Small firms ‘must take measures to thwart fraudsters’
The majority of small firms in Ireland have been targeted in a multi-million-euro scheme of business scams and fraud, according to a business organisation.
The Irish Small and Medium Enterprises Association (IS-ME) said the attempted scams, which 64 per cent of small businesses have experienced in the last 12 months, came in the form of dubious overseas offers, fake business directories, phishing and false invoices.
It also said that debt collection companies are also being duped into acting for fraudsters.
“These scams are particularly prevalent during the summer holidays as fraudsters are aware that, in many cases, senior management may be out of the office, leaving more junior staff to take decisions,” said ISME chief executive Mark Fielding.
“This can result in a staff member signing for goods or services in error, resulting in the company being tied to a spurious contract. Most of these scams concern invoices for subscriptions for, in some cases, non-existent online business directories.”
Fielding added that the sophisticated level in which the fraudsters operate and the continued rise in such scams have the potential to cost companies thousands of euro, as well as the time lost attempting to rectify the problem.
He strongly advised companies to be extremely vigilant, adding that the motto ‘when in doubt, don’t pay out’ should be applied, particularly for all suspicious invoices.
To enable companies to deal with fake invoices and requests, ISME listed a number of actions to which companies should adhere to avoid being duped. These include ensuring all invoices are checked carefully, especially those coming from overseas or unfamiliar suppliers.
“If in doubt about the validity of an invoice, call the company for further details. All reputable firms will be happy to share this information,” ISME added.
The association also warned its members to check all documents they receive for small print and read it carefully, and if possible to “nominate one or two senior staff who must sign all documentation being sent to third parties in relation to directories and the like”.
Another tip is to ensure that all staff understand procedures for signing off on any information being given to third parties.
“Never respond to an internet request for information from a bank – ‘delete’ is the only action that should be taken.”
ISME urged companies that have no appropriate e-mail or internet policy to contact the organisation for help. The association also has a helpline at 01 662 2755 with information on how to deal with harassment by bogus ‘legal’ demands for payment for directory entries.
