Read About Scam Techniques

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The business looks and sounds like any professional vendor you’ve ever dealt with…but before you know it, you’re trapped. Office supplies you never ordered are delivered, goods are paid for but never received, and their customer service staff is not authorized to cancel orders that you’re certain you never placed. What’s more, collections agents from these supposed vendors get nasty…suspiciously so. Remember: A reputable vendor cares enough about your business to treat you with respect, but a criminal is only interested in getting your money today, and closing up shop tomorrow. Click below to get some first-hand accounts of how these scams operate.

• Types of Business Scams



• Common Tactics



• Key Phrases Used

Types of Business Scams

Office Supply Scams

Typical products used in this type of scam include paper, ink toner, first aid kits, light bulbs, paper rolls for debit and credit machines and various commonly-used office supplies.

This scam involves one or more unsolicited phone calls to a targeted business. The goal of the first call is to gather information on your company, such as your name, names of your colleagues, a corporate mailing address or type of office equipment used. A second or third phone call is placed to a colleague and the caller uses the acquired information to imply an existing business relationship. Thus, your colleague is misled and then is drawn into agreeing to accept shipment of supplies that were never ordered in the first place (this is referred to as an ‘assumed sale’ scam). When the supplies are delivered, you realize that they are not what you thought you were getting – they are of poor quality and cost as much as 10 times above the market rate. If you try to send the box back, you find that their mailing address does not accept deliveries. When you refuse to pay the invoice, you receive countless aggressive collections calls threatening to report you to credit agencies and local business associations to damage your reputation. The result in most cases is that you agree to pay the invoice just to resolve the matter.

These scams are prevalent and are successful because the fraudsters are able to fool you into believing that you have an existing business relationship by:

• telling you that the product has already been ordered;



• reminding you that it’s time to renew an existing contract;



• offering you information that seems helpful, such as telling you that an office supply requires replenishing, or calling you to tell you about a special, limited-time offer for preferred clients;



• replaying parts of previously recorded conversations of you or your colleagues;



• confirming business information for accuracy of delivery; and



• conducting themselves in a courteous and professional manner before the shipment is delivered.

Directory Scams

Businesses and not-for-profit organizations are also targeted in directory scams. Organizations are asked if they want to either advertise within or purchase an online, CD-Rom or print directory specifically designed for your sector or industry. You agree to buy it. Either it does not exist, or it contains no reliable information whatsoever.

Sometimes a telemarketer will contact you to ask you if you want to renew your two-year subscription to their directory when in fact, your office never had such an account. Many people are fooled into paying for an invoice without checking their records to confirm if they placed a previous order, or ensuring that the directory exists in the first place.

These scams are effective because all organizations want to promote themselves, so a pitch featuring a way to increase people’s awareness about your operations will likely grab your attention. If you do receive a directory, it may feature some real but mostly bogus information. However, if you don’t look too closely, and if you don’t use it, you may never come to realize that it’s a scam.

Phoney Invoice Scam

This scam follows the “assumed sale” tactic described above by simply sending an invoice or bill requesting payment to an unsuspecting target.

In this scam, you receive an invoice or bill requesting payment. The phoney invoice may arrive with a product. The invoice appears credible, with a professional layout and on high-quality paper. You are misled into believing this invoice requires payment. Over time, these fraudulent operations appear on your vendor lists, which means that the next invoice is more likely to be paid without question.

This scam is effective because it often impersonates a legitimate business, and at a quick glance, the paper you receive can often be mistaken for a bill for real charges. Invoice scams typically are for low amounts, but small quarterly or monthly losses add up over time.

Common Tactics

Scams targeting businesses and not-for-profit organizations often work because the victims were under the impression they were dealing with a professional, credible and reputable business.

Here are samples of techniques often used by fraudsters to con you :

• Reciprocity: “We’ll give you something, so you give us something in return.” This means they may offer a prize, a special price, or other privileges to get your agreement to send money or to confirm an order.



• Foot in the Door: Sometimes fraudsters will get you to agree to some small purchase, and then surprise you with larger commitments later. For example, you agree to accept a free box of paper, but then find out that in doing so, you have agreed to a monthly supply of paper.



• Pitch a Better Deal: Some scams may offer something really expensive and out of a person’s price range. Expecting you to balk, you are offered something cheaper, which now looks more reasonable. You may mistakenly feel like you got a good deal but later realize that you have been defrauded.



• Initial Agreement Pressure: Early in the pitch, you are asked a question like: “Do you like to save money?” Later in the transaction, you are made to stick to your word by committing to a purchase by reminding you that: “You said you wanted to save money.”



• Peer Pressure: “Four out of five of your neighbours/competitors have already bought it. Can’t you afford to? Don’t you think your neighbours are smart people?” This tactic is effective because it gives the impression that this company has a good reputation, is well known and is trusted by your peers.



• Flattery: Many scam artists are charming and personable and give compliments as a way of disarming you and getting you to fall for the con. “Just for you…because you’re in an exclusive group…because you have a beautiful voice…because you are a high achiever…because you have a good credit rating…We seek the top 10% of businesses in each industry for membership in the directory.”



• Authority: Borrowing credibility from an outside source can be effective. Claims such as: “We’re registered with the government as the official supplier of…” or “We’re owned and operated by MBA graduates with over 12 years experience in the industry.” are highly persuasive and disarming.



• Scarcity: Here the scam artist makes you feel that you will miss out if you don’t say yes immediately. “Act now, because we only have a few left. The offer ends tomorrow.”



• Urgency: This is another pressure tactic: “I’m glad I caught you today. Prices go up next month.”



• Exclusivity: Everyone loves to feel that they are getting special treatment or have access to privileged information. Be weary of such ploys. “Don’t tell anyone else I’m making you this offer.”



• Altercasting: As a means of persuasion, this technique places you in a highly-desirable and respected social role by telling you: “As a critical member of your organization, you should know…” or “Are you the manager? Then you should have the authority to approve this offer now…”



• Excitement / Emotional Involvement: Con artists are skilled at getting you excited about the pitch: “You’d be crazy not to sign up today. I wish I were you and could afford to do this myself.”



• Give a Little Bad News to Appear Honest: For example, “There’s been a problem in shipping…we need to verify the order, confirm delivery date.” Another example: “Our manufacturer is folding. This is your final delivery of…”



• Creative Name Use: They’ll give a company name that sounds large, national, international…and they will also give the first or last name of the caller, despite probably being an alias.



• Paperwork and Professionalism: When you say “I’m not sure I ordered it”, you are told, “My records show that I called you on (date) / at (time) and confirmed the amount. I’ll include my personal business card in case you have a problem with the order.”

Key Phrases Used

Have you heard the following? Review this list and think about the ways these phrases might be used to fool you.

• “We are calling about a pre-authorized purchase.”



• “We’ve had some delays in our shipping department and need to confirm your order.”



• “Unfortunately, we’re calling to close your account with us.”



• “Do you require a purchase order number or can I send it directly to you?”



• “You’ll be receiving a verification call from our quality control department.”



• “ We are calling to confirm shipping details/account information.”



• “We’ll be recording our call for quality control purposes.”



• “I’m not authorized to cancel your order/close your account.”



• “You have a two-year listing with us.”



• “May I ask what type of printing equipment you use?”



• “We seem to have overpaid you.”



• “I am calling to approve your advertising copy for our directory.”



• “I would then have to re-invoice you.”



• “There’s no way I can retract your order.”



• “I was speaking with you previously.”



• “If you have any questions, you should ask me now. Our shipping department won’t be able to answer them when they call to confirm delivery details.”