Apr 11, 2013 4:57 PM by MELISSA CANONE
Consumers aren't the only victims of fraud. Every year, thousands of small businesses are targets of fraudulent or deceptive sales practices. The Better Business Bureau encourages you to protect your business from scams by learning what to look out for. Often, it's only a matter of identifying suspicious situations and asking the right questions.
The Better Business Bureau and the Federal Trade Commission's Bureau of Consumer Protection have put together a list of some of the top business scam situations:
Business opportunities. Many small-business owners are approached to invest in other business opportunities. Promoters may even claim that the venture will increase customer traffic flow into the current business or that little effort is required to collect high profits. Before jumping into a business collaboration, make sure you know the value of the product and its true costs. Always make sure to check out the business at bbb.org.
Charity pitches. Most businesses are regularly asked to donate funds to needy causes, from requests to support the neighborhood's latest fundraising project to appeals for sizable charitable contributions. Although many requests are legitimate, every year small-business people become victims of fraudulent or deceptive charitable solicitation schemes. Make sure to always check out the charity at give.org.
Coupon books. Small-business operators are often approached to participate in coupon book promotions. The business offers discounts or extras in the coupon books that are sold by promoters to consumers. Problems occur if the promoters change the terms of the coupons to make them more attractive to buyers, when the books are oversold or when books are primarily distributed outside the firm's normal business area. Make sure the coupon book is being promoted by someone you trust and that the terms and conditions are clearly spelled out.
Overpayment scams. Your firm usually receives an unexpected telephone contact first. Sometimes an advance call is made to find out what brand of supplies or equipment the business uses. On the return call, the caller claims to represent a reputable company with which the firm often does business. The caller may state that surplus merchandise is available at a reduced price due to a cancellation or over-order by another purchaser. Don't be fooled.
The BBB of Acadiana works for a trustworthy marketplace by maintaining standards for truthful advertising, investigating and exposing fraud against consumers and businesses. Please contact the BBB at www.acadiana.bbb.org or (337) 981-3497 24 hours a day for information on businesses throughout North America.
The BBB of Acadiana services the parishes of Acadia, Evangeline, Iberia, Lafayette, St. Martin, St. Landry and Vermilion.