North American aluminium scrap scheme targets recyclers

Fraudulent activity in the aluminium scrap market has picked up recently, according to market sources and industry organizations, with one scheme involving aluminium wheels causing particular damage.

A recycler buying large amounts of aluminium scrap, primarily wheels, is fraudulently using the name of a real Canadian company, Linamar Corp; redirecting shipments; and not paying for material, according to these sources.

According to reports and a company representative of Foss Recycling, an affected company, “there are at least 11 victims of the scheme to date, and the value of lost material is well in excess of $3 million.”

“This is a scheme where companies place orders via email by posing as representatives of a phony division of...


June 25, 2020

21:57 GMT