unconventional payment methods.
Instead, they will encourage you to take your time, ask questions, and conduct thorough research.
Reputable sellers will prefer formal electronic payments including bank transfers or mobile money, and will insist on paying the full amount for the container.
They will also be willing to provide you with essential information about the container such as the serial number to facilitate verification and ownership transfer.
Scammers Will be Dodgy About their Physical Address
While frauds will easily share pictures of the containers as well as business cards with you, they are likely to struggle to provide information regarding the physical address.
Instead, they could easily take or direct you to the premises of legitimate dealers or other fraudulent dealers.
They Often Lack Proper Paperwork
Most likely, a fraudster will lack verifiable, legal paperwork regarding the item(s) as well as their business/company.
They could struggle with providing CR-12 documents, tax information, Pin information, registration information and other business permits.
Watch Out for Social Media Activity and Bank Information
A fraud in the containers industry will lack an active and consistent presence on social media.
Information regarding the containers as well as fabrication projects is likely to be irregular and patchy.
Their social media activity will often be occasional, uneven and shady.
Even though they might have a website and a Facebook page, they will lack accounts on other popular platforms such as IG, X, Tiktok and YouTube.
Due to the dishonest nature of their business dealings, scammers often have shady financial relationships with banks and financial institutions and as such, might be facing legal investigation.
As a result, they may look to provide less traceable contact information, such as personal mobile numbers or newly created bank accounts, to avoid arrests.
They Don’t Have Contacts/Information of Past Clients
It is highly unlikely that a scammer will have a reliable record of satisfied customers. They will likely be hesitant to provide contact information of previous clients as well as customer reviews.
This lack of clear, trusted information should be enough to raise red flags for the buyer.
Lack of Presentable Sales Personnel
As concerns big business such as container equipment, scammers will not have the presence of a support team.
In fact, they can either be loaners or can operate in twos.
Helpful Tips to Avoid Being Conned in the Containers Industry in Kenya
We now know that your money can disappear in seconds!
We also know that conmen are everywhere, both online and in the streets, neighborhoods and industrial spaces.
Being careful always helps.
Therefore, tips below should help you successfully avoid scammers in the shipping containers industry in Kenya;
1. Be Sure to Buy from Legitimate Dealers
The first step to safe purchase is to take your time to find containers from trusted, long-term dealers. Be sure to contact companies such as Premium Containers Limited.
You might also come across individual sellers looking to offload containers, although these are extremely rare.
However, be sure to verify documents before making any payments.
Note: It is much safer to purchase from companies so that in case of any issues with containers, the selling firm can be identified as the primary supplier.
2. Physically Visit the Seller to view the Units for yourself
This should be standard procedure for any buyer.
Much like land, vehicles or houses, shipping containers are hot property and investing in them requires actual physical inspection.
Visiting the seller’s location before making any payments is essential.
This allows you to examine the container, interact with the seller, and gain a better understanding of the process.
Additionally, it gives you that peace of mind knowing you are doing business with well established dealers.
3. Ask for and Verify the Legal Documents of the Seller and the Container
In Kenya, any legal company must have documents that support its legitimacy.
Below is a list of five documents you can verify from the seller before conducting business:
1. Company registration certificate
2. CR12 Certificate
3. KRA pin certificate
4. Trading License
5. Tax compliance certificate
When buying a shipping container, be sure to ask for the above documents from the seller (link to documents when buying a shipping container in Kenya);
On the other hand, for purposes of verification, the seller must be able to provide a logbook with a serial number that matches that imprinted on the container you intend to buy.
4. Go Through Their Social Media Pages
Reputable dealers will have active websites as well as social media platforms.
These pages will feature contact information in the form of phone numbers and email addresses through which you can conveniently reach them.
More importantly, companies dealing in shipping containers will regularly publish information on recent sells, fabrication projects, customer reviews and so on.
Be sure to visit their sites on Facebook, X, Instagram, Whatsapp, YouTube and so on.
5. Ask for Their Past Client’s Contact Information
To ensure a secure and transparent transaction, find out about the seller’s past business activities.
A legitimate dealer should be able to provide information about recent deliveries, completed fabrication projects, and customer reviews.
You can also ask for contact information of previous clients.
By speaking directly with former buyers, you can gain valuable insights into the seller’s reliability, professionalism, and pricing practices.
This information will help you make an informed decision and reduce the risk of fraudulent activities.
6. Avoid Paying in Cash
In any case, genuine sellers should discourage you from walking around with loads of cash or making cash payments.
Instead, they will offer secure forms of money transfer primarily through registered bank accounts that bear the company’s name.
In case cash is the only mode of payment available, genuine sellers should have a cash counter machine at the office for calculations.
This reduces the risk of errors and disputes, providing both parties with peace of mind.
7. Trust Your Gut Feeling
This is perhaps the most important part of any buying process.
Typically, psychologists encourage the trust of one’s intuition since this is helpful in decision-making.
Your gut feeling is that inner voice that tells you whether a business process is right or wrong.
For instance, feelings of anxiety or discomfort can be signs that you should avoid a process.
As you step into the seller’s office, meet the sales team, engage your contact and study the entire premises, you should be able to determine whether or not you are on the right track.
While your instincts may provide valuable insights, it’s essential to balance them with rational thinking and thorough research.
Is the Government Doing Anything About Scammers?
In 2011, the promulgation of Kenya’s constitution ushered in the establishment of the Directorate of Criminal Investigations (the DCI) by the National Police Service Act.
This is a special unit of the National Police officers trained to deal with specific crimes on a national and regional scale.
In the years before, Kenya had experienced an increase of serious criminal cases of fraud, thefts and robberies that include cyber-crimes, lands cartels, pension schemes, mobile money and mobile banking, insurance fraud, SACCO fraud, money laundering and more.
Apart from sensitizing the public about possible crimes, the DCI further provides criminal intelligence, forensic analytics, digital fraud data as well as taking active part in the maintenance of law and order.
While the DCI as well as the Kenya Police play an important role in combating these crimes, their efforts might not be enough to save victims from scammers.
According to the Kenya National Bureau of Statistics, the year 2024 has seen more than 56% of tax paying Kenyans losing millions to scammers, highlighting the urgency for quick measures.
As such, we have taken time to source reliable information on fraud in the freight containers industry and as such have come up with possible solutions that should help you safely purchase your equipment and embarrass the devil in the process.
Read Also: Useful Shipping Container Dimensions and Specs in the Kenyan Market
Looking to Buy a Shipping Container? Premium Containers Limited is Here to Help!
We get it. Navigating the containers industry to purchase a unit is no longer safe.
It is a tiresome process filled with risks since quacks and cons have taken over the streets as well as the internet.
Your money is important and must work to your every advantage.
Looking at the tips we have provided, visiting the seller’s premises, verifying all documents, comparing prices, studying the social media platforms and paying electronically should help you make informed decisions before making any payments.
Shipping containers are hot property with countless functions in homes, big farms, institutions, companies and government establishments.
If you are looking for one or more of these, do not hesitate to engage us.