A Eurobodalla business is warning others to beware of a scam targeting small enterprises in the shire.
A spokesperson contacted the Bay Post/Moruya Examiner after receiving calls from an interstate organisation claiming to publish an emergency services magazine.
She said the caller approached the business to take out advertising in the magazine, becoming increasingly persistent and demanding in follow-up calls. Finally the business was slugged with a hefty bill for an ad it had never agreed to.
It was essentially a contract locking us into payment of almost $800.
- Businesswoman
“The phone calls were to solicit almost $800 in payment for advertising in their magazine,” the spokesperson said.
“(The caller) claimed the advertisement had already gone to print with our business logo and business services details.”
She said the business had never given permission for the magazine to publish the advertisement and had not seen a proof of the ad until after the magazine claimed to have gone to print.
“In the details of the email, it said they required payment in 14 days, so it was essentially a contract locking us into payment of almost $800,” the spokesperson said.
After requesting a copy of the ad, the business received an email a few days later containing what appeared to be a legitimate ad proof; however, alarm bells were ringing.
“My doubts increased with the persistent phone calls, emails and pressure for payment,” the spokesperson said.
“This prompted an internet search of their activities. The result identified many comments posted on several review forums making the accusation their business activities were a 'scam'.”
When the business confronted the caller with their suspicions, she said the conversation turned nasty.
“The tone of voice changed,” she said.
“I lodged an online report to the ACCC (Australian Competition and Consumer Commission) on their scammers webpage.
“I feel annoyed by the time and energy wasted engaging with this person.
“We are trusting and honest and these kinds of people need to be 'stamped out'.
The business warned others to be wary.
“Awareness should be raised to ensure this person wastes no more time of small businesses,” she said.
“It should serve as a warning not agree or pay for any advertising unless initiated by individuals or business themselves.”
The Bay Post/Moruya Examiner has approached the magazine for comment.
The ACCC warns businesses not to “let scammers slip under your radar with invoices for unwanted services”.
According to the ACCC, the warning signs of this type of scam are:
- You receive a call out of the blue from someone claiming to represent a business directory or other publication you’ve never heard of. The caller offers to place an advertisement for your business in the publication for a fee.
- The caller may refer to a publication with a philanthropic purpose in the hopes of appealing to your charitable side. Alternatively, they may claim to have affiliation with government or a well-known business. They may even claim to represent a business through which you currently advertise.
- If you accept the offer, you find that when the ad is published, the actual distribution number and geographic reach is significantly less than what you signed up for.
- If you decline the offer, you subsequently receive an invoice in the mail along with a copy of the ad.
- If you do not pay, you receive follow-up calls or official-looking letters demanding payment.
Protect yourself:
- Beware of offers from out of the blue that you didn’t ask for – scammers almost always approach businesses in this manner.
- Don’t agree to offers or deals right away – always ask for an offer in writing and seek independent advice if the deal involves money, time or a long-term commitment.
- Always check offers are legitimate and offer a quality product or service before you sign up. Search the wording of the offer or the company name on the web as many scams can be identified this way.
- If you receive an invoice that you know nothing about, don’t pay until you are sure it’s the real deal. Many small business scams involve fake invoices for goods or services that haven’t been requested or provided.
- Never give or clarify any information about your business unless you trust the other party and know what the information will be used for.
- Effective management procedures can go a long way towards preventing scams – have a clearly defined process for verifying and paying accounts and invoices.
Scams should be reported to the ACCC via the Scamwatch website.
