fraud (16)

The grate cheese robbery

13172052897?profile=RESIZE_710xMore than 22 tonnes of three artisan award-winning cheddars worth more than £300,000 stolen from London cheese specialist in October 2024

Fraudsters posing as legitimate wholesalers received the 950 clothbound cheeses from the company before it was realised they were a fake firm.

The London Metropolitan Police has confirmed it is investigating "the theft of a large quantity of cheese".

Why cheese theft is on the rise

Food-related crimes – which include smuggling, counterfeiting, and out-and-out theft – cost the global food industry between US $30 to 50 billion a year (£23-£38 billion), according to the World Trade Organisation. These range from hijackings of freight lorries delivering food to warehouses to the theft of 24 live lobsters from a storage pen in Scotland.

But a number of these food crimes have also targeted the cheese industry – and in particular luxury cheese.

In 2023, around £50,000 worth of cheese was stolen from a trailer in a service station near Worcester, UK. It’s happening elsewhere in Europe, too: in 2016, criminals made off with £80,000 of Parmigiano Reggiano from a warehouse in northern Italy. This particular type of parmesan, which requires at least a year to mature, is created by following a process that has been in place, with little modification, for almost 1,000 years. At the time of the heist, Italy’s Parmigiano Reggiano Consortium told CBS news that about $7 million (£5.4m) worth of cheese had been stolen in a two-year period.

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The problem is only set to rise across the industry as cheese becomes more valuable. The overall price of food and non-alcoholic drinks in the UK rose around 25% between January 2022 and January 2024, according to the Office for National Statistics. Cheese, meanwhile, saw a similar price hike in the space of a single year.

How organised crime infiltrated the food industry

“There is a long-established connection between food and organised crime,” says Andy Quinn of the National Food Crime Unit (NFCU), which was established in 2015 following the 2013 horse meat scandal. One example of this is the high proportion of illegal drugs smuggled through legal global food supply chains.

In September, dozens of kilograms of cocaine were found in banana deliveries to four stores of a French supermarket, with police unsure who the intended recipient was. For the drugs to reach the end of the food supply chain is highly unusual, but this method of transporting illegal items across borders in containers of food is common.

According to Quinn, once drug cartels and other criminal operators gain a foothold into how a food business operates, they spot other opportunities. “They will infiltrate a legitimate business, take control of its distribution networks and use it to move other illegal items, including stolen food.”

For criminal networks, food has other attractions. “They know crimes involving food result in less severe convictions than for importing drugs,” says Quinn, “but they can still make similar amounts of money.” Particularly if it’s a premium cheese.

The problem for the criminals is what to do with it. “There are few places to offload them,” says Jamie Montgomery, who runs the Somerset farm that was targeted in the 1998 heist. “Shifting that much artisan cheese is difficult.”

This is why people in the industry believe stolen cheese is often sent overseas to countries where there are thriving food black markets – and indeed cheese black markets. 

Microchipped parmesan: Innovative security

Andy Quinn explains: “Food chains are truly global. The same goes for the movement of illegal food.”

Now, many in the industry are fighting back, however. Italy’s Parmigiano Reggiano Consortium – the cheesemakers behind the world’s most stolen cheese – have said that the black market for that variety is “robust”. This is partly down to the fact that it is hugely valuable, generating global sales of almost £3bn a year – and so they have come up with a unique way of protecting it.

In 2022, the consortium began introducing tracking chips, no larger than a grain of rice, as part of the label embedded in the hard rind of the cheese. This helps to reduce thefts, but also means counterfeit Parmigiano Reggiano can be identified, as each tiny chip contains a unique digital ID that can authenticate the cheese.

Buyers can now scan each wheel to check its authenticity or find out if it was stolen. The consortium is yet to release any figures showing whether the technology is cutting down levels of fraud.

“Conflicts around the world, the cost-of-living crisis, even climate change, all increase the appeal for food fraud,” says the NFCU’s Andy Quinn. Until that changes, cheesemakers might need to tighten up their security – and think twice when an order seems too good to be true.

It is crucial to know who you're buying from and who you're selling to; the rise in cybercrime is making this more challenging but nothing replaces establishing good relationships with your stakeholders in trying to mitigate against food fraud as we found in Defra project: Review of Food Fraud drivers and Mitigation Tools.

