Over the past few months, the Notebook Company has intercepted fraudulent payment transactions totalling around R1.5 million, as a years' old scam resurfaces.
CEO Christopher Riley says the fake payment scam, which hit the sector hard between 2003 and 2009, has retuned, but the amounts involved and the frequency of attempted fraud have increased. He explains scammers deposit stolen or fake cheques into companies' bank accounts, and then send an altered proof of payment so it looks like the money was transferred electronically.
Orders for computing equipment are mostly placed via e-mail, online or telephonically, making it easier for fraudsters to remain anonymous, adds Riley. He says while in the past the fraudulent transactions were for relatively small amounts, the latest attempts are worth R50 000 to as much as R700 000.
Once the goods are ready, fraudsters then send a so-called agent to collect the items, says Riley. He says this practice has resurfaced across all sectors of the channel, with distributors also being hit by fraudsters posing as retailers.
"We battled with these kinds of fraudulent activities a few years back. But now there has been a sudden surge. It is quite worrying and companies should be extremely cautious. Due to our experiences in the past, we are pretty much on our toes when it comes to fraudulent activities. But it is nonetheless worrying."
Riley says the group has not suffered any physical losses of PC equipment, but notes its delivery time has been extended by a day, because the company now waits for written confirmation that the deposit has cleared before releasing any goods.
In addition, dealing with the fraudulent orders takes up much time and energy, which increases the time it takes to service genuine customers, says Riley. He notes previous bids to clamp down on the scam were unsuccessful, because the person collecting the goods is not connected to the syndicate.
Riley says the so-called agents are typically given some cash to collect the items, which removes the risk of the syndicate members being caught. When a delivery address is given, this is used for a few deliveries only, he adds.
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