Lecture 9 - Fraud Including VAT Carousel Fraud (MTIC) Flashcards
Explain Prime Note Bank Fraud
Tends to target high net worh individuals through friends/acquaintences
They prmise large returns of 20-100% and give complicated looking documents, which tend to have NDAs to prevent victims talking to lawyers.
The terms are usually 1 year and a day.
Fraudsters will setup private forums for investors to discuss and detail fake bank accounts to show fake returns.
Phrases tend to include “prime bank guarantee”, “prime letters of credit”, “bank guarantee notes”
What is Conveyancing Fraud?
A type of business email compromise (BEC), where scammers target the email service of a solicitor to find conveyancing emails. They then create similarly named email addresses and communicate with the victim from the false email to introduce a fake problem, pressuring with a time limit and a bank account to send funds to to
What is Invoice Redirection Fraud?
Another type of business email compromise (BEC). The scammer will impersonate or intercept emails from the CEO of a company and send an instruction to junior staff members to make an urgent payment to a specific account
Tends to imply a large creditor has an urgent issue and needs immediate payment, and normally occurs on a Friday evening to add pressure. The victim is told the supplier has changed bank accounts and instead to use the one provided.
How can credit card details be obtained by fraudsters?
An insider at a hotel with computer access can run a series of stolen cards through to test the account balances (this doesn’t show on a normal bank stament). They then label the balances of each card for criminals to use.
What is VAT Carousel Fraud also known as?
Missing Trader Intra Community fraud (MTIC)
Give an example of a simple VAT fraud
Company A buys stock VAT free. They then sell the stock to company B including VAT. Company A keeps the VAT as profit then disappears.
List the components of VAT Carousel fraud, and their role
Misser - the missing trader who imports goods VAT free from another EU country then sells them on including the VAT, but never pays the government. The company then disappears with the VAT as profit.
Buffer companies - companies who purchase the goods at VAT price, then sells them to another buffer company including VAT in the same country. This can be done several times to add layers. Each buffer company pays VAT they charge.
Broker - the last company that purchases the goods from the last buffer then reclaims the VAT as the goods are exported, potentially back to the original country and company
