The Integrity News
Vol. XII No. 27
October 4, 2003
September 24, 2003
Scam artists are out to take money from
businesses. The article is full of examples.
The essence of the advice is that you need
to do your due diligence -- check out those
who will work for you, and those with
whom you will be doing business deals.
KNOW WHO YOU ARE DEALING WITH.
"Companies generally have limited amounts of
assets, they are usually reluctant to spend money
on anything that isn't generating revenue, and so
they don't do the proper due diligence before they
hire people, or make deals. Unfortunately, these
companies get burned quite often in scams."
The article emphasizes the importance of checking
references, and verifying employment and education
claims. In business deals, check out the prior deals
of the group. This is a good way to be tipped off that
some claims made to you were bogus, and so you
should be suspicious about the subject's other claims.
Try to talk with individuals who will be references in
addition to the ones provided directly by the subject.
It is also important for you to check for a civil
litigation history. A civil litigation history should tell
you about who the subject has sued, who has sued the
subject, and any restraining orders on the subject.
For years, The Integrity Center has been telling
clients that in addition to outright financial and
material theft, companies must protect intellectual
property like customer lists, marketing plans,
blueprints, formulas, graphic designs, and other
components of their business processes.
"Many companies are particularly at risk for fraud
and embezzlement because they don't have in-house
departments set up to prevent it, and they don't
think that they have the funds to get outside help."
In fact, checking someone out is not expensive.
This is all the more true in light of the potential
loss if you don't conduct good due diligence.
"Companies tend to be too trusting. They don't
exercise good judgment in finding out who they are
really dealing with. Most of the time scammers are
good talkers." The article goes on to say that
resumes, and the paperwork of business deals, are
often simply bogus.
The article also discusses the fact that in business
deals, you really need to go see the operation. Make
sure that you get full access to any books. Ask
yourself if things really "add-up".
Remember that once a fraud has occurred, the
money or property is usually gone for good. Realize
that the smaller the company, the closer a fraudulent
event can come to completely wiping out the
Don't hesitate to put the Authorization paperwork
that will permit you to check, in front of the subject.
If the subject turns you down, you will have gotten
your answer at no charge.