Read full BBC article.

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This review (purchase required) and its associated recommendations is primarily aimed at regulators and competent authorities, but also has implications for food businesses.

The aim of was to consider food-related fraud prevention initiatives, understand what has worked well, and develop a series of recommendations on preventing food fraud, both policy related and for future research.

The authors found that reactive (including intelligence based) food fraud detection dominates over prevention strategies, especially where financial, knowledge, and time resources are scarce. First-generation tools have been developed for food fraud vulnerability assessment, risk analysis, and development of food fraud prevention strategies. However, examples of integrated food control management systems at food business operator, supply chain, and regulatory levels for prevention are limited.

They conclude that the lack of hybrid (public/private) integration of food fraud prevention strategies, as well as an effective verification ecosystem, weakens existing food fraud prevention plans. While there are several emergent practice models for food fraud prevention, they need to be strengthened to focus more specifically on capable guardians and target hardening.

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This review (open access) covers technological and digital solutions to mitigate food fraud risk, concentrating on recent developments.  It categorises solutions as either systematic interventions (e.g. risk prioritisation databases, digital fraud prediction tools), fraud detection techniques (analytical test methods) or package-level technologies (e.g. traceability systems, anti-counterfeiting markers, RFID tags).

It concludes that a notable gap exists in converting laboratory based sophisticated technologies to tools in high-paced, live industrial applications. New frontiers such as handheld laser-induced breakdown spectroscopy (liBS) and smart-phone spectroscopy have emerged for rapid food authentication. Multifunctional devices with hyphenating sensing mechanisms that are combined with deep learning strategies to compare food fingerprints can be a great leap forward in the industry. Combination of different technologies such as spectroscopy and separation techniques will also be superior where quantification of adulterants are preferred. with the advancement of automation these technologies will be able to be deployed as in-line scanning devices in industrial settings to detect food fraud across multiple points in food supply chains.

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This is Tenet's first edition of their quarterly newsletter specifically focused on the prevention and protection against fraud and financial crime for the food sector.

In each issue, Tenet will provide articles to assist with fraud prevention planning, advice on protecting brand integrity and recomendations to improve quality control - all from a legal perspective.

 

 

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300Over a quarter of consumers actively stated that they distrust government authorities and manufacturers (29% and 26% respectively) found the EIT #FoodTrustReport.

What's damaging consumer trust? Anthony Warner - known as The Angry Chef - says: "there's too much information [about food choices]. It's all very confusing."

In this episode of #EITFoodFight, he and Liesbet Vranken explore:

➡️ Food marketing and health claims like 'detox'
➡️ The role of social media influencers
➡️ Where consumers can get trustworthy information.

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Food fraud and adulteration is a major concern in terms of economic and public health.Multivariate methods combined with spectroscopic techniques have shown promise as a novel analytical strategy for addressing issues related to food fraud that cannot be solved by the analysis of one variable, particularly in complex matrices such distilled beverages.

This review describes and discusses different aspects of whisky production, and recent developments of laboratory, in field and high throughput analysis. In particular, recent applications detailing the use of vibrational spectroscopy techniques combined with data analytical methods used to not only distinguish between brand and origin of whiskey but to also detect adulteration are presented.

Read open access paper here.

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7553664877?profile=RESIZE_710xUS Department of Agriculture has published a proposed rule, aiming to close the "gaps in the current regulations to build consistent certification practices to deter and detect organic fraud."

Part of the proposal will aim to reduce businesses exempted from organic certification. improving traceability with better recordkeeping, and standardizing inspections of organic operation sites.

Read more on the proposed rule in the Food Navigator story.

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Business reputation and trust are as critical now as they’ve ever been.

It is the actions of our leaders, the cultures they create and the employee behaviours that they influence which correlate with how much stakeholders trust a company.

However do leaders appreciate the link between their leadership style and its impact on their teams?

Tenet’s white paper:

- Explores the key risks which arise from the way an organisation is led.

- Debates the role of leadership in driving a culture which increases the risk of fraud.

- Investigates what can be done to reverse unethical behaviour.

