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Small Businesses - Watch Out From Frauds and Scams
Small Businesses - Watch Out From Frauds and Scams
As con artists and thieves make use of the infinite world of the internet, businesses, particularly small business, have never been more vulnerable to online small business scams.
Hawthorn,
Victoria,
Australia
(prbd.net)
02/09/2011
While innovative technological advancements of the internet have revolutionized shopping, banking, business and the society at large, it has also revolutionized crime -- creating new opportunities and thievery tools that make it easier for scammers, con artists, and other online thieves to carry out their virtual crimes -- impacting our real life finances, security, and peace of mind.
Nowadays, with the constantly extreme divergent effects of the constantly evolving innovative internet technological advancements -- both legal and illegal effects -- individual consumers are not the only ones becoming the victims of fraud. Businesses, from conglomerates to small "mom and pop" stores, are also becoming the targets for a variety of online scams and frauds.
As con artists and thieves make use of the infinite world of the internet, businesses, particularly small business, have never been more vulnerable to online small business scams.
Online small business frauds and scams are constantly evolving, but here are the most common ones today that small businesses should watch out for:
The Overpayment Approach
This scam targets businesses that are just starting up and are eager to build trustworthy relationships with clients.
The "supposed buyer" will pay several hundred dollars over the total cost of the ordered merchandise using a bogus or expired checking account. Because the business wants to build a trustworthy relationship with their clients, they would send them a check with the order to make up the difference, and then later find out that the check was from a bank account that had been closed years earlier.
Valuation Fraud
The business sends faxes asking if you're interested in selling your business. If you want to sell your business, they claim they'll find buyers interested in your company. You send a fax back, and they send someone to come out to speak with you. After that, you pay several thousand dollars in advance to have a valuation done to determine what your business is worth. After you've paid, they disappear.
Blue Sky Scams
This scam is prevalent in the vending industry. Companies try to convince you to spend $30,000 on machines and promise to find you good locations and set it all up for you. Then after paying the amount they don't come through.
A "Heavy" Pre-Pay Shipping Scam
This scam often select special order items that the company will have a harder time disposing of, making the victim more likely to front the shipping bill for the big special order. They give two credit cards to the retailer--both are valid and go through. Then they order heavy items to bring up the shipping charges and ask the retailer to pre-pay the shipping to a P.O. box at a distant location. However, later on, the retailer will find out later that the credit card numbers used were stolen.
Hit and Run
A swindler moves into a location and orders merchandise COD, paying with phony certified or cashier's checks. By the time the counterfeit check bounces, the "skip artist" has moved on to a new location to repeat the fraud.
Bogus Billing
This is a small business scam that relate to false billing which involves false invoices for advertising, directory listings, domain names and office supplies.
Staying one step ahead of the scammers is critical for all business owners. To do this, small business owners should take a cautious approach on fax, phone and e-mail orders and offers as well as make sure that they got the money on hand before parting with the goods or services.
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Shoebooks is an Australia-based online accounting company, offering the simplest & most comprehensive online bookkeeping and accounting software solution in the web, as well as flexible and affordable bookkeeping, payroll, consulting and training services to any business enterprise. Shoebooks is located in Australia at Unit 12, 118 Church Street, Hawthorn, Victoria 3122. Call Shoebooks at +613-9818-1515 (toll-free for Australia: 1300-882-428) or visit Shoebooks at WWW.SHOEBOOKS.COM.AU
About
Shoebooks is an Australia-based online bookkeeping company. We offer flexible, efficient and affordable online bookkeeping solutions to any bookkeepers and business owners. We provide the simplest & most comprehensive online bookkeeping solution. We also offer bookkeeping, payroll, consulting and training services to many business enterprises. Visit Shoebooks website at www.shoebooks.com.au
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