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Four Things To Beware in Fraudulent Ordering Schemes

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Beware of online fraud

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

Jewelers Board of Trade logo

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.

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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.

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SPONSORED VIDEO

Celebrate Your Retirement with Wilkerson

For nearly three decades, Suzanne and Tom Arnold ran a successful business at Facets Fine Jewelry in Arlington, Va. But the time came when the Arnolds wanted to do some of the things you put off while you’ve got a business to run. “We decided it was time to retire,” says Suzanne, who claims the couple knew how to open a store, how to run a store but “didn’t know how to close a store.” So, they hired Wilkerson to do it for them. When she called, Suzanne says Wilkerson offered every option for the sale she could have hoped for. Better still, “the sale exceeded our financial goals like crazy,” she says. And customers came, not only to take advantage of the going-out-of-business buys and mark-downs, but to wish a bon voyage to the beloved proprietors of a neighborhood institution. “People were celebrating our retirement, and that was so special,” says says.

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Four Things To Beware in Fraudulent Ordering Schemes

mm

Published

on

Beware of online fraud

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

Jewelers Board of Trade logo

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.

Advertisement

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.

Advertisement

This article is an online extra for INSTORE Online.

Advertisement

SPONSORED VIDEO

Celebrate Your Retirement with Wilkerson

For nearly three decades, Suzanne and Tom Arnold ran a successful business at Facets Fine Jewelry in Arlington, Va. But the time came when the Arnolds wanted to do some of the things you put off while you’ve got a business to run. “We decided it was time to retire,” says Suzanne, who claims the couple knew how to open a store, how to run a store but “didn’t know how to close a store.” So, they hired Wilkerson to do it for them. When she called, Suzanne says Wilkerson offered every option for the sale she could have hoped for. Better still, “the sale exceeded our financial goals like crazy,” she says. And customers came, not only to take advantage of the going-out-of-business buys and mark-downs, but to wish a bon voyage to the beloved proprietors of a neighborhood institution. “People were celebrating our retirement, and that was so special,” says says.

Promoted Headlines

Most Popular