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

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

Kingspan adds more European production with Joris Ide acquisition

January 27, 2015 10:30 am ET

Kingspan Group plc has purchased insulated panels and building systems supplier Joris Ide Group for 315 million euros ($356 million).    More

Image

UK legislators reject fracking moratorium

January 26, 2015 12:19 pm ET

UPDATED: Environmental campaigners turned their anger on the United Kingdom's Labour party Monday after a vote to impose a moratorium on fracking...    More

Image

Oxo-biodegradable lobby slams 'scaremongering'

January 26, 2015 12:16 pm ET

Single-use plastic carrier bags made from biodegradable material should be exempted from the government’s proposed 5p-a-bag levy in England,...    More

Image

W&H buys bigger stake in BSW

January 23, 2015 10:43 am ET

Windmoeller & Hoelscher KG will get more involved in flexible packaging machinery through its bigger stake in machinery maker BSW Machinery Handels-...    More

Image

Esterform buys Constar UK, doubles PET preform capacity

January 23, 2015 10:07 am ET

Constar UK, once part of global packaging firm Constar International Holdings LLC, has a new owner.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

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

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events