The tactics used by scam artists range from the classic to the
high-tech. Here's a rundown of what to watch out for:
Fraudulent Charities: Within
48 hours of the September 11 terrorist attacks, reports of bogus
charities claiming to collect for relief efforts began to surface.
You can check out any charity before sending money by visiting the
Web sites of watchdog groups such as the Better Business Bureau
(BBB) and the American Liberty Project, a cooperative effort between
Amazon.com, AOL Time Warner, Cisco Systems, eBay, Microsoft and
Yahoo! If you wish to donate to smaller, community-based
organizations, which may not be listed on watchdog sites, you
should get information in writing and request references. Another
tactic: Check the charity's Web site domain through the WHOIS
function at Network Solutions to find out who registered it and
whether the name on the registration matches the name of the
charity. If it doesn't, you should be suspicious.
90# Scam: In this scenario,
callers who claim to be telephone company representatives ask the
receptionist to dial 90# to test the phone. On many systems, this
allows a third party to then make calls on your dime. Some
variations include callers asking to be transferred to extension 90
or 900. Tell your employees: When a caller asks for 90#, hang
up.
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809 Scam: Beware of urgent
letters or e-mails demanding you call a number in the 809 area
code. Originating in the Caribbean, these 809 numbers are often
"pay per call," much like 900 numbers in the United
States, and may cost you up to $25 per minute. While some 809
numbers are legitimate, make sure to check the origin of any
unfamiliar area code before you dial it. You can use the listings
of U.S.-based area codes found in most telephone books, or call
your long distance provider for information.
Voice-Mail Access Scams: The
remote access features of Private Branch Exchange (PBX) systems can
be cracked by hackers--who can then run up thousands of dollars in
long-distance charges in a short period of time. Monitor phone
bills closely and change the authorization numbers often.
Dummy Invoicing: According
to Ron Berry, senior vice president of bureau affairs for the
Council of Better Business Bureaus Inc. in Arlington, Virginia,
fake invoices still rake in big bucks for scam artists. Your
business may receive a "look alike" invoice for a product
or service that it regularly orders, such as local media or Yellow
Pages advertising. Thinking the bogus bill is valid, you may pay
it. Berry reminds entrepreneurs to set up systems for invoice
verification and approval.
Toner Phoners: An employee,
usually an assistant or receptionist, gets a call from a company
posing as your office supply provider. The scamster asks him or her
to verify the make and model of your copier, then sends inferior
and overpriced supplies that were never ordered, using the
employee's name and the acquired copier information as proof of
the order. Your company is billed an exorbitant price, and the
scamster uses high-pressure tactics, such as the threat of legal
action or a collection agency, to get paid. Rooker says this scam
is rampant and that you should tell employees never to answer
questions about your company's equipment over the phone.
| Hot Opportunity--or Scam? |
| Before you write out a check
to a seemingly lucrative franchise or business opportunity, make
sure you've done your homework by fully researching the
company. Read these how-to articles for more information:
|
Originally published in the January 2002 issue of Entrepreneur Magazine
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