Wrap Tite, a Solon, OH-based maker of packaging products and materials such as poly bags, tapes and stretch film used in wrapping pallets of good for shipping, has been scammed out of $500,000 by someone in China. The half-million dollar payment was wired to a Chinese bank to pay for a new stretch film extruder from Xinle Huabao Plastic Machinery Co. that Wrap Tite ordered last May, according to a report in the Cleveland Plain Dealer in an article by journalist Adam Ferrise.
According to Ferrise's article, Wrap Tite visited Xinle Huabao Plastic Machinery Co. last May and subsequently wired a $200,000 down payment to the company through the Agricultural Bank of China. In January, the co-owners of Wrap Tite visited the Xinle Huabao factory to see the machine operate, and then agreed to send the remaining $500,000.
Wrap Tite sent an e-mail to Xinle Huabao requesting the bank transfer information, and received a return e-mail through Xinle Huabao's normal e-mail channel, with the bank information instructing Wrap Tite to wire the funds to China Merchants Bank. Wrap Tite wired the funds per those instructions on Jan. 15. Someone then intercepted the payment by hacking into the e-mail of Xinle Huabao Plastic Machinery, and confiscated the funds. By Feb. 18, Xinle Huabao never received the money.