In the best of times there are nefarious creatures that will take a shot at you. Scam artists of every stripe can utilize any one of the multiple fraudulent schemes to steal money from your business. Some of the schemes are relatively new and based in the advanced technology while others have been utilized for decades if not centuries. If you think some of the more traditional fraud scams aren’t workable in this day and age, then just think Bernard Madoff and the notorious Ponzi Scheme.
Unfortunately, the Ponzi schemes does not just stop with Madoff. As I write this there are dozens of persons have been recently sentenced for Ponzi schemes of their own. Granted, these fraudsters weren’t nearly as ambitious of Madoff. They only took off individuals and businesses for $100 Million here, $20 Million there, $72 Million over there. Small potatoes. Yeah, sure.
The fact is, the lousy economy brings out the worst in people, as well as the best. While some folks are charitable, others prey on the desperation and misfortunes of others. They take advantage of businesses who are experiencing declines and are hoping to shore themselves up during the recession. Scam artists engage businesses as accounts, run up a bill and leave the company hanging for the goods and services.
Even the giant corporations fall victim to scams. Witness the article on CNN about a New York City woman who has allegedly been duping the monster consumer product corporations for fifteen years or more. She has repotedly taken off such corporate icons as Proctor and Gamble, Unilever, and Hersey for many millions of dollaars. It was a simple enough scam, but enough to provide her with a rich lifestyle, status in her community, and houses in cities around the world.
If it happens to the corporate giants, who have IT Security and every other kind of security. They have ex-federal agents in their employ. They monitor everything, scanning all the time for fraud and theft. But still they are also victims to criminal fraud.
When engage a company, or an individual, it is up to you to perform the necessary background checks. It is essential, in this economy, especially to business research and business credit reports on any company that is unfamiliar to you. In this recession, even if they are familiar, it may pay to check them out as well. If not, you could suffer financial loss, public embarrassment, and that awful feeling you have just been left holding the bag.
Check them out before you do business.
