A NEW York sweet company’s entire shipment of rare Japanese KitKats has been stolen after falling foul to a new type of shipment scam that involves fake ID, phoney pickups and false dawns.
Some 55,000 bars have gone missing in flavours you never knew you wanted to try and that aren’t available in the Europe or the US, including matcha latte, melon and daifuku mochi.
Danny Taing’s company Bokksu sells rare Japanese snacks in subscription boxes to the US market and he regularly makes big shipments to New Jersey from Japan. But his latest cargo, with a street/sweet value of £200,000, went missing before it arrived at its destination in a fraud known as strategic theft or ‘fictitious pick-ups’, as reported in the New York Times.
The criminals use a counterfeit carrier identity in an attempt to pose as the approved transporters of the cargo. Subsequently, an authentic carrier is expected to deliver the shipment to a destination selected by the fraudsters.
It’s a growing crime tactic which the FBI think accounts for £25billion in losses per year – with food and electronics being the top targets.
While in the UK we have settled for a fairly bog-standard KitKat since its introduction in 1935, in Japan it is an entirely different story with some 300 plus variations having been made.
These weird and wonderful KitKat variations are in huge demand in other markets, and are a favourite treat of fraudsters too.
These specific KitKats would emerge as central figures in an le Carre-worthy tale of shell email accounts, imaginary truck drivers, supply-chain deception and a thoroughly perplexed cargo freight broker.
After the shipment failed to arrive Taing enlisted investigator Shane Black from Freight Rate Central in Florida, at a cost of £10,000.
A race against time to locate the KitKats was launched, as improper storage could lead to their melting and spoiling.
Although a portion of Mr Taing’s shipment was recovered, significant challenges remained in retrieving his chocolate.
To release the cargo, he had to provide proper identification and settle two weeks’ worth of storage fees to a California-based company where the KitKats were discovered.
Despite these efforts, Mr Taing ultimately opted against paying for the release of his KitKats. His decision stemmed from concerns about the uncertain storage conditions, fearing that inadequately stored chocolate could pose a risk of making customers ill if not properly cooled.
The Bokksu Kit Kats represent a typical example of a growing form of computer-based fraud known as ‘fictitious pick-ups’ or ‘strategic theft.’
This type of deception combines elements of identity theft with extortion. The freight, often referred to as a ‘hostage load,’ has the potential to disappear if the extortion demands are not satisfied.
“The more you unpeel the onion, the worse it gets,” Keith Lewis, the vice president of operations at CargoNet told the New York Times.
CargoNet, a data analytics and technology company, have reported that strategic cargo robbery is up 700% this year.
“The supply chain is moving at the speed of light,” Lewis said
“The bad guys are playing chess and we’re playing checkers. We’re two or three steps behind them.”
Regarding Bokksu, its insurance claim has failed and accountability is now reverting back through the supply chain.
Black said. “It’s beyond crazy, it really is. Because there’s no answers.
“I do feel cheated. I just don’t know who is doing the cheating.”