Fair Trading

Business Scams

The growth of technology has brought new opportunities to many businesses. It has changed the way in which companies do business and has opened up new information sources.

Unfortunately, it has also created new opportunities for conmen and fraudsters to take advantage of businesses. You need to be able to recognise the threats and understand what actions you should take to avoid them.
A typical scam involves either you or your employees giving away important identity information that can allow the fraudsters to use your business' credit for their own purposes.

The consequences of frauds and scams are often much more serious than the financial loss. It takes time and effort to recover from a scam, and your business' credit rating, credibility and trustworthiness may be affected for a long time.

Trading Standards regularly receive enquiries/complaints about scams being perpetrated on local businesses. The fraudsters make so much money from their schemes that it is virtually impossible to eradicate their activities completely despite the best efforts of Trading Standards and other enforcement agencies. The perpetrators often originate from abroad or operate from “accommodation”addresses.

Examples of Common Scams

• Data Protection Schemes – you receive an official looking letter purporting to be from the Data Protection Agency requesting a fee for registering your business.
• Health & Safety Registration – a mailshot stating that you must pay a fee to register with the HSE.
• Directory Entry/Advertising Scams – fax or telephone requests wanting businesses to agree to advertise their goods/services in a directory etc.
• Phishing – emails that attempt to obtain bank details by purporting to be account security checks.
• “419” Advance Fee Fraud – commonly known as the Nigerian scam - mailshots or emails trying to persuade businesses to part with their banking details in order to facilitate the transfer of funds out of another country for a percentage “cut”.
• Telesales Scams – unsolicited fax or telephone requests for ‘repeat orders’ usually of office stationery/consumables.

How Can I Avoid Them?

The best form of defence is a high level of awareness and scepticism and never agreeing to give advance payments or divulge your bank details unless you know who you are dealing with. I addition, always check before you proceed with any transaction that you are unsure of and, if you conduct your business online make sure your computers are suitably equipped with up-to-date protection software.

If in any doubt always check with Trading Standards on 01738-476476 or email amnicoll@pkc.gov.uk alternatively further information on business scams can be found on www.businesslink.gov.uk