SUMMER 2023 DODGE THE FRAUDSTERS Arm yourself with the knowledge you need to protect your business from scammers There is a wide range of scams that use deliberately misleading sales techniques to persuade businesses to part with their money. If scammed businesses refuse to pay, scammers often try to extort payment by instructing debt collectors, seizing goods belonging to businesses or threatening court action. Scammers operate in and out of the UK, which makes tracking them down and bringing enforcement action very challenging. So it is best for businesses to make themselves aware of the scams that are out there and try to avoid falling victim to them in the first place. Common scams include: Advance-fee fraud: The scammer might pose as someone official and promise the victim a very large financial return for helping them out. No money is requested at first, but then small charges start and payments gradually escalate. Bogus invoice scam: Without any prior contact, a business is sent a bogus invoice for fictitious services, such as adverts in fake publications or goods that do not exist. Business directories: This scam relates to business listings in published directories, electronic directories or on websites, often offering a free listing but the small print can commit you to pay hundreds of pounds for an entry. The listing is generally worthless. Scammers operate in and out of the UK, which makes tracking them down and bringing enforcement action very challenging Investment scams: Individuals or businesses are persuaded to buy into highrisk investments with the promise of exceptional returns. Sometimes the investments are real, but the true risks are not communicated properly; in other cases, the investment simply does not exist. Leasing scams: These often involve a visit from a sales agent, and the target business is persuaded to sign a contract for goods and services, involving a lease on expensive equipment. Prices appear very attractive, but the victim often ends up tied into long-term agreements and the equipment may be poor value for money. Service and maintenance agreements may also increase in price arbitrarily, or cease when the supplier stops trading and moves onto another scam. Support publishing and advertising: Advertising space is offered in a publication associated with a worthy cause. Sometimes, the publishers make false claims about their connection with charities or the local police. If the publication is printed at all, it will only have a small print run or very limited distribution, and there is no guarantee the audience will be relevant or local to the advertiser. If a charity donation is made, it is usually a tiny proportion of the overall revenue. Unsolicited goods: These are sent to businesses and, after waiting long enough for the business to use or dispose of the goods, the scammers send an invoice. The goods are often of poor quality and their price well above market value. Usually, the scam involves business consumables such as stationery, till rolls, and cleaning products that are cheap for the scammer to obtain. Businesses Against Scams, set up by the National Trading Standards Scams Team, has resources that companies can use to educate their employees about common frauds. In addition, there is a section on how to spot scams and avoid getting caught out by them on the Business Companion website. Credit: Kuldeep Mann, Trading Standards officer Image: Shutterstock / Bobnevv For further information, please contact your local Trading Standards Service For up-to-date news stories and information, follow us on Anonymous Hotline 0300 303 2636 Is your sector being undermined by unscrupulous traders operating outside the law? Report them via Trading Standards Anonymous Hotline or online and help level the playing field for honest businesses.