BBB of Greater Houston & South Texas

News Release: For Immediate Release

The Better Business Bureau Serving:
Brazoria, Ft. Bend, Galveston, Harris, Matagorda, Montgomery, & Wharton Counties. (Texas)

Better Business Bureau Tips:
Editorial Ideas From Your Better Business Bureau

Contacts:
Brent Rogers:
Office: 713-341-6122, e-mail: brogers@bbbhou.org

www.bbbhou.org * bbbinfo@bbbhou.org * Council of BBBs: www.bbb.org *
24-Hour Information: 713-868-9500, (800) 275-3626 (from area code 409 only)

Protecting Your Business Against Phony Invoices

Despite repeated warnings by the Better Business Bureau (BBB), businesses are still falling victim to phony invoice scams. The U.S. Postal Service reports that phony invoice scam artists succeed in collecting a significant percentage of all the bills they mail. The fact that these scam artists mail thousands of phony invoices, and solicitations disguised as invoices, on a regular basis, points to an annual loss to businesses that may run into billions of dollars.

The best protection against phony invoices is knowledge and vigilance. By educating your employees to identify common invoice scams, you can help them to defend your business against these swindlers.

Before placing orders or paying invoices, take the following precaution:

• Never place a phone order unless there is no doubt a firm is reputable. Get everything in writing and check out the company with your Better Business Bureau;

• Check your records to confirm claims of previous business dealings with a company or seller;

• Establish effective internal controls for the payment of invoices;

• Channel all bills through one department;

• Have employees fill out pre-numbered purchase orders for every order placed;

• Check all invoices against purchase orders and against goods or services received;

• Verify all invoices with the person who gave written or verbal authorization;

• Clear all invoices with the appropriate financial staff;

• In a dispute, if the invoicing company says it has a tape recording of an order, insist on hearing it.

If you receive a phony invoice, or a solicitation disguised as an invoice, report the matter to your Better Business Bureau at 713-868-9500 or 1-800-275-3626 and the U.S. Postal Service at 1-800-654-8896.

For more information on business and consumer scams visit your local Better Business Bureau's web site at http://www.bbbhou.org.

# # #