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[56]National [57] Crime 'We couldn't believe it': The brazen mail scam that's cost a Kiwi business over $300,000 Steve Kilgallon05:00, Aug 15 2021 * * * * * David White A group of scammers has been stealing mail and impersonating a company's staff for a year. The catalogue advertises hearing aids, compression socks and a shoe insole that can improve sexual performance. Fill in the form with your credit card details, mail it off in the pre-labelled envelope, and three weeks later, your pet-hair vacuum, porcelain clock and denture cleaners arrive. In the internet age, it’s a peculiarly old-fashioned system, but then most of Sam Campisi’s customers are elderly, and since he established his successful mail-order business Health Pride in 1993, it’s always worked. That is, until late last year. At first, they hardly noticed. But by January, Campisi realised he had a serious problem. By February, it had “blown up”. Health Pride’s mail was being intercepted, and scammers were tricking customers into handing over their CVC numbers – the three-digit pin code on the back of every credit card – and stealing their money. “It’s the first time this has ever happened,” says Campisi. “We couldn’t believe it.” READ MORE: * [58]Scammers using online Steam gift cards prompts warning * [59]The wild, wild west of the digital scamming world * [60]Kiwis losing up to $500 million each year in scams, Westpac fraud survey tells * [61]He blew the whistle on a phone scam, now the scammers are threatening him Stung by an apathetic response from police and New Zealand Post, Campisi and Damian Bruno, his operations manager, turned from selling socks and clocks to become part-time private investigators, attempting to unravel a brazen fraud before it brought their company to its knees. Part-time sleuth Damian Bruno began tracking his orders from postbox to office. Nelson Mail Photographer Damian Bruno began tracking his orders from postbox to office. Damian Bruno has always liked research. He’ll google people before he meets them, just to find out who they are. He’s found investigating the mail scammers fascinating, but deeply frustrating: every time he presents a concrete piece of evidence he’s unearthed, he feels it makes no difference. It’s also taken him away from his day job running a trans-Tasman company in a year he’d always known would be tough, with the impact of Covid and the decision by New Zealand banks to stop accepting cheques, which are still used by many of his customers. Bruno is married to Campisi’s daughter, Gabby, and will eventually take the helm when Campisi, who’s now 70, decides to retire. But now he’s wondering what will be left of a once-thriving business. “I can’t tell you how many hours I’ve spent daily talking to customers and trying to piece things together,” says Bruno. “Some are customers that have bought from us for ten years, and explaining to them that it wasn’t us [who stole their money] is so hard, so time-consuming.” For years, everything worked fine: customers completed coupons and posted their orders along with their credit card details and return address. Wherever it was sent in New Zealand, it went to NZ Post’s huge sorting facility at Highbrook Park in south Auckland, where it was bundled with other private bag customers, then sent to a stationers in Avondale, another NZ Post office in Te Atatū, and then by courier to Health Pride’s New Zealand office. The mail began to slow, and customers began to complain about not receiving their orders. Health Pride was confused – the orders hadn’t arrived at its offices. But those who sent cheques had them banked. Those who sent in credit card numbers were called by someone claiming to be from Health Pride who asked for their CVC number. They then had their cards drained. Bizarrely, a rival mail order company, Magnamail, share the same premises, sell quite similar stock, and hasn’t been hit. “It’s the million-dollar question,” says Bruno. “Why are they picking on us?” The thief had to be either a mail worker, a courier driver, someone at the stationers, or one of Bruno’s own staff. So he changed the PO Box address to a downtown Victoria St post office, cutting out the stationer. Nothing changed. Then their mail was hand-counted at Victoria St, and put in a sealed mail sack until it arrived at their Avondale office, where it was again tallied. That seemed to rule out the couriers and the Victoria St staff. NZ Post then told him it was likely one of his own staff orchestrating the thefts. Bruno, knowing the scammers were calling South Island customers faster than orders would usually arrive at his office, was convinced it wasn’t. He set out to prove it. Caught in a trap The mail should end up here: Health Pride's offices in Avondale, West Auckland. DAVID WHITE/STUFF The mail should end up here: Health Pride's offices in Avondale, West Auckland. The trap was sprung early one Saturday morning in May as Roi Hadfield enjoyed a lie-in with her partner in suburban Te Atatū. Roi Hadfield has managed Health Pride’s New Zealand office, on the ground floor of a nondescript commercial building in Avondale, West Auckland, for the past 19 years. The five women in the office have worked there, on average, for over 15 years. They process the mail orders, answer the phones, dispatch some stock if Sydney is shorthanded, and stock their own showroom where customers browse the range. Phones