Companies Beware of Business Directory Scams
AYPR Inc. claims to publish business directories and attempts to charge companies for being listed or featured in those directories. However, in many schemes of this nature, businesses are tricked into paying for services for which they weren't interested or were not aware they would be charged. Often times the invoice provides the name of an actual employee (either present or former) who “authorized” the charges. In many cases, the employee is not in a position to authorize purchases.
In addition to the Duluth address, which is actually a mail shipping and services store according the BBB of Minnesota and North Dakota, AYPR claims to have addresses in: Colorado, Idaho, Indiana, Louisiana, New Jersey, New Mexico, North Dakota, Oregon, Texas, Utah & Wisconsin.
Here’s how directory schemes often work. An employee is contacted usually by fax and asked to fill out a few vague questions to confirm basic company information. What the employee doesn’t realize is that by simply providing this information, they open the door to future billings. The faxes contain fine print stating that by signing and returning the form, the business is agreeing to be charged and listed in the directory, which may or may not even exist. The business is often invoiced for hundreds or even thousands of dollars.
These scammers sometimes pretend to be verifying or renewing a company’s “existing” directory listing. They send urgent invoices, create confusion and count on an organization paying to avoid being hounded. When companies refuse to pay, the scammers use high-pressure tactics such as bullying, threatening collection or legal action.
BBB and the Federal Trade Commission (FTC) have the following tips to avoid being the victim of a scam:
- Designate only certain employees to make company purchases.
- Train your staff to direct calls to only employees authorized to order supplies and services.
- Check all documentation before you pay bills. Make sure you intentionally purchased the items for which you have been billed.
- Know your rights. If you receive supplies or invoices for services you didn’t order, don’t pay. It’s illegal for a seller to invoice you, send threatening notices for merchandise you didn’t order or ask you to return the merchandise.
- Report fraud. Report this type of scam to the BBB, the FTC, the Postal Inspection Service and the Colorado Attorney General’s Office.
Hiring Staff: How to Recruit Staff and Conduct Interviews
Welcome back to the third installment of a four part mini series of blog posts on hiring staff! Please check back each week for a new entry.
How to Recruit Staff
There are several ways to find a pool of qualified applicants. If you're not in a hurry, one "low cost" way to spread the word about your job opening is to "cast a net" among your circle of friends, family members and business colleagues. Circulate at local business or industry get-togethers and mention that you are looking for somebody who would be interested in working for a small business or start-up venture. Let them know you have an opening, in case they are interested or can pass the word along to someone who may want to consider a job switch.
If you decide to place an ad, write enticing copy that will attract the type of candidate you are seeking. Describe the position, key qualifications and any other relevant information that would attract qualified candidates. Place it in a local newspaper or trade publication or list your opening on a job posting Web site (there are local and national job databases) that is likely to be frequented by target candidates. If you are a start-up venture, mention that in the ad, to attract the type of person who is comfortable with the risks associated with launching a new business.
How to Conduct Interviews
Lots of people look good on paper. Lots of resumes include exaggerations. It is always best to interview several candidates. If you have a lot of candidates to weed through, it may be more efficient to conduct brief phone interviews first to screen out unqualified candidates, quickly identity those applicants that appear suitably qualified, and then schedule follow-up in person interviews. Whether interviewing by phone or in person, the following suggestions will help to ensure a smooth and productive interview process.
Avoid asking any questions that would be considered illegal or inappropriate (such as your potential employee's race, sexual orientation, marital status, religion or child-bearing plans). Confine your questions to topics that relate to the job. [For additional information regarding questions that employment experts regard as "off-limits" for discussion in an interview, visit the Small Business Administration Web site at www.sba.gov/managing/growth/interview.html.
Be organized and consistent. In fact, it's best to have a list of 10-12 questions that you use with each interviewee. The questions should elicit information concerning the candidate's skills, abilities, and past work experiences. Jot down detailed notes as the interview proceeds. The notes will make it easier for you to remember individual candidates when it's time to make your decision.
