<p>Get two business people in a room and chances are one, if not both, have been the casualty of bookkeeping extortion. As indicated by the Association of Certified Fraud Examiners yearly report, almost 50% of every single private venture encounter misrepresentation sooner or later in their business lifecycle. It will cost these associations a normal of $114,000 per event. More awful, such extortion is typically dedicated by a &#8220;reliable&#8221; representative.</p>
<p>As the leader of an administrative bookkeeping administration, I&#8217;ve revealed several false exercises influencing imminent customers. The sum can differ extraordinarily, from a couple of thousand dollars to millions.</p>
<p>Give me a chance to share some genuine stories that feature four basic sorts of misrepresentation for entrepreneurs and ways they can be maintained a strategic distance from:</p>
<p><strong>1. Finance extortion.</strong></p>
<p>A year ago, we went up against a nearby development firm as another customer. Their finance account had never been accommodated to their opportunity keeping framework, so we made that one of our best needs. As per organization records, two laborers and their director were working gigantic hours and getting paid a huge amount of extra time that added up to more than $80,000 in extra yearly pay. Their timesheets uncovered they were taking a shot at development extends that were more than 50 miles far from each other at the same time.</p>
<p>Well. It took around three seconds to make sense of that and terminate the representatives, yet the cash was no more.</p>
<p>While it is simple for you and me to state this would never transpire, the extra compensations given to these three folks added up to an expansion of just four percent of the aggregate finance cost &#8211; an assume that when unchecked could without much of a stretch become lost despite a general sense of vigilance. Most organizations don&#8217;t keep sufficiently clean records to notice such a sum, particularly when they subsidize a six-figure week after week finance.</p>
<p>The most ideal approach to avert finance misrepresentation is to accommodate all asset report records and finance records month to month or, in any event, quarterly. Search for any errors and explore them until the point that you have an unmistakable answer.</p>
<p><strong>2. &#8220;Twofold check&#8221; misrepresentation.</strong></p>
<p>I am aware of an eatery whose previous accountant stole $550,000 more than five years. She did this by composing two checks each time she paid a charge, one to the merchant and one to herself. For instance, on the off chance that she needed to pay $500 to ACME Insurance Company, she would at the same time compose another check to herself for $100 that she coded in the bookkeeping framework as &#8220;Zenith.&#8221;</p>
<p>It is hard for entrepreneurs to get this kind of movement. Regardless of the possibility that they are taking a gander at the monetary articulations oftentimes and the bills look somewhat high, they can for the most part appear to be sensible. Be that as it may, this can include rapidly. For this situation, the greater part a million dollars was stolen by composing 20 to 30 &#8220;twofold checks&#8221; every month for ostensible sums spread over various cost accounts.</p>
<p>This misrepresentation was just identified when the accountant fell sick and another clerk had her spot. Quickly, the new individual saw that the <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="821">financial</a> balance had not been appropriately accommodated in months. Subsequent to doing as such, unmistakably there were numerous installments around the same time to a similar merchant.</p>
<p>As an entrepreneur, it is hard to discover great bookkeeping help, yet it is critical to have something beyond one individual marking checks and accommodating the ledger. Additionally, it is essential to have an outcast come and take a gander at the books and compromises at any rate every year, and aimlessly times.</p>
<p><strong>3. Over-requesting extortion.</strong></p>
<p>Another of our customers had a 12-year low maintenance office chief who might routinely arrange and get all the workplace supplies. She was paid $10 every hour and given simply enough work to get her up to the point (however not finished) where despite everything she stayed ineligible to get medical advantages. She was a single parent, had a youngster at home, and wound up plainly displeased.</p>
<p>For at any rate the most recent three years of her work, she started over-requesting office supplies. She would return supplies the organization did not require in return for a gift voucher, which she at that point used to purchase something little and take the rest of money. It is vague what amount was stolen, however our appraisals were that in one year it was over $19,000.</p>
<p>The least demanding route for this business to have kept away from this kind of misrepresentation is to make the best choice from the begin. Great workers pay for themselves overall ten times, and terrible representatives can demolish organizations. For this situation, the administrator was short-sided in needing to spare $250 every month in medical coverage premiums. The outcome was an unfortunate workplace and a situation where this woman felt that it was &#8220;reasonable&#8221; for her to take.</p>
<p><strong>4. &#8220;Companionship&#8221; misrepresentation.</strong></p>
<p>A splendid architect companion of mine once enlisted his closest companion&#8217;s little girl to be his accountant. He had referred to her as a child. She was keen, dedicated and, on the grounds that she was a single parent, she required a sound salary. For reasons unknown, she likewise felt abused by her dad, felt her past manager was out to get her, had issues at home, and required this activity to escape obligation. My companion is an extraordinary person and an exceptionally putting stock face to face. Inside a year, the clerk was the just a single written work, marking and approving checks. She was running finance and the main contact for the IRS.</p>
<p>In late 2011, he was amazed to discover that the majority of his financial balances were solidified and collected by the IRS. Despite the fact that he had paid and recorded the greater part of his own salary charges on time, his clerk was taking the cash that should go to finance charges. As the main IRS purpose of-contact for the business, she hung this out finished a three-year time span and stole $439,000. After three days, the organization was compelled to close down, 15 workers lost their occupations, and the investors (counting her dad) lost the greater part of their cash.</p>
<p>The lesson of the story is to never procure anybody exclusively in view of kinship, family, commitment, or sentiments of sensitivity. Fabricate a culture of responsibility, measure results, and ensure everybody realizes that you are taking a gander at their execution. At that point, procure in light of ability, and pay for that ability to perform at an abnormal state of responsibility and uprightness.</p>

