Protect Your Business from Supply Scams

Office supply fraud costs businesses billions of dollars each

According to the Federal Trade Commission, scammers usually trick businesses into remitting payment for phony invoices, paying for supplies they never ordered, or buying goods and services at inflated prices ? sometimes more than 10 times what the products are worth. Usually by the time you realize that you've been duped, it's too late. The scam artist either disappears or has such a clever scheme that you don't have any legal recourse.

Fortunately you can take steps to protect yourself from scam artists. First, ensure that everyone in your company understands how scam artists work and what they should do if they suspect fraud:

• Don't give out information about office equipment, particularly serial numbers, over the phone.

• Don?t return the goods or remit payment for unsolicited merchandise. According to the FTC, you?re not obligated to return products that were shipped to you without your authorization.

• Report instances of fraud to your state's Better Business Bureau and your industry associations.

Then ensure the proper controls are in place for purchasing supplies and other items:

• Limit the number of employees who can order supplies and services.

• Buy from familiar suppliers. Check references of any new suppliers.

• Use numbered purchase orders and require employees to get an authorized signature on every P.O. Encourage suppliers to reference your purchase order number on all invoices.

• Don't blindly pay bills that don?t have corresponding documentation, such as purchase orders or referenced invoices, and call a business if you have any questions about an invoice.