White van speaker scam

Not to be confused with White van man.

A fraudulent MSRP and product tag on an Image Reference Model IA-1901 speaker system.

Misleading specifications list on the same Image Reference

The white van speaker scam is a scam sales technique in which a salesman makes a buyer believe he is getting a good price on audio merchandise. Con artists in this type of scam call themselves "speakerguys" or "speakermen".

Process

The typical white van speaker scam involves one to three individuals, who are usually casually dressed or wearing uniforms. They drive an SUV, minivan or a commercial vehicle (usually a white commercial van, which may be rented inexpensively) that often displays a company logo. To find suitable targets, the van operators set up their con in moderately-trafficked areas, such as parking lots, gas stations, colleges, or large apartment complexes. Alternatively, they may target people driving expensive cars and wave them down. The marks (victims) are usually affluent, young people, college students, or others thought to have large amounts of disposable income. The marks may also be foreigners or people who are unfamiliar with typical business transactions in Western countries.

The operators often claim that they work for an audio retailer or audio installer and that, through some sort of corporate error (warehouse operator mistake, bookkeeping mistakes, computer glitch, etc.) or due to the client changing the order after supplies were purchased, they have extra speakers. Sometimes, it is implied that the merchandise may be stolen. For varying reasons they need to dispose of the speakers quickly and are willing to get rid of them at "well below retail" prices. The con artists will repeatedly state the speaker's "value" as anywhere between $1800 and $3500, prices often purportedly verified by showing a brochure or a magazine advertisement. They will usually also have an official-looking website verifying their claims.

If the mark declines the offer, the scammer uses various high-pressure negotiation sales tactics. Among these techniques are producing glossy material that details the quality and high retail value of the speakers, and bombarding the potential customer with technical jargon, whether correctly or incorrectly used. If still unable to convince the mark that he is turning down an incredible offer, the con artist will almost always lower the price significantly. Some con artists will even suggest that, since the customer got such a great deal, he should pay a little extra as beer money for his supposed benefactor.

Economics

Due to the age of the scam and its dubious legality, white van scams often have relatively sophisticated logistics. Distributors rent a warehouse and obtain licenses and distribution rights, then import large quantities of poorly made goods. They ship these goods to local warehouses in major cities and hire 'salesmen' to distribute the shoddy goods.

North American distribution operations are in major cities across the continent.^[1] The marketers at each office establish a promotion, benefit, and bonus scale for the speaker sales teams. Bonuses may be paid in cash, checks, fake credit cards or, with some irony, speakers.

In Australia the same tactic is used. Receipts are issued, but the contact details are usually fake so that the goods cannot be returned. As an added measure, vehicles are leased so that they can not be traced to either the distributor or 'sales person' driving.

Online availability

White van speakers and home theater systems are now commonly found online on such sites as Craigslist, Kijiji and eBay. Speakers and projectors are popular scams because they are not easily tested. Buyers are misled into purchasing low quality knock off brands. Reviews of the speakers or electronics highlight that they lower quality than inexpensive "home theater in a box" systems sold by legitimate manufacturers^{[citation needed]}.

One online technique used on Craigslist is for the seller to post ads for the speakers for the "retail price" printed on their boxes, which is often in the thousands of dollars. Any box of speakers with an MSRP printed on it should be considered a counterfeit. Then the seller will post another ad with different wording at a "deal" price, a fraction of the original price. Both ads will have links to the phony speaker brand's web site. The higher priced advertisement is meant to fool any prospective buyer into thinking that they have done their due diligence. In addition to the phony prices, other common verbiage includes: "my loss is your gain", "received as a gift", "won it at a raffle or company award", "I am an audio installer", "having a baby", "need to pay rent or a fine", "already have one don't need 2", "moving out of town", "great buy!", "need to sell fast" and "still in the box." A more recent development in ad postings are self-perpetuating scams—those claiming to be victims of the scam, when exposed, say they are trying to recoup some of their loss^{[citation needed]}.

