Be alert this financial year

Small businesses are being warned to be wary of scams

BUSINESSES, in particular small businesses, are being urged to scam-proof their operations this financial year, making themselves more alert and wary of common scams. Fair trading minister, Margaret Keech, says the start of the new financial year is the perfect time for businesspeople to take steps to scam-proof their businesses.

"At this time of the business year it is important for businesses to have checks and balances in place to avoid falling victim to scams," says Ms Keech.

"Often small businesses will be targeted because they are more likely to be overworked and understaffed around the end of one financial year and the start of the new year. "Businesses without proper processes in place to protect them from these scams may lose thousands of dollars before they realise they have been stung." Ms Keech listed a number of common scams presently in operation.

In one, scammers use hard-sell telemarketing techniques to pressure businesses into payment for services that were never received or that don't exist, such as advertising in bogus directories or publications. Another popular scamming method is sending businesses false invoices requesting payment, knowing those businesses are too busy to scrutinise their invoices or payment notices.

Accommodation providers are also apparently being targeted by an overseas-based scam using money orders for a greater amount than was required. A request of a refund of the overpayment is made by the scammers before the business finds the money order to be false and therefore cannot be cleared.

"I am concerned Queensland businesses may not be aware of these scams and end up paying for products and services that have never existed and as a result lose significant amounts of money, says Ms Keech" She says scammers often strike at the start of the financial year as many businesses are particularly busy at this time of year. "I cannot stress enough how important it is to maintain a vigil on the account-keeping records and to be suspicious of emails and phone calls that demand payment or bank details for a product or service you have never requested," she says. If in any doubt you should never give out credit card or bank details, whether on the phone, by email, fax or post.

"Once scammers get these details it is possible for them to clean out your accounts. And if the scam is based overseas, there is little chance Australian law will be able to recover any funds lost," says Ms Keech.