Police are warning businesses to be aware of scams after one New Zealand business lost around $69,000 after making payments to a fake company overseas.
The business, based in Hawera, was approached by an individual, 'Ned', who posed as a customer and agreed to make several purchases. He suggested the orders were shipped to him using a particular freight company. Police believe this company is fraudulent and owned by Ned.
Ned made several orders. He paid the invoices using credit cards.
Once payment was received, the Hawera-based business paid the fraudulent freight company, which used several different bank accounts, to ship these orders. In total, the local organisation paid this freight company around $69,000.
However, the credit card company then disputed the payments and the Hawera-based company had to return the money Ned had paid, leaving them out of pocket the $69,000.
Ned used several different credit cards, some of which declined. It is believed that the payments were disputed because the credit cards being used were stolen.
Police is working with the financial institutions involved and continues to make enquiries.
Anyone who has been the victim of a scam of this nature is asked to contact Police on 105.
Advice for businesses:
- Take extra care when working with new clients
- Report suspicious financial activity, including organisations using multiple or declined credit cards
- Use your own preferred, reputable company to ship goods
