Electronic Components Industry Forum - Comments

David T. Ackerman: Success Stories

nospam@example.com (David T. Ackerman) — Wed, 21 Nov 2007 09:20:58 -0700

We are pleased to announce that ACKERMAN-USA, Inc. has officially become the first Independent distributor to join the International Chamber of Commerce Business Action to Stop Counterfeiting and Piracy (BASCAP). The International Chamber of Commerce launched BASCAP to connect all business sectors and cut across all national borders in the fight against counterfeiting and piracy. This global approach is designed to support individual company and organizational efforts and amplify business messages with national governments and intergovernmental organizations. Please feel free to visit both the International Chamber of Commerce homepage, http://www.iccwbo.org/, as well as the Business Action to Stop Counterfeiting and Piracy homepage, http://www.iccwbo.org/bascap

David T. Ackerman: Fraudulent Components

nospam@example.com (David T. Ackerman) — Wed, 21 Nov 2007 09:12:58 -0700

Please review my article published in the International Chamber of Commerce website, entitled Counterfeit Electronic Components: The True Cost. Feel free to post any comments or responses.
http://www.iccwbo.org/bascap/id1127/index.html

David T. Ackerman: Fraudulent Components

nospam@example.com (David T. Ackerman) — Fri, 09 Nov 2007 12:58:06 -0700

Credit Card Fraud Stemming from Romania & Bulgaria

The ERAI is currently investigating two cases involving stolen credit cards. The first problem stems from Bulgaria:

I Productions
Contact Name: Iulian Iliev
Str. Boteugradsko Shose 15
Sofia Bulgaria 1000
Phone: 011-359-297-83737

A man by the name of Iulian Iliev placed several orders totaling $20,304.07 with an ERAI member in January & February of this year. All correspondence and transactions took place over the Internet and via Email. The member thought they were using caution when they required Mr. Iliev to pay in advance for the goods. When the member processed the payment through their Credit Card Authorization Center they received authorizations for the sales. It was not until later the member learned the cards Mr. Iliev had used were reported "STOLEN". The member contacted Mr Iliev and informed him of this problem. At first he allegedly claimed "his boss had been traveling and lost his luggage and had in fact reported the cards lost and/or stolen". (This sounded reasonable…) Mr. Iliev apologized for this inconvenience and gave the member two more "VISA" card numbers from which he instructed them to obtain their payment. These cards too were reported "STOLEN". The reporting member has since been unable to contact Mr. Iliev. The ERAI has not completed its investigation into this matter. We are in contact with the credit card company from which these cards were issued, the Authorization Center who authorized the transaction and Authorities in the US and Bulgaria all in an attempt to find the man who committed this crime. We will bring you details as they become available. The reporting member is unable to recuperate his loses ( totaling in excess of $20,000.00 )as a result of these transactions.

Ironically (or maybe not…) another complaint was filed this week by yet another ERAI member who is experiencing the same problem. This member sold product to a company in Romania (operating by the name Maxwell PC S.R.L).and later learned they were given "STOLEN" Credit Card numbers from which their payment was obtained. We only recently obtained this information and have not had a chance to verify all of the facts for accuracy. We will run a story on this second complaint on next weeks ERAI Broadcast.

On the September 7, 1999 ERAI Broadcast we ran a story on this very topic. To often members feel secure when they receive payment via credit card. What you have is a false sense of security. Credit Card payment does not mean "CASH IN THE BANK". You can receive an authorization from your Authorization Center and receive payment from a card used as payment only to later be "CHARGED BACK" by the Credit Card Company. THERE IS NOTHING YOU CAN DO WHEN THIS HAPPENS! If you receive a stolen credit card as payment there is nothing to alert you that anything is wrong UNTIL the card's rightful owner "SOUNDS THE ALARM". The cards owner does not take the loss, the credit card company does not take the loss...The MERCHANT, which is YOU, takes the loss. WHY: Because of one 'little' clause in virtually every credit card agreement which renders the credit card company harmless for transactions not conducted in person. YOU ARE LIABLE FOR THE ENTIRE DEBT because the charges are not RECORED on the PREMISES. Mastercard International alone experienced $526 Million in fraudulent transactions last year. Much of the losses, experts say, are driven by the Internet. With electronic commerce growing, YOU will have to be vigilant about protecting yourselves!

Below, we have listed "TIPS" issued by Visa U.S.A. that appeared in a New York Times Newspaper Article. These are EASY steps to take that could save you a lot of time, heartache and MONEY! However, even if you follow these "Tips" there is still no guarantee that you will not fall victim to CREDIT CARD FRAUD. Taking these measures to protect yourself will only reduce your exposure.

