Wine fraud isn’t anything new. In fact, counterfeit wine has been around for years. Decades ago con artists would take cheap bottles of wine, add fake high-end wine labels, and then sell them to some unsuspecting person. Unfortunately, there are still a lot of wine scams out there to be aware of today.
As the fine wine market continues to grow, scam artists have taken the opportunity to sell fake products. One of the reasons that it’s easier for people to pull off a wine scam or other fraudulent activity is because the wine market isn’t regulated like those of other industries.
When you’re ready to make an investment in fine wine, the last thing you want is to end up with fake bottles of it. To help you avoid wine fraud, we’ve put together a list of the most common scams and what you can do to prevent falling prey to them.
Paying Too Much for Your Wine
So, you’ve found some great bottles of wine and the wine checks out. This is great news! But if you end up paying too much for your wine, especially if you’re expecting it to appreciate over time, you could end up being surprised down the road. If someone gouges up the price of your wine and you pay over the odds for it, it will cancel out your profit in the future.
How do you avoid this problem? Before you make an investment in expensive wine that you plan to sell in the future, do some research on wine prices. If the wine is significantly over current prices for its type, that’s a red flag. It could be a wine scam. A little research can go a long way and save you a lot of money when you’re ready to make a big purchase.
The Wine Doesn’t Really Exist
One of the most brutal types of wine fraud is when you think you’ve made an investment in a nice assortment of fine wines, but later realize you’ve spent your money on wine that doesn’t even exist.
Avoid this scam by making sure you deal with a registered company. Ask what bond the merchant is using to store their wine and then check with the bonded facility for confirmation. You’ll also want to ensure you get your own personal account registration number for the bond where the wine is going to be stored for you.
Make sure you ask how long it will take for the stock to be put in your account - it shouldn’t take any longer than a week. And don’t just take the merchants word for it. Check with the bonded facility to confirm the wine has actually been placed in your account.
Companies Posing as Trustworthy, Notable Businesses
Sometimes rogue salesmen go around posing as employees of trustworthy, notable companies and scam people out of thousands of dollars. They may forge company logos and use the company name when they’re talking to you. Then, once you give them your money, you aren’t able to find them again.
Don’t fall prey to this type of wine fraud. When talking to a wine salesman, ensure the number they’re calling from is the actual number on the company’s Google listing. After your conversation, call the company number and ask for the salesperson you previously spoke to. It’s also beneficial to ask for testimonials from previous clients that will back them up.
Whether you’re a wine collector or investor, the last thing you need is to lose money on a scam. In most cases, simply doing some due diligence and properly vetting companies can help you avoid some of the most common types of fraud.
If you’re looking to safely buy or sell a wine collection, contact the experts at Cellaraiders today.