Insurance fraud and scams from Croatia
You think you have just found a new, reputable customer in Croatia, near Zagreb. According to the customer, their annual figures are so positive that credit insurers simply issue credit limits. Insured or not: no problem and little risk. Or is it? In the meantime, several flower exporters, farms and suppliers have been disadvantaged by these shrewd fraudsters.
A few individuals who mainly operate from Zagreb make clever use of insurance fraud. They work with various entities that all have positive annual figures and to which credit insurers and credit information suppliers often indeed issue a credit limit. In some cases suppliers are approached by a garden center, which is actually operational and unfortunately has a very bad reputation for several years already, the other time suppliers are contacted by a flower wholesaler. The invoices can be sent to different entities, sometimes also to companies that have nothing to do with the flower business. Those who do proper research will soon find out that the people behind a number of these companies are involved in, among other things, large-scale tax evasion. Since a few months there is also a link to another notorious defaulter from Zagreb (yes, people with bad intentions attract each other), who has been known to us since 2009 with a lot of unpaid bills. His entity is also used to contact exporters and farms.
In some cases, a relationship is started and the outstanding balance is slowly increasing, but in other cases, orders are placed and never paid at all.
A number of suppliers do indeed have a credit insurance and 'only' lose a small amount for ‘own risk’. But we also know cases where there was no credit insurance and the suppliers have lost 100% of the delivered products. At the moment, suppliers are still being approached by these fraudsters, so be warned.
Through AgroCheck you only need to search for the name of the company or the owners in our database and it immediately becomes clear that you shouldn’t do business with them. Or even easier: you request a credit report through firstname.lastname@example.org and within 24 hours you will receive a complete overview of the company, with history, any links to other companies and credit limit advice.
AgroCheck members who would like to know which debtors this concerns can contact us. We advise non-members to consider an AgroCheck membership. From only € 450,- per year you can prevent a lot of trouble.