--------------------------------------------------------------------------------

TIPS FOR MERCHANTS

According to Visa USA, criminals who have a credit card number often DO NOT have the card itself, and so can be deterred if merchants ask for the following information:

The card expiration date
The security number on the back of the card
The customer's billing address, which can be verified electronically
Day and Evening Phone numbers
The name of the issuing bank
***The ERAI also recommends that you obtain a PHOTOCOPY the card (Front & Back). Require the customer to sign an authorization form and verify that the signature on the card matches the signature on the authorization form YOU supplied. REQUIRE THEM TO FAX A CONFIRMATION***

Believe it or not, many of the companies committing fraud do not own a fax machine. This should be a RED FLAG. They operate only from the Internet, from lap tops etc…they do not have access to a fax machine. If they can't fax…be concerned!

Visa also lists these traits of suspicious transactions. Any might be legitimate, but when combined, they often point to fraud:

Hesitation when asked for information
Rush Orders
Big Foreign Orders
Shipments to private mailboxes
Larger-than-normal orders
Orders for several of the same big-ticket-items
USING MULTIPLE CARDS TO PAY FOR A SINGLE ORDER
The Association recommends that one person be assigned the task of processing credit card payments within your company. That person should be specially trained in this area and should be made aware of all of the risks that plague this form of payment. Your company should establish a systematic format through which you are encouraged to implement the suggestions made by Visa U.S.A., which could lower your exposure to fraud. HOLD YOUR ORDERS UNTIL ALL INFORMATION IS AUTHENTICATED AND VERIFIED! We recommend that you share this report with your entire staff. EDUCATE YOUR EMPLOYEES! The only safe form of payment is CASH in ADVANCE! Why else do you think everyone is reluctant to pay that way?

Published on the ERAI Website on 07-19-2000.

David T. Ackerman: Fraudulent Components

nospam@example.com (David T. Ackerman) — Fri, 09 Nov 2007 12:49:08 -0700

Nigerian Scam Letters Flood Electronics Industry

'Nigerian Scam Letters’ are nothing new to most of you but to those of you who are unfamiliar with these devious criminals, we are bringing you this special report to educate, warn and hopefully protect you from a dangerous and costly scam that has plagued this industry for more than a decade.

The last few weeks have proven that this scam is alive and well. More than a dozen members have reported receiving faxes from Nigeria proposing money-making opportunities. We have copies of each of these letters. Each tells a different story as to why they need your professional assistance; however, they all have the same motive and ending.

Five Billion US dollars have been lost to this worldwide scam, which has run for the last fourteen years under successive governments of Nigeria. The scam is also referred to as the “ADVANCED FEE FRAUD” the “419 FRAUD” the “FAX SCAM” and the “NIGERIAN CONNECTION” It is most commonly referred to as the “419”.

The scam operates as follows: The target (THIS COULD BE YOU) receives anunsolicited fax or letter from Nigeria containing either a money laundering or some other illegal proposal or you may receive what appears to be an authentic and legitimate business proposal with very authentic looking Nigerian Government documentation. There are dozens and dozens of variations to these letters. I have never seen two that are exactly alike, however, they all use the following ‘common language’. The letter will tell you they need your financial assistance and in return for this assistance you will be handsomely rewarded. The proposal entails the transfer of money to a bank account outside of Nigeria. The letter will often contain phrases such as: over invoiced, double invoiced, service contracts, oil or petroleum trusts or foreign contracts. The letters will be listed as strictly confidential and will inform you that they received your name from a reliable source (Chamber of Commerce, Industry Experts, etc.) The letter will tell a story of their need for your immediate assistance. They will tell you that they need to transfer millions of dollars into “YOUR” bank account. This money will be held there for a period of time and when it is removed you will be rewarded with a percentage for your trouble (usually 30%). A plausible explanation is given for the transfer of these funds to your account, appealing to the victim’s greed.

If you respond to one of these letters you will discover that at some point you will be asked to make an upfront payment which is usually said to cover: Advanced Fees, Transfer Taxes, Performance Bonds, etc. If you pay the fees, you will later be told, that complications have arisen. There is no mention of a complication until after the con artist has taken all of the money you are willing or are able to give. They will make one more plea for your financial assistance and continued patience, telling the victim that if they do not continue to send money, they will loose the money they have already invested in the venture. They will convince the victim that this is the final payment and after they receive it, (knowing you are finished playing the game) they disappear.