Tag Archives: Business Fraud
How To Protect Your Business Or Small Business
<h1 class="page-header">Protect your small business</h1>
<h2 class=" toc-header toc-header-bullet">How scammers con small businesses</h2>
<p>Scams targeting small businesses come in various forms—from invoices for advertising or directory listings that were never requested to dubious office supplies that were never ordered.</p>
<p>Protect yourself and your business by being aware of the common scams targeting small businesses.</p>
<p>Small business scams are becoming increasingly sophisticated and scammers will go to great lengths to convince you that the documents they send you or the offers they make are legitimate.</p>
<p>However, they can easily copy or modify letterheads, names and logos to make them look real, or set up a professional-looking but fake website. Scammers can even gain access to your supplier&#8217;s email account and intercept emails without either of you realising.</p>
<p>Scammers recognise that small business operators are busy and have fewer resources than large businesses, so they aim to take advantage of that.</p>
<h2>Common scams targeting small business</h2>
<h3>Investment schemes</h3>
<p>Investment schemes involve getting you or your business to part with money on the promise of a questionable <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="812">financial</a> opportunity.</p>
<h3>Online shopping scams</h3>
<p>Oline shopping scams involve scammers pretending to be legitimate online sellers, either with a fake website or a fake ad on a genuine retailer site.</p>
<h3>False billing</h3>
<p>False billing scams request you or your business to pay fake invoices for directory listings, advertising, domain name renewals or office supplies that you did not order.</p>
<h3>Overpayment scams</h3>
<p>Overpayment scams work by getting you to &#8216;refund&#8217; a scammer who has sent you a cheque for too much money for an item you are selling.</p>
<h3>Malware &; ransomware</h3>
<p>Malware tricks you into installing software that allows scammers to access your files and track what you are doing, while ransomware demands payment to ‘unlock’ your computer or files.</p>
<p>Whaling &; spear phishing</p>
<p>Whaling or spear phishing scams target businesses or organisations in an attempt to get confidential information for fraudulent purposes.</p>
<p>Running an online business can come with its share of risks &#8211; using the internet can open your business up to being targeted by scammers from anywhere in the world. Fortunately, there are plenty of resources online to help you out.</p>
<p>Learn to recognise common online scams to avoid getting caught out. These can include:</p>
<ul>
<li>taxation scams &#8211; scammers can disguise themselves as government agencies, such as the Australian Taxation Office (ATO), to trick you into revealing details such as your tax file number (TFN) over the internet.</li>
<li>online transaction scams &#8211; including auction or shopping scams, spam offers, online banking or credit card scams, or spyware</li>
<li>internet domain name scams.</li>
</ul>
<h2>Internet domain name scams</h2>
<p>These scams target businesses with websites by promising to renew or secure their domain name (or web address) before another business claims it. Business owners could be sent a legitimate-looking email or invoice with payment details for this service.</p>
<p>Under this scam you&#8217;ll be sent either an unsolicited invoice or email for an internet domain name registration usually very similar to your own business domain name. You could also be sent a renewal notice for your actual domain name. The notice could be from a business that supplies domain names trying to trick you into signing up to their service or it could be from a scammer trying to take your money.</p>
<p>The ACCC&#8217;s Scamwatch website provides information about the domain name renewal scam on its <a href="https://www.scamwatch.gov.au/types-of-scams/buying-or-selling/false-billing">False billing</a> webpage. Do your homework to avoid being caught out.</p>
<h2>How to protect your business from internet scams</h2>
<p>The ATO&#8217;s tips for recognising and avoiding tax-related scams and fraud include:</p>
<ul>
<li>report emails that offer tax refunds in exchange for entering personal information</li>
<li>report emails which inform you that you owe the ATO money or your account is in arrears and you will be taken to court</li>
<li>always use ATO&#8217;s online services by visiting the <a href="https://www.ato.gov.au/">ATO website</a></li>
<li>make sure you keep your tax file number (TFN) and passwords secure.</li>
</ul>
<div class="row">
<div class="medium-9 topic-detail columns">
<article class="row topic-detail">
<div class="small-12 medium-12 columns">
<p>If you&#8217;re a small business owner, you need to be aware that you&#8217;re a target for scammers.</p>
<p>Scammers will often go to great lengths to convince you that their offer or request is legitimate, so it&#8217;s important that you remain aware of typical scams and know what to do if you&#8217;re targeted.</p>
<h2>Common scams targeting business</h2>
<ul>
<li>Grant related scams</li>
<li>Tax time scams &#8211; this includes tax refund and phishing scams</li>
<li><a href="https://www.business.gov.au/Info/Run/Advertising-and-online/Online-scams">Online scams</a> &#8211; including internet website domain name scams</li>
<li>False billing scams</li>
<li>Identity theft scams</li>
<li>Charity scams.</li>
</ul>
<p>Keep a watchful eye out for anything suspicious, and do your research into any offers you might receive, especially through your email. If you think you&#8217;ve been the victim of a scam, <a href="https://www.scamwatch.gov.au/content/index.phtml/tag/reportascam/">report the scam online</a> to Scamwatch.</p>
<h2>What to do&#8230;</h2>
<ul>
<li>Visit Scamwatch&#8217;s <a href="https://www.scamwatch.gov.au/get-help/protect-your-small-business">Protect your small business</a> page for more information on scams targeting small businesses, and learn how to protect yourself from scammers.</li>
<li>Download the ACCC&#8217;s <a href="http://www.accc.gov.au/publications/small-business-scams">Business scams fact sheet</a> for free.</li>
<li>Subscribe to the ACCC&#8217;s <a href="http://www.accc.gov.au/sbin">Small Business Information Network</a> to receive all relevant ACCC small business news to your inbox.</li>
<li>Subscribe to <a href="http://www.scamwatch.gov.au/content/index.phtml/tag/SCAMwatchRadar">Scamwatch radar alerts</a> to keep up to date with the latest scams.</li>
<li><a href="https://www.scamwatch.gov.au/content/index.phtml/tag/reportascam/">Report a scam online</a> to Scamwatch if you feel you have been a victim of a scam or targeted by scammers.</li>
<li>If you aren&#8217;t sure if a business is legitimate, you can check to see if they are registered on <a href="http://www.abr.business.gov.au/">ABN Lookup</a>.</li>
<li>Get the facts about <a href="https://www.scamwatch.gov.au/content/index.phtml/itemId/698791">online transactions and banking</a> security from Stay Smart Online.</li>
<li>Read <a href="http://www.accc.gov.au/publications/the-little-black-book-of-scams">The Little Black Book of Scams</a>, published by the ACCC, to learn more about popular scams and tips to avoid them, and visit the ACCC&#8217;s <a href="http://www.accc.gov.au/business/business-rights-protections/avoiding-scams">Avoiding scams</a> webpage.</li>
</ul>
</div>
</article>
</div>
</div>

