How To Spot A Fraudulent Pawn Shop

Pawn shops have been around for hundreds of years and are still as popular today as they were in the past. The key to survival as a pawn shop is to keep up with the newest trends and technologies, but this growth can sometimes lead some shops to step outside their comfort zone. There are legitimate reasons why you might want to visit a shop like Cashaway Pawn Shop. But here are tips on how to spot a fraudulent shop.

1. Staff that are rude
The staff is one of the first places you should look when trying to spot a fraudulent shop. If they are not willing to negotiate with you, or if they're pushy about anything, it's probably not a legitimate business. Additionally, if they aren't ready to give you a receipt for cash transactions, and most legitimate businesses will, that's another red flag. You need receipts so you can provide proof of purchase and even provide recommendations.

2. Cash transactions only
When you go to a pawn shop, you should never be asked for any cash upfront. They will want to see and evaluate your second-hand products before making an offer. If they ask for money upfront, this signifies a fraudulent shop.


The same holds for checks or credit cards. Also, a reputable pawnshop will not insist on cash transactions only.

3. No reporting of transactions to the police
The first thing to look for if you suspect a pawn shop is fraudulent is whether they report transactions to the police. All shops must keep records of all items that enter their store and all customers who make purchases. They must file these reports with the local authorities so that you can check with them for any red flags.

4. Pushy sales tactics
Televisions, computers, and jewelry are all second-hand items that can be easily pawned. However, you should always be suspicious of a dealer that is willing to sell these items without the owner present. This is not a sign of trust. It's actually an indication that the seller has no confidence in their product.

Conclusion
Pawn shops are not all fraudsters, but they need to be wary of those who are. It can be difficult to distinguish between a legitimate pawnshop and one trying to scam you, especially when you don't know what signs to look for. We hope this piece helps you spot illegitimate dealers next time you go shopping.