Credit fraud against businesses is expected to increase according to the police. Many cases involve bluff companies that buy products on credit and then apply for bankruptcy. The deceived companies write off the credit losses as being due to bankruptcy, not knowing that they’ve actually been the victims of a crime.
Here are Bisnode’s three tips for protecting your company from fraud committed by organized criminal companies.
- Question. Check who you are doing business with and trust your intuition. Is the delivery address the same as the company address? Does the company have a website? The imposters are skilled so it is worthwhile being attentive.
- Make a credit check and study it in detail. It can include important warning signals, for example that the board of directors has changed often, the board members have been part of previous bankruptcies, or the company is registered at a dubious address.
- Note any risk behavior. This can be done by analyzing the company’s credit losses. Is there a pattern or recurring behavior such as in the examples above?
Stay clear of fraud. By staying on the alert and analyzing the credit data on presumptive customers, you can take control and avoid doing business with questionable companies.