Like consumers, businesses are also vulnerable to scams and frauds and should be wary of illegal schemes that try to steal money and/or confidential information, as well as shady sales tactics from other businesses.
On March 12, 2019 the Better Business Bureau (BBB) serving Mainland BC received a Scam Tracker report alerting them to a firm called WTP Service. The firm claims to have a Surrey, B.C. address, and offers a directory for registered trademarks. This prompted an investigation into the services being offered by the business.
The report BBB received indicated that a small business recently commenced the process of registering their trademark. Shortly after submitting the trademark to the Canadian Intellectual Property Office (CIPO), the business received an invoice from WTP Service requesting payment in 10 days by cheque for Cdn$1,840.
This trademark database offer is a fake invoice scam, and may go undetected by those receiving it because it is related to a unique area of business. The trademark directory being offered by WTP Service is not a requirement to have a trademark registered.
An investigation by BBB revealed that the Surrey address listed on the invoice is a mail-drop, and not the actual location for the business. The business website contains grammar and punctuation errors and lists an address in Poland, and the terms and conditions provided are unclear. There is no telephone number or live chat feature on the website to facilitate direct and immediate contact with a representative for the business.
When BBB contacted CIPO for information, they were informed that CIPO had been made aware of several incidents of what appears to be fee solicitations from private sector companies with respect to Canadian intellectual property applications. These invoices are unrelated to the processing of applications by CIPO. Businesses are urged to disregard any invoices concerning an application filed with CIPO if they are coming from another organization.
The offer sent by WTP Service is also quite similar to the directory listing and invoice scams that have been ongoing for some time. Both schemes use letters that appear to be invoices, and are ultimately soliciting payment from the recipient businesses. Last year alone, 979 complaints were filed against businesses specializing in “directory advertising”. In many instances the fine print is also quite difficult to understand, and many business owners fall victim as a result.
The directory listing scam and invoice scams target business owners and their employees. The scammers attempt to fool employees into paying for products that the business didn’t order and that may not even exist. Fake invoices can be for any product or service; the most common are directory listings (which may be referred to as a “renewal”), office supplies, and website or domain hosting services.
Many versions of the scams have been reported, but the general con remains the same. The business receives a letter or email with an official-looking invoice. The person in charge of processing invoices at the business isn’t aware of the scam, so the bill is handled normally and paid without further investigation.
There are steps that businesses can take to avoid falling victim to these scams. Train your staff, to make sure that the people processing invoices or answering phone calls are aware of this con. Scammers are great at mimicking official seals, fonts, and other details, such as stamping invoices with the words “past due”. Always encourage your staff to ask questions and keep personal information private until the legitimacy of a caller can be verified.
You should also create a process for inspecting invoices. Always check that goods or services were both ordered and delivered before paying an invoice. Designate a small group of employees with authority to approve purchases, receive shipments, and pay the bills.
Make sure you (and your staff) ask questions if something seems shady. Reputable companies should be able to answer any questions you have, verify their terms and conditions, and be clear about any agreements you’re supposed to have made. Research the company to make sure it’s reputable. Are you able to find them online? Do they have a marketplace history? Do they have a physical location you can visit? Make sure you check www.bbb.org for their contact information, complaint history, and customer reviews.
If your business has received any scam letters and/or invoices, report it to BBB using Scam Tracker (https://www.bbb.org/scamtracker/us/reportscam).
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