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Advice from the National Fraud Intelligence Bureau (NFIB) to be on 'high alert' for criminals attempting to fraudulently obtain high-performance cars from contract hire firms has been played down by the companies themselves.
According to an NFIB alert issued recently, and seen by BusinessCar, overseas gangs are targeting UK-based leasing companies to gain access to performance cars, which are then taken abroad.
The alert said that criminals are using fraudulent information to get the vehicles. Once abroad, the number plates are changed and bodywork repainted, while the NFIB said leasing the vehicle "affords the criminal group time to move the motor vehicle out of the country without raising suspicion".
It is claimed that many of the stolen vehicles finish up in Cyprus, Poland and Spain, and the NFIB said most of the vehicles are taken by crime groups that are involved in money-laundering schemes in the UK.
Shaun Barritt, CEO of the Grosvenor Group, said he suspected criminals pose as SMEs and order vehicles on the basis that the leasing company won't visit them because their operation is too small.
However, Barritt isn't going to change his approach in light of the warning, as he said his company "has always treated the SME market like any other" and meets face-to-face with 95% of all new clients to check their validity.
"By visiting companies, fraud is almost impossible because the potential fraudulent customer would either refuse the visit and you'd never hear from them again, or Grosvenor would become suspicious that they were refusing a visit and be far more vigilant in the underwriting process as a result," he said.
Medium-term rental company Meridian Vehicle Solutions is also unfazed by the warning from the authorities, as, according to the company's MD, Phil Jerome, the "vast majority" of his clients respect a clause in the contract forbidding taking vehicles out of the country without prior agreement.
"We do occasionally get a call from a driver who is usually at the port and wants to know whether we can send them the correct documentation immediately to take the car to France, and we have to tell them that we can't," he told BusinessCar.
Jerome added: "Because of this, we have investigated various options and one of these is to fit a tracker and geo-fence the vehicle within mainland UK," although he conceded it has "become enough of an issue to start fitting them at the moment". The UK's largest leasing company, Lex Autolease, is also unconcerned by the Bureau's warning.
"It's important for leasing companies to remain vigilant to potential and existing threats and work with law enforcement agencies and industry fraud-prevention bodies to help combat fraud," said Andy Hartley, commercial director at the business. "It's vital that they undertake detailed underwriting and other checks to ensure that the customer is a genuine business or consumer. As a responsible lender, at Lex Autolease we work closely with Lloyds Banking Group's fraud unit to ensure we're taking the necessary steps to protect our customers and our business against fraud."
However, Andy Barrs, head of police liaison at vehicle tracking company Tracker, said it is a "massive problem". "The police aren't 'criming' them because they're not seen as a civil threat, and by the time the leasing companies find out, it's too late," he told BusinessCar.
Barrs also blasted the easy availability of vehicles: "Cars can now be leased within hours of walking into a dealership," he said. "Lots of vehicles are being taken to Spain, and this is a big problem as the leasing companies see it as someone else's problem."
As a result of this, Barrs said the number of vehicles recovered is "very low".
The NFIB document urges leasing companies to use multiple methods of verifying identities and recommended that tracking devices are fitted to vehicles.
Data giant Cap HPI also advocates the use of tracking devices, and said that leasing companies should be extra careful. "The best action UK leasing companies can take to minimise risk of vehicle theft is to be ultra-diligent when checking customer authenticity and to look at all methods of verifying identification. The fitting of appropriate tracking devices in all vehicles will also minimise the risk of theft," said Barry Shorto, the firm's head of industry relations.
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