To avoid becoming the next sucker, sharpen your fraud-detection skills by looking at some common offline scams aimed at small businesses and their employees.
Phony Coupon Books
Many small businesses have successfully increased sales by advertising in local or national coupon books, such as the Entertainment Coupon Book.
But the value of such advertising depends almost entirely on the book’s actual publication and distribution. Scammers routinely solicit small businesses to buy advertising in phony coupon books that they never print. You can also get ripped off if a promoter distributes a legit coupon book outside the region where you do business.
To save yourself from paying for worthless advertising, buy into a coupon book only when you trust the publisher after a long acquaintance or checking solid referrals – and even then only after you understand the contract in detail.
Utility Scams
Crooks posing as representatives for the electric company and other utilities plague small businesses. A common tactic: They threaten to turn off the power immediately if a past due bill isn’t paid, usually requiring that a prepaid debit card be used to settle up.
When in doubt, call the utility company directly to verify the bill. Use the number listed on its public website rather than one given to you over the phone or in a suspicious notice. Demands to pay via prepaid debit card or wire transfer should set off your fraud alarm bells. Ensure that your debt is real before you pay up – if it turns out to be a con, recouping your money will be almost impossible because you’re basically handing cash to a stranger.
Charging for Free “Work Rules” Posters
ConsumerAffairs breaks down this scam– A business receives an official-looking letter that says it must pay for and display posters detailing state and local labor laws, such as occupational safety rules, minimum-wage requirements, and so forth. The underlying threat is that by not doing so you’ll risk noncompliance with state and local business regulations, which could mean expensive fines or worse.
The posters are, in fact, real – but they do not cost hundreds of dollars. Treat such letters with skepticism, and check with your state and local agencies to find out what’s required and what’s available as a free resource.
The bottom line: Don’t pay a bill if you don’t know exactly what it’s for. Time may be money, sure, but your hard-earned cash really is money. Don’t send it to a crook.
