Tip of the month archives

If you don't think scam artists target businesses, think again. The National Office Products Association estimates that office-supply scams cost companies more than $50 million each year.

Often these scams involve the sale of counterfeit, defective or overpriced office supplies, such as copy paper and toner. In one common scheme, scam artists send businesses phony invoices for goods or services they never ordered and, in some instances, never even received. It's estimated that 1 in 50 of these bogus bills are paid by businesses that think the invoices and charges are legitimate.

In another common scam, companies are duped into buying listings or ads in a fax directory, business directory or a national yellow pages directory. Many of these listings are useless: when the directories are printed, the scammer distributes them in small quantities — just enough to give to the suckers who purchased ads.

Scam artists find ways to cover their tracks: they may misrepresent themselves to potential victims, or they include disclaimers in fine print on their bogus invoices which make it hard for businesses to take legal action. Although many of these practices are unethical, they aren't necessarily illegal.

The best way to protect yourself against scam artists looking to make a fast buck is to understand their tactics. As you'll see, some of them are more obvious than others.

Misrepresentation. Fraudulent telemarketers often misrepresent themselves, making you think that they work with your regular suppliers or with established firms. Remember, just because a company has an official-sounding name doesn't mean it's a legitimate business.

Targeting naive employees. Scam artists prey on employees who are unfamiliar with their firms' purchasing procedures. In some instances they may mention a purchasing agent or an employee's name to get someone to approve an order or to provide information, such as the make, model and serial number of the company's copier or fax machine.

Offering supplies at reduced or inflated prices. Often these scoundrels charge much higher prices than legitimate suppliers. Sometimes they charge less but sell inferior products. Beware of salespeople who try to pressure you into buying today before prices go up tomorrow.

Free gift offers. Some unscrupulous telemarketers offer free gifts to entice employees to place an order. Often those gifts are of little value or aren't delivered at all.

Refusing to accept returned merchandise. Many of these fraudulent firms refuse to accept returns or try to convince you to keep the merchandise at a discounted price.

Most business scams rely on an employee's naiveness about fraud or the lack of communication between the purchasing department and the bill paying staff. Managers should 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 to be responsible for ordering supplies.
	Warn purchasing employees to be suspicious of callers offering bargains that must be acted upon 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 don't 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 employee 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." Don't accept the offer!
	Check the Yellow Pages for companies that claim to be nationwide or statewide.

Tip of the month archives

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