WSTA launches counter-fraud unit

Published: 13 May, 2011

The WSTA is cracking down on wine and spirits fraud with the launch of a specialist unit focused on identity theft, counterfeit products and wine investment scams.

The new initiative, supported by the Metropolitan police, allows WSTA member businesses to legally share information about actual or suspected fraudulent activity and liaise with police, customs and regulatory agencies.

Acting Detective Superintendent Nick Downing, who heads the Metropolitan Police Service's counter-fraud Operation Sterling, said: "Our work with industry is crucial to combating fraud so we welcome this initiative.

"We would advise those considering investing money, whether it be a small or large amount, to do their research and be sure that the companies or individuals they are dealing with are reputable and legitimate. We would further advise that care should be taken with personal details when entering into any financial agreement so as to avoid being conned out of your hard earned cash or having your identity stolen."

Last week the WSTA stepped in after a member company was a victim of identity theft, costing in excess of £10,000. Con artists used fake email addresses to obtain a wine order from one of the firm's French suppliers before suspicions were aroused and the WSTA alerted the police and others in the trade.

WSTA chief executive Jeremy Beadles said: "It's not just consumers who suffer from fraud, it's also damaging to legitimate businesses within the trade and we want to ensure we are taking every possible step to combat the problem.

Back in March Pernod Ricard had to deal with a rash of fake Jacob's Creek in outlets in Greater London. Simon Thomas, deputy managing director, said the fake wines did not "deliver the taste or quality expected from genuine Jacob's Creek". Its advice to retailers was to "only ever purchase their wine, spirits and champagne through official retail channels".

Wine duty fraud
The Federation of Wholesale Distributors has already been tackling the issue of alcohol duty fraud, and has had a series of parliamentary questions asked about how much wine duty fraud is worth. The Treasury's most up-to-date figures put spirits fraud at £300 million and beer at £550 million, but it says it cannot put a value on wine duty fraud, saying it's too complicated to calculate. FWD estimates the figure stands somewhere between the spirits and beer figures.
A spokesman said some progress has been made with the government, which has now agreed to spend £900 million targeting tax avoidance and evasion, with a focus on alcohol fraudsters. The FWD spokesman also said the decision to consider legislating against alcohol duty fraud was "very promising and positive".

Printer friendly version