ring constantly. One spends quite some time trying to explain to an elderly customer that an item is out of stock. On a busy day, they could each field 60 calls. Bruno had asked Hadfield to complete seven fake orders, then post them at different mailboxes around Auckland. Only two ever arrived back at the office. That Saturday morning, Hadfield’s phone rang. Half-asleep, she answered – then realised who was talking. Quickly, she put her phone on speaker and got her partner to record the call on his. It was the scammers calling. ‘Chloe’ was charming and friendly, asking politely if Roi wanted to add anything to her (fake) order. After listening to the tape, Damian Bruno said he couldn’t believe she didn’t work for him. “It was sickening how good she was,” he says. His ambush had confirmed all his suspicions. Chloe was able to brush off Hadfield’s pretend surprise at a weekend call from Health Pride with the explanation they had so many orders they were working overtime. “I thought: ‘you lying f…... b......’,” says Hadfield. As a child cries in the background, Chloe gives Hadfield an updated price for her order, and asks if she can ‘confirm the credit card details’ before Hadfield cuts her off. A few days later, someone named ‘Tony’ called Hadfield while she was at work, asking for her card details. She asked him to call back – but he never did. Among the real customers called by the scammers was Richard Harty, a retiree from Ruakaka in Northland. Harty saw the call had come from a private number, but when he queried that, was told it was because Health Pride’s calls were routed through Australia. “She was very convincing. She had an answer, there was no hesitation. She was definitely savvy about it.” Partly placated, he provided his CVC number, and within hours it had been used six or seven times, including at a petrol station and KFC, until the account, which had $700 in it, ran out of money. The scammers kept trying to use it, even while he was in his Kiwibank​ branch cancelling it. It’s a familiar story to Hadfield. “Half of them don’t even know that CVC number is like a pin, and they give it out willy-nilly,” she says mournfully. “So I tell people ‘don’t give the number out, hang up, ring the company back and find out if it is for real or not’.” Harty complained to Whangārei police, whom he says told him there was little they could do. He wouldn’t clip a coupon again. Health Pride offered to send him the books he’d ordered for free. He declined. “They didn’t get any money off me, so it didn’t seem fair. I said ‘I would rather you changed to a more secure format, and the next time I see one of your adverts, that would be thanks enough’.” What amazed Bruno as he investigated was how many clues the crooks left lying around with apparent impunity. One stolen card was used to pay a domestic Watercare bill. Two cheques were altered and banked into the account of someone called ‘H Singh’. A New Lynn pizza shop recorded CCTV footage of someone using a stolen card number to buy dinner. On a spreadsheet, he recorded the details of each complaint, regularly sending updated versions to NZ Post and police. It showed a trail of spending at West Auckland takeaways, various Liquorland stores, and petrol stations. The scammers regularly made small payments with Skinny Mobile, suggesting the use of burner phones. Several times, customers have been phoned by the scammers on unblocked numbers, but by the time Stuff called the numbers they’ve already been disconnected, sometimes within hours. Bruno’s logs pointed to at least three scammers, plus whoever was handing off the mail to them: two men, one with an Indian accent, and a young woman. He soon had a strong idea of the identities of all three – names confirmed to him by police. The woman is before the courts on separate driving charges, while one of the men is on drugs charges. On May 31, the last day that New Zealand banks accepted cheques as legal tender, that man – Norman Tavave – walked into the now-closed Westpac branch at Takutai Square in downtown Auckland, right beneath the bank’s New Zealand head office, and paid a cheque made out to Health Pride for $399.10 into his own account. They knew that because the cheque had been written six days earlier by Nelson ambulance driver Maxwell Clark, a frequent Health Pride customer, and Clark wanted answers. Maxwell Clark says he’s not impressed by the way the banks and police have handled his case. Braden Fastier/Stuff Maxwell Clark says he’s not impressed by the way the banks and police have handled his case. He’d mailed the cheque on May 25, and a month later when he’d not received his order, he called Health Pride, who told him it had never arrived. When Clark realised he’d been ripped off, he went into his ANZ branch and asked where his money was. “I wanted an explanation of where it had got to and who had got it.” At first, he says, ANZ asked for $75 to find out, but when he insisted and completed a fraud report, they went away and their fraud team tracked down what had happened. It took several weeks before Westpac refunded Clark’s money. ANZ’s Kristy Martin says they didn’t charge Clark a fee and had liaised with Westpac to secure his refund. Westpac spokesman Max Bania says the bank would “consider ending our banking relationship with any customer who engages in fraudulent activity”. He says Westpac was told on July 7 that the cheque had been used fraudulently, had refunded