A telemarketer uses high-pressure tactics to get the business
owner or employee to participate in, and then purchase, a directory
or CD-ROM that never materializes. While there are a number of
reputable directory publishers, always ask to see documentation of
the company and the product in writing, and check with the BBB to
see if any complaints have been filed against the publisher.
Invalid Insurance: Rooker
cautions businesses that receive questionable insurance bills or
phone solicitations to buy insurance to beware of con artists
selling or billing for phony policies. Buy insurance only from
reputable brokers or companies, and verify invoices before paying
them.
Advance-Fee Loans: According
to Berry, it's common for cash-strapped entrepreneurs to fall
for the promise of a loan that's "guaranteed" once a
processing fee or other fee is received. Once the business owner
sends the fee, which can total up to several thousand dollars, the
loan never materializes. Berry advises that businesses should
conduct financial transactions only with trusted institutions and
never to send an advance fee for a business loan.
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Domain Registration Rooks:
Scam artists try to sell new top-level domain names, such as .biz
and .info, before the names are available for assignment, and
usually at a highly inflated price. Be sure to register using a
reputable service such as Network Solutions or Register.com.
Phony Web Site Scams:
You're promised a free Web site and a month of free hosting.
Once you give your credit card information, though, you never hear
from the provider again. Protect yourself by doing business only
with one of the many established and reputable companies that
provide this service, asking for references and, if possible, using
a credit card for payment to protect yourself from liability.
| Hackers, Crackers and Thieves |
| Have an online business? Then
a whole new world of fraud is waiting especially for you. Find out
which scams to watch for in Scram,
Scam! |
Originally published in the January 2002 issue of Entrepreneur Magazine
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