#1 RULE TO FOLLOW IF DOING BUSINESS WITH NIGERIA

NEVER PAY ANYTHING UP FRONT FOR ANY REASON

Indicators Of A Possible Scam Letter

The letter will stress the urgency of the matter

The confidential nature of the transaction is stressed

Claims are made that the other parties are employed in, or have strong ties with the Nigerian Government or the Central Bank of Nigeria.

There may be a need to travel to Nigeria or one of its neighboring countries

Many forged official-looking documents

Blank letterheads, invoices and banking details are requested from you

Additional fees are continuously requested in order to further the transaction

Precautionary Measures You Can Take To Protect Yourself

Check the credentials of the person or business, for example with the relevant embassy, to see whether or not the person operates a legitimate business or that the business does exist.

Never provide anyone with blank letterheads or invoices

Never pay anything in advance unless you are absolutely sure that the goods or services are going to be delivered.

AGAIN!!! NEVER PAY IN ADVANCE!!!
The corruption is deeply entrenched in Nigerian political and banking circles, according to Interpol and US Authorities. These agencies report knowing of at least 15 people who have been victimized by the scheme and actually traveled to Nigeria to recoup their losses, only to wind up dead. These crooks are serious and very dangerous. Do not respond to these letters. Do not even do it for kicks to see what they fax you next. You are asking for trouble in more ways than you can imagine.

The US Government has devoted a special task force to tracking these criminals and is making efforts to stop these crimes. The economic impact is considered to be substantial and the Secret Service is working with the Department of State, Department of Commerce, Department of Justice, and the Better Business Bureau in an effort to evaluate the magnitude of this activity as well as to develop a strategy to diminish the fraud loss.

If you have received a Nigerian Scam Letter but have suffered no financialloss, write “ NO FINANCIAL LOSS – FOR YOUR DATABASE” on the top of the document you received and fax it to the US Secret Service Task Force. FAX: (202)-406-5031 or (202)-406-6930. If you have suffered a financial loss report this to the ERAI office immediately and we will put you in touch with a special agent assigned to this matter.

If you are not a US resident it is unlikely the US Secret Service will contact you. International members contact the ERAI and we will put you in touch with Interpol (International Criminal Police Organization).

Please contact us if you have questions or comments regarding this special report or if you have a suggestion on another article of interest members could benefit from.

Posted on the ERAI website on October 18, 2000.

David T. Ackerman: Fraudulent Components

nospam@example.com (David T. Ackerman) — Fri, 09 Nov 2007 12:47:28 -0700

Wire Transfers…Cash In The Bank…Right?

For years most of you have been aware of the Nigerian "SCAM" Letters that circulate around the world. Unsuspecting people fall victim to these criminals every year resulting in millions of dollars in losses. It is said the Nigerian Government plays a key role in organized crime in Nigeria, so your chances of recuperating losses are slim to none. We were advised of a new trick used to lour unsuspecting companies into doing HUGE orders with these clever crooks.

If a company placed a $200,000.00 with your company and agreed to pay TT in Advance, (after being denied open credit for such a large sum)…you might think: "What could go wrong?" This is the perfect scenario is it not? Well…I will tell you exactly what can go wrong. There are companies out there right now, allegedly affiliated with Nigerian Organized Crime, who will tell you they are wire transferring funds to your account for goods. You will receive all of the required and expected paperwork affiliated with a Wire Transfer. A few days later, the funds will show up in your account and you ship the 200K worth of product and break out the champagne. A few weeks later, the bank removes the money. HOW CAN THIS BE SO? Because the funds were NEVER WIRED INTO YOUR ACCOUNT. Instead, the crooks will Federal Express a "COUNTERFEIT BANK CHECK" to your BANK. The CHECK will be deposited into your account and will likely be posted immediately because Bank Checks are often times treated the same as Cash. By the time the Bank realizes the check is COUNTERFEIT, the crooks and your parts are long gone. THERE IS NOTHING YOU CAN DO. THE MONEY IS GONE…THE PARTS ARE GONE…AND THE LOSS WILL, MORE THAN LIKELY, BE YOURS!

How do you prevent this from happening to you? One simple call could save you from such a loss. CALL YOUR BANK AND VERIFY THE DEPOSIT. ASK HOW THE MONEY WAS RECEIVED. MAKE SURE IT WAS A LIQUID TRANSFER and NOT A CHECK THAT WAS DEPOSITED INTO YOUR ACCOUNT.

Because this is a time sensitive industry and many of the orders that are placed are expedited steps to prevent loss are skipped. Making wise credit decisions and protecting yourself from fraud takes time. Is waiting an extra day going to kill the deal? In most instances the answer is NO. Take the time to make that extra phone call. 24 hours could save you thousands of dollars.

Published on the ERAI Website on 07-19-2000.