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Michigan’s marijuana regulator is warning licensed cannabis businesses about an increase in fraudulent activity targeting the industry.

The state’s Cannabis Regulatory Agency (CRA) noticed an uptick in August and September in scams against marijuana companies, according to a news release.

A typical scam plays out like this:

  • Businesses are contacted by phone or text message by someone who wants to buy a large amount of marijuana flower or other products on behalf of a licensed company.
  • The person seems to know the industry well and gives a legitimate business license number to place the order.
  • When a secure transporter arrives, the destination for the product is not a licensed business.

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