Please note: this is an old article
It was published in June 2014, so the information may be out-of-date.
The ACCC is warning small business owners about false billing scams. A 45 per cent increase in complaints about these scams has been revealed.
False billing scams attempt to trick busy businesses into paying for unwanted or unauthorised listings or advertisements in magazines, journals or business directories.
"With the end of the financial year being a prime time to settle accounts, it pays to take a moment and check if invoices are the real deal," ACC Deputy Chairman Dr Schaper said. "Often a scam is disguised as an outstanding invoice to get the business to sign-up for unwanted advertising or office supplies. Another common approach involves sending invoices for the renewal of a non-existent domain name registration."
Dr Schaper offers small businesses this advice on avoiding false billing scams:
- Make sure the business you are dealing with is the real deal - if you receive a form or tax invoice out of the blue, verify who they are by contacting the company directly using contact details you sourced independently through a phone book or online search.
- Make your business ‘fraud-free' - effective management procedures can go a long way towards preventing scams. Have a clearly defined process for verifying and paying accounts and invoices, and try to avoid giving too many staff authorisation to make orders or pay invoices.
- Don't be intimidated - do not let anyone pressure you into making decisions involving payments or contracts. If you are unsure, always seek independent financial or legal advice.
- Update your IT security software regularly and make sure you use and offer secure online payment methods.
The full media release is available on the ACCC website, link below.