Module 9: Fraud including VAT Carousel Fraud (MTIC)

Question 1

Explain fraud in private car sales with false draft

Answer 1

• suspect will frequently change personal details
• negotiations online
• meet in public locations
• pay with fake draft
• often shortly before weekend (bank closed)

Question 2

Explain prime bank note fraud

Answer 2

• usually introduced by a friend
• supposedly only accessible to the top investors in the world
• Often upfront Fee payments and large return promised
• complicated and official-looking documents
• non-disclosure or non-circumvention agreements
• e.g. Prime Bank guarantee, Prime Bank letters of credit

Question 3

Explain BEC

Answer 3

• Business Email compromise fraud
• Bogus invoice
• CEO Fraud
• Attorny Impersonation

Question 4

Ways of impersonating someone / someone’s E-Mail

Answer 4

• Spoofing
• Impersonation (has@gocgle.com)
• Account take over

Question 5

Explain Bogus Invoice Scheme

Answer 5

• Scammer impersonates company
• Sends new banking details or invoices to the client / vendor / supplier

Question 6

Explain CEO Fraud

Answer 6

• Takes over or impersonates executive-level E-Mail account
• Requests payments from finance department to a new bank account

Question 7

Explain Attorney Impersonation

Answer 7

• Scammer act as Attorny
• pressure employees to rapidly transfer funds for an urgent matter

Question 8

Where does MTIC stand for?

Answer 8

• Missing Trader Intra-Community
• Missing Trader Fraud
• VAT carousel fraud

Question 9

Give an example of a simple VAT fraud

Answer 9

Company A purchases good free from VAT and sells the good VAT-inclusive in its own country to B. A then goes missing without paying the VAT. B resells the goods and collects the VAT.

Question 10

What are characteristics of VAT carousel fraud?

Answer 10

• Can all be performed through documents
• Generally low bulk, high
value commodities
• Unrealistic prices and sales
• Transactions are all internal in ring of criminal companies
• Profit nets the amount of VAT reclaimed –> shows that no activity occurred

Question 11

VAT Carousel participants

Answer 11

• Broker - exports the goods and claims the VAT
• Missing Trader - imports the goods with 0 VAT and resells them without paying VAT to tax office
• Buffer Traders - trading partners to distance Broker from missing trader
• 3rd party payers - pays bills for the missing tarder
• Intra-Payer or Buffer - Buy in one country and resell to other country