What are Tender Scams?

In our last blog we highlighted a peak in tender scams and how to protect yourself.  If you are new to tendering and are not sure what they are, we’ll now unpack some of the more frequent scenarios.

Fraudsters use what appears to be government department stationery with fictitious logos and contact details to send a fake RFQ to a company to invite them to urgently supply goods. Shortly after the company has submitted its quote, it receives notification that it has won the tender. The company delivers the goods to someone who poses as an official or at a fake site. The Department has no idea of this transaction that was made in its name. The company is then never paid and suffers a loss.

or

Fraudsters use what appears to be government department stationery with fictitious logos and contact details to send a fake RFQ to Company A to invite it to urgently supply goods. Typically, the tender specification is so unique that only Company B (a fictitious company created by the fraudster) can supply the goods in question. Shortly after Company A has submitted its quote it receives notification that it has won the tender. Company A orders the goods and pays a deposit to the fictitious Company B. Once Company B receives the money, it disappears. Company A’s money is stolen in the process. 

Protect yourself from being scammed.

If you are registered on the supplier databases and you receive a request to tender or quote that seems to be from a government department, contact the department to confirm that the request is legitimate. Do not use the contact details on the tender document as these might be fraudulent.