Green Eggs & Scam
Government Document Dupes
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In this scam, you receive an official-looking document that
leads you to believe you must purchase signage, such as minimum
wage declarations, and display it by law. But in most cases,
signage that's mandated by law is available for free from the
government. In another twist, the BBB confirms that a number of
Alabama-based restaurants received demands from the
"Environmental Protection Enforcement Agency" to fill out
a lengthy questionnaire and return it with a fee of $189 or risk
being fined $5,000 per day. If you get an official-looking document
demanding money, call the state or federal agency referenced in the
document to verify the demand is valid. Phony Customer Con: This is
the scam mentioned earlier in Sarris' story. Here, a scamster
sends a letter posing as a disgruntled customer and demands a
refund for a nominal amount. Because the amount is so small, many
business owners send it without question. To avoid being ripped
off, follow up on such requests with a call to verify that the
customer is real or ask the customer to send a copy of the
receipt. Business Identity Theft:
Immediately following the World Trade Center disaster, hundreds of
thousands of confidential papers were strewn about the streets of
Manhattan, many from brokerage firms and other places of business
that house sensitive information. If this information were to get
into the wrong hands, some of it could be used in identity theft
scams against both businesses and individuals. Content Continues Below
Recently, Rooker met a pet shop owner who found suspicious
charges on her company credit card. Soon, she realized that someone
had deceptively obtained credit cards and borrowed money in her
company's name. You should closely monitor bills and watch for
erroneous charges. On a daily basis, follow basic precautions to
guard against identity theft, including destroying business credit
offers before discarding them. Safeguard important information such
as tax identification and bank account numbers, and watch for
change of address notices from credit companies or other
vendors. Energy Shocking: Similar to
phone service "slamming," shocking is the practice of
switching energy service without permission in states where energy
deregulation allows for a variety of service providers. The BBB
advises that companies check their bills monthly for irregularities
to safeguard their power sources. Copier Service Scheme: In
this brazen scam, the con artist poses as a service technician for
your office equipment. Once he gains access to your copier or other
expensive machinery, he then substitutes an inferior machine or
steals the office equipment altogether. Always ask service
technicians for identification, and if they show up unannounced,
call your provider to double-check identity. "Cash a Check, Get a Bill"
Con: In this scenario, businesses receive nominal checks
in the mail resembling rebates or refunds. However, the check has
fine print that says cashing it authorizes the issuer to bill the
business for a product or service, change long-distance carriers
and so on. Review all checks and their point of origin. If it seems
suspicious, don't cash it. | Damage Control | | Once
you've been scammed, you have several options, says David
Lenci, an attorney with Preston Gates & Ellis LLP in Seattle.
Your state's attorney general's office or your local law
enforcement agency may have an unfair
trade practices group. "These agencies may take action on
your behalf, especially if the scam is widespread," says
Lenci. He adds that, depending on the cost of the scam, you may
choose to file suit on your
own. Federal authorities, such as the FTC, U.S. Postal Service or
FCC, may also be able to help, depending on the nature of the scam.
Watchdog groups and nonprofit scam-busting organizations can also
assist by providing information and advising a course of
action. Regardless of whether you fall for a scam,
it's important to report
it. Says Frank Gorman, an attorney with the FTC,
"[The FTC] houses a database of scams that helps law
enforcement officials determine how widespread a particular scam
may be and whether or not the FTC or other agency will file
suit." |
Originally published in the January 2002 issue of Entrepreneur Magazine
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