Coastal Credit Insurance Brokers Ltd told TTJ that it had written to all its clients in the timber sector, telling them to take extra care with new customers.
Alan Sarling, managing director of Coastal, said about four of the company’s timber sector clients had been hit in recent months by either ID fraudsters masquerading as bona fide companies, or fake businesses. In all cases, these "new customers" wanted to quick delivery of timber or sheet materials on a new credit account.
One of Coastal’s clients – a Hampshire-based importer – suffered a loss of £14,000 worth of sheet materials.
"It’s on the increase," he said. "The trouble is everyone is scrabbling around for orders. "If there is a credit report available on the customer and it looks good, then some traders will do the order over the phone without asking any more questions."
Mr Sarling said a common approach was for the new customer to say it had been let down by a supplier and needed delivery at very short notice.
Incidents involved fraudsters assuming the identities of bona fide engineering, medical and property letting companies.
In the latter case, the ID fraudsters wanted to order more than £20,000 worth of hardwood flooring from Coastal’s client in the north-east.
Coastal became suspicious that a Kent-based property letting company wanted hardwood flooring for a delivery address in Wolverhampton.
A call by Coastal to the company’s headquarters revealed that the firm was already aware it had been targeted for ID theft, telling Coastal that the fradusters had also tried to order £60,000 worth of building materials from another merchant in the north-east.
"When someone is opening a new account and they are based out of the areas it’s worth getting more details and a face-to-face meeting, even if the information seems OK from a credit point of view," said Mr Sarling.
Coastal has produced a checklist to show how to spot an ID frauster or fake company. For a copy contact Derek Barnett on 01376 566874.
