Forms of fraud
There are two forms of fraud that are by far the most common. First, the fraudster who orders a lot of goods in a short time and has everything delivered to a rented warehouse or general marketplace. The goods are quickly collected and resold. The fraudster disappears into the sunset, leaving behind an empty business without much value. If you have obtained a credit limit on the business (fraudster), you will usually be compensated for the loss by the credit insurer.
Then there is the fraudster who pretends to be an employee of an existing and reliable company. He orders the goods from you and orders them to be delivered to a specific address. He quickly removes the goods there. The company he supposedly works for has not ordered or received anything, but is sent the invoices. If you have obtained a credit limit on the company (fraudster), in principle, you will not be compensated for the loss by the credit insurer. This is because you are responsible for who you do business with.
How to recognise fraud
1. Listen to others
The best tips come from suppliers. They often have the fingerspitzengefühl that a debtor has bad intentions.
2. Be alert to suspicious behaviour
You may be dealing with a fraudster if someone fails to negotiate the price properly or at all, does not have the right facilities (think refrigeration equipment) or is totally unfamiliar with the industry. Also be alert to different mobile numbers, a gmail or hotmail account, strange stationery or delivery addresses that differ from the main address.
3. Check, check, double-check
Visit the website and check the grammar and spelling of correspondence: it should be in line with what you would expect from a professional organisation. Check the delivery address in Google Street View, whether it is a logical delivery address. Also instruct your drivers to unload goods only at the agreed destination and that suspicious situations should be reported immediately. You can see whether a VAT number is still valid at http://ec.europa.eu/taxation_customs/vies/.
4. Inform XOLV
If you have any doubts about a debtor's morality, contact us. Thanks to our years of experience, we often recognise deviant behaviour at an early stage. Moreover, we can consult multiple sources of information to assess whether the company you want to do business with is in bad faith.
