Recycling firms have been warned to be more vigilant when trading with new contacts, after some companies lost money through bogus purchasing agreements.
Members of the Bureau for International Recycling (BIR) have reported that after paying a deposit for material from a seemingly respectable firm, they received consignments of lower quality than shown in photographs.
Companies have also lost out on deposits made against what appeared to be bona fide documents when the material received was also of no value.
BIR reported that several members have recently been cloned on trading websites, attracting customers in order to scam others out of deposits when no material is ultimately sent. In these cases, the fake company often uses the real operator’s officially registered address and their AQSIQ licence number, which is necessary when shipping material to China.
The BIR’s International Trade Council recommends that companies trade only with well-known suppliers and customers, contact companies directly if they are advertising bargain offers and remain cautious of trading with new businesses.