Scam Shield: Being Vigilant, Aware and Wary is the Best Defense Against Scammers

December 29, 2008

“The tools to thrive during challenging economic times,” this is the quest of every business owner and the spark for the recent article, Business Beware, in the Boise Better Business Bureau Reporter. The Reporter calls businesses “prime targets for scam artists…[who] know it’s easier to find victims in tough times.”

The Reporter Lists the following scams now affecting the US:

The Large Order Scam. Beware the caller placing a large order for unique product. After giving a credit card and stressing the urgency for quick processing the scammer calls back with an order change or new credit card number. The final blow comes when the scammer is not able to pick up the product and asks the business to ship it to a third party. They provide yet another credit card and ask the business to wire money to the shipper. This wired money actually goes to the pocket of the scammer who disappears leaving the business minus cash and overloaded with unsaleable product.

Dishonest Billing. Deceitful business directory services will mail advertisements and appear to be an invoice hoping it will be placed in accounts payable and never noticed.

Sneaky Finance Charges on Invoices. Use your most critical eye when inspecting invoices. A recent scam has surfaced on legitimate invoices. The billing company sends a late invoice that arrives a day or two prior to the ‘pay-by date.’ In the fine print you’ll find that a small interest rate will be applied to all balances not paid by the due date. This is an intentionally tricky and costly scam that is easily overlooked.

Piotr Babinchenko, founder of Wireless Association, gives the following advise to wholesale companies:

A new customer calling with a large order is exciting. It’s important to keep your head and make certain you collect accurate billing and shipping information required for the order from the start.

Get more information about the caller. Checking the trade references, Babinchenko suggests checking three, of a new company or individual making a large purchase is important.

It is perfectly fine to ask that a caller pay by cashier’s check rather than by credit card. This will eliminate the risk of fraudulent credit card payment.

Order a third party inspection. If you’re still unsure, rely on a company like Dun & Bradstreet for the latest information of an ordering company’s credit.

Reduce exposure to fraud for your company and customers with our 4-step verification process. Make the wireless industry a safer and more secure place to do business by displaying the Wireless Association Verified Seal. The Wireless Association 4-step Verification Service can make you feel safe about doing business, worldwide.

Posted By Russ · In Industry 

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