UK distributors warned to be on guard against Euro fraudsters

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UK distributors warned to be on guard against Euro fraudsters

Simon Quicke
European distributors are warning their UK counterparts to be on the look out for fraudsters that have swept the continent targeting channel players.

The technique, which has already been used in France and Germany, is for fraudsters to set up dummy companies in one country that approach distribution in another territory to open up new trading accounts with the query made by email or fax.

The first delivery seems to go normally to lull the distributor into a false sense of security and then on the second 30-day payment terms are asked for, and after the kit is delivered the buyers disappear.

The products have subsequently turned up being sold on the grey market or illegally undermining the legitimate channel even further.
Most of the fraudsters are posing as German companies and are registering domain names that are similar to existing distributors in France and Germany.

The fraudsters targets were initially french but they have started to spread their net wider trying to con companies in the UK, Italy, Poland, Czech Republic and Hungary.

Alain Godet, from online EMEA database ITdistri, has raised the alarm over the fraud attempts and warned UK channel players to be on their guard.

"Given the high number of domain names registered and as their trick is exposed in Germany, it is evident that the fraudsters will try to attack massively other Europe countries in the coming weeks," he said.

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