Protecting Yourself from Fraudulent Buyers: What Boat Dealers and Yacht Brokers Need to Know

Protecting Yourself from Fraudulent Buyers: What Boat Dealers and Yacht Brokers Need to Know


The marine industry has recently seen an uptick in a deceptive scam that has long plagued the automotive sector. As a trusted source for vessel history for over 20 years, Boat History Report is committed to ensuring that dealers, brokers, and individual sellers remain informed and protected from fraudulent activity. This article outlines how this scam works, what red flags to watch for, and how to safeguard your business and customers.


How the Scam Works

The scam targets individuals who list boats for sale online - whether through brokerages, classified sites, or social media platforms. Here’s a step-by-step breakdown of the typical scheme:

1. Initial Contact: Shortly after a boat is listed for sale, the seller is contacted via email, text, or phone by an individual claiming to be an interested buyer. The message often expresses urgency, such as wanting to see the boat over the weekend.

2. Request for a History Report: The “buyer” insists on having a history report for the vessel before they will commit to viewing it. However, instead of obtaining the report themselves (which is always an option with legitimate services like Boat History Report), they claim only the seller is allowed to order the report.

3. Pushback on Trusted Reports: If the seller suggests providing a report from a reputable service such as Boat History Report, the scammer dismisses it, stating they have had "bad experiences" with such companies.

4. Redirect to a Fraudulent Site: The “buyer” then instructs the seller to purchase a report from a specific website. These websites are typically fraudulent, often owned by the “buyer” themselves. Once the payment is made, the buyer vanishes - no boat showing, no reimbursement, and no real buyer.

5. Financial Loss and Data Risk: Not only does the seller lose the money spent on the fake report, but they may also expose their personal and payment information to further fraud.


Why This Matters to the Marine Industry

While this scam has been prevalent in the automotive market for years, it has only recently begun affecting the boating community. The increased digitization of boat sales and the popularity of online marketplaces have made the marine sector an attractive target for cybercriminals.

Importantly, Boat History Report is not affiliated in any way with these fraudulent schemes or the deceptive websites involved. Our company has been serving the marine industry with reliable, transparent vessel history reports for two decades. Anyone - buyer or seller - can purchase a legitimate report from our official site without restriction.


Red Flags to Watch For

To help you and your clients identify potential scams, be on the lookout for these warning signs:

• A buyer who insists you purchase a history report from an obscure website rather than obtaining it themselves.

• Claims that only the owner or seller can request a report (this is false - anyone can obtain a report from reputable sources such as Boat History Report).

• Requests for reports from unfamiliar websites rather than well-known services like Boat History Report. Many of these fraudulent sites also claim to offer auto, RV, and motorcycle history reports.

• Pressure tactics or urgency, such as needing the report immediately to secure a weekend visit.

• Unwillingness to accept a valid report from Boat History Report.


Steps to Protect Yourself and Your Clients

To avoid falling victim to this scam, boat dealers and yacht brokers should take the following precautions:

1. Educate Your Team and Clients: Share this information with your sales teams, clients, and anyone listing boats for sale. Awareness is the first line of defense.

2. Stick with Trusted Services: Use well-established, reputable providers for boat history reports, such as Boat History Report. If a potential buyer refuses to accept a report from a recognized service, consider it a red flag.  

3. Provide a history report directly within the listing: If a report is included directly within a listing, this often stops this fraudulent behavior immediately. 

4. Don’t Be Pressured: Scammers often create false urgency. Take your time to verify requests and the authenticity of any website you are directed to.

5. Verify Website Authenticity: Before purchasing a report from any site, confirm it is legitimate. Look for secure website indicators (https://), contact information, reviews, and how long the company has been in business. You can also check the WHOIS record for the website’s domain to see when it was created - recently registered domains can be a red flag for fraudulent operations.

6. Report Suspicious Activity: If you encounter or suspect a scam attempt, report it to Boat History Report and the proper authorities. Sharing this information can help protect others in the community.


A Note from Boat History Report

We want to be clear: Boat History Report is NOT associated with these scams in any way. We have built our reputation over 20 years by providing accurate, unbiased, and comprehensive vessel history reports to the marine industry. Our reports are available to both buyers and sellers, and no party is ever required to use our services by anyone but themselves.  


As part of our commitment to transparency and security, Boat History Report is the only boat history service that actively partners with leading organizations in the industry and all 50 states for registration and title data. These include brokerage and dealer associations such as the Yacht Brokers Association of America (YBAA), the International Yacht Brokers Association (IYBA), and regional Marine Industry Associations. We also work closely with law enforcement and regulatory bodies, including the National Insurance Crime Bureau (NICB), local and federal law enforcement (LEO), the US Coast Guard, the National Association of State Boating Law Administrators (NASBLA), the International Association of Marine Investigators (IAMI), and the National Marine Lenders Association (NMLA).


These partnerships reflect our ongoing mission to enhance integrity, accountability, and fraud prevention across the boating marketplace. If you or your clients ever have concerns or questions about the legitimacy of a report or the conduct of a prospective buyer, please reach out to us directly. We are here to help ensure safe and transparent transactions in the boating market.


About Boat History Report

Boat History Report is the industry’s leading provider of watercraft history reports, trusted by yacht brokers, boat dealers, marine surveyors, law enforcement, and financial and insurance institutions. For over 20 years, our extensive database, containing over 150 million records, 25 million unique boats, and over 2 million significant negative events, has empowered professionals and consumers with critical insights to mitigate risk, enhance transparency, and build buyer confidence. As the most trusted resource for watercraft history, Boat History Report is an essential tool in the used boat buying and selling process.

 

About the Author

Caroline Mantel is the Director of Business Development at Boat History Report and a recognized authority in marine fraud prevention. With over a decade of experience supporting transparency and consumer protection in the boating industry, Caroline serves as 2nd Vice President of the International Association of Marine Investigators (IAMI), a Board Member of the National Marine Lenders Association (NMLA), and a member of the National Boating Safety Advisory Committee (NBSAC). She is a frequent speaker at industry conferences and collaborates closely with organizations such as YBAA, IYBA, NASBLA, AVDA, and law enforcement agencies to advance fraud awareness and education. Her leadership at Boat History Report - an industry staple for vessel history since 2005 - continues to drive efforts that promote integrity across all aspects of boat buying and selling. For additional questions related to this fraud or other marine industry fraud, please reach out to Caroline via email at Caroline@boathistory.com.

 

Boat History Report dealer/broker info: https://boathistoryreport.com/dealer/ 

Phone: 1-800-441-7599

Email: info@boathistoryreport.com 

Article Author: Caroline Mantel