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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

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

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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.

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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

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

Promoted Headlines

Most Popular