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Credit reference agency Graydon UK claims that as many as 1 in 3 UK businesses
may have been approached by fraudsters trying to obtain goods under false
pretences.
A recent survey conducted amongst those working in Credit Management departments
in a business-to-business environment came up with some alarming results.
The study found that 1 in 3 respondents had experienced an instance where they
had received a credit application from a business wanting to obtain goods or
services from them fraudulently.
The results also showed that the same percentage believed that the problem of
fraud was getting worse compared to the previous year, and that it is a problem
that is not likely to disappear soon.
Those surveyed would agree with this sentiment, with only 6% indicating that
they believed the problem was reducing.
Further interviews with some of the respondents was undertaken, and corporate
identity theft appears to be prevalent in many of the cases reported.
In one example, the Sales department of one company received an order for 100
monitors to be delivered to a particular address.
The sales staff did a credit check on the company through Graydon UK and found
that the company had a credit limit of roughly £20,000.
The order was given the ok, even though the actual delivery address on the
application form was not in the credit report and, the sales staff did not
request a signed copy of a company purchase order.
As it turned out, the address the monitors were sent to was an address that had
been hired for the day by an individual, and was not the address listed on the
Graydon UK credit report.
When delivery took place the individual was not there, and when the landlord of
the storage area called him to let him know a delivery was there for him he said
'Sorry I forgot about that', and returned later that day with a van to pick up
the goods, never to be seen again.
It would appear that this individual had successfully stolen the good name and
creditworthiness of another company and borrowed its identity for a day to
commit a crime.
In another example affecting the same company, the sales department received an
order for 'as many monitors as our credit limit will afford'.
This immediately aroused the suspicion of the credit manager, who rang Graydon
UK to ask if the company was legitimate and was told that it was so he gave the
amount it could afford.
The order was given the ok and was being organised for shipment but Graydon
called back after doing more investigation and advised that the company address
details, which had been given for shipping purposes on the application form, had
recently been lodged at Companies House.
Graydon contacted the company concerned who advised they had placed no such
order, and that they had no idea who had filed new registered office details at
Companies House.
In this case, thankfully the shipment didn't go.
When the person who placed the order rang to complain the goods had not been
delivered, the Salesman advised 'Your boss wants to speak to you'.
The individual said they would get in contact with the boss to let him know it
was ok, but nothing further was heard from the company.
Martin Williams, Graydon's Managing Director explained: "There are many
protective steps companies can take to guard against corporate identity theft.
"For example, company purchase orders should always be obtained, and any orders
over a particular amount can only be delivered to the address shown on a bona
fide credit report, unless one of the sales staff meets with the company.
"Watch out too for delivery addresses that look like residential addresses,
mobile phone numbers and non business type e-mail addresses on credit
application forms."
Source:
RedAlert
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