Business

Scams aimed at business

If you are offered something which appears to be too good to be true it probably is.

These scams are cleverly designed to make you think your business needs to do something to avoid being illegal or will benefit from something when it will actually cost you money. There are many types of scams, here we list a few examples.

Publishing and marketing scams

Many publishing companies are genuine but there are an increasing number of rogues who target businesses using high-pressure selling techniques to persuade them to advertise in publications such as wall planners, diaries and booklets produced for schools. Either the products do not exist, or you do not get the publicity and coverage promised.

Follow these tips to avoid being caught out:

• Contracts can be made verbally, so stop and think before agreeing to anything - especially if you get an unsolicited telephone call
• Let ALL your staff know what to do if they get an unsolicited sales call
• Find out who has contacted you - name, address and full contact information - confirm this independently if you might take up the offer
• Read the small print carefully
• Check exactly what are you actually getting for your money
• If a proportion of the cost is being donated to charity - confirm the amount with the charity's treasurer

Bogus invoices

These may be sent to you for printer toner cartridges, stationery and adverts in fictitious publications, which some companies accounts staff pay without question particularly if amounts are fairly small.

"Official looking" invoices from trade directories and toner cartridges asking for contact details should be avoided, as there may be small print commitments to pay hundreds of pounds for something worthless.

Once a victim has received an invoice from a rogue, the great likelihood is that the business will be targeted again and threats of court action may be made.

Domain names

Businesses can be cold-called by domain registration agents who by saying a third party is also interested in registering a similar domain name to one you may already have and that there is only a very short time for you to register it before it is sold.

Also remember to renew your own domain name otherwise it may be sold on and you may have to pay a lot more to get it back.

Data protection registration

Businesses may receive letters from bogus but official sounding agencies asking them to pay large fees to register under the Data Protection Act.

The information Commissioner processes registrations for large businesses for just £35. Small firms may be exempt. See the Associated link - Information Commissioner - for the latest list of known bogus registration agents.

Training courses

Bogus demands are also sometimes received for health and safety training and registration. If you employ staff and occupy a factory you would register with the Health and Safety Executive, otherwise with the local authority.

Registrations are free. See the Associated link - Health and safety registration - for more information.

Business rates

Small firms can be targeted by unscrupulous "rate-reduction" firms. They charge large fees and lead firms to believe they will get their business rates reduced on appeal. In practice, fees may outweigh any benefit or rates may also be increased.

White line painting

Rogue traders may target sports clubs, halls and schools touting for work painting white lines for outdoor sports courts and parking bays.

Scammers often approach the caretaker and cleaners and persuade them to have work carried out for what is estimated as a small sum but which is grossly inflated when the final bill is submitted.

Make sure your facilities staff are aware of your purchasing rules and do not enter into oral contracts.

Unsolicited telephone calls

The Telephone Preference Service operate for businesses the Corporate Telephone Preference Service (CTPS) which is the central opt out register whereby corporate subscribers can register their wish not to receive unsolicited sales and marketing telephone calls to either all their organisation's telephone numbers, or to certain numbers.

It is a legal requirement that firms do not make such calls to numbers registered on the CTPS. See the Associated link - Corporate Telephone Preference Service - for more information.

Contact Details

Contact name

Trading Standards

Telephone

020 8407 1311

Fax

020 8760 5786

Minicom

020 8760 5797

Email

trading.standards@croydon.gov.uk

Address

One Stop
Taberner House
Park Lane
Croydon CR9 3BT