I have written a lot about scams targeting people of all walks of life. But fraudsters will target businesses as well. I have seen many cases where small and large companies have been the victims of fraud. One scam I have seen is where a new customer from a foreign country (often in Africa) opens an account with a small manufacturing business and places a few small orders. Each order is shipped and payment is received. After a period of time, the new customer calls his supplier in a panic and says he needs a very large shipment of goods, (in the hundreds of thousands of dollars) very quickly in order to close a large transaction. The customer promises to wire transfer the funds immediately but the goods have to be sent by express air cargo.

The hapless business owner, not wanting to lose a large sale, ships the merchandise. Guess what? No wire transfer arrives and this is the last the business owner hears from his new found customer.

Here are a few tips from the Internet Fraud Watch:

• Do business with companies you know and trust. If you don't know them, check them out.

• Understand the offer. Get all the details and promises in writing.

• Check all bills and invoices carefully. It's hard to get your money back once you've paid it to a con artist.

• Guard your financial or other account information. Don't provide it to anyone unless there is a legitimate reason to do so as part of a transaction.

• Educate your employees about avoiding scams. Make sure they understand their roles and responsibilities.

If you are the owner of a business and have been scammed, help educate everyone else. Let’s hear from you.

Advance Fee Loans Fraud

Recent Postings