Business Tip - Scam-Proofing Your Business

1/1/2008

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Most business scams rely on an employee's naiveté about fraud or the lack of communication between the purchasing department and the bill-paying staff. BBB suggests managers take the following steps to make their companies less vulnerable.

  • Instruct employees not to give out information about office equipment to callers with whom they are not familiar.

  • Designate specific employees who will be responsible for ordering supplies.

  • Warn purchasing employees to be suspicious of callers offering bargains that must be acted on immediately.

  • Make sure each order is in writing, with an authorized signature and purchase order number.

  • Instruct all suppliers to put purchase order numbers on invoices and bills of lading.

  • Do not pay bills that fail to match your documentation.

  • Do not pay for- and don't return - unordered merchandise. By law, you are allowed to keep unsolicited items as a gift, and you cannot be dunned for refusing to pay.

  • Train employees to look for disclaimers on invoices. By law, order forms that look like invoices must carry a disclaimer in large type that says, This is not a bill. This is a solicitation. You are under no obligation to pay the amount stated above unless you accept this offer. You do not have to accept the offer!

  • Instruct employees to be suspicious of Yellow Pages invoices that do not have phone numbers. An invoice from your local directory will have the local phone company's name on it.

  • Check out Yellow Page directories that claim to be nationwide or province wide.

  • If you get bogus bills or invoices, post them so employees are aware of them. If you decide to switch office product suppliers or advertise in a new directory, first check out the company with your BBB and ask for references and a sample of the product.

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