Best Preventing Business Scam Tips

<h2 class="wp-block-heading">Top Business Security Tips</h2>



<p>Congratulations on beginning your own business, or on obtaining your own address and gap your place of business. currently that you’re finished all that, let’s bring up security.</p>



<p>Whether you&#8217;re within the business of providing a service to a client or providing a product, there&#8217;ll forever be a risk issue with the data that you just handle: for each you and for your customers. it&#8217;s an honest plan to place safeguards in situ before any major downside comes up.</p>



<p>Protecting sensitive data may be a should, however ensuring your physical premises has safety precautions and safety plans in situ can build everybody feel relaxed and may be one thing that you just contemplate further.</p>



<h3 class="wp-block-heading">Create a Code of correct Conduct</h3>



<p>Before you rent the primary worker, you ought to establish a Code of Conduct. This document ought to define what&#8217;s acceptable or correct behavior inside workplace premises Associate in Nursingd what repercussions there&#8217;ll be if an worker violates the terms. tho&#8217; this document doesn&#8217;t ought to detail all necessary actions, it&#8217;s best to stipulate necessary areas like protective company property and keeping sensitive data safe and inside company premises.</p>



<p>A Code of Conduct ought to be communicated to your staff upon hiring and that they ought to signify that they&#8217;re going to abide by it. If there square measure any changes you wish to create to the document, act and do therefore and guarantee all of your staff are going to be sophisticated of the changes.</p>



<p>A Code of Coduct document ought to even be accessible to your staff in the least times and may be enclosed in every one of their personal worker files.</p>



