Identity Theft.

One of the biggest business and investment frauds around concerns the issue of identity theft. Unsavoury individuals usually steal valid identity books or buy false identity books from those in the "trade".

These invalid identity books are then used to commit a number of fraudulent activities, among them being:

While the KZN SAPS is an ardent and accomplished combatant in the fight against commercial fraud, their duties do not include investigative work intended to determine the validity of your prospective business partner or purchaser Identity.

KZN has an extensive range of credible and legitimate agencies who execute intensive investigations into prospective business partners or potential clients on your behalf. Please refer to our Recommended Business and Investment Agencies Webpage for details.

The Friendly Businessman

A common ruse employed by criminal elements is the " Friendly Businessman " Scam.

Certain Individuals develop what seems to be an enduring friendship with visiting businessmen or investors and purport to be - by some magnificent coincidence - involved in the very same sector of business that the visiting businessman is immersed in , for example ; the Computer Industry or some other appliance industry.

Initially, your business "friend " will place with you a modest order for a small number of (for the purposes of this example) computers and then fax you a valid bank deposit slip confirming that he has indeed placed the money in your account. Based on this information, you then instruct your warehouse or retailer to release the goods into your " friend's " custody.

The first transaction or sometimes, even the second, is almost always a legitimate piece of business, but should still be approached with extreme caution. Intensive verification is highly recommended in all transactions.

Thereafter, having gained your trust, your business "friend" places another order, this time for a number of computers that far exceed the previous order. If the first order amounted to R 5000.00 rands in monetary terms then the second or third order now escalates to an amount much more than that, possibly R50 000.00 or R 100 000.00 or even R500 000.00!!

The same operational procedures for this particular transaction will apply, you receive a fax confirming his deposit into your bank account and you then release the goods. However, this time there is a significant difference: the faxed deposit slip or confirmation of deposit has been falsely and convincingly altered.

Assuming that the sum of the order was R 50 000.00, your friend has possibly only deposited R 500.00 and has then artistically included a few more zeros to have the faxed document read as if it displays the correct amount. Sometimes no money has been deposited into your account, yet a " deposit " slip bearing proof of the transaction has been faxed to you.

However, based on your " friend's" short track record you unwittingly release the goods and suddenly find that there is no money in your account, or there is a significant shortage of funds in your account. Your "friend" and your goods simply disappear off the face of the earth and are never to be found again.

It must be highlighted, all transactions - no matter how small the amount - must be verified and confirmed to your utmost satisfaction!!