Beware of  Contract Fraud

Beware of Contract Fraud

I wanted to put this on our website to warn you of a contract fraud situation that has occurred with one of our agencies:-

The agency was emailed by a Trevor Appleton that there were 3 positions available at a UK Client to work at their Philippines office at a rate of £950.00 per day, the agency contacted Trevor Appleton and they we tipped off that there were some potential interested candidates, one being Antonio Ventura.

The agency contacted Antonio Ventura who agreed to work through the agency but he would need to be paid to his Philippine bank account and he was operating as a self-employed person. The agency did a credit check on the UK Client which came back fine and contracts were raised and signed by Trevor Appleton.

The candidate provided a copy of his passport, signed a contract and each week submitted signed timesheets (by Trevor Appleton) and invoices as a self-employed worker. The agency made 4 payments over the 4 weeks totalling £19,010.

Trevor Appleton then invited the agency to the UK Client’s address to discuss other positions and when the agency arrived they were told by Reception that there was no one employed by the name of Trevor Appleton. A person from HR then came to see them and informed them that this was a fraud situation as another agency had also arrived that day to meet Trevor Appleton, they do not have a Philippine office, they have never employed anyone called Trevor Appleton and do not have a contractor called Antonio Ventura.

The agency are now reporting the issue to the police

To avoid you getting in the same situation we would advise that any new deals that you do with a new client that you consider the following:-

  • No candidates should operate as a self-employed contractor – Only use a Limited/Umbrella company which is registered and has provided certificates of registration/incorporation
  • Obtain a copy of Candidates passport/Identification
  • Obtain a copy of Candidates Proof of Address
  • Obtain a copy of Umbrella/Limited Company Bank Statement showing the company bank details that payments are being sent to
  • Once the contract is signed by the client, call the main reception of the client and ensure that the person who signs the contract actually works for the client.
  • Once you raise the first invoice to a new client and before you make the first payment to the candidate, call the client to ensure that the candidate was on site.
  • Take references on all potential candidates

You may already be doing some, all or none of these processes but we thought we would share this to hopefully reduce any potential risk to any new client you are dealing with.