‘Hustle’ type fraud on the increase

CRIMINALS are using ever more sophisticated ‘hustle’ style fraud or long-cons to prey on companies, according to BTG Forensic.

The firm, which is part of Begbies Traynor, says companies need to be vigilant and cautious even when they are approached by apparently legitimate companies as some may have been set up with the sole purpose of defrauding suppliers.

Richard Pughe, a partner at BTG Forensic in Leeds, said that the firm had seen a marked increase in clever, longer-term fraud such as the type featured in the BBC’s drama series ‘The Hustle’ with groups of professional con artists targeting a specific victim with a planned swindle.

“With companies more desperate to generate sales as the recession continues to bite, the conditions are perfect for long-term fraud and these gangs are seizing the opportunity to take advantage of the unwary,” he said.

Mr Pughe said that the scam involves the con artist building a relationship with a firm over a number of months by placing a few small orders, which are paid for upfront. They than ask for credit against a larger order.

The criminals then receive the goods, sell them and vanish without making full pyament.

“As these gangs are professionals they may well prove hard to trace,” he continued.

“The criminals will often have a buyer for their goods before they target their victims. Among the businesses most likely to be hit are those, which supply consumer goods such as handbags, mobile phones and computers that can be easily sold on – even more of a problem as Christmas approaches.”

Firms are being advised to research new clients by checking records with Companies House as well as using their business acumen to avoid jumping into a deal that is just too good to be true.