ALABAMA A&M and AUBURN UNIVERSITIES

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contact Donna Reynolds, Extension Assistant Editor

PROTECT YOUR BUSINESS AGAINST SCHEMES, SCAMS AND FRAUD

AUBURN, JAN. 29---Every year businesses lose millions of dollars to con games and fast-talking promoters through a variety of schemes.

Using common sense in all your business dealings can help protect you from schemers, says Georgia Aycock, Extension resource management specialist with the Alabama Cooperative Extension System. Not all strange sales or promotions represent schemes against businesses, but it's important to ask questions of unfamiliar service or sales personnel, telephone promoters or charity appeals.

A business that gathers all the facts should be able to separate the scheme from the honest transaction. If you are in doubt about a business proposition, the Better Business Bureau provides the following suggestions:

  • Refuse to make commitments with unknown persons, especially over the telephone or internet. Ask that all advertising propositions, charitable appeals, requests for biographical information and sales pitches of any type be made in writing.
  • When dealing with publications, insist on verifiable circulation figures, details of publication, dates, names ofpublishers, number of paid subscribers, and sample copies.
  • Institute strict controls in the accounting department. The handling of invoices, for example, should be centralized and authorization should be closely checked.
  • Keep a list of regularly used publications as protection against schemers who claim that your company previously has used the publication.
  • When asked to donate to various causes, find out the full name, address and purpose of the charity and ask for a copy of the organization's latest financial statements. Make checks payable to the charity itself, not an individual solicitor.
  • Compare the prices and quality of products with other suppliers if you are offered a deal from an unknown person.

    If a possible con artist approaches your employees, if you want to find out more about a certain business proposition, or if you have a complaint, contact your local Better Business Bureau.

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    SOURCE: GEORGIA AYCOCK, Extension resource management specialist, Alabama Cooperative Extension System (334) 844-2215.