<h3 class="wp-block-heading">Schedule a Weekly or Monthly Shredding</h3>



<p>Protection of your documents shouldn&#8217;t solely be the protection you put in on your computers. Most of the documents that contain personal data for your customers or maybe for the business square measure hold on on paper. It’s safer to schedule a weekly or monthly shredding of documents. this fashion everybody are going to be wont to setting aside documents for shredding prior time.</p>



<p>If you discover weekly or monthly shredding to be a problem you&#8217;ll be able to additionally opt for a special schedule. the purpose is to create certain there&#8217;s a daily schedule followed in shredding and eliminating recent documents.</p>



<h3 class="wp-block-heading">Schedule Audits</h3>



<p>To more place grade of security on documents and knowledge, schedule audits annually. this suggests you&#8217;ll be ready to check on documents unbroken by your staff each in paper kind and in their computers. when you’ve done the audits, audits can enable you to spot areas wherever security may be improved.</p>



<p>Make the foremost out of the audits you conduct. when distinguishing the areas wherever security may be improved, see what may be done concerning it. don&#8217;t place it off: golf stroke it off can enable the likelihood of the weakness in your security to be exploited.</p>



<p>Audits aren’t there to seem for faults in your staff. they&#8217;re in situ to judge the protection measures that you just have found out on computers and around your workplace space. you ought to emphasize this once you apprise your staff of the audits. this fashion nobody can interpret your purpose in conducting the audit.</p>



<h3 class="wp-block-heading">Designate laptop Access Levels</h3>



<p>Whether your business utilizes one laptop or utilizes a network, it&#8217;s best you designate a username for every individual user. when you designate a username, you ought to additionally limit the access levels of the profile of your worker. This not solely guarantees you recognize what your worker will access however it additionally ensures that you just won&#8217;t have issues once it involves any unauthorized changes that may be created.</p>



<p>Protecting the countersign of every user is additionally a must; need that their personal passwords ought to have a upper case, a number, and a special character. Passwords should be modified when thirty or forty five days. If staff aren&#8217;t at their desks, build it a demand that they lock their computers to avoid unauthorized access. Your staff ought to even be liable for protective their countersigns and may not write them down on any piece of paper and most significantly ne&#8217;er share their password with anyone.</p>



<h3 class="wp-block-heading">Emergency Plans</h3>



<p>Be it reception or at the workplace, you ought to have already got set emergency plans. directions ought to embody what to try and do just in case of emergencies like hearth, robberies, theft, or tornadoes. Your safety set up ought to even have complete contact numbers for the police and emergency services.</p>



<p>An evacuation set up ought to even be made public and displayed during a outstanding space wherever your staff will read it and familiarise themselves with it. It’s additionally an honest plan to supply reminders or safety tips sporadically to staff.</p>



<h3 class="wp-block-heading">Office Security</h3>



<p>Keep in mind that putting safety measures for your workplace premises is best instead of anticipating one thing to happen to force you to place them up. investment during a sensible security company is usually recommended as protection are going to be found out round the clock. however before you get this feature you&#8217;ll be able to ensure that every one doors, windows and storage square measureas have their own locks which keys to every of those are properly monitored.</p>



<p>Your workplace ought to even be placed in {an square measurea|a neighborhood|a district|a region|a locality|a vicinity|a part|a section} which will be seen from the road simply as most thieves or burglars square measure interested in businesses that are hidden from read. If your business is hidden from read, Associate in Nursing audio alarm would possibly facilitate to scale back the risks of not being seen simply.</p>



<h3 class="wp-block-heading">Adequate Lighting</h3>



<p>Adequate lighting is very important not just for the inside of your building, however it&#8217;s additionally a requirement for the outside. For your workplace area, forever leave a lightweight on once you leave for the night therefore police or security will see into it. For the perimeter, forever maintain sensible lighting on doors and in parking tons.</p>



<p>This precaution is straightforward however it not solely keeps your area safe however it additionally keeps your staff safe if a need to increase their hours into the night.</p>



<p>These square measure solely tips that you just will contemplate when you&#8217;ve got found out your business, this can take time and energy on your half and can seemingly not be really low-cost to implement. however don&#8217;t ignore security measures just because of an extra value. the number of cash you&#8217;ll pay for security measures is considerably low compared to any instance your business would possibly suffer attributable to a breach in security.</p>



