Protecting Your Business From Fraud

(PRWEB) May 7, 2006 -- There are highly organized career criminals who
regularly prey on unaware victims. Fraudsters can turn huge profits by
opening multiple credit accounts, charging as much as possible, and then
selling these brand new items at local swap meets, flea markets or
on-line auctions.

Overhead costs from rising gas prices and increased competition take
enough toll on your margins without having to worry about a "customer"
stealing from your business. So here are some simple steps you can take
to help prevent yourself from becoming a victim of fraud:

Make photocopies of your customers' driver's licenses. Take digital
photographs of your customers and maintain a photo database. This trick
facilitates customer identification for those who may later skip out on
debts or write bad checks. Run credit checks on customers or companies,
or both, before you grant them credit.

Talk to other distributors in the area to see if they've had trouble
with customers making payments. If a customer is new to the area, ask
who he used to buy from and contact those former sellers to get a feel
for that person's payment history. Request and verify several business
and personal references for your customers on credit.

Acceptance Of Checks From New Customers
In order to protect yourself from losses due to bad checks, a list of
rules has been developed that could have a big impact on your success.
Many of these rules apply at the moment you accept your customer's
payment. State statutes, local requirements and simple practicality also
influence what can or cannot be done to recover losses due to these bad
checks or credit fraud.

Many local law enforcement agencies have Bad Check Enforcement Programs
that assist businesses to recover losses. If you receive an
"insufficient funds" or "account closed" notice, you can access these
programs to try to track down your money.

When you accept a check from a new customer, I recommend you follow the
steps represented by this acronym—SANDI—which is commonly used by
financial institutions and crime prevention specialists.

S—Double Check the Signature
Watch your customer sign the check: Pre-signed checks can be trouble.
Then, compare the signature with a valid photo ID that contains the
person's signature—a state-issued driver's license is best. Also, write
down a driver's license number or Social Security Number. Military IDs
are also good IDs to obtain if possible.

A—Compare The Amounts
If the amount written in numerals and the amount written in words don't
match, the bank can't accept it. Carefully read both versions of the
amount, and if they don't match, don't accept the check.

N—Check The Number
It's a fact that most bad checks are written from new accounts. Be
especially wary of checks that seem to come from these accounts: Look
for checks with numbers in the low hundreds or low thousands.

D—Today's Date
Post-dated checks cannot be a part of your program; make sure the date
on your customer's check matches the date you accept it.

I—Complete ID
It is essential for you to get as much identification as possible. A
Social Security Number is preferred, but at a minimum, you MUST require
the following data from your customers:

Full and complete name. (spelled correctly)
An address (a street address is best).
A city, state and zip code.
Phone numbers—for both the home and cell. If a customer says he only
uses one, double check with his employer or obtain his closest
relative's phone number as well. Also, double check to make certain he
doesn't provide the shop's number or another bogus phone number before
you leave the shop.

A copy of a driver's license, Social Security card or military ID.
Cutting corners in the beginning may make it seem like you offer
exceptional customer service, but it really just exposes you to more
potential for unnecessary losses. Take a close look at your current
procedures and verification processes, and consider the implementation
of these steps into your standard routine.

With modern technology and the proliferation of identity theft, you need
to know with whom you are dealing, but you also do not want to offend a
good customer or imply you don't trust them. Many people may not be
comfortable enough to give out their Social Security Numbers, so be sure
to articulate your application process, which is designed to protect
them as well as your business.

If, despite your best efforts, you become a victim of fraud, follow up
with a report of the incident to your local law enforcement agency. You
may also need to involve a small claims or civil court in order to
recover your loss, or you may write it off.

The minimal expenses you may incur with small claims court should help
send a clear message to others:You do not tolerate this type of criminal
behavior, and you are willing to go the distance to prosecute and
recover your stolen funds.

One on-line solution to help prevent these unfortunate circumstances
from happening is the skip account prevention service offered by
SkipCheck.com. The company works exclusively with mobile tool
distribution businesses to help prevent fraud from happening. The site
allows users to report skip accounts, locate past skip accounts, search
a skip account database, as well as post messages to other participating
mobile tool distributors.

SkipCheck.com maintains a real-time database, which is continually
updated with current skip account information reported by participating
mobile tool distributors. All services are fully compliant with the Fair
Credit Reporting Act and allow mobile tool dealers to share skip account
information in regard to potential fraud or theft losses. These
partnerships help identify and eliminate losses before they become an
issue.

William Desy is a state-licensed Private Investigator, Certified Fraud
Examiner, Certified Fraud Specialist and Loss Prevention Consultant. He
provides these services to small and medium-sized businesses. More
information about SkipCheck can be found at www.skipcheck.com

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Press Contact: Tim Anderson
Company Name: Skip Check
Email: email protected from spam bots
Phone: 858-337 - 9904
Website: http://archives.pten.com/publication/article.jsp?pubId=2&id=111