Scammed by Fake Arete Hemp: A Heartfelt Warning to CBD Companies

How I Got Caught in a Sophisticated Scam and Lost Over £2500

I never thought I’d be writing this, but I recently fell victim to an elaborate scam that has left me devastated. As the owner of a reputable CBD store, I pride myself on carefully selecting the best products for our customers. However, despite all my due diligence, I was scammed out of over £2500 by fraudsters pretending to be from the well-known and respected company, Arete Hemp.

This experience has shaken me to my core, and I feel compelled to share it with you to prevent other businesses from falling into the same trap. If you’re a CBD company like mine, this is your wake-up call.

NOTE: It’s important to mention that Arete Hemp is now aware of these scammers/fraudsters. I have emailed them and sent a link to this article, and I’m hopeful that they will take action to inform their social media audience. While they haven’t shown much sympathy for my situation, I’m still looking forward to establishing a long-term business relationship with them, dealing directly in the future.

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The Perfect Illusion: How It All Seemed So Legitimate

It all started innocently enough. I was approached via Facebook Messenger by someone claiming to be from Arete Hemp. Their knowledge of CBD products was impeccable—they could quote details right off the Arete Hemp website. They even explained that the company was experiencing delays due to a hurricane. It seemed plausible, given the current weather events. Every conversation, every exchange felt authentic.

I was thrilled at the prospect of working with them. After some back and forth, they offered me a special discount for paying in Bitcoin, something that’s even mentioned on the official Arete Hemp website. I had no reason to doubt them. So, I placed an order for 2kg of CBD Flower and some premium CBD oil—£2500 worth of products to be exact.

I was so excited about this new venture that I posted on the Big Hippo social media pages about our upcoming partnership with this ‘prestigious’ American supplier. I spoke to a few loyal customers about the new products we were expecting. I was genuinely over the moon, so much so that I even woke my wife up with “the great news” when I got into bed, believing we had found the contact that I felt had been missing for the past couple of months.

But then, things took a dark turn.

The Moment I Realised I’d Been Scammed

The next morning, I opened Facebook Messenger, only to discover that the entire conversation had been wiped out. It was as if they had never existed. Moments later, I received another message from the supposed Arete Hemp representative, explaining that their Facebook account had been shut down for discussing THC-related products.

Again, this sounded reasonable, so I continued the conversation via WhatsApp, which they asked me to switch to. I was starting to feel uneasy, but I wanted to trust them.

I did try to reach out to Arete Hemp via email at this point, but I didn’t receive any reply. Not wanting to overthink it, I pushed forward. After all, we had discussed future orders, potential visits to their facility in the USA, and even white-labelling opportunities. They had promised me the world, and I wanted to believe in this business relationship.

Then came the kicker. They contacted me, saying the shipment was ready but that I needed to pay an additional $1000 for “insurance” on the delivery. This was supposedly refundable once the package arrived. Alarm bells rang immediately. I refused to pay it. After a bit of back and forth, they offered to cover $500 if I could just pay the other half.

At this point, I knew something was terribly wrong. I proposed removing $500 worth of product from the order to cover the cost instead, but it made no sense. I was scrambling to salvage the deal, but deep down, I knew I had been taken for a ride.

The Gut-Wrenching Realisation: It Was All a Scam

This morning, I woke up to silence. No replies to my WhatsApp messages, no shipment tracking number—nothing. I felt sick. My heart sank. I had been scammed.

I reached out to the real Arete Hemp through their website and, to my horror, received an email confirming that they knew nothing about my order. The company doesn’t even have salespeople that reach out directly to customers. It was all a lie.

The Emotional Toll: A Warning to Fellow CBD Business Owners

I can’t express how devastating this has been, not just financially, but emotionally. To be taken advantage of in this way has left me feeling angry, humiliated, and disheartened. I run my business with integrity, and to be tricked so easily has been a hard pill to swallow.

This is not just a financial loss; it’s a betrayal of trust. I feel for anyone who has been in this situation, and I want to make sure no one else falls for this cruel scam. If you’re in the CBD business, be vigilant. These fraudsters are smart, and they know how to play the game.

What You Should Do Now to Protect Yourself

If you’re reading this, you’re likely in the CBD industry or a similar business. Here are some immediate steps you should take to avoid falling victim to scams like this one:

1. Verify Everything:
   If a company reaches out to you, especially through social media or unofficial channels, verify their identity directly through their official website or known contact details. Call the company or email them using information from their legitimate site.
2. Use Secure Payment Methods:
   Always be wary of paying large sums through cryptocurrency, especially if it’s requested via social media. Bitcoin and other forms of payment are harder to trace or recover in case of fraud.
3. Look for Red Flags:
   Requests for extra payments, especially after you’ve already made an order, should always raise suspicion. Legitimate companies will not demand extra money for things like insurance on a product shipment.
4. Report Suspicious Activity:
   If you think you’ve been targeted or have received suspicious messages, report the scam to local authorities and action fraud agencies. In the UK, you can contact Action Fraud.
5. Spread the Word:
   Warn other businesses in your network. Sharing information is key to stopping these scammers in their tracks.
6. Keep Records:
   Save all communications, including emails, chats, and receipts. These could be valuable when reporting fraud.

The Aftermath and Moving Forward

This has been a tough lesson. My business is still standing, and will take some serious hard work to get back to the grind – but the emotional toll is real. I hope by sharing my story, I can help others avoid the same fate. Scammers are becoming more sophisticated every day, and as business owners, we must stay one step ahead.

If you’ve ever been scammed or think you might be a target, don’t hesitate to reach out to fellow business owners, legal authorities, and fraud reporting organisations. Together, we can fight back.

Who to Contact in the US If You’ve Been Scammed

If you’ve been targeted by scammers like I was, and the fraudsters are based in the United States, there are several authorities you can contact to report the crime and seek assistance:

1. Federal Trade Commission (FTC):
   • The FTC handles reports of fraud and scams. You can file a report online at ReportFraud.ftc.gov or call 1-877-FTC-HELP (1-877-382-4357).
2. Internet Crime Complaint Center (IC3):
   • If the scam involved the internet, such as social media or email, you should report it to the IC3, which is run by the FBI. You can file a complaint at www.ic3.gov.
3. Better Business Bureau (BBB):
   • The BBB allows you to report scams involving businesses, which can be helpful if you’re trying to alert others or look into the legitimacy of a business. You can file a report at www.bbb.org/scamtracker.
4. State Attorney General’s Office:
   • Each state has an attorney general who can handle consumer complaints and fraud cases. Find your state’s attorney general’s contact information at www.naag.org.
5. Your Local Police Department:
   • Although online scams often fall under federal jurisdiction, it’s still a good idea to file a report with your local police, especially if the financial impact is significant.

By contacting these authorities, you can help prevent others from being scammed and possibly recover your funds. It’s always worth reporting fraud, even if it seems like a small chance to get your money back.