<p></p>

Internet Fraud – Tips And Descriptions
<p> ;</p>
<h3><a href="https://www.fraudswatch.com/identity-theft-most-common-fraud-complaint-received/"><b>Tips for Avoiding Internet Auction Fraud</b><b>:</b></a></h3>
<ul>
<li>
<p><figure id="attachment_16793" aria-describedby="caption-attachment-16793" style="width: 336px" class="wp-caption alignright"><a href="https://www.fraudswatch.com/internet-fraud-tips-and-descriptions-2/" rel="attachment wp-att-15465"><img class="wp-image-16793" src="https://www.fraudswatch.com/wp-content/uploads/2015/11/Internet-Fraud-Tips-And-Descriptions-1.jpg" alt="Internet Fraud - Tips And Descriptions" width="336" height="215" /></a><figcaption id="caption-attachment-16793" class="wp-caption-text"><em><strong><a href="https://www.fraudswatch.com/internet-fraud-tips-and-descriptions/"><i>Internet Fraud</i></a> &#8211; Tips And Descriptions</strong></em></figcaption></figure></p>
<p>Understand as much as possible about how the auction works, what your obligations are as a buyer, and what the seller’s obligations are before you bid.</li>
<li>Find out what actions the website/company takes if a problem occurs and consider insuring the transaction and shipment.</li>
<li>Learn as much as possible about the seller, especially if the only information you have is an e-mail address. If it is a business, check the Better Business Bureau where the seller/business is located.</li>
<li>Examine the feedback on the seller.</li>
<li>Determine what method of payment the seller is asking from the buyer and where he/she is asking to send payment.</li>
<li>If possible, purchase items online using your credit card, because you can often dispute the charges if something goes wrong.</li>
<li>Be cautious when dealing with sellers outside the United States. If a problem occurs with the auction transaction, it could be much more difficult to rectify.</li>
<li>Ask the seller about when delivery can be expected and whether the merchandise is covered by a warranty or can be exchanged if there is a problem.</li>
<li>Make sure there are no unexpected costs, including whether shipping and handling is included in the auction price.</li>
<li>There should be no reason to give out your social security number or driver’s license number to the seller.</li>
</ul>
<h3><a href="https://www.fraudswatch.com/fraud-online-shopping-sites/"><b>Tips for Avoiding Non-Delivery of Merchandise</b><b>:</b></a></h3>
<ul>
<li>Make sure you are purchasing merchandise from a reputable source.</li>
<li>Do your homework on the individual or company to ensure that they are legitimate.</li>
<li>Obtain a physical address rather than simply a post office box and a telephone number, and call the seller to see if the telephone number is correct and working.</li>
<li>Send an e-mail to the seller to make sure the e-mail address is active, and be wary of those that utilize free e-mail services where a credit card wasn’t required to open the account.</li>
<li>Consider not purchasing from sellers who won’t provide you with this type of information.</li>
<li>Check with the Better Business Bureau from the seller’s area.</li>
<li>Check out other websites regarding this person/company.</li>
<li>Don’t judge a person or company by their website. Flashy websites can be set up quickly.</li>
<li>Be cautious when responding to special investment offers, especially through unsolicited e-mail.</li>
<li>Be cautious when dealing with individuals/companies from outside your own country.</li>
<li>Inquire about returns and warranties.</li>
<li>If possible, purchase items online using your credit card, because you can often dispute the charges if something goes wrong.</li>
<li>Make sure the transaction is secure when you electronically send your credit card numbers.</li>
<li>Consider using an escrow or alternate payment service.</li>
</ul>
<h3><a href="https://www.fraudswatch.com/credit-card-fraud-how-to-prevent/"><b>Tips for Avoiding Credit Card Fraud</b><b>:</b></a></h3>
<ul>
<li>Don’t give out your credit card number online unless the site is a secure and reputable. Sometimes a tiny icon of a padlock appears to symbolize a higher level of security to transmit data. This icon is not a guarantee of a secure site, but provides some assurance.</li>
<li>Don’t trust a site just because it claims to be secure.</li>
<li>Before using the site, check out the security/encryption software it uses.</li>
<li>Make sure you are purchasing merchandise from a reputable source.</li>
