In the dynamic world of international trade, it is essential to stay alert to the latest fraud practices. In this post, we inform you of a worrying trend currently occurring within the French supermarket sector: an increasing number of cases of identity fraud, with well-known and well-regarded French supermarket chains being targeted.
Case study example: Identity Fraud in the French supermarket sector
This article contains:
Key insights
- Identity fraud hits French supermarkets and suppliers.
- Pay attention to different delivery addresses and communications.
- Invest in fraud prevention and protection.
The Problem: Identity Theft
Our claims and collection department recently found that foreign suppliers requesting credit limits to work with French supermarkets are often victims of identity theft. Scammers pose as employees of these supermarkets to obtain goods without the intention of paying. Instead of having the goods sent to the supermarket's address, they request delivery to another address within France. Once the goods are delivered, the scammers disappear with the goods.
Signs of identity fraud
How can you recognize this fraud? There are some obvious signs:
- Deviating delivery address: A different delivery address, especially if changed on the day of delivery, is often a first indication that something is not right.
- Communication channels: Only e-mail contact with a supplier without personal contact via phone or video conference can be a warning sign.
- Fast delivery and no price discussion: Large department store chains are price-conscious and negotiate prices. A request for fast delivery without discussion of price may be suspect.
What to do if you are a victim of fraud?
It is important to understand how French supermarkets really work. They are highly organized around national purchasing centers and buy 99% of their goods through these centers. Only a small percentage, about 1%, is purchased from local suppliers. It is very unusual for French supermarkets to purchase goods directly from foreign suppliers.
Should you become a victim of identity fraud despite all precautions, there are some steps you can take:
Need more information and tips? Download our fraud prevention guide
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