Deposit Scam
The Better Business Bureau (BBB) of Saskatchewan is advising businesses that one of the longest-running scams is back, and targeting local businesses.
If your business receives an order for a significant amount of work or product that seems to be too good to be true, then it just might be, caution representatives of the BBB.
Typically a business is contacted by phone, email or through the internet, and an order is placed for retail goods such as computers or audio-video equipment. A deposit is made on the order via credit card or with an official cheque.
Generally the "deposit" is for an amount larger than the cost of the order. When the purchaser is contacted about this overpayment, the response is to ask that the excess be refunded. Beware! Do not refund the excess immediately as the entire transaction may be fraudulent. The Better Business Bureau has seen this activity in the past.
The scam works because your business will deposit the cheque or process the credit card and ship the goods to meet customer service objectives. Unfortunately the cheque issued will be counterfeit or the credit card used will be stolen, and the buyer is likely non-existent.
As the supplier you won't become aware of this for a few days while the cheque or credit card payment is clearing as a financial transaction. If you have responded quickly delivering great customer service, your business may be out the money that was "refunded" and unable to retrieve the goods shipped in response to the order.Individuals engaged in activities like this usually strike during the holidays when regular employees are away, business activity is high, and less knowledgeable staff filling in.
Yellow Pages Scam
In Saskatchewan many businesses have received phone and fax solicitations for directory listing services in internet based yellow page directories. The Better Business Bureau of Saskatchewan warns that these solicitations are for listings in alternative internet business directories that differ from the familiar yellow pages in our phone books, and related on-line directory services offered by Saskatchewan based Direct West.
These solicitations originate from companies based in the United Kingdom, Montreal or other undisclosed location. They may use a logo similar to the "walking fingers" we are familiar with in Saskatchewan and the telephone solicitations will probably refer to "yellow page" listings.
Their objective is to obtain a verbal commitment from the business, which is followed quickly by invoicing. A business may not realize that it is committed to a contractual obligation until it receives the telephone calls from a collection agency.
None of these internet marketing companies are acting illegally, rather they are acting deceptively.
These alternative directory services expect your business will commit to an internet directory listing without substantiating the benefits expected, or the source of the solicitation.
Most use a polished sales pitch over the phone recording the calls. When published material is provided by fax or email it may have a visual presentation similar to traditional yellow page publishers in Saskatchewan and Canada. Pricing is normally disclosed in fine print. While the actual service maybe legitimate, it clearly duplicates a service most businesses already have in place.
There is little economic value to such listing services and the listing fees can be very expensive.
Saskatchewan businesses need to assess what value is offered, who in their business is authorized to commit to directory listings, and what the actual costs are. Businesses can protect themselves by asking their entire staff to be aware of disguised solicitations and to carefully check suspicious invoices or bills from companies with whom they don't normally do business.
For further information about these topics, or to check the reliability of any company sending a solicitation for any service or product, or from whom you have received an invoice by fax or email for services and products yet to be delivered, businesses may contact the Better Business Bureau of Saskatchewan at (306) 352-7601, toll free at 1 (888) 352-7601 or online at www.sask.bbb.org or email at [email protected]