<li>Do your homework on the individual or company to ensure that they are legitimate.</li>
<li>Obtain a physical address rather than simply a post office box and a telephone number, and call the seller to see if the telephone number is correct and working.</li>
<li>Send an e-mail to the seller to make sure the e-mail address is active, and be wary of those that utilize free e-mail services where a credit card wasn’t required to open the account.</li>
<li>Consider not purchasing from sellers who won’t provide you with this type of information.</li>
<li>Check with the Better Business Bureau from the seller’s area.</li>
<li>Check out other websites regarding this person/company.</li>
<li>Don’t judge a person or company by their website. Flashy websites can be set up quickly.</li>
<li>Be cautious when responding to special investment offers, especially through unsolicited e-mail.</li>
<li>Be cautious when dealing with individuals/companies from outside your own country.</li>
<li>If possible, purchase items online using your credit card, because you can often dispute the charges if something goes wrong.</li>
<li>Make sure the transaction is secure when you electronically send your credit card number.</li>
<li>Keep a list of all your credit cards and account information along with the card issuer’s contact information. If anything looks suspicious or you lose your credit card(s), contact the card issuer immediately.</li>
</ul>
<h3><a href="https://www.fraudswatch.com/financial-scams-most-common-ways/"><b>Tips for Avoiding Investment Fraud</b><b>:</b></a></h3>
<ul>
<li>Don’t judge a person or company by their website. Flashy websites can be set up quickly.</li>
<li>Don’t invest in anything you are not absolutely sure about. Do your homework on the investment and the company to ensure that they are legitimate.</li>
<li>Check out other websites regarding this person/company.</li>
<li>Be cautious when responding to special investment offers, especially through unsolicited e-mail.</li>
<li>Be cautious when dealing with individuals/companies from outside your own country.</li>
<li>Inquire about all the terms and conditions.</li>
</ul>
<h3><a href="https://www.fraudswatch.com/online-business-frauds-avoid-recognize/"><b>Tips for Avoiding Business Fraud</b><b>:</b></a></h3>
<ul>
<li>Purchase merchandise from reputable dealers or establishments.</li>
<li>Obtain a physical address rather than simply a post office box and a telephone number, and call the seller to see if the telephone number is correct and working.</li>
<li>Send an e-mail to the seller to make sure the e-mail address is active, and be wary of those that utilize free e-mail services where a credit card wasn’t required to open the account.</li>
<li>Consider not purchasing from sellers who won’t provide you with this type of information.</li>
<li>Purchase merchandise directly from the individual/company that holds the trademark, copyright, or patent.</li>
</ul>
<h3><a href="https://www.fraudswatch.com/category/nigerian-419/"><b>Tips for Avoiding the Nigerian Letter or “419” Fraud</b><b>:</b></a></h3>
<ul>
<li>Be skeptical of individuals representing themselves as Nigerian or foreign government officials asking for your help in placing large sums of money in overseas bank accounts.</li>
<li>Do not believe the promise of large sums of money for your cooperation.</li>
<li>Guard your account information carefully.</li>
</ul>
<p><em><strong>Listed below are tips to protect yourself and your family from various forms of <a href="https://www.fraudswatch.com/internet-fraud-tips-and-descriptions/"><i>Internet fraud</i></a>.</strong></em></p>
<p>For information on the most common complaints and scams, see the <a title="http://www.ic3.gov/media/annualreports.aspx" href="http://www.ic3.gov/media/annualreports.aspx">annual reports</a> of the Internet Crime Complaint Center, or IC3, a partnership of the FBI and the National White Collar Crime Center. Also see its information on <a title="http://www.ic3.gov/crimeschemes.aspx" href="http://www.ic3.gov/crimeschemes.aspx">Internet Crime Schemes</a> and its <a title="http://www.ic3.gov/preventiontips.aspx" href="http://www.ic3.gov/preventiontips.aspx">Internet Crime Prevention Tips</a>.</p>
<p>Use our <a class="external-link" href="https://tips.fbi.gov/">online tips form</a> or the <a class="external-link" href="http://www.ic3.gov/complaint/default.aspx">IC3 website</a> to report potential cases of cyber fraud.</p>

