Michigan regulators are warning the state’s cannabis licensees of an increased number of scams targeting their businesses.

The Cannabis Regulatory Agency (CRA) issued a Sept. 30 advisory bulletin notifying businesses that fraudulent activity against licensees increased in August and September.

The incidents have the following similarities, according to the CRA’s announcement:

Licensees are contacted by phone or text message by an individual seeking to place a substantial order of marijuana or marijuana product on behalf of a license.The individual is knowledgeable about how to place an order and gives a license number associated with a licensed marijuana business to place the order.When the secure transporter arrives, the location of the delivery is not a licensed marijuana business.

Regulators advise licensees to have their staff verify the validity of calls and texts with a manager or owner before processing the order, as well as verify the address for delivery.

The bulletin also reminds licensees that regulations require cannabis businesses to notify the CRA and local law enforcement within 24 hours of becoming aware of the theft or loss of any product or criminal activity.

Fraudulent activity can be reported to CRA-Enforcement@mighigan.gov.