Fraudulent Hires

FRAUDULENT HIRES Background Pre Hire Checks Claims Examples Summary

BACKGROUND Fraudulent hires are nothing new and changes in technology simply change the type of equipment targeted. Many of the claims we see tend to be fairly simple deceptions and some straightforward checks would in most cases of prevented the loss.

PRE HIRE CHECKS Key procedures; 1. Credit Application/Trade References Credit form should include full company or personal details. Private clients to have at least three forms of identification. Always check trade references.

PRE HIRE CHECKS 2. Contact Details Landline is essential (mobile alone should not be accepted). addresses – be careful of hotmail address or equivalent.

PRE HIRE CHECKS 3. Cash Deposit Take a sizeable cash deposit for first time hirers returnable on return of undamaged equipment. If possible, hold onto photo ID (eg passport) for the duration of the hire.

PRE HIRE CHECKS 4. Delivery Location Avoid unknown third party locations if possible. Where possible, try to keep to recognised addresses eg Studios etc. Can often get a feel for a company if you deliver.

PRE HIRE CHECKS 5. Insurance Do not assume they have cover. Ask for a cover note: Ask for broker contact and ring to enquire. If first time hire ALWAYS obtain proof of cover before releasing equipment. If you are covering the hire under your policy, remember claims will also go against that policy! Do you recognise the Insurer/Broker? Have you checked the hired in sum insured?

PRE HIRE CHECKS 6. Photo Evidence If possible take a picture of hirer. Puts off potential thieves.

PRE HIRE CHECKS 7. Signatures Signatures should be obtained on hire invoices or terms and conditions. Compare signature to the proof of ID signature.

PRE HIRE CHECKS 8. General Manner of Hire Ask some technical questions (high end equipment needs an experienced operator). If they are not using personally, who is using the equipment? Establish contact with the on-location expert. Watch out for sudden changes to hire orders ie a small order suddenly increases in value at the last minute. Is it a Friday at 5pm?!

PRE HIRE CHECKS 9. Cross Hire In cross hire situations you will not have made any checks. Ask the hire company if they have the appropriate checking procedures. These checks should include insurance. You do not want the failure of their procedures to mean you have to claim on your policy.

CLAIMS EXAMPLES The following examples show the lengths the fraudster will go to obtain the equipment. ACJ have many, many examples! Here are three…..

CLAIMS EXAMPLES Case Study 1 Claim Cause:Fraudulent theft of a Panasonic Varicam camera kit Date of Incident:November 2006 Claim Settlement:£62,000 Brief Summary:The Insured, an established facilities company, was approached by a non account customer with a hire enquiry. The Insured clearly stated various levels of identification would be required, together with full payment up front. The Hirer explained that he would not be personally collecting the equipment but a named individual would be who would provide, as requested, three forms of identification in addition to a cash payment. Verbal arrangements were therefore made and the individual concerned duly arrived with the identification which it later turned out to be all fraudulent, with the Police later confirming that they were all very good copies. The equipment was hired for a one day shoot which over-ran. The mobile number provided by the Hirer was never answered and several voice messages left. It quickly became clear that the equipment was not going to be returned.

CLAIMS EXAMPLES Case Study 2 Claim Cause:Fraudulent theft of high definition camera equipment Date of Incident:September 2007 Claim Settlement:£135,000 Brief Summary:The Insured were contacted via by a documentary television production company based in South America. A quote was requested for a specific high definition camera and lenses and various other miscellaneous equipment. Various communication took place and a booking was made. Credit/account application forms were received, as well as credit card details. When the equipment was collected, additional trade references, additional forms of identification, including photographs, were taken and collected. The balance of the hire was paid for in full by cash. It was agreed that the equipment would be delivered the following day by the Insured to the production company’s hotel in London. Everything was delivered to the same persons who were present at the Insured’s premises the previous day and a date/time was also arranged for collection. The collection was not met, the hotel advised that the Hirer had checked out of the hotel, there were a number of s also involving the Police who had been notified about the potential theft, claiming the equipment had been stolen and that the Hirer had to return back to South America urgently due to illness. The equipment or Hirer were never discovered.

CLAIMS EXAMPLES Case Study 3 Claim Cause:Fraudulent theft of a number of laptop computers Date of Incident:August 2007 Claim Settlement:£9,250 Brief Summary:The Insured was approached by an individual acting on behalf of a local company. The request was for the hire of a number of laptop computers needed for an in- house training session at the company’s own premises. A completed credit application form was obtained, as well as three formal trade references and full bank details. All the information provided appeared accurate and all checks made were in order. The equipment was delivered personally to the premises which all appeared to be well established, well equipped and everything set up ready for a training session. Nothing untoward was noted at all. On arriving back to pick up the equipment after the ten day hire period, the premises were vacated, stripped with absolutely no sign of the previous occupancy. All attempts to contact the Hirer failed. The company director’s private dwelling was also visited but again had also been vacated. Following investigation by the Police, they have received reports that up to six other hire companies had also reported fraudulent theft of equipment and goods in the same period from that company.

SUMMARY The most efficient way to stop fraudulent theft is not to hire if you have any doubts. Hire facilities are part of a close knit industry - pass around information on fraudsters. London 2012 Olympics – need to be aware of fraudsters posing as overseas production co’s. ACJ all hire companies on our books regarding known fraudsters. Let us know if would like to be added to the circulation list. Any Questions?