Clark and “taken appropriate action against our customer”. Westpac wouldn’t explain how they had allowed the cheque to be banked, claiming it was for “security reasons”, but added that “cheque fraud risk is one reason why we’ve phased out cheques and are helping our customers move to safer and more reliable forms of payment like online banking”. Stuff visited Norman Tavave’s home. He wasn’t there, but his mother, Margaret, was. She works for NZ Post, and said she had been investigated by her employer but had nothing to do with the mail thefts. NZ Post has also indicated she isn’t a suspect. Asked how Norman came to bank the cheque, she said: “You would have to ask him.” Norman did not, before deadline, return a message to call Stuff. Clark was amazed police hadn’t acted. “They have every right, knowing the facts, and I don’t see any reason why they haven’t got a search warrant and raided this chap’s place.” Maxwell Clark says he's amazed police haven't acted. Braden Fastier/Stuff Maxwell Clark says he's amazed police haven't acted. Clark reckoned both banks were “sloppy” in letting it happen but is more amazed by the police. “I would say it is elder abuse [by the police],” he says. Another cheque payable to Health Pride was amateurishly doctored to instead be payable to online electronics retailer Onecheq Solutions. The scammers used it to buy a MacBook and an iPhone from TradeMe, and despite the crossing-outs and scrawl, the cheque was duly banked (via an automatic teller), OneCheq dispatched the goods – and then the payment was reversed after the original customer complained. OneCheq’s Kuchal Sachdev says he complained to police without success (they said they were too busy to check out the delivery address), is out of pocket nearly $2000, and received threatening text messages from the scammers after he complained. The end of cheques did not dissuade the scammers, who continued to branch out. Some customers received emails from a fake email address, healthpride@gmail.com, listing their order and credit card details and saying: “In order to process your order we require three digit code from the back of your Visa card. Please provide the 3 digit code via return email at your earliest.” Bruno complained to Google several times but received no response through their complaints channel. He then tried the Google community site for fraudulent email addresses, then a chat conversation with Google customer service. In frustration, he contacted the FBI’s Internet Crime Complaint Center. When Stuff contacted Google, it shut down the email address, but didn’t respond to questions about why it had taken so long, or whether they had discovered any evidence of criminal activity on the account. Within two days, the scammers had set up a new gmail account and were emailing customers again. Google’s response was that Bruno should lodge another complaint. Google didn't respond to questions from Stuff about why it took so long to shut down the fraudulent email address. David Gray/Bloomberg Google didn't respond to questions from Stuff about why it took so long to shut down the fraudulent email address. They even started calling some of the original customers they had scammed, to see if they could rip them off once again. None of Bruno’s sleuthing seemed to matter when it came to catching the scammers. Initially, he dealt with four different police officers, each apparently investigating a different fraud, from Nelson, Lower Hutt, Taihape and Auckland, with varying levels of enthusiasm. None seemed to be considering the frauds together, as a complex scam worth several hundred thousand dollars. “Everyone is treating these events as isolated,” added Campisi, in a July interview. “The police see someone’s stolen credit card used for a few hundred dollars at Liquorland or Repco. The value of that isn’t sufficient for them to take action.” The police file was eventually centrally collated with the Auckland City Financial Crime unit, and Health Pride received several calls from Detective Margaret Skilton – some because they had filed four online complaints on the police’s 105 website. They say Skilton told them that if NZ Post found and sacked the culprit, that would be a good result. Campisi is scathing. He says NZ Post and police have been unhelpful, slow to react and “extremely complacent”. “If it wasn’t for Covid, I would have been there six months ago rattling a few cages… it’s not a whodunit. We know who done it. We just need someone to get off their backside and act. I cannot believe the apathy.” Exasperated by the lack of action, Campisi and Bruno came to Stuff. “Isn’t it a coincidence that once you started asking questions, things began to change,” says Campisi. Finding the source The Highbrook Mail Centre handles all mail in and out of Auckland – and all Health Pride’s post. David White/Stuff The Highbrook Mail Centre handles all mail in and out of Auckland – and all Health Pride’s post. One million pieces of mail travel through the Highbrook mail centre every day: everything posted in Auckland, and everything posted to Auckland. And one problem with mail, explains NZ Post’s head of network security, Richard Morgan, is it’s invisible until you receive it. If he invites me to his wedding, and the invite never arrives, I don’t know until he asks me why I didn’t turn up to the ceremony. Campisi and Bruno are angry with Morgan, and he understands. He says an internal breakdown in