Watch Out For Cyber Crime Techniques, Says Insurance Firm

Thieves have become increasingly sophisticated and are using modern technological means to steal money.

Belgian insurance company Driesassur has issued information to clients regarding new criminal attacks on the diamond industry via cyber-crime.

This type of criminality has been occurring all over the world and has been targeting and victimizing diamond dealers and high-end jewelers, the company said, with thefts taking place in several ways.

One is via a call or e-mail from a potential buyer who seems to be aware of the normal trading practices and methods. A so called potential buyer approaches a diamond dealer by telephone or by e-mail. They submit a very urgent and specific request for a particular type of valuable item. From the way the criminals express themselves, one assumes that they are very well aware of the normal practices and methods used in the diamond trade as they know all details regarding pricing, technicalities of the stones, and so on.

Then there is the use of sophisticated voice-over techniques and manipulated telephone numbers and e-mails to influence victims by reputable references. The criminals often use very reputable references in the diamond trade. These references appear legitimate since they use sophisticated voice-over techniques and manipulated telephone numbers or e-mails.

Another method is modifying bank details and manipulating the SWIFT bank code. Afterwards the money gets stuck. The criminals agree that the goods will only be released after payment. It will appear to the client that payment has been made as they send a copy of the SWIFT. For example they will use an intermediary bank and ‘modify’ the bank details in a very subtle way so the transferred money will get stuck with the intermediary bank and eventually is sent back to the sender. In most cases, the diamond dealers, our clients, will only realize this afterwards. So please be careful and always check the bank details very thoroughly for discrepancies/errors.

‘Elevating the pressure’ refers to criminals elevating the pressure and continuously calling the diamond dealer that the agreed amount has been wired –as shown in the SWIFT- and that he/she needs to check whether the funds have arrived in their account.

Fake phone calls from the bank to confirm the funds have been received. In order to achieve this, the ‘so called buyers’ even put more pressure and try to trick the diamond dealers, our clients, by making fake telephone calls (again voice-over and manipulation of telephone numbers/e-mails are used) from the bank to our client confirming that the funds are in.

Then, the goods will normally be released by the client due to the enormous amount of pressure the client is exposed to. Normally these scenarios happen towards the end of the working week, near to closing time of the banks so even more pressure is put on our client’s shoulders.

They go further by making phone calls impersonating very close business partners. In addition to the fake telephone calls from the bank, the criminals can even fake telephone calls/e-mails from very close business partners from the client, again confirming that the deal is ‘OK’ and therefore the goods should be released. Once again voice-over techniques and fake number appearance on our client’s telephone screen are used so the client assumes that he is in contact with a person whom he knows and whom he fully trusts.

Requesting a meeting to hand over the goods: when eventually the abuse of trust succeeds and the diamond dealer is rest assured that the money is or will appear on his bank account, the decision will be made to release the goods.

After that, the criminals quite often ask to meet outside the office, for example a hotel lobby or other public place where the goods can be handed over. Shortly after the deal, the diamond dealer realizes that the money was never transferred to his bank account, that there wasn’t even a single incoming call from the bank, neither did the close business partner call the diamond dealer at any given time.

We have experienced different varieties of these typesof scams. For example the scenario where the criminals intercept the e-mail correspondence and amend invoice or bank details. The money eventually will be wired but not to the correct bank account.

Driesassur advises always checking and double-checking sources, bank details and incoming telephone calls or e-mails.

Unless you can assure that the agreed amount is in your account, the goods cannot be released.

Do not be caught off guard by extreme pressure of a potential customer.
Please also do make sure to share this very important information across your various sales and finance departments as well as any friend in the trade you wish to be aware of this.