Global Fastener News

2009 FIN – Internet Fraud Hits Distributor for $142,000

May 29
00:00 2013

March 23, 2009 FIN ­ – A Sales Systems Limited employee working on a recent Saturday downloaded music triggering a $142,000 loss for the Virginia-based fastener distributor.

Within minutes the Sales System Limited bank account was drained, with the money going first to J.P.Morgan and then instantly to Russia.

When president Bill Creecy contacted J.P. Morgan he was told it would take 48 hours to even respond.

The FBI told Creecy the fraud is happening “every week” and even with a team of investigators there is a 90-day backlog.

Banks refused to cover the loss because the money came directly from the SSL account over the Internet and not through a bank transfer.

Creecy discovered the distributor’s insurance covers seemingly every potential loss, but not Internet fraud. “Check your policies carefully for wire fraud,” Creecy warned the fastener industry. A $1 million policy is about $2,500 a year, he found.

Founded in 1970 by Creecy, Sales Systems Limited is a Portsmouth, VA-based distributor specializing in defense and ship systems. ©2009/2013 Fastener Industry News.

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