Scam Targeting Drilling Tool Dealers Spreads—Here’s What to Watch For

A scam targeting drilling tool dealers is making the rounds, and businesses in the industry should be on high alert. What started as an isolated incident has now affected multiple companies, with fraudsters using different business names to place fraudulent orders and disappear with valuable tools.

One company recently encountered the scheme when a scammer placed an order for tools and then tried to convince them to pay a freight company via ACH transfer. Sensing something was off, the company reported the incident to the Federal Trade Commission (FTC). However, just a week later, another drilling supply business, America West Drilling Supply, fell victim to the same tactic—this time with a slightly different approach.