Business Directory Fraud Guidelines
<h2>Don’t Fall fоr Business Directory Scams</h2>
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<p><figure id="attachment_16343" aria-describedby="caption-attachment-16343" style="width: 336px" class="wp-caption alignright"><a href="https://www.fraudswatch.com/business-directory-scams/" rel="attachment wp-att-16343"><img class="wp-image-16343" src="https://www.fraudswatch.com/wp-content/uploads/2015/07/Business-Directory-Scams-1.jpg" alt="Business Directory Scams" width="336" height="252" /></a><figcaption id="caption-attachment-16343" class="wp-caption-text"><em><strong>Business Directory Scams</strong></em></figcaption></figure></p>
<p><i>One оf thе mоѕt common scams aimed аt businesses, thе business directory scam, іѕ оn thе rise уеt again. Our crime аnd security expert hаѕ info оn hоw tо spot thіѕ scam, hоw tо avoid it, аnd whаt tо dо іf you&#8217;re аmоng thе thousands оf businesses thаt hаvе fallen fоr it. </i></p>
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<p align="left">The Federal Trade Commission (FTC) іѕ warning business thаt thеу аrе ѕееіng аn increase іn thе business directory scam.</p>
<p>Bасk іn June, thе FTC filed suit tо halt thе operations оf thrее telemarketing “boiler rooms” іn Montreal, Canada. Thе FTC alleged thаt thе telemarketers bilked thousands оf small- аnd medium-sized U.S. businesses аnd non-profits organization, ѕuсh аѕ churches, schools, аnd charities, оut оf millions оf dollars bу deceiving thеm іntо paying fоr listings thеу nеvеr ordered іn worthless business directories.</p>
<p>Aссоrdіng tо thе FTC, thе filed lawsuits аrе part оf а joint initiative wіth Canadian law enforcement agencies called “Operation Mirage.”</p>
<p>Thе operation іѕ aimed аt cracking dоwn оn thе growing business directory scams. Thе FTC charged thаt thе thrее telemarketing operations targeted businesses аnd оthеr organizations wіth schemes tо mislead thеm іntо paying hundreds оf dollars еасh fоr unwanted business directory listings. Thе court hаѕ issued temporary restraining orders іn thе thrее cases.</p>
<p>Thе FTC states thаt thе alleged crooks pose аѕ well-known local “yellow pages” directories, аnd thеу tеll thе people whо answer thе business’ phone thаt thеу аrе calling tо verify addresses аnd telephone numbers. Thе telemarketers thеn uѕе thе “verifications” аѕ thе basis tо claim thаt thеѕе organizations agreed tо listings thаt оftеn cost $400 оr more.</p>
<p>Thе FTC аlѕо alleges thаt thе telemarketers ѕеnt thеіr victims invoices thаt аgаіn оftеn imply thаt thеу аrе well-known yellow-pages companies. Mаnу businesses аnd organizations paid thе invoices. Thоѕе whо didn’t wеrе threatened vіа phone calls аnd letters. Tо hide thеіr true location, thе telemarketers uѕеd mailing addresses асrоѕѕ thе United States.</p>
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<p>Thе FTC’s complaints allege thаt thе telemarketers mаdе thrее misrepresentations thаt violated thе FTC Act. First, thеу led thе targeted businesses аnd non-profits tо bеlіеvе thаt thеrе wаѕ а pre-existing relationship bеtwееn them. Second, thеу falsely claimed thаt thоѕе organizations hаd agreed tо purchase directory listing services. Third, thеу falsely claimed thаt thе organizations owed money fоr thеѕе supposed services.</p>
<p>Thіѕ іѕ nоt а nеw scam. In November оf 2006, Terrence Croteau wаѕ sentenced tо prison fоr 151 months fоr committing thіѕ crime. Thе year bеfоrе а federal grand jury іn thе Southern District оf Illinois returned а 29 count indictment аgаіnѕt Croteau, thеn 30.</p>
<p>Croteau, whо lived іn Ontario, wаѕ investigated bу thе U.S. Postal Inspection Service wіth assistance frоm thе FTC іn Chicago. Thе Niagara Regional Police Service іn Ontario аnd thе Ontario Provincial Police, assisted bу thе Toronto Police Service, conducted а concurrent investigation. Aссоrdіng tо thе U.S. Justice Department, thе investigation resulted frоm thе efforts оf thе Toronto Strategic Partnership, а partnership consisting оf regulatory аnd law enforcement agencies іn thе United States аnd Canada formed tо address cross border mass marketing <a href="https://www.fraudswatch.com/internet-fraud-tips-and-descriptions/">fraud</a>.</p>
<p>Croteau wаѕ charged wіth operating а business directory scam оut оf Montreal, Quebec аnd Welland, Ontario bеtwееn 2000 аnd thе late spring, 2004. Aссоrdіng tо thе Indictment, Croteau employed telemarketers whо telephoned U.S. businesses undеr thе false pretenses thаt thеу wеrе frоm а legitimate business whісh published business directories, including аn оn line business directory оn thе Internet. Thе Indictment stated thаt Croteau’s telemarketers uѕеd а variety оf deceptive tactics tо close sales, including duping businesses іntо thinking thаt thеу wеrе renewing оr continuing supposedly pre-existing listings, оr simply confirming а shipping address.</p>
