SMALL BUSINESS SCAMS
Individuals are not the only targets of crime. Small businesses are targets of scam-artists who use their knowledge of small business practices to induce them into paying for services never performed and for products never delivered. These scam-artists use a number of different techniques which include: sending phony invoices for items never ordered; using prizes as an inducement to sell overpriced office equipment and supplies; and sending phony yellow page advertisement renewal forms which are actually contracts for advertisement in other directories.
TIPS FOR CONSUMERS
- Verify Invoices
- Employ procedures to verify any and all incoming invoices prior to
payment. Compile a listing of all suppliers with which you normally do
business by name, address and phone number and make this list available
to anyone responsible for the payment of your invoices.
- Educate Your Workers
- Make your workers aware of the most common types of scams against small
businesses. Obtain pamphlets and literature concerning small business fraud
from your local police agency or consumer affairs bureau. Post this information
at your business.
- Don't Buy Over The Phone
- Unless you have a previously established relationship with a supplier
of business or office supplies, never make orders or purchases over the
phone. Scammers sometimes obtain the names of business employees assert
that these persons have placed orders on behalf of the business. Instruct
your employees to verify the order with the person by whom it was placed.
- Ask For Verification Of Offers In Writing
- If a caller makes an offer regarding the provision of goods or services
and if that offer interests you, request that the offer be made in writing
and forwarded to you for review. Be wary if the caller refuses to forward
this information to you or to otherwise provide references.
- Beware Of Prize Offers
- Small business scam-artists often offer prizes as an inducement for
the business to purchase their products. Be aware that these "prizes"
are usually overpriced or are of inferior quality.
- Do Not Be Influenced By A Money Back Guarantee
- These guarantees are only as good as the companies offering them.
- Get Help
- The U.S. Small Business Administration has information for setting up procedures to help prevent becoming a victim. The SBA's Service Corps of Retired Executives (SCORE) offer free advice and counseling for small business owners.