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Wed 8th March 2017 at 12.50 - 14.00

Fraud uncovered

Club member Douglas Jackson, treated members to a journey through Long Term Fraud and how it operates. Fraudsters set up business and pretend that they are a bona-fide trader who will pay accounts on demand which encourages suppliers to supply goods and services on credit.The catch is that the fraudster has no intention of making payment. Fraudsters need to establish credibility with their suppliers and obtain as many goods as possible over a period. They may take several months to build up confidence using small orders and developing credit worthiness to lull suppliers into supplying big orders. These, of course, are moved on quickly, never paid for and the fraudster simply vanishes leaving the supplier out of pocket. Fraudsters use many techniques to lull suppliers into providing goods and services. They set up companies, may have warehouses and accommodation addresses which are rented short term and simply vanish when the scam is complete.  In order to avoid detection money is often deposited across many banks and not surprisingly few, if any, records are kept so that any investigator finds it difficult to establish the size of a scam. Douglas said that Long Term Fraud is organised crime on a large scale, it is often drug related and used to launder money. In one five year period it was estimated that suppliers in Scotland lost £400 million to fraudsters with Inland Revenue losing £80 million in tax and Customs & Excise £70 million in VAT receipts. Douglas was warmly thanked by member Eric Brown for a very informative talk


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