Techniques used

The brand name of the speakers is often confusingly similar to a well-regarded speaker manufacturer. For example, the reputations of manufacturers such as Klipsch, Polk Audio, Paradigm, Dahlquist, and Wharfedale are used to sell low-quality speakers with fake brand names like Volk Audio, Paradyme, Dahlton, and Grafdale. Another brand called Millennium Theater Systems or MTS,^[2] is similar to MTX, and a brand called Paramax Audio^[3] has been claimed to be jointly owned by Paramount Studios and the IMAX Corporation. "Matrix Audio Concepts" is another fictional brand that returns additional related websites with an Internet search query for that term. Some sites, such as for Theater Research,^[4] also list customer service telephone numbers or support e-mail addresses. These methods of contact are often dead ends. Another recent technique is to parrot but not mimic^{[clarification needed]}, the names of reputable companies. For example, Genesis Media Labs is a white van scam name that trades on the American "Genesis" brand of loudspeakers,^[5][6] while DiVinci trades on the name of the Swiss "DaVinci" company.

Technology and quality of the product

Overall, the quality of the product is inferior. For example, the Denmark Audio system has been bench tested and proven to be of very low quality, and has been reviewed as sounding like a "hornet's nest".^[7] Another common complaint is that when a buyer tries to hook up the home theatre system to a high definition television set, they find it cannot be done. The claim of HD compatibility made for the white van system is just another element of the scam.

Systems (typically amplifiers with speakers, sold as sets) with low numbers (2 or 3) of inputs and/or audio switching only (no video inputs/switching) with only analogue L/R/6ch RCA jacks are common in this scheme.

Organizations connected to the distribution side of the scam

• Bang Audio - Registered Business Number WA BN11169709 (Western Australia, Australia)^{[8][unreliable source]}
• Paramount Audio Performance Pty. Ltd. (Victoria, Australia)^[9]
• Oliver Beling (Sole trader with registered ABN) (Victoria, Australia)^[10]
• Sonic Audio Distributors (a.k.a Sonic Audio Distribution) (Victoria, Australia)^[10]

Product safety concerns

Consumers have reported receiving products which have been faulty for some time now.^[10] This is a result of sub-standard quality and manufacturing processes. However, during June 2008 another, more serious warning emerged. Denmark Audio systems inter alia had been found to have an impedance curve dropping below two ohms.^[11] The result of this fault will damage amplifiers connected to the load when it drops, however it could also lead to overheating and short circuits.^[11] Therefore these systems could potentially cause a fire if left unattended. Products are not UL listed nor CSA approved.

Brands associated with the scam

• Accusound^{[12][unreliable source]} (Not related to Accusound Australia nor the Accusound speakers made by Audiosphere in Canada)
• Acoustic Monitor, Acoustic Studio Monitor 3311/3312, Acoustic Response, Acoustic Image, Acoustic Lab Technology, Acoustic Reference^[13][14]
• Advanced Sound Technologies (AST)^[14]
• Afinity^[15]
• Ashton, Ashton Home Theater Systems^{[16][unreliable source]}
• Audio Resource^{[12][unreliable source]}
• Audio-Tech, Audio Tech Pro^[14]
• Audiofile^[13][17][18]

