Original by Dr. Steve Wong
November 15, 2023
Over the past year, our company has incurred losses from scammers using various tactics, with aggregate amount more than the total of the past decade. With the losses range from several thousand to over forty thousand US dollars, the scams derived mainly on suppliers in South Africa, Tunis in North Africa, Europe, Mexico, and the United States.
In our trading process, trust is always a mutual factor. Generally, when we purchase goods from a seller, we are required to make an upfront payment, whether it’s a partial or full payment, before the supplier arranges container shipment. These terms depend on factors like the transfer of goods ownership, supply and demand, and the internal policies of individual companies, mutually agreed upon. Established customers and suppliers usually pose no issues, unless on occasional non-compliance with contract terms mostly arises in uncontrollable situations, such as extremely adverse economic conditions, changes in country policy, politics and legislation, making it impossible to continue operations and fulfill payments.
Among our scammer experiences, it’s worth mentioning about a woman named Desiree Preston from South Africa. She worked at our partner factory in Johannesburg for ten years, then started her own recycling business (Arrows Plastic Traders, South Africa) after leaving. Upon placing an order and making our upfront payment, she consistently failed to ship the goods. Eventually, she agreed to a refund, providing a bank remittance slip, which turned out to be forged. We reported this incident to local law enforcement authority. After exposing the scam on public platforms, we then realized that many others had fallen victim.
Another experience is from Tunis, involving a company named Lemonplast Recycling, owned by Adel Mezni. I personally met him and even visited his factory. After placing an order and shipping the goods, we discovered that everything was garbage. We are currently notifying relevant authorities through various channels and filing a report, aiming to bring the scammer to justice. We’ve shared our experience online as well, warning our industry to avoid falling victim.
Cases from the United States (Antonio del Riego – One Plastic Inc, Texas) and Mexico (Enrique Elizondo – Prep Grupo Integral SA de CV, Monterrey) are instances where I met them in person, had conversations, felt confident, and verified their industry reputation before proceeding with the transactions. However, after making payments, the goods were not delivered. We listed detailed addresses and information about these scam companies on public platforms and our company website, regularly updating and reposting periodically.
Our most recent scam in Europe involved scammers using the names of reputable companies in their offers. The ultimate bank account of payee was not owned by the company providing the offer. Despite successfully intercepting many fraud attempts, we fell victim to a scam two months ago due to a momentary lapse in caution, resulting in losses.
In reality, many online inquiries from potential customers are scams. We conduct credential checks and verify information for new suppliers every day. A single oversight can make us their target.