As Christmas is nearing, it gives criminals more opportunity to commit crime, and our sector is a popular target.
As we have warned over the last year industry crime comes in many forms, usually theft from vehicles and fraud. The majority of businesses operate legally but there is a minority who do not, and in some cases, are actually established as a front for their criminal activities.
Around this time last year, we highlighted the case of a Preston-based importer with Belgian connections which accumulated large bills in a relatively short time with BIFA members, and then simply disappeared leaving the freight forwarder out of pocket. In late 2023, the commodity was Mango fruit and the shipments originated from Dubai and the Indian sub-continent.
We have been contacted by a member who was a victim of the 2023 scam, They were recently contacted by a company regarding the importation of fresh fruit (including Mangoes) – this time from Bangladesh. Their due diligence revealed a Midlands-based company with very few assets, a “no credit” financial rating and a Belgian director. The level of business would appear to be out of proportion to their ability to finance it.
A check on Google Maps indicates that the company address is actually a Regus office.
The member who reported the matter to us has provided further information regarding similarities between the business offered by the Preston-based business and what is being offered now. We hope our members will find this helpful:
- They only want the member to handle the airfreight
- No collection at destination and Customs clearance or delivery at destination
- Both request quotes to various locations, not just the UK
- Contact was made without previous connections
- Large volumes of cargo
- Accepted the quote with no questions
- Both importing fruits, especially Mangoes
- No record of them ever importing or exporting previously on the HMRC Traders website
They have had directors leave and a new director confirmed. The new director is listed by credit checking agencies as of Belgian origin.
Most businesses are legitimate, but as this case highlights, by having good “due diligence” checks in place the member believes that they have avoided being the victim of a scam for the second time.
BIFA discussed this matter with a contact specialising in industry-related fraud, who commented; “I have seen three short firm frauds in this industry (freight forwarding) in the last month and one of them involved Mangoes from Pakistan/Bangladesh.”
This crime is very easy to commit and the only failsafe is to insist on seeing the latest edition of the trader’s accounts.
We urge all members to ensure that they continue conducting thorough due diligence to avoid fraudulent activity taking place.
Members can refer to our Good Practice Guides on due diligence which are available on our website.
An episode of BIFAlink TV will be shared in the coming weeks to remind members.
