New conference scam targets corporates

Bogus business courses, fake conferences and phony tender processes targeting specific industries are the latest scams to be identified by local and international security experts, FTW has learnt. The logistics industry may have been the latest intended scam victim with a one-day port, logistics and handling conference invitation doing the rounds recently. The misspelling of the invitation – “We are pleased to invite you and the management of Staffs of your company FTW to our 4th coming Conference/ Exhibition” – was the first clue that something was amiss; then we discovered that the website address provided by the conference organisers was registered under a false domain name. Other red flags included webmail and yahoo e-mail addresses, with only cell phone numbers provided in the invitation. And a distinct absence of any company logos. A Google map street view of the address provided in Kempton Park showed an office block with a handwritten cardboard sign in the window offering cash loans. There was no conference agenda attached, nor were any speakers and/or topics listed but bank details were provided for delegates to deposit their one-day conference fee of R3 500. When FTW called the conference organiser on his cell, he spoke of international delegates and speakers, providing names of three keynote speakers from companies known to us. One was based in the UK and two in Johannesburg. Two of the companies confirmed they had been approached but both said they had declined the invitation. The keynote speaker identified by the organiser was in fact the company receptionist. Any requests for a full programme were ignored and when pressed for further details, vague answers were provided. He told FTW that 14 delegates had already confirmed attendance and when pressed for details, he listed several high-level delegates from Saudi Arabia and one company managing director from South Africa who told FTW she had merely responded to the e-mailed invitation requesting the programme. “To date, I’ve had bugger-all reply,” she said. “It’s definitely a scam,” said forensic and loss control consultant, Paul O’ Sullivan of Paul O’ Sullivan & Associates, when FTW forwarded him the e-mail invitation. “They target specific industries and do their homework about the industry to be able to provide plausible details when questioned,” he said. Even the action of obtaining a quote from the venue is “typical” because it lends credence to intention, he added. Websites such as 419 scam. org and Scam Detector have also highlighted the conference scam stating that fraudsters operating under the guise of legitimate businesses are putting up “quite a convincing front” with creative schemes that have dented quite a few company coffers. Some of the ways that fraudsters operate is to offer a major discounted “early bird fee”, prompting companies to act quickly and snap up the discount. Others invite global speakers, telling them that most expenses are covered (flights, meals, transfers and more) but that they only need to pay for accommodation. Speakers are often happy to do that and allow the organisers to do the bookings etc. “The schemes are successful because scammed executives are simply too embarrassed to prosecute the perpetrators,” says O’ Sullivan. He told FTW he had even been invited as a guest speaker for a fake conference last year. “I tried to scam the scammer and told them I’d love to participate but I needed a 50% speaker’s fee upfront before I could commit.” INSERT & CAPTION The schemes are successful because scammed executives are simply too embarrassed to prosecute. – Paul O' Sullivan Photo: Who's Who