CCB uncovers new financial fraud document


Beware 'London Short Form 3034'
London, 11 April 2003 - The ICC's Commercial Crime Bureau (CCB), has warned banks and traders about the increasing use of a fraudulent financial document called 'London Short Form 3034'.

CCB says the document has the appearance of a genuine financial document and is being used by traders as a form of credit.

It is warning banks that this form is not authorized or issued by any financial institution.

"The number of frauds using this particular misleading form is growing, and lenders and traders should both be on their guard," said Chris Spillett, CCB Information Analyst.

Two recently reported cases, one in Asia and the second in Europe, indicate that this type of fraud is being perpetrated worldwide and not concentrated in one specific geographic location.

In the first instance, a trader in Asia requested that the form be used as credit for an aluminum supplier. In the second case, another aluminum supplier, this time in Portugal, received a 'London Short Form 3034' as part of a deal to finance an aluminum shipment to Holland. In both cases, CCB says it believes that brokers initiated use of the false form.

The new document is a variation of previously denounced fraudulent financial forms 'ICC Format 3034 (London Short Form)' and 'London Short Form Guarantee'.

'London Short Form 3034' is primarily being used as the suggested wording for contracts mimicking authentic items such as Letters of Credit or Standby Letters of Credit. These letters of credit are generally used in international trade as the payment mechanism between the buyer and seller of a shipment of goods.

"We have seen similar frauds on many occasions over the years. The 'London Short Form Guarantee', the 'ICC Format 3034 (London Short Form)' and 'ICC Format 3039 (London Long Term)' are other examples of similar fraudulent documents." said Mr Spillett. "London Short Form 3034' is merely the latest in a series of derivations that fraudsters hope will confuse banks and traders sufficiently to slip through".

While this type of fraud is not new, the means by which these fraudulent documents are being obtained and altered is changing. Increasingly, the Internet is the most likely source for the acquisition of these fraudulent documents, adding a new dimension to this criminal activity.

As Mr Spillet explained: "The recent proliferation of these new attempted frauds may be due to the ease with which sample document wordings can be downloaded from Internet sites. The wordings can be quickly adjusted and transposed onto letter-headed, making these documents look quite legitimate."
"But I can categorically confirm that 'London Short Form 3034', in any format, is not recognised or used in banking transactions. Anyone approached to use this form or presented with it in conjunction with a trade should immediately report the matter to the CCB."

Part of the ICC's Commercial Crime Services division, the CCB is a key point of contact for a worldwide network of banks, financial institutions, regulators and law enforcement agencies. Tthe CCB keeps its members informed and up-to-date in all matters concerning financial fraud and malpractice.

For further information about the CCB, telephone +44 (0) 208591 3000, fax +44 (0)208594 2833, or e-mail ccb@icc-ccs.org.uk.