communication meant a delay of several months before his team began to investigate. “I totally understand their frustration, and I get it, and we have let them down in the duration of this,” he says. “But now it is with myself and my team, and we are dedicating significant resources to helping out our customer.” Morgan, a former fraud squad detective, says it’s been a difficult case to investigate for multiple reasons – for example, the relatively-small size of Health Pride’s envelopes make them hard to see on NZ Post’s CCTV footage. He says the scam is also “very unusual”: most mail theft is a light-fingered postie or punter stealing from a mailbox and nicking cash posted as a birthday gift; this is a step above. He admits he was surprised that business was still being conducted this way, but stresses, “honestly it isn’t the fault of Health Pride, it is the network we have, we are letting them down, and we are trying to fix this,” he says, adding: “We do care.” Richard Morgan, NZ Post's head of investigations, has handed a file to the police. JOHN KIRK-ANDERSON/Stuff Richard Morgan, NZ Post's head of investigations, has handed a file to the police. Morgan did test mail drops, has interviewed staff, watched CCTV footage and tweaked how Health Pride’s mail is delivered. While sympathetic to the workload of fraud squads who are often shifted to other major crimes, he was also frustrated police had yet to act, saying: “The sad thing is that NZ Post is the only agency doing something.” A few days later, he was more upbeat. He’d handed a file to police, saying he’d given them the three suspects “on a plate”. He reckoned he’d diagnosed where in the chain the mail was going missing (but wouldn’t specify where) and had turned off the tap. That left Campisi and Bruno confused and demanding, unsuccessfully, a full breakdown of what NZ Post had changed. “It’s disappointing to be given the mushroom treatment even to this day,” said Campisi. But one clue could be that their mail is now being hand-collated and delivered directly from Highbrook by courier van. While Bruno says NZ Post has shown a “complete turnaround in attitude” since Stuff began making enquiries, he and Campisi still lack faith in the postal system and are deeply worried their next catalogue mailout, due this week, will be hit. Mail has been hand-counted, then diverted away from, the NZ Post office at Victoria St. David White/Stuff Mail has been hand-counted, then diverted away from, the NZ Post office at Victoria St. They have even less faith in police. Skilton, the detective they talked to, refused to comment to Stuff, and over a two-week period, police issued two statements saying they couldn’t offer details of their investigation, but were “following an active line of inquiry” and “making good progress”. Finally, on Thursday, they provided a longer statement from Detective Senior Sergeant Chris Allan, which confirmed they had identified “persons of interest” and “aim to hold those responsible for committing fraud offences to account”. Allan said police were offering “prevention advice” to Health Pride, a claim the company says is untrue, and he urged customers never to give out card details over the phone. He added: “We do acknowledge the victims’ losses in these cases, and we appreciate how disappointing it is to fall victim to fraudsters.” And then, just before this story was published, a possible breakthrough: police arrested a 43-year-old man (not Norman Tavave) on charges of obtaining by deception, theft, and receiving stolen goods; he will appear in court this coming week. What next? Health Pride faces an uncertain future. David White/Stuff Health Pride faces an uncertain future. Only arrests would give Campisi and Bruno some hope. They believe Health Pride has lost around 3000 orders, representing about $300,000 of business. They’ve pulled their New Zealand print advertising campaign, in magazines like TV Guide and AA Directions, and are now worried about their upcoming catalogue campaign. As this story was published, customers were still calling in with stories of being scammed. “A lot now say ‘I will never do this again’,” says Hadfield. For Sam Campisi, the outlook is bleak. “Unless we get some sort of breakthrough,” he says, “we might have to close the whole business.” * * * * * most popular * [62]'We couldn't believe it': The brazen mail scam that's cost a Kiwi business over $300,000 * [63]Fatal stabbing happened at girl's 17th birthday party at suburban Christchurch Airbnb * [64]All Blacks vs Wallabies: New Zealanders run up record score to tuck away Bledisloe * [65]Millions of cubic metres of logs leave our shores every year - all while we remain desperately short of timber * [66]Oranga Tamariki wants girl removed from couple after three years because it says her cultural needs are unmet * [67]Struggling Auckland barber was left paying for CRL workers' tea facilities * [68]At least 227 dead after magnitude 7.2 earthquake hits Haiti * [69]All Blacks player ratings: Richie Mo'unga, Aaron Smith take control at Eden Park * [70]Quiz: Morning trivia challenge: August 15, 2021 * [71]Teen stabbed to death at Christchurch party named [72]Neighbourly[73]Travel Bookings[74]Play Stuff[75]Stuff Coupons[76]Death Notices[77]Stuff Events[78]Advertising[79]Careers[80]Privacy Policy[81]Cookies Policy[82]Terms & Conditions[83]Editorial Code[84]Contact Us Breaking news? 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