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...