The scam, which is believed to originate from Korea, uses convincing emails and an expert knowledge of products to lure in firms looking to snap up bargain equipment from the Far East.
Once companies have handed over their cash, the supplier stops responding to emails and the products never materialise.
Ignoring emails
Fire Security Gibraltar is still waiting for a hard disk recorder and colour dome camera it paid US $1,070 for on the 11th March – despite claims it would be sent within eight days of payment. What’s more, managing director Tony Riley told us the company has ignored all of his emails since the money was sent.
His story ties in with other reports online involving the same supplier, which at this stage we cannot name.
Surigao Computer Service Center, a Filipino security firm, reported it had been scammed after waiting almost seven months for a DVR it ordered from the same Korean retailer.
To begin with, security firms receive an email offering them high-performance cameras and DVRs at a fraction of their usual retail price.
“I knew the warning signs should have been going straight away,” said Riley, “but most companies are buying from Taiwan and the Far East and it was so convincing.”
Further emails are backed up by highly-detailed technical specifications and professional websites.
Suspicions
Riley said he first grew suspicious when he noticed that each email he sent (before the money was transferred) was responded to quickly regardless of the time of day – despite the 12-hour time difference between Korea and his office in Gibraltar.
In addition, the product catalogues he and his colleagues requested were “cut and paste” jobs, made up of other publications.
Foolishly, Riley admits, Fire Security Gibraltar sent the money directly to the company’s bank account instead of using an international letter of credit. This is when the friendly emails stopped altogether.
“Fortunately we only went for one [recorder] when really we needed two,” Riley said.
Since the apparent scam Fire Security Gibraltar has contacted the Korean Consumer Protection Board in Seoul and the head office of the bank involved, but has had no response.
Warning
However, Riley said he has had some success since contacting the bank’s office in London, which agreed to translate all of his correspondence into Korean.
He believes his colleague, who first became involved with the Korean firm, began receiving lots more unsolicited emails after attending a security exhibition and warned others to be careful who they give their details to.
“Somebody seems to have been getting the information from exhibitor badges,” he said.
Earlier this month Riley received an email from the same company, again offering him low cost, high quality CCTV equipment. There was no mention of his money.
