Business Services Scams: Always Do Your Cost-Benefit Checks With Business Services

As a business owner, you ought to always scrutinize the services to which you subscribe. Some services have a deceptive side to them. If you didn’t sign up for the service, don’t pay them. Do not cave in to persistent demands or threats.

Such an important thing as the cost and period of service ought to be placed at the most visible place. Service providers who hide these details or make them hard to find are most likely scammers.

Common Signs of Business Services Scams

• Requests to give payment details over the phone like your credit card number and bank account.
• Being asked to pay new fees that are different from the ones initially stated.
• Threatening language or intimidation.
• Demanding immediate payment by creating a sense of urgency or danger.

Types of Business Registration Scams

Business Name Filing and Renewal Scam

The Australian Securities Investments Commission (ASIC), warns businesses registered with them against an email scam that solicits funds. The email claims the funds are for “registry fees” then asks for personal details to renew the business name. It also provides a link to fill in details afresh and then proceed to pay.

Here is a sample image from ASIC

Fake Invoices

Another way small businesses get ripped off by their service providers is by fake, made-up, or inflated invoices. It should be your business practice to examine what you are being charged for before making the payment. Some scammers will sign your business up for a service, especially the digital services, then demand payment when they send their invoice. They hope that the person who pays your invoices assumes it’s for something that the business uses.

It is also this way that overcharged invoices work. Sometimes you may get an overcharge for a service your business uses.

The simple rule here is this: if you did not subscribe, DON’T pay.

Unordered Office Supplies

Businesses may get calls from suppliers to confirm their address or get a free sample. They are often misled into believing that it is simply confirming their address or a request to receive a free sample. But when they do, the product is delivered and then payment is demanded.

Business promotion Scams

Not all internet promotion services are genuine and beneficial to your business. The common way these scams work is for the scammer to quote low initial costs for the service. Then later demand they high amounts claiming the low amounts don’t apply in your situation for one reason or the other.

Directory Listing Scams

Business Directories are supposed to make your business easier to contact for everyone who needs your service. What happens when the directory adds little or no value to your business?

The EU Business Directory Scam is such a directory. Businesses are required to pay EUR 995 per year for a listing that adds no real gains to a business. Moreover, the details of this payment are conveniently buried inside a long, boring paragraph at the end of the email.  Here is the email as reported

How Can You Protect Your Business from Bogus Services?

• Don’t rush into any agreement, especially not over the phone.
• Double-check your invoices to make sure the figures are in order.
• Check out a business online before getting into any agreement. Look at their WHOIS data to determine the true contact information.
• Beware of emails that do not address you by name but want to sell you a service. And don’t follow their links to subscribe.
• Report to your local anti-fraud authorities or - FTC in the USA and Action Fraud in the UK.