Polymer suppliers to discuss how to spot and stop scams

Hamish Champ
PRW

Published: February 28, 2014 10:12 am ET
Updated: February 28, 2014 10:16 am ET

Related to this story

Topics Europe
Companies & Associations

British polymer distributors and suppliers will meet next month to discuss how companies can avoid being caught up in the sort of fraud which recently saw nearly 800 metric tons of material stolen from a group of plastics firms.

The scam, operated late last year by a bogus outfit calling itself Kreate UK Ltd., saw a number of domestic and Italian plastics companies defrauded to the tune of around 1 million euros ($1.37 million) combined.

A spokeswoman for Northants Police told PRW that the force was still investigating the Kreate fraud and was following what she called "a number of leads." PRW is a sister publication of Plastics News.

Meanwhile, member companies of the British Plastics Federation's (BPF) Polymer Distributor and Compounders' Group — some of whom were affected by the Kreate scam — plan to look at how they can tighten up their systems to ensure that a potential new customer is legitimate before doing business with them and so avoid being ripped off.

One member of the group said the sector was "definitely being targeted" by criminals, while another told PRW the police did not seem interested in following up such frauds and so rather than chase criminals the industry had to be more vigilant early on in the relationship with a new customer.

"We can do site visits, which works for some but isn't appropriate for every business. We are also looking at requiring photocopies of directors' passports before signing anything away or getting managing director approval for any deal," he said.

Another source said: "We're a small industry. If we as a company have never heard of a customer, references are very important. And if those references look iffy then it's a warning sign."

Mike Boswell, who combines his job as managing director of Plastribution with being president of the BPF and will be involved in next month's meeting, said frauds on the scale of the Kreate affair were a big concern for the industry.

"We obviously want to avoid scams that cost our industry millions of euros. So we need to tighten policies and procedures, but without alienating new customers.

"New customers should know that when they approach us that there is a process they will have to go through.

"If we do things to change the way we deal with new customers it would be helpful if we all moved more or less in the same direction and get everyone on board. The more united we can be as an industry the better."

When dealing with a new customer, Boswell said he believed that confirming its status as a legitimate legal entity and its knowledge of the intended trade were essential.

"One also needs to establish that the representatives of the company are duly authorized to enter into purchase contracts with the supplier and that delivery locations for the goods are under the control of the company."

Boswell said that with Plastribution having faced the issue of a potential bank scam last November he had "the greatest sympathy for those who have been defrauded [in the Kreate scam]."


Comments

Polymer suppliers to discuss how to spot and stop scams

Hamish Champ
PRW

Published: February 28, 2014 10:12 am ET
Updated: February 28, 2014 10:16 am ET

Post Your Comments


Back to story


More stories

Image

Eriks NV buys two US polymer companies

April 24, 2015 10:38 am ET

Dutch company Eriks NV is expanding its reach in the North American plastics sector with two acquisitions: Dallas-based Seals and Packings Inc. and...    More

Image

Danish packaging firm Faerch buys UK's Anson as part of growth strategy

April 24, 2015 9:37 am ET

Denmark-based packaging company Faerch Plast A/S has acquired Ely, United Kingdom-based Anson Packaging Ltd., a move the company says “should...    More

Image

Court approves Bekum's European reorganization

April 23, 2015 5:04 pm ET

Blow molding machinery maker Bekum Maschinenfabriken GmbH has announced it received court approval for the reorganization plan it proposed in...    More

Image

Engel, VW working on joint research into high volume composites in auto

April 23, 2015 9:40 am ET

Engel, the Austria-based manufacturer of injection molding machines, is building one of its largest machines for a research center looking into...    More

Image

Dramatic price hikes for resin in Europe as supply shortages bite

April 22, 2015 1:26 pm ET

European processors of standard thermoplastics were shaken in April by unprecedented material shortages and price hikes that they said bore no resembl...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events