Four Things To Beware in Fraudulent Ordering Schemes

Published

8 years ago

July 25, 2016

INSTORE Staff

Beware of online fraud

Online fraud against jewelers is on the rise. Here are a few scenarios that should make you wary.

Jewelers across the country are continuing to report various types of fradulent ordering schemes to the Jewelers Board of Trade. To best protect your business and your financial interest, the JBT suggests that you be aware of the following four scenarios that could indicate possible fraud:

CASE A: You receive a request from a customer to ship merchandise to a location/address which is new or has never been used to receive goods. Before shipping, confirm the changed location with a known executive at your customer’s office. Criminals use this method of changing shipping locations to have goods sent to them fraudulently.

CASE B: An individual appearing to be your supplier asks you to pay by wire transfer or other method to a new account. Be on the alert for fraud and confirm the change with a known executive of the supplier before sending payment.

Criminals are often able to obtain names and account numbers making their fraudulent requests for changes seem legitimate.

CASE C: An individual posing as your customer places an order and requests that it be sent overnight priority mail to the listed address of the customer. The fraudster then calls back requesting the package tracking number, and without your knowledge calls the overnight carrier and asks them to re-route the package to another address – the fraudster’s.

Many overnight carriers have now initiated a password system to prevent fraudulent re-routing of orders. Nevertheless, caution is warranted. Be sure your package is in fact going to your customer and that the delivery address cannot be changed mid-route except by you.

Member stated the FedEx account now has a password to make changes such as this and is urging other members to do the same.

CASE D: Many fraudsters masquerade as legitimate buyers and agree to provide a cashier’s check up front to secure an order. Be sure that the cashier’s check clears both your bank and the issuer’s before shipping the order, as there has been a rise in the use of counterfeit cashier’s checks.

Always remember to pull a credit report when dealing with new customers if you decide to make the sale, whether or not they offer a cashier’s check.

This article is an online extra for INSTORE Online.

Looking for a Seamless Sale? Call Wilkerson

After almost 60 years in business, Breakiron Jewelers in Erie, Pennsylvania, was closing its doors. And the store’s owner, Linda Breakiron, was ready for it. She had run the store as its sole owner since the beginning of the millennium and was looking forward to a change. Of course, she called Wilkerson. Breakiron talked to other jewelers who had used Wilkerson and was satisfied with their response. “They always had positive feedback,” she recalls. With the sales, marketing and even additional inventory that Wilkerson provided, Breakiron insists she could never have accomplished her going-out-of-business sale without Wilkerson’s help. She’s now ready for the journey ahead, but looking back, she’d be sure to recommend Wilkerson. “They just made the whole process very seamless.”