March 15, 2004: Phony Invoice Scams

BBB WARNS OF FAKE INVOICE SCAM

The Better Business Bureau of Newfoundland & Labrador has received several calls in recent days from local businesses throughout the province who have been the target of attempted scams.

Whether it’s a non existent directory listing, light bulbs or toner it’s still a hassle when you get an invoice for goods you do not want and did not order.   Typically, the scammers call first to “verify” certain contact information and/or equipment details.  Then a week or so later product and/or an invoice turns up for something you have not ordered.

The best protection against phony invoices is knowledge and vigilance. It is recommended that businesses:

• Alert their accounting department or bill-payers to be on the lookout for disguised solicitations and to carefully review invoices from companies and organizations with which they do not normally do business.

• Establish effective internal controls for the payment of invoices.

• Verify all invoices with the person who gave written or verbal authorization.

• Reply to unsolicited invoices by advising in writing that: the invoice will not be processed and any goods shipped unsolicited will be held for a specified period for pickup at the sender’s expense.

The fact that con artists mail thousands of phony invoices, and solicitations disguised as invoices, on a regular basis, points to an annual loss to businesses that may run into billions of dollars. Always check any unknown company or unfamiliar invoice with the Better Business Bureau before making a purchase or payment.

Should you receive such an invoice the BBB suggests you not process payment without first checking it out.  Contact the BBB for a Reliability Report on the company at (709) 364-2222, or outside St. John’s toll free at 1-877-663-2363. Reports are also available though the Bureaus website visit www.bbbnl.org and select the Company Report link.