• BSS - Brendle Sound Systems^{[19][unreliable source]} (No relation to BSS Audio, part of the Harman Pro Group), also Brendel, BrendelElectronics^{[20][unreliable source]}
• BTS System - Innovative Sound and Bass http://www.bts-system.com/
• Bjorn and Wielder^[21]
• Camelot Audio^[12]
• Carlson Audio^[12]
• Cerwin Vega (counterfeit)^{[22][unreliable source]}
• Cleo Acoustics (Singapore)^{[23][unreliable source]}
• Columbia Audio^[10]
• Crystal Home Theater (Not related to Crystal Home Audio)^[24]
• Definitive Sound Technology^{[25][unreliable source]} (no relation to Definitive Technology)
• Denmark, Denmark Audio, Denmark Optics^[9][13][17]
• Deutsch Akustik^[26]
• Dogg Digital, Digital Dogg Audio^[13][14][27]
• DanWave, Dan Wave^[14]
• Dahlton^[13][14]
• Digital Pro Audio, Pro Audio, Digital Audio,Digital Galaxy, Digital Audio Professional Speaker Systems, Digital Audio Skyline, Digital Research^[13][14][17]
• DiVinci^[14][17]
• Dreamland, Dream Land^[10]
• Dynalab^[13][17]
• Elite Audio^[28]
• EDS, Elite Digital Sound^[29]
• EKO^[12]
• Eurosound^[12]
• Epic Sound^[30]
• Epiphany Audio^[13][31]
• Fleetwood Audio^{[32][unreliable source]}
• Genesis Media Labs, Genisis Media Labs^[14] (no relation to Genesis Technologies)
• Glatten Audio^[12]
• Grafdale^[13][14]
• Hauffman^[14]
• Hy-line Sound Electronics^[14]
• I-Cinema^{[33][unreliable source]}
• Icon MediaLab, Icon Media Lab Digital Fusion^[10][34] (No relation to LBi Ltd., the registered trademark owners of the Icon MediaLab name)
• Image Audio Concepts^{[35][unreliable source]}
• Image Reference^[36]
• JBL (counterfeit)^[22]
• Jannsonn & Fynn^{[37][unreliable source]}
• Kauffman^{[38][unreliable source]}
• Kevlar^{[39][unreliable source]}
• Kinetic^[15]
• Kirsch^[24]
• Klinsmann^[40]
• Linear Acoustik^[12]
• Linear Phase^[17]
• London^[31]
• Matrix Audio^[14]
• Mantooth Audio^[14]
• Marc Vincent Audio^[41]
• McLaren ^[14]
• Millennium Theater Systems (MTS)^[14][17]
• Norway Audio^{[42][unreliable source]}
• Olin Ross^[43]
• Omni Audio^[13]
• Optamax, Optimax^[44]
• Optavision, Optivision^[44]
• Oracle Projector^{[44][unreliable source]}
• Orix^[12]
• Palermo^[15]
• Paradyme^[17] (no relation to Paradigm, nor Paradyme, a audio-speaker retailer in California)
• Paramax^{[14][15][17][43][45]}
• Proline Acoustic^[14]
• Pro-Optics, 3D Optics, 3D Optiks^[44]
• Protechnik^{[41][44][45][46]}
• Protecsound (PTS)^{[13][47][unreliable source]}
• PSD^[13][14]
• PurTone^[48]
• RDX^{[49][unreliable source]}
• Rothdale^[50]
• Samaurai^[14][17]
• Sondergaard (www.denmarkcinematic.com)
• Skyline^[17]
• Sutherland Technology^[14] (no relation to Sutherland Engineering)
• Theater Logic^[51]
• Theater Research, Theatre Research, Theater Innovations^[13][14][17]
• US Acoustics^[52]
• VAV^[12]
• VisionMax^{[53][unreliable source]}
• Vokl Audio^[54]
• Volk Audio (also has a projector branch known as Volk Cinema)^[55]
• Wahldorf Home Theater^[56]

