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Long firm fraud is criminal activity whereby fraudsters temporarily set up in business, supported by fake references, in order that credit can be obtained from wholesale suppliers. The fraudsters will typically obtain and then sell commodities such as electrical items, mobile phones and toys and deal in cash only, before absconding without settling any invoices for the credit obtained.

The following advice will help protect you against this type of crime.

Whether you are in business or a personal customer interested in taking advantage of a discounted item, you should always know who you are dealing with, and trust your instincts.

Advice for Business Customers:

• Request and carefully check all trade references, considering, where the potential customer is located, ease of contact and whether or not the paperwork provided looks genuine or not.
• Arrange to visit the potential customer's business premises. This should provide the clearest indication of whether it is appropriate to trade with this business or any connected individuals.
• Conduct credit checks on the applicant with reliable Credit Agencies.

Advice for Individuals:

• Consider whether the item you are interested in buying is really a bargain. Be aware that you may in effect be handling stolen goods, and assisting criminals by providing them with the proceeds of crime.
• Never share any personal information with a third party, unless you are entirely confident you know whom you are dealing with.
• Carefully check all adverts and promotional items offering goods at knock down prices, especially on the Internet.

Remember if an offer appears too good to be true, it usually is!

If you have any ongoing concerns, report the matter to your Branch or Relationship Manager, in the first instance.