WSTA steps up anti-fraud activity

The Wine & Spirits Trade Association has joined forces with the Metropolitan Police to help wine producers combat fraud.

Since May 2011, when it launched a Fraud Prevention Unit, the WSTA has recorded over £600,000-worth of goods defrauded from wine companies through the use of false email addresses or fake identities. This usually involves the impersonation of existing companies and their employees.

In a typical fraud case, the WSTA reports that producers receive an emailed order requesting speedy delivery to an address not usually used by the UK importer.

Payment is often requested within 30 days, with the imposter claiming that this is covered by export insurance. Once delivered, the criminals disappear with the goods, leaving the invoice unpaid.

In an effort to combat this as part of National Identity Fraud Prevention Week, the WSET has issued a set of guidelines, developed in partnership with Operation Sterling, the Metropolitan Police Service’s economic crime prevention and disruption unit.

* Ask for immediate payment and wait for the confirmation from your bank that the money has reached your account even if it means delaying the order. If the potential client is serious and genuine, they will be able to wait.

* Check the contact detail of the person contacting you and follow up with a phone call if possible.

* Check that the email address which is used has the same format as the addresses used by the employees of that company

* Check that the postal address provided for the delivery is that of the head office or one of the branches or one of the warehouses of the company (use Google map and Streetview if necessary)

* Check the VAT and Excise numbers provided using the following tools: VAT: http://ec.europa.eu/taxation_customs/vies/vieshome.do Excise: http://ec.europa.eu/taxation_customs/dds2/seed/seed_consultation.jsp?Lang=en

* Please note that before dispatching any goods under bond, you will be asked to confirm the customer’s excise details. Goods may not be dispatched without it.

* Be wary of urgent orders

* Be wary of non-personalised and high value orders which are usually sent to any producer regardless of their range of products.

* Be wary of payment by credit card as these are rarely used in export transactions, and be wary of emailed bank transfer confirmations as they often turn out to be fake

* The WSTA is also urging any producers with concerns about the details of a UK-based business to contact them on +44 (0)2070 893 880 or by email fraudalert@wsta.co.uk

“This is an issue affecting the whole trade so we all have to be vigilant,” emphasised Robin McMillan, chairman of the WSTA’s Distance Selling Panel and chief operating officer of Berry Brothers & Rudd.

“I would urge all wine importers in the UK to send the WSTA guidelines to their producer database and encourage those producers to forward the information on within their respective countries to ensure they are not being caught out.”

In order to help producers further, the WSTA is making these guidelines available in several European languages.