As Christmas is nearing, it gives criminals more opportunity to commit crime, and our sector is the victim of too much crime. As we have warned over the past year this takes 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.

About 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 simply disappeared leaving the freight forwarder out of pocket. In late 2023, the commodity was mangoes 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 – luckily, they have a long memory. They have been 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 provided the additional useful information regarding similarities between the business offered by the Preston-based business and what is being offered now:

• They only want us 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 came to us without previous connections.
• Large volumes of cargo.
• Accepted our 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. It is rife, and innocent suppliers ought to be warned again.”

This crime is very easy to commit and the only failsafe is to insist on seeing the latest edition of the traders accounts.

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