What to Do When You’ve Been Scammed by a Supplier
by Leeia Ladipoh on January 28th, 2008
While there are many legitimate businesses out there looking to build an honest relationship with your company, there are, unfortunately, many others out there with less than honest intensions.
If you have been the victim of one of these scammers, you may feel there is nothing you can do. You may also think that the person who took advantage of you – and took your money – is long gone. But the truth is that you can take a stand against what happened, and possibly help the authorities keep it from happening to someone else.
How to Find Out About the Company That Scammed You
Many scam companies are hard to trace. They operate in one location for a while, run a number of scams, and then take off. But in order to get money out of businesses, they often leave a paper trail of some sort.
Look for anything that the scammers sent you. Were you sent a false invoice? If they called your office, get a copy of your phone records to see where the call originated. If they have taken your money, did you pay by check or credit card? If you paid by check, look up the person, or company name that the check was made out to.
If you paid by credit card, look on your statement to see where the money went. You may also be able to call your credit card company for help in finding more information about the destination of your payment.
Where to Report the Company
Unless you tell the authorities what happened, they can’t help you. Once you realize you have been scammed, call your local law enforcement agencies, your State Attorney General, National Consumers League (www.fraud.org ) and the Better Business Bureau (www.bbb.org ). It is likely that these organizations will start an investigation into the situation.
The more information you can give them about your encounter(s) with the scammers, the better a lead they will get on the case. Additionally, if you are not the first to report this scam, they may be able to give you more information about those behind it.
What Recourse Do You Have To Recover Your Money?
This will differ by case. If you paid the scammers by credit card, you should immediately call your credit card company and tell them about the scam. Many credit card companies will reverse the charge or help you reclaim your money.
If you wrote a check, you should tell your bank about the scam and ask if there is any recourse they can help you in taking against the perpetrator. Finally, keep up with the scam investigation. Once the authorities catch the scammers, you may be able to get your money back in an ensuing lawsuit.
The number of reported business scams has increased in recent years, and trends suggest that the numbers will continue to rise. The best defense is to be on the offense, and not trust any business deals that seem too good to be true. Thoroughly research your suppliers before working with them – you’ll save money and your sanity.