Fake invoices and other scams aimed at small businesses

A business that pays its bills promptly is exactly what these schemes count on. The FTC's guide to small business scams describes the common ones.

The directory listing scam

A caller says they are "verifying" or "confirming" the company's listing in a business directory. There is no existing listing, and maybe no real directory. Later an invoice arrives for hundreds of dollars, and if the business complains, the caller may play back a recording of an employee saying yes. Some threaten to hurt the company's credit or send the bill to a debt collector.

The supply swindle

Supplies show up that nobody ordered, or a caller "confirms" an order that never existed. Someone assumes a colleague approved it and pays.

The renewal that is not

An urgent notice says the company's web address or trademark is about to lapse unless it pays now. The notice is not from whoever actually handles the registration. The FTC's guide points to the U.S. Patent and Trademark Office's own advice on telling a real trademark letter from a fake one.

The check that signs you up

Something arrives that looks like a refund or rebate check. The fine print says cashing it agrees to a monthly charge.

How to protect the business

From the FTC:

• Train everyone who answers the phone, not only the front desk.
• Name a small group with authority to approve purchases and pay bills, and send every sales inquiry to them.
• Keep a list of the companies you really use for directories, supplies and other recurring costs.
• Develop a "show me" attitude toward unexpected invoices from companies you do not know, even when the invoice names one of your employees.
• Do not pay for anything you are not sure you ordered.

If it happened to you

Report it at ReportFraud.ftc.gov. The FTC notes that many of these operators drop the matter, and some refund the money, once they know the business has complained. A real supplier with a real invoice can show you the order.

Paying genuine suppliers early is what builds a business credit file. Paying fake ones builds nothing.