Thursday, June 20News That Matters

How Identity Theft Can Result In Fraud

Every company should have chargeback protection due to fraud and identity theft. Identity theft usually occurs generally, but not only, in export sales. They are also usually high-value orders, made by well-known companies in the sector. A person, allegedly acting on behalf of a recognized large company, places an order with a wholesaler, usually by email. Normally only a mobile phone is provided as a contact. The email address used by scammers is often very similar to that of the hijacked company, with small variations that are not detected at first glance; generally, the domain for that email address is generic.

The Order

The order includes the name of a senior employee, sometimes with a relevant position within that company, and bank details, to convince the seller that the order is legal. These fraudulent activities often take place during holiday periods or in the weeks leading up to national holidays. They take advantage of the fact that the revenue of many companies is low during that period.

Credit Insurance

In the event that the seller has credit insurance, he proceeds to request coverage on the indicated company. The delivery address of the merchandise indicated in the order is usually different from the main facilities or the registered office of the company that is placing the order. They are usually logistics centers.

The Carrier

In most cases, the carriers are directly hired by the buyer and collect the purchased merchandise from warehouses owned by the seller. If it is the seller who contracts the transporting of the merchandise, the truck driver receives instructions through a call changing the details of the initial delivery. The most frequent thing is that the driver is requested to take the merchandise not to the address of the recipient company but another site, for example, a warehouse in a different location.

The Merchandise

Usually, the merchandise disappears. When the time comes to cash the check, it is returned by the bank, due to lack of funds. The seller tries to locate the person who made contact via fax or mobile to ask for explanations and, he cannot locate him, or at most, he finds an answering machine.


Once the default has been declared, it is stated that the person who requested the order does not belong to the company from which payment is being claimed. The company from whom the payment is being claimed knows nothing about the transaction and never received the merchandise. To provide a solution, you should hire a chargeback company to resolve this complicated matter for you.

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