A sophisticated scam targeting small business owners across South Africa has re-emerged, causing significant financial losses for unsuspecting victims, Cape {town} Etc reports.
The scam revolves around fraudulent Requests for Quotations (RFQs) that masquerade as legitimate communications from government departments, enticing businesses to fall into a carefully crafted trap.
This disheartening trend sees companies receiving RFQs that, on initial inspection, appear to be genuine. The document typically features an urgent request for a specific item, complete with a detailed description and/or part number.
To further persuade the victims, a quick Google search will yield results that show only one apparent supplier for that item. While this might seem routine, discerning business owners are warned to scrutinise the details closely, as cracks in the façade can often emerge upon closer inspection.
The supposed supplier’s website may look legitimate, yet significant red flags emerge: the only contact number provided is a cell phone, and the email domain appears as a free Gmail address.
Once the victim contacts this supplier, the scam unfolds with alarming efficiency. The victim, believing they are interacting with a separate entity, proceeds to inform the RFQ requester that they can fulfil the order.
However, what victims fail to realise is that the supplier and the RFQ requester are, in fact, the same individual orchestrating the scam. After a series of exchanges, the victim places an order, which is ‘delivered’ directly to the requesting department.
Soon after, the victim receives an invoice and makes the payment to the supplier, who then disappears into the ether, either ceasing all communication or sending a follow-up email claiming satisfaction with the products received.
Shockingly, many victims find themselves ensnared in a cycle of deceit, often discovering the scam only after submitting their invoices for payment.
As the cases multiply, Private Investigator Rick Crouch warns that the financial ramifications are dire.
‘In the last few weeks, we’ve seen a stark increase in such cases contacting our office. Victims have lost staggering amounts; the smallest loss reported was R600 000, while the largest exceeded R2 million.’
‘Victims often pursue recourse through SAPS, only to be turned away due to a lack of understanding regarding these cyber crimes, leaving them feeling helpless and frustrated,’ he stated.
Crouch believes that the root of this crisis is linked to compromised information within the government. ‘These scammers are sourcing victims’ information from the Government’s Central Supplier Database. It is suspected that someone inside these departments is leaking sensitive information,’ he added.
As the frequency of these RFQ scams escalates, small businesses are urged to exercise extreme caution. Performing due diligence before responding to any RFQ is paramount, especially when the request pertains to products outside their usual offerings. As the age-old adage cautions, ‘if it seems too good to be true, it probably is.’
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Picture: Unspalsh
