Fraudulent Ordering Activities

March 14, 2012

The Dental Industry Association of Canada (DIAC) has received reports of fraudulent activities that involve individuals ordering dental supplies by telephone but subsequently diverting or intercepting the products. According to the recent reports, there are currently 2 common types of ordering fraud taking place across the country, with some minor variations on the overall scenarios.

In the first case, an individual calls dental suppliers and laboratories posing as a dental practitioner or staff member from a legitimate dental practice. After ordering the goods, an additional phone call is placed requesting that the “Ship To” address be changed because the caller won’t be at the regular dental office location. The goods are then sent to this false address while the unsuspecting dental practice receives an invoice for the products.

In the other fraud, a caller identifies him or herself as being from a dental practice and orders expensive products on a RUSH basis for delivery the next day. An individual then goes to the dental office early the following day, under the pretense of helping the dental office with this new product. Because these goods were never actually ordered by the practice, the person apologizes for the mistake (on behalf of the dealer) and volunteers to handle the return shipping. A separate individual impersonating a courier then arrives to pick up the product and the goods vanish.

Dental companies that have been affected by these frauds suspect the acts are being perpetrated by individuals with close knowledge of how the Canadian dental supply business operates.

Due to these fraudulent schemes, dental dealers or laboratories may begin to put additional confirmation measures in place for telephone orders, such as requesting customer account numbers or questioning orders for products that would not normally be ordered on a rush basis, like expensive pieces of small equipment.

If any dental office receives goods they did not order or from an unfamiliar supplier, DIAC recommends that you immediately contact your dental dealer or customer service representative. Suspected cases of fraud can also be reported to the Canadian Anti-Fraud Centre at info@antifraudcentre.ca or 1-888-495-8501.

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