Act professional and be forthright. The interview should have a businesslike atmosphere and you should conduct yourself accordingly. Interviews are not the time to be vague or distracted. Be upfront about the nature of your business, the job duties, the workplace atmosphere, your management style and any other factors that will help you and the candidate decide if they would be a good fit.
Remember, an interview is a two-way street. Don't do all the talking. You should spend the majority of the interview listening. After you ask a question, look at the applicant and really listen to how she or he responds and what they have to say. Observe their non-verbal behavior and choice of words. You should be striving to get a feel for their personality and work attitude, in addition to their skills set. Be sure to ask if he or she has any questions before you end the interview.
When you meet in person, ask the applicant to "show" as well as "tell." Ask them to show you how they would handle specific work situations. If you are hiring an administrative assistant, ask the candidate to turn on the computer and compose a letter. If you are hiring a marketing person, ask them to role-play being a sales person for one of your competitors.
To read part two about what to do before you hire new employees, please visit http://bbb-business-news.blogspot.com/2013/04/hiring-staff-before-you-start-search.html.
How to Recruit Staff
There are several ways to find a pool of qualified applicants. If you're not in a hurry, one "low cost" way to spread the word about your job opening is to "cast a net" among your circle of friends, family members and business colleagues. Circulate at local business or industry get-togethers and mention that you are looking for somebody who would be interested in working for a small business or start-up venture. Let them know you have an opening, in case they are interested or can pass the word along to someone who may want to consider a job switch.If you decide to place an ad, write enticing copy that will attract the type of candidate you are seeking. Describe the position, key qualifications and any other relevant information that would attract qualified candidates. Place it in a local newspaper or trade publication or list your opening on a job posting Web site (there are local and national job databases) that is likely to be frequented by target candidates. If you are a start-up venture, mention that in the ad, to attract the type of person who is comfortable with the risks associated with launching a new business.
How to Conduct Interviews
Lots of people look good on paper. Lots of resumes include exaggerations. It is always best to interview several candidates. If you have a lot of candidates to weed through, it may be more efficient to conduct brief phone interviews first to screen out unqualified candidates, quickly identity those applicants that appear suitably qualified, and then schedule follow-up in person interviews. Whether interviewing by phone or in person, the following suggestions will help to ensure a smooth and productive interview process.
Avoid asking any questions that would be considered illegal or inappropriate (such as your potential employee's race, sexual orientation, marital status, religion or child-bearing plans). Confine your questions to topics that relate to the job. [For additional information regarding questions that employment experts regard as "off-limits" for discussion in an interview, visit the Small Business Administration Web site at www.sba.gov/managing/growth/interview.html.
Be organized and consistent. In fact, it's best to have a list of 10-12 questions that you use with each interviewee. The questions should elicit information concerning the candidate's skills, abilities, and past work experiences. Jot down detailed notes as the interview proceeds. The notes will make it easier for you to remember individual candidates when it's time to make your decision.
Act professional and be forthright. The interview should have a businesslike atmosphere and you should conduct yourself accordingly. Interviews are not the time to be vague or distracted. Be upfront about the nature of your business, the job duties, the workplace atmosphere, your management style and any other factors that will help you and the candidate decide if they would be a good fit.
Remember, an interview is a two-way street. Don't do all the talking. You should spend the majority of the interview listening. After you ask a question, look at the applicant and really listen to how she or he responds and what they have to say. Observe their non-verbal behavior and choice of words. You should be striving to get a feel for their personality and work attitude, in addition to their skills set. Be sure to ask if he or she has any questions before you end the interview.
When you meet in person, ask the applicant to "show" as well as "tell." Ask them to show you how they would handle specific work situations. If you are hiring an administrative assistant, ask the candidate to turn on the computer and compose a letter. If you are hiring a marketing person, ask them to role-play being a sales person for one of your competitors.
To read part two about what to do before you hire new employees, please visit http://bbb-business-news.blogspot.com/2013/04/hiring-staff-before-you-start-search.html.
Beware of Business Identity Theft
ID theft aimed at stealing directly from a business isn’t the only type of commercial identity theft. Another form of business identity theft happens when a scammer poses as the company in order to rip off unsuspecting consumers. Following are examples of common business identity theft schemes identified by BBB.
