Fraud squad warns of bogus advertisements

Press, 25 June 1983, Page 2

Fraud squad warns of bogus advertisements

Some businesses are being sent bills for unordered advertisements, fraud squad detectives say. Firms throughout New Zealand have received the bogus bills but the problem seems centred on Auckland. Detective Sergeant Tony Shalfoon of the Auckland fraud squad yesterday warned businesses not to pay accounts unless they knew what they were being charged for. For several months about six magazines have been running unsolicited advertisements and then billing the featured business.

“Rubber-stamp accounting” had seen some firms automatically pay up, he said. Dozens of companies have rung the police since an alert was issued on Thursday. Some have already paid for unwanted advertisements and others have just received accounts. Christchurch firms are among those which have complained. A local fraud squad spokesman said a number of inquiries had been referred to Auckland, which was acting as the “nerve centre” for the investigation. He said it appeared that

some small-circulation magazines with names similar to bigger publications were involved in the fraud. Mr Shalfoon said the problem was one which occurred from time to time. Unordered goods and services were also charged to businesses. Auckland detectives were investigating several companies which had been soliciting money through accounts, said Detective Senior-Sergeant Peter Doone. The system was not new, he said, but was being used to obtain large profits.