Fraud highlights need for businesses to be more vigilant

The exposure of the cheque fraud racket reveals the extent in which what appears to be local operatives using modern techniques and technology to defraud a number of businesses. Hundreds of thousands of dollars of goods have been moved from these businesses to various destinations across the countries.

It is too early to make an accurate assessment of the full scale of this scam. It is possible that what has been discovered so far is only the tip of the iceberg.

We are looking at probably the country’s biggest fraud case. What has been revealed so far shows that this is a well-organised and sophisticated crime ring. While information on the equipment, material, techniques and processes is available online, the operation of this nature still requires skilled and professional people.

As the Police continue the painstaking process of piecing together bits of evidence in their investigations, those who have become victims need to know that this is not a straight-forward investigation. It is complex because it appears to be widespread. Information that has been revealed by the Fiji Sun indicates that the scheme targeted tyres and mechanical spare parts. It is understood that it also hit the telecommunication industry.

It is alleged that Vodafone has been defrauded of between $120,000 and $150,000. Other big businesses have not been spared.

The modus operandi is that a syndicate representative fronts up to a business to buy goods with a fake cheque that looks real and genuine from a reputable known client. There is little reason to doubt the authenticity of the cheque.

A request is made to deliver the goods as soon as possible. This transaction is usually done on a Saturday. When the cheque is finally processed on a Monday and the bogus cheque is discovered, it is too late.

The goods have been moved to another location from the original drop-off area.

But in Nadi, Police raided a yard after a tip-off and found stolen spare parts and tyres there.

Where have all the stolen goods gone to? Obviously, there is a black market out there receiving these items. So the syndicate could include a partnership between the group obtaining the goods, which are then sold to a second group.

The Police mission is to hunt down the two groups and bring them to justice.

The Police Commissioner, Brigadier-General Sitiveni Qiliho, has made it clear that while he sympathises with the victims, he wants them to be patient with the investigations. He has reiterated that this is a complex case and Police need to be thorough in their investigations. The technical nature of the case makes it complicated.

So let us allow the Police to do their job. Some of the victims have criticised the Police and unreasonably demanded that the perpetrators be apprehended with the information they have supplied. It is understood that some of the numbers given to Police, when checked, failed to yield anything useful to the investigations. In fact for some numbers, there was no response. They were dead ends.

This racket highlights the need for businesses to verify all cheques with the banks before they release the goods. The banks must give the green light before the transaction can be made good.

This should be standard operating procedure. Let’s hope that those responsible for this fraud will be brought to justice soon.