Read white paper.

This paper has also been added to the 'Reports' section of our Covid-19 Resource Base and our Food Fraud Mitigation section.

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Research undertaken by Crowe UKKYND and University of Portsmouth’s Centre for Counter Fraud Studies found that the vast majority of the top 200 AIM businesses have significant unaddressed cyber risks. Unfortunately, the risks identified are not just limited to the top 200 AIM businesses and are also likely to exist in similar companies. 

The cyber landscape is becoming increasingly complex, particularly now we're seeing increased strain from fraud and cybercrime pressures related to the current COVID-19 pandemic. Fraud and cybercrime is expected to surge over 60% in the coming months. Keeping pace with the evolution of cyber threats is becoming ever more challenging and important. This was evidenced in the report's key findings.

  • 91.5% exposed to email spoofing
  • 47.5% have at least one external internet service exposed, placing them at higher risk of ransomware attack
  • 85% using services with well-known vulnerability to cyber attack
  • 41.5% using vulnerable out of date software
  • 31.5% operating with at least one expired, revoked, or distrusted security certificate
  • 64% companies with at least on domain registered to personal email address.

Download the Fraud and cybercrime vulnerabilities on AIM report

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An introduction to DNA melting curve analysis

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This e-seminar, entitled “An introduction to DNA melting curve analysis”, describes the principles behind, as well as best practice guidelines for the application of the post-PCR analytical method of DNA melting curve analysis. The information presented will provide the viewer with a general introduction to PCR-based DNA melting analysis as a method for food authenticity testing, and provide guidance on how to design, implement and analyse PCR DNA melting assay data. Topics covered will include the principles underpinning DNA melting analysis, designing PCR DNA melting assays, examples of PCR instruments compatible with DNA melting analysis, and guidance on troubleshooting. Those who should consider viewing this e-seminar include individuals currently working within the foods molecular testing area, particularly representatives from UK Official Control Laboratories, industry and members of organisations associated with the UK official control network.

View e-seminar here.

The production of this e-seminar was funded by Defra, FSA, FSS and BEIS under the Joint Knowledge Transfer Framework for Food Standards and Food Safety Analysis.

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2194260207?profile=RESIZE_710xA Dutch meat trader who was sentenced in France for his role in a 2013 scam that passed off horse meat as beef to food producers across Europe has been arrested by Spanish authorities.

The man, Johannes Fasen, was sentenced in April to two years in prison for his part in the 2013 horsemeat scandal, along with three of his partners in the plot to deceive a French company and consumers by selling 500 tonnes of cheap horse meat as beef.

Read the full story here.

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3211761143?profile=RESIZE_710xThirty-three countries*, INTERPOL, the Joint Research Centre (JRC), the European Anti-Fraud Office (OLAF), the World Anti-Doping Agency (WADA) joined forces in the Europol-coordinated operation Viribus for a massive crackdown on the trafficking of doping materials and counterfeit medicines. The operation, led by the Italian NAS Carabinieri and co-led by the Financial Unit of the Hellenic Police (Ελληνική Αστυνομία), is the largest action of this kind ever.

Overall results during the entire operation:

  • 3.8 million illicit doping substances and counterfeit medicines seized (seizures included doping substances, dietary supplements, medicines and sport and food supplements);
  • 17 organised groups dismantled;
  • 9 underground labs disrupted;
  • 234 suspects arrested;
  • 839 judicial cases opened;
  • Almost 1 000 individuals reported for the production, commerce or use of doping substances. 

Read full article here.

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Crowe Clark Whitehill has published a report about consumers expectations, food and drink businesses, and their approach to counter fraud.

The report highlights the divergence between common industry practice and consumer expectations.  For example, consumers expect that food and drink businesses to share information early and not wait until all the facts are known.

Consumers also expect businesses to share information about incidents that result in a financial loss, not just incidents that could cause a health risk. 

Consumers expect businesses to share detailed information with the Scottish Food Crime and Incidents Unit/National Food Crime Unit rather than combined and anonymised data.

The overarching message across the various findings is that consumers expect more transparency. Which is a reasonable expectation. The report is available here: https://lnkd.in/e-G4qNd

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