Supply chain fraud alert
Insurance provider TT Club has issued a warning to forwarders and logistics providers about supply chain credit fraud.
Criminals target operators with the promise of lucrative contracts, often beginning with a small shipment paid on time before rapidly escalating to multiple urgent shipments on extended credit terms. Once served, such customers then sometimes disappear and the account remains unpaid.
TT Club urges due diligence when granting credit to new clients and highlights some typical red flags, including unnegotiated quotes, no customs or delivery services requested and no trading history.
“Undoubtedly the best course is to withhold extended credit until a trusting relationship has been established with a customer,” said TT’s logistics risk manager Josh Finch. (js)