White Van Speaker Scam - Economics

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. 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.

Read more about this topic:  White Van Speaker Scam

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