Ok, we’ve all read the signs ‘buyer beware’… but entrepreneur beware? The reality is that people in business are subject to all kinds of fraud…the opportunity to be taken as an entrepreneur runs the table from shoplifting to the high-stakes con artist who is after serious amounts of your money. And in today’s fast-paced, hyper-active electronic world, the stakes are even higher.
In the last year, two businesses that I work with have been very close to losing a large amount of money and the would-be perpetrators used almost the exact same scheme…both used Tele-relay services to communicate. Both used hardship in some way to tug at the victim’s desire to do good. Both tried using stolen credit cards, and in one case, succeeded. Both involved large orders for merchandise. In the latest case, Trevor Suckow, owner of the Friendship Café in Clarkfield, MN started asking questions about how and why…You can read his story as published last week in the Granite Falls Advocate by following the attached link.
Here are a couple of quick questions you should always ask yourself when that order that appears to be ‘too good to be true’ comes in…
- Why are they buying from us?
- Does the address on the credit card match the address to where you are delivering the product? This is important, because if the address is the same, and the card has been stolen, the credit card issuer will not leave you stuck with the bill.
- Can you verify the order with someone locally?
Follow Trevor’s advice, if it sounds too good to be true, it probably is…beware – danger is lurking!
Kurt Thompson is a Program Officer at the Southwest Initiative Foundation where he leads the Microloan and Entrepreneurship Programs. He also serves as business coach and mentor to small businesses by offering one-on-one technical assistance to loan clients.
photo credit: TheTruthAbout…
