Fraud Awareness for Commercial Targets: Types of Business Scams

Share This Post

toronto-private-fraud-investigatorBusinesses have always been a target of fraudsters, and that?s precisely why businesses should be made aware of the possible scams that they may fall victim to. Frauds that target businesses can end up costing millions of dollars annually, and your company may already be a victim without you knowing it.

The Good and the Bad

The problem with corporate-level scammers is that they seem to be just like any refutable vendor you?ve previously dealt with. It is too easy to fall into their trap before you have any inkling of what?s going on. Their scams can masquerade as office goods being delivered and charged to you without you having placed an order, or can be goods that you?ve ordered and paid for but will never be delivered to you. There?s really nearly nothing you can do once they got you trapped. Their collection agents are nasty, none of their staff are authorized to cancel the order you never placed in the first place, and they?re very quick to blackmail you with legal action if you don?t hand over some money.

Refutable businesses won?t do any of what?s described in this article. They care about customer service and care about growing their business with yours. Obviously, scammers are only interested with what they can get from you today because they hardly ever stay in ?business? for long ? another reason for you to be able to tell them apart from legit businesses as soon as possible by familiarizing yourself with the types of business scams and how they operate.

So here they are, the Types of Business Scams:

Office Supply Scams

This scam operates by placing one or a few unsolicited calls to a targeted business. They usually make the first call to get information such as your corporate email address, the names of who runs your business, the names of your colleagues, and what office equipment you use. They use the information to imply an existing business relationship when they place a second or third call to one of your company?s decision makers or your colleagues. This enables them to get key persons to agree to their shipments of products that your company never ordered to begin with.

The nightmare continues when the products arrive and you realize that not only that you?ve never placed an order, but the products are cheaply made and cost a lot more than the best products of its kind in the market. You are not given any means to return the products and is stuck with paying for them or face a possible lawsuit that can damage your reputation beyond repair. Keep note that the scam can continue even after you?ve sent payment because the scammers will try to milk as much money as they can from you.

Directory Scams

Directory scams work by either tricking you to advertise in their (non-existent and overpriced) directory, or by fooling you into paying for a renewal of your non-existent subscription service with them.

This scam works because all organizations would elect to promote themselves. Oftentimes, companies do not check records and would just rather get a subscription bill done with, more so if it?s renewal is related to their company?s promotion.

Fake Invoice Scam

This scam often follows the same modus as the assumed sale tactic (the office supplies scam) and then sends a bill or invoice to an unsuspecting target. The invoice or bill will look very credible, printed on high-quality paper and sporting a professional layout. You are then fooled into thinking that you are meant to send payment for the invoice. Worse, once you?ve sent your first payment and the fraudulent transaction enters your books, you are more likely to keep sending payment to the next invoices the scammer will send to you.

Thhs scam can bleed your company for months, up to years without you suspecting something is amiss, more so if they are in cahoots with an employee in your organization. It is very easy to miss fake invoices because they often only charge small amounts but remember; small fake bills can mount up to big losses in the long run.

Suspecting that you may have been a victim of business scam? Want to know how you can further protect your company against fraudsters? We?ve got answers for your private investigator and corporate investigation needs! Contact us for your free initial consultation.

More To Explore


Hiring a Private Investigator for Employee Theft

Regardless of a company’s scale, every business faces susceptibility to employee theft in various forms. According to the CRA, an unsettling 75% of employees said they’ve stolen from their employer at least once. While the Association of Certified Fraud Examiners estimates that companies lose an estimated 5% of their total revenues to fraud, which includes employee theft. Our latest post delves into why companies opt for private investigative services and provides guidance on recognizing theft and understanding when the involvement of a private investigator is warranted.


9 Reasons to Hire a Private Investigator for a Cheating Spouse

There are various considerations that might prompt you to think seriously about hiring a private investigator for a cheating spouse. In situations where the relationship is clearly coming to an end, initiating an open and honest conversation with your spouse is the recommended course of action. However, if your spouse denies the affair, the option of hiring a private investigator becomes more compelling. In our latest blog post, we explore the key factors and reasons for hiring a private investigator for a cheating spouse.