Defrauding the Business
A crafty ID thief can do a lot of damage with a company’s Employer Identification Number, including gaining access to bank and credit card accounts or opening up new lines of credit under the business’s name. Business identity theft can also be perpetrated by scammers—and sometimes even employees—who purchase items in the company’s name either for personal use or to resell.
Phishing E-mails
Phishing e-mails are a common example of business ID theft, and all are designed to defraud consumers. Phishing e-mails are spam disguised as messages from a business or government agency, and are used to coerce sensitive financial information from the recipient or to install malware and viruses on recipients’ computers.
Defrauding Consumers
In many cases, criminals will hijack a company’s name and reputation to commit consumer fraud, such as advance fee loan or lottery scams. Scammers use and leverage the company’s identity and good reputation to create a trustworthy façade behind which they operate their scam. In BBB’s experience, business owners are usually alerted to the identity theft by angry consumers who were ripped off by the scammers.
Following are steps BBB recommends small business owners take to mitigate harm if their business identity has been stolen.
Alert the Authorities
Business owners need to immediately contact their local police department if they believe the company’s identity has been compromised. In some cases where bank or credit accounts have been compromised, law enforcement investigators may want the accounts to remain open in order to track down the thieves. If scammers are using the company’s name on phishing e-mails or with phony Web sites, business owners can also contact the FBI’s Internet Crime Complaint Center at www.ic3.gov.
Alert Bank and Credit Card Companies
If scammers are accessing the business’s credit or bank accounts, forging company checks or opening up new lines of credit, it’s important for a small business owner to notify financial institutions involved in order to limit any further unauthorized transactions. Before closing any accounts, the business owners will want to receive the go-ahead from law enforcement so as not to jeopardize ongoing investigations.
Alert the Public
If the company’s identity has been stolen and is being used to rip off customers, warning the public is a top priority to prevent additional people from becoming victims. An easy first step is to prominently post a warning on the company’s home page briefly explaining the threat. Depending on the scope of the scam, business owners might also want to consider alerting media or making direct contact with customers via phone or e-mail. Businesses can also contact their BBB for help in getting information out to consumers quickly.
Review Credit Report
If the business is a sole proprietorship, then the same consumer protections apply as if an individual’s ID were stolen—such as access to free credit reports and the ability to place a fraud alert on the report. Unfortunately for most businesses, monitoring their credit history is not that easy. Business credit reports exist; however, they don’t typically include the information necessary for detecting fraud. Small and medium-size enterprises can, however, increase internal controls and monitoring of accounts in order to better track abuses.
Employment Tax Schemes – A Way to Save Money and Land in Prison
Also, BBB is advising businesses to be aware of six common ways companies have gotten into hot water for employment tax non-compliance.
Hiring unreliable third-party payers
Most payroll service providers and professional employer organizations provide upstanding service. But there are some less-than-reputable third-party payers who fail to pay the collected taxes to the IRS. Employers should check with BBB (www.bbb.org) to find a trustworthy third-party payer, and once hired, regularly verify that payments are being made on their behalf.
Believing frivolous arguments
Unscrupulous promoters use misleading arguments to encourage businesses to avoid paying employment taxes. Don’t fall victim to incorrect interpretations of tax laws or the improper use of Form 941c to attempt to secure a refund of previously-paid employment taxes.
Offshore employee leasing schemes
Don’t do business with shady promoters affiliated with offshore companies who misuse the otherwise legal business practice of employee leasing. Consult with reputable legal and tax experts before entering into employee leasing arrangements.
Misclassifying worker status
Don’t be tempted to incorrectly treat employees as independent contractors to avoid paying employment taxes. If the employer has the right to control what work will be done and how it will be done, the worker is an employee.
Paying employees in cash
There is nothing wrong with compensating an employee in cash, as long as the business recognizes that employment taxes are owed regardless of how the employee is paid.
Filing false payroll tax returns
Preparing false payroll tax returns or understating the amount of wages on which taxes are owed is illegal.
