Business Scams That Cost Your Business Money
YNOT – Nearly every night on the evening news you hear about some type of scam against individuals, like mortgage scams and non-profit scams. You hear about some business scams normally if they are “big” news. There are of course a number of other scams that are waged against the small business owner, the most popular being advertising, internet services, paper & toner sales, loans and buyers club scams.
The Advertising Scam: Someone calls and makes an offer to print advertising items like note pads, calendars, flyers, etc., and they request a deposit or “upfront fee” but the problem is that nothing is produced or distributed.
The Internet Service Scam: Telemarketers offer to set up a website, banner ad, listing in a directory or other internet service for the business. Once payment is received, again no service is performed.
Paper & Toner Scam: Telemarketers know who your regular office supply company is and pretend to be calling from there offering special pricing for paper, toner or some office supplies. They ask that you pay for the supplies at delivery and the products you’ve purchased are really inferior products.
Loan Scam: Calls offering an unsecured loan “even if you have credit issues” if you pay a fee in advance. You pay the fee, the loan doesn’t exist.
Buyers Club Scam: Calls offering to save you money by having you join a buyers club so you can purchase items in bulk, but the club doesn’t exist.
You can protect yourself by doing some “basic” precautions; don’t let the “deal” get the best of you. Remember, if it sounds too good to be true it probably is.
- Get references before you purchase anything.
- Look at samples of previous work.
- Don’t be pressured into agreeing to anything.=
- Find out the terms of the “special” – is there a time limit?
- Compare what is being offered to you on the phone with local vendors.
- Check with the Better Business Bureau – does the company have any complaints?
- Get a written contract.
- Make sure your staff checks the items you purchased to make sure everything comes in and it’s the quality you require.
- If a deposit is required, make it as small as possible.
Before you sign a contract or give payment information, protect your firm by contacting:
Better Business Bureau (BBB): The website can tell you if a company has complaints against it, including fraud, and whether the complaints were resolved. Review how many complaints the vendor has against it. Check BBB.org/us/Find-Business-Reviews.
National Fraud Information Center (NFIC): This tracks telemarketing, internet and other frauds. Check Fraud.org/welcome.htm.
Federal Trade Commission (FTC): Consumer Response Center – FTC.gov OR 1.877.382.4357.
Federal Bureau of Investigation (FBI): Lists “Common Fraud Scams” at FBI.gov/majcase/fraud/frauschemes.htm.
We have had clients that had placed ads on Craig’s List, and then buyers would send a fraudulent check for a product; we were lucky that the bank caught it before we even made a deposit. We advise our clients to make sure they verify all information prior to giving out any sensitive information since there are so many schemes out there.
Accountingxxx is a U.S. based accounting firm that specializes in the adult entertainment industry. If you need assistance simply go to our website www.Accountingxxx.com and fill out the contacts page and someone will be happy to help you.