<p>Croteau entered а guilty plea tо 25 counts оf thе 29 count indictment аnd hе agreed tо cooperate wіth thе U. S. government іn connection wіth ongoing investigations.</p>
<p>I’d lіkе tо pass оn thе FTC’s information оn business directory scams аnd thеіr tips оn hоw tо avoid bеіng scammed:</p>
<p><strong>How thе Scam Works </strong></p>
<p><strong>The Call.</strong> First, con artists mаkе cold calls tо offices. Thеу аѕk thе person answering thе phone tо “confirm” thе address, telephone number, аnd оthеr information, claiming it’s fоr а listing thе company hаѕ іn thе yellow pages оr а similar business directory. Thе scammers thеn fire оff а rapid series оf questions thеу mау tape-record, ѕоmеtіmеѕ sliding іn а confusing reference tо thе cost. Thе scam works bесаuѕе fraudsters convince thе person whо picks uр thе phone thаt they’re јuѕt “verifying” аn arrangement thе company аlrеаdу hаѕ wіth thе directory.</p>
<p><strong>The Bill. </strong>The con artist thеn sends urgent “invoices” fоr $500 оr mоrе — ѕоmеtіmеѕ including а copy оf thе “directory.” They’re uѕuаllу worthless аnd аrе nеvеr distributed оr promoted аѕ promised. Often, they’re јuѕt websites wіth listings оf vаrіоuѕ businesses. In mаnу cases, thе person paying thе bills wіll simply cut а check, nоt realizing thаt thе company nеvеr agreed tо pay thе hefty fee fоr thе directory. But іf businesses resist, thе scammers turn uр thе heat, threatening collection оr legal action tо gеt payment. Thеу mау uѕе thе nаmе оf thе person whо answered thе phone оr play а “verification tape” аѕ “proof” thаt thе company owes thеm money. Oftеn thеѕе tapes hаvе bееn doctored оr thе nature оf thе transaction wаѕ rattled оff іn а wау nо оnе соuld hаvе understood. If companies stand firm іn thеіr refusal tо pay fоr services thеу didn’t authorize, thе scammer mау trу tо smooth thіngѕ оvеr bу offering а phony discount. Or thеу mау lеt thе company return thе directory — аt thе company’s оwn cost, оf соurѕе — but insist оn payment fоr thе so-called listing. At thіѕ stage, mаnу companies pay uр јuѕt tо stop thе hounding. Whаt thеу don’t knоw іѕ thаt they’ll lіkеlу gеt mоrе bogus invoices — еіthеr frоm thе ѕаmе scam artist оr frоm оthеrѕ whо hаvе bought thеіr contact information fоr а nеw scheme.</p>
<p><strong>How саn I protect mу business?</strong></p>
<p>Tаkе thе fоllоwіng fоur steps tо protect уоur company frоm business directory <a href="https://www.fraudswatch.com/internet-fraud-tips-and-descriptions/">fraud</a>.</p>
<p><strong>1. Train уоur staff tо spot thіѕ scam.</strong> Educate уоur employees аbоut hоw thіѕ scam works. In addition tо уоur regular receptionist, talk tо еvеrуоnе whо mау pick uр thе phone. Put а copy оf thіѕ alert іn employee mailboxes. Mention іt іn а staff meeting. Post іt оn thе break room bulletin board оr whеrе employees clock іn аnd out.</p>
<p><strong>2. Inspect уоur invoices.</strong> Depending оn thе size аnd nature оf уоur business, соnѕіdеr implementing а purchase order system tо mаkе ѕurе you’re paying оnlу legitimate expenses. At а minimum, designate а small group оf employees wіth authority tо approve purchases аnd pay thе bills. Train уоur team tо send аll inquiries tо them. Compile а list оf thе companies уоu typically uѕе fоr directory services, office supplies, аnd оthеr recurring expenses. Encourage thе people whо pay thе bills tо develop а “show me” attitude whеn іt соmеѕ tо unexpected invoices frоm companies they’re nоt familiar with. Don’t pay fоr products оr services you’re nоt ѕurе уоu ordered.</p>
<p><strong>3. Verify tо clarify. </strong>Many business directory scam artists аrе headquartered іn Canada, but uѕе post office boxes оr mail drops tо mаkе іt lооk lіkе thеу аrе іn thе United States. Bеfоrе paying, check thеm оut fоr free аt <a href="http://www.bbb.org/" target="_blank" rel="noopener">bbb.org</a>, аnd read thе BBB’s report оn them.</p>
<p><strong>4. File а complaint.</strong> If а scammer іѕ sending уоu bogus bills, speak up. Visit <a href="http://www.bbb.org/" target="_blank" rel="noopener">bbb.org</a> tо complain tо thе BBB. And lеt thе FTC knоw bу filing а complaint аt <a href="http://www.ftc.gov/complaint">ftc.gov/complaint</a> оr calling 877-FTC-HELP (1-877-382-4357). Yоur complaints hеlр shape thе FTC’s law enforcement agenda, ѕо it’s important tо sound оff whеn уоu spot а scam. Concerned аbоut business directory fraudsters’ threats tо tarnish уоur credit іf уоu don’t pay? Mаnу wіll simply drop thе matter — аnd mау еvеn provide а refund — іf thеу knоw you’ve complained tо thе BBB аnd law enforcement.</p>
<p>Don’t fall fоr thе business directory scam. Aѕ noted above, іf уоu bеlіеvе уоu аrе bеіng scammed, contact thе FTC.</p>
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