I lost sh46m to internet dealings
Sep 04, 2012
The temptation to order a shipment to Uganda, of say a vehicle, from an online source is high, but have you considered the risk of signing off your hard earned monies to a swindler.
The temptation to order a shipment to Uganda, of say a vehicle, from an online source is high, but have you considered the risk of signing off your hard earned monies to a swindler. Charles Etukuri discusses the challenges of online shopping in what has now become a den of con artists
Paul Alimu aka MDZ, an upcoming musician in Teso, wanted to buy a Toyota Harrier in April. After touring several car bonds in the country, a friend convinced him that it would be cheaper to import the car instead, apparently he could by one on the internet.
Convinced, he went to a café and after selecting the photos of the car he wanted, he sent an inquiry. A man who identified himself only as Philip responded to the inquiry. “He told me that he was an American citizen who lives in Germany and that he dealt in vehicle clearing with Toyota in Japan,”Alimu narrates.
Within a short time, Philip sent him several photos and links to websites that had cars advertised for sale. “Considering the information he was showing me, I was convinced he was genuine. In fact, he made my search simpler,” says Alimu.
The two then exchanged e-mail addresses and phone contacts and continued communicating for two months.
“He used to call me on phone and even directed me to his home area in Los Angeles. He even introduced me to his wife on phone, we talked several times. He gave the phone number+1-888 262 as his home phone,” Alimu recalls.
Eventually, Alimu zeroed in on a Toyota Harrier 1999 model. “He asked me to send him $7,000 as a deposit. When I asked whether I should deposit the money in the bank, he insisted on Western Union saying it was faster. Two days after I sent the money, he called and sent documents indicating the car was on its way”.
Phillip’s accomplice, who identified himself as Yun Pangh from Japan, called Alimu and gave him a two-week date in which the car should arrive.
“They then asked for another $10,000 to clear the balance and another $1,500 to clear the car at the port, which I sent to them. Suddenly, they cut off communication with me.”
When Alimu called the phone number Philip had given him, the lady who answered said she was in Nigeria and that the Philip she knew had died two years before.
“When I emailed him again, the woman replied saying Philip was dead and that I should stop littering her mailbox.”
At the end of it, Alimu had lost $18,500, equivalent to sh46m.
Although Alimu reported the matter to the Police, they have failed to trace Philip because of the nature of the crime.
In a similar way, Mildred, a Kampala resident, lost $5,000 which was to cater for delivering a car to Mombasa.
“For three years, I painstakingly saved part of my salary to buy a car. Despite several visits to car bonds, I failed to get what I wanted,” she says adding that they were expensive. It was at this moment that a friend linked her up to a prominent Japanese website.
She initiated online discussions with the dealer and agreed on a price of $5,000 (sh12.4m) including the cost of freight to Mombasa.
After paying, she was told the car had been shipped and asked to wait for its documentation. After two weeks, Mildred had not received the documentation. Her calls and emails went unanswered.
“She panicked and came to us. We are in the process of investigating her case using our partners in Japan,” says Issa Sekitto, the Kampala City Traders (KACITA) spokesperson.
Sekitto says KACITA is handling several cases of traders who have been conned via the internet. “Yes, we have cases of several Ugandan traders losing their monies to internet conmen posing as suppliers of various goods,” he says.
The Police admit they are facing a challenge because it is not easy to trace internet conmen. It is even harder to establish their location.
“It is difficult to arrest these people; they do not indicate their physical addresses. Even when we liaise with the countries where the fraud was perpetrated, it remains difficult to nail them.
Many online fraud schemes are a challenge to law enforcement agencies as they cannot be confined within national boundaries or investigative jurisdictions. For that reason, it is essential to empower and educate the traders,” says Kampala metropolitan Police spokesperson Ibin Ssenkumbi.
Sources within the Police told Sunday Vision that some of the conmen have their local accomplices. Already, the Police is looking for Godfrey Kikulwe on charges of using the internet to con many people in Uganda.
Police sources say Kikulwe has, for years, been posing as an e-businessman who deals in cars and has robbed many people of their hard earned cash.
He allegedly gets money from people promising to sell them vehicles at cheaper prices, only for him to disappear after they pay. “One of the hallmarks of fraud used to be the big rush. They wanted to push and push and get something from you quickly. Today’s conmen take their time.
They may invest hundreds of emails and phone calls. They may see you in person many times. They know that time puts people at ease,” says Ssenkumbi.
Sekitto says many traders have fallen prey because the conmen propose a pricing that would seemingly enable the trader save a lot of money. “Shopping on the internet, one would be be spoilt for choice,” he notes.
For cases of cars and other luxury items, he says the traders immediately get lured by the offer of good bargains, pictures of nice vehicles, clean engines and enticing bodywork, most people rush to send money.
A case in point is Hussein, a businessman in his forties, who lost over $400,000 (sh980m) to a group of conmen in Canada who promised to ship several containers of second hand clothes and tiles. “I met them on the internet and their company profile enticed me.
They even sent a representative to inspect my premises. I was supposed to become their agent in the region. Their condition was that I could not receive the goods until I had paid them their money. After wiring the money to their account, the conmen immediately closed the account and disappeared,” Hussein recalls.
How to avoid fraud
The Police advise that while the internet is helping the business community to deal across borders, utmost care is required. It is not that trading over the net is bad. It is just that traders need to be aware of the tricks used by online conmen.
“Whether you are looking to buy or sell goods online, the first-and the best-way to fight fraud is prevention. There are signs to watch out for,” says Senkumbi.
9 Ways to beat internet fraud
Never enter into any sale on the basis of an email you have received, especially if it is an email that has arrived in your inbox as unsolicited mail. If you receive such emails and they are placed in your junk mail folder it is best to leave them there.
If you are interested in a certain product, check out the corresponding website.
Go with the recommendation of friends and family. If you are looking to make a specific purchase then ask friends and family what sites they use when buying online. They will give you advice on how they found their experience and what works and what does not.
Do not pay through non-traceable avenues such as Western Union or MoneyGram.
Do not pay through a third party.
Pay to a designated company account and not a personal account even if the individual says he is representing the company.
Be suspicious if someone is selling an item at a much lower price than the actual value.
Avoid dealing with someone who refuses to provide a tracking number.
Be suspicious of those who accept to receive the money in installments.
Pay through authorised guarantors such as Paypal, Paytrade and Escrow.