An estimated one in every three scams in the United States is aimed toward the small business owner. Among the variety of scams used are the directory scam, the vendor scam, and of course the "ever popular" Nigerian scam.

The Directory Scam

Description:

    A con artist approaches a small business to ask if they would like to be included in a physical or on-line "business directory" which is being put together. The scam artist might call it a directory of "recommended" businesses. The business owner pays a fee to be included in the directory, and then never sees it or the salesperson again.

Preventative Measures:

1. Ask to see the most recent copy of the directory or for the
    directory's URL.

2. Ask to be referred to another business that has been included in
    past directories.

The Vendor Scam

Description:

    This scam involves a phony office supply company that tries to sell office supplies at grossly inflated prices. These phony companies have generic names like "ACME Office Supplies" or "Office Supply Ware-
house." Often they'll contact you by e-mail, or even show up uninvited at your business. Even worse they may just send your company an invoice for items you never ordered, and never received.

Preventative Measures:

1. Make sure that all of your employees know which vendor supplies
    your office equipment.

2. Be aware of the prices you usually pay for supplies.

3. Follow up on any and all invoices that appear to be suspicious.

The Nigerian Scam:

Description:

    A con artist, posing as an official representative of Nigeria or some other foreign country, is looking to launder millions of dollars into the United States. If a business owner passes along his bank account and routing numbers, he or she will be offered a percentage of the cash smuggled into the country. Funds will likely exit your bank account rather than enter it.

Preventative Measures:

1. Don't give your bank account information to anyone but a
    reputable business partner.

2. Most importantly, use common sense when managing your
    business.

    (Note: Print this page if you wish to save it for your records.)

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