SCAMS - TOP TIPS FOR BUSINESSES
Please follow our guide below to avoid scams and help protect your business.
Directory Entries
Watch out for official looking 'invoices' from trade directories and databases requesting your fax, internet and email details. These may appear to be simple requests for information, but beware of small print commitments to pay hundreds of pounds for a directory entry.
Check all small print carefully, and warn your accounts staff to be on the lookout for unsolicited invoices, particularly when temporary staff are on duty.
Grant Consultants
Some firms offer to check your eligibility for EU and other subsidies. Up-front payment is often required together with a percentage of any eventual grant.
Don't be taken in by smart sales talk. Ask for full information in writing. Make enquiries with Business Link to see if you can get this sort of information for free, or visit the grant search website.
Business Rates Consultants
Some 'consultants' may make misleading promises about rebates available through the Business Rates appeals process, charging you high rates of commission in the process.
Check with your Council's Business Rates Section about making an appeal - this information is free. Milton Keynes Companies should contact 01908 253794 or visit the Milton Keynes Council Business Rates page.
Charity Magazines and Publications
Many genuine charities produce publications to raise funds and invite businesses to advertise in them for a fee. Watch out, though, for bogus companies who lie about their links to charities in order to get money from you.
Check with the organisation a company claims to represent to make sure it is genuine. Get their address and registered charity number, and check with the Charity Commission.
Advertising Companies
Some unscrupulous advertising companies may get money from you up front for advertising in various publications which never seem to appear in print.
Get a proof of the advert and a copy of previous issues of the publication. Obtain full written details about publication dates and distribution, and try not to pay in advance - if the company won't budge on this, think twice before you sign.
Buying Equipment
Watch out for small print in contracts relating to the supply of equipment such as photocopiers, shop fittings, security systems and fire extinguishers. Some contracts may be lease agreements with high penalties for withdrawal, or might tie you in to long term maintenance deals at high annual costs.
Always check paperwork, including small print, very carefully. If you are unsure about any contract term or its implications, ask your solicitor or accountant.
Begging Letters/E-mails
Look out for begging letters coming from some African countries - mainly Nigeria. These letters often spin a tale of having millions of pounds of government money available which needs to be diverted to UK business accounts - this is untrue!
Don't be taken in by these sob stories, and never provide information about your bank account in these sorts of circumstances.
Stationery Supplies and Office Equipment
Don't get caught by unsolicited phone calls from firms selling office stationery supplies. A favourite ploy is to trick staff into thinking that an order has been placed before, and that the call is a routine re-order. The goods are then often supplied in much greater quantity or at much higher prices than agreed on the phone.
Alert your staff to this sort of con. Try to make sure that there is a clear system in place for this type of unsolicited call.
Data Protection Act Business Registration
Watch out for letters from companies, implying they are linked to the Information Commissioner, and asking for fees in the region of £100 to register as a data user. They are not linked to any official agency.
You may be required to register, but this will only cost you £35. If you want to know about your obligations under the Data Protection Act 1998, check with the Information Commissioner in Wilmslow, Cheshire tel: 01625 545745
And Finally
- Be sceptical of any claims which sound too good to be true.
- If advice is offered for a fee, find out whether the same advice is free elsewhere.
- If you employ staff, alert them to potential problems.
- For more information on a variety of scams, you may wish to visit the Governments Consumer Rights website.
- If you come across any other scam not mentioned above, please don't hesitate to contact your local Trading Standards Department to ensure that they are aware of the problem.