See also

• Confidence trick

References

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2. ^ "MTS Speakers". MTS Speakers. http://www.mtsspeakers.com/. Retrieved 2011-06-13. 
3. ^ http://paramaxaudio.com/ Paramax Audio website
4. ^ "Theater Research website". Trtheaterresearch.com. http://www.trtheaterresearch.com/. Retrieved 2011-06-13. 
5. ^ "Genesis Loudspeakers by Genesis Advanced Technologies". Genesisloudspeakers.com. http://www.genesisloudspeakers.com. Retrieved 2011-06-13. 
6. ^ "Genesis Model 5.2 review at Stereophile Magazine". Stereophile.com. 2006-02-12. http://www.stereophile.com/floorloudspeakers/206gen/. Retrieved 2011-06-13. 
7. ^ "Warning - white van scammers out in Melbourne". Ls1.com.au. http://www.ls1.com.au/forum/showthread.php?t=90432&page=2. Retrieved 2011-06-13. 
8. ^ "BangAudio". OzRipOff. 2009-07-13. http://www.ozripoff.com/report-view/299-bangaudiocomau-scam. Retrieved 2011-06-13. 
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11. ^ ^{a b} "Kitsap Sun". Kitsap Sun. http://www.kitsapsun.com/news/2008/jun/26/sound-system-scammers-traveling-in-white-van-get. Retrieved 2011-06-13. 
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13. ^ ^{a b c d e f g h i j k l m} "Kuro5hin story". Kuro5hin.org. http://www.kuro5hin.org/story/2004/4/9/224439/1810. Retrieved 2011-06-13. 
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16. ^ "George Grover - The Home Theater Store". Ripoff Report. http://www.ripoffreport.com/Stereos/George-Grover-The-Ho/george-grover-the-home-theat-mm5p5.htm. Retrieved 2011-06-13. 
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18. ^ inDigimedia, Corp. - http://www.indigimedia.com. "ScamShield Listing UK". Scamshield.com. http://www.scamshield.com/Sighting.asp?state=none&country=United%20Kingdom&article=1. Retrieved 2011-06-13. 
19. ^ "Bss M-250's - 440 Forums". En.440forums.com. http://en.440forums.com/forums/?act=ST&f=3&t=8149&lang=EN&. Retrieved 2011-06-13. 
20. ^ "Forum warning about Brendel amplifiers". The-home-cinema-guide.com. 2010-12-20. http://www.the-home-cinema-guide.com/connecting-brendel-power-amplifier-to-a-surround-sound-system.html. Retrieved 2011-06-13. 
21. ^ inDigimedia, Corp. - http://www.indigimedia.com. "Australian White Van Speaker Scam Sightings". Scam Shield. http://www.scamshield.com/Sighting.asp?state=none&country=Australia&article=1. Retrieved 2011-06-13. 
22. ^ ^{a b} "PSW Sound Reinforcement Forums: The Basement => The White Van Scam". Srforums.prosoundweb.com. http://srforums.prosoundweb.com/index.php/mv/tree/27816/72/. Retrieved 2011-11-20. 
23. ^ "Singapore Hardwarezone Forum: Scam at around Sim Lim Area - Warning". Forums.hardwarezone.com.sg. 2005-01-19. http://forums.hardwarezone.com.sg/showthread.php?t=1705581. Retrieved 2011-06-13. 
24. ^ ^{a b} inDigimedia, Corp. - http://www.indigimedia.com. "White Van Speaker Scam - North Carolina". Scamshield.com. http://www.scamshield.com/Sighting.asp?country=none&state=North%20Carolina&article=1. Retrieved 2011-11-20. 
25. ^ [1] [2] - Forum Review and Definitive Sound Technology Website
26. ^ "deutschakustik.com". deutschakustik.com. http://www.DeutschAkustik.com. Retrieved 2011-11-20. 
27. ^ Santa Barbara BBB News: Dogg Digital Audio^{[dead link]}
28. ^ Ray, Josh. "The White Van of the Apocalypse". Sonicflare. http://www.sonicflare.com/archives/the-white-van-of-the-apocalypse.php. Retrieved 2011-11-20. 
29. ^ [3]^{[dead link]}
30. ^ inDigimedia, Corp. - http://www.indigimedia.com. "ScamShield Listing New Mexico". Scamshield.com. http://www.scamshield.com/Sighting.asp?country=none&state=New%20Mexico&article=1. Retrieved 2011-11-20. 
31. ^ ^{a b} inDigimedia, Corp. - http://www.indigimedia.com. "ScamShield Listing Tennessee". Scamshield.com. http://www.scamshield.com/Sighting.asp?country=none&state=Tennessee&article=1. Retrieved 2011-11-20. 
32. ^ "Fleetwood Audio". Ripoff Report. 2005-12-12. http://www.ripoffreport.com/reports/0/167/RipOff0167727.htm. Retrieved 2011-11-20. 
33. ^ "Anyone heard of i-Cinema?". Playa.info. http://www.playa.info/playa-del-carmen-forum/52661-anyone-heard-i-cinema.html. Retrieved 2011-11-20. 
34. ^ "Northern Territory News". Ntnews.com.au. 2009-04-03. http://www.ntnews.com.au/article/2009/04/03/43015_ntnews.html. Retrieved 2011-11-20. 
35. ^ "Image Audio Concepts Theatre System IA-905S". Rip-off Report. 2009-04-14. http://www.ripoffreport.com/reports/0/443/RipOff0443536.htm. Retrieved 2011-11-20. 
36. ^ ^[unreliable source]e=North%20Carolina&article=1 ScamShield Listing North Carolina, USA
37. ^ HiFi-Forum.de. ""Hifi-Forum" Warning!". Hifi-forum.de. http://www.hifi-forum.de/viewthread-55-9234.html. Retrieved 2011-11-20. 
38. ^ 02:53 AM. ""Kauffman" Anyone heard of this brand??". Forums.audioholics.com. http://forums.audioholics.com/forums/showthread.php?t=55666. Retrieved 2011-11-20. 
39. ^ "HD 8500 Optics and Kevlar Audio White Van Scam in Auckland". Iceav.wordpress.com. http://iceav.wordpress.com/2011/03/05/hd-8500-optics-and-kevlar-audio-scam-in-auckland. Retrieved 2011-11-20. 
40. ^ http://www.denmarkacoustics.com/amplifiers
41. ^ ^{a b} "Review of the product, plus comments from scam victims". Jackcola.org. 2010-06-05. http://www.jackcola.org/blog/82-do-not-buy-a-marc-vincent-audio-sound-system. Retrieved 2011-11-20. 
42. ^ "Norway Audio Systems I was basically taken for a $500 ride for a $50 "home theater system"". Ripoff Report. 2009-11-04. http://www.ripoffreport.com/miscellaneous-electronics/norway-audio-systems/norway-audio-systems-i-was-ba-8aa96.htm. Retrieved 2011-11-20. 
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44. ^ ^{a b c d e} "Protechnik projector scam". Curtpalme.com. http://www.curtpalme.com/forum/viewtopic.php?p=226583. Retrieved 2011-11-20. 
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46. ^ Northern Territory Department of Justice
47. ^ "PTS Protecsound". Ripoff Report. http://www.ripoffreport.com/reports/0/065/RipOff0065577.htm. Retrieved 2011-11-20. 
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49. ^ "RDX Surround Speaker scam Richmond British Columbia Canada". Ripoff Report. 2009-01-06. http://www.ripoffreport.com/reports/0/408/RipOff0408520.htm. Retrieved 2011-11-20. 
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52. ^ "U.S.Acoustics home Theatre equip. - dodgy? [Archive] - Aussie Phorums". Phorums.com.au. http://phorums.com.au/archive/index.php/t-114022.html. Retrieved 2011-11-20. 
53. ^ "VisionMax | Complaint Review: 554796". Ripoff Report. http://www.ripoffreport.com/electronic-manufacturers/visionmax/visionmax-fred-herrmann-projec-cc8d8.htm. Retrieved 2011-11-20. 
54. ^ "Any one heard of VOKL AUDIO?". Audio Asylum. http://www.audioasylum.com/cgi/t.mpl?f=shady&m=3914. Retrieved 2011-11-20. 
55. ^ "Watch out Polk! White-van INC. is out to get us". Polkaudio.com. http://www.polkaudio.com/forums/showthread.php?t=90708. Retrieved 2011-11-20. 
56. ^ "Wahldorf Home Theater Speakers - The Speaker Engineered for Extraordinary Stereo Sound". Wahldorfhometheater.com. http://www.wahldorfhometheater.com. Retrieved 2011-11-20. 

External links

• A Kuro5hin story on "The Great International White Van Speaker Scam".
• This American Life did an episode called Suckers, one segment of which concerned white van speakers.
• Scamshield entry on white van speakers.
• Crimes-of-Persuasion.com on Speaker Scams
• http://www.fbaa.us/ -- Fake Better Business Bureau that claimed to "certify" these companies (via Archive.org)
• http://paramaxaudio.com/ Fake Brand Web Site