Vigilance urged as struggling firms fall victim to business fraudsters

UP to two thirds of companies have been victims of business scams in the last 12 months, adding further to their struggle for survival, a survey has found.

In response to its findings ISME, the Irish Small & Medium Enterprises Association, has warned all businesses to be extra vigilant over the summer holiday period as “fraudsters target the business community who are particularly vulnerable,” it said.

The association said fraudsters were “costing companies thousands.”

It highlighted bogus overseas offers and international business directories as areas being exploited by the scammers. Compainies are being ripped off for thousands of euro, putting further pressure on businesses already suffering from the economic downturn, said ISME.

The recent survey, answered by 714 firms, showed 67% of companies have been the target of a scam event. Of those, 73% identified overseas offers, 57% business directories and 46% “phishing” as the main ploys used to cheat the business community.

ISME chief executive, Mark Fielding, said level of fraud scams against business is on the rise, with an increasing number of firms falling victim to those who have become increasingly sophisticated at devising means of taking money from unsuspecting firms.

He warned companies to be very wary of unsolicited correspondence relating to non-existent professional guides and Internet directories. The association has received an increased number of complaints to its helpline, it said.

“The unsolicited correspondence in relation to non-existent professional guides and internet directories are proving to be particularly problematic and in the last couple of weeks numerous companies across the country have received invoices from companies seeking payment for entries in an international directory of which the company management was not aware.

“The incidences of scams increases during the summer holidays, as fraudsters are aware that, in many cases, senior management may be out of the office leaving more junior staff to make decisions,” Mr Fielding warned.

Some “update only” requests being sought by directories appear to be innocuous. However, this can result in a staff member inadvertently signing a document, resulting in the company being ostensibly tied to a contract. Most of these scams concern invoices for subscriptions for online business directories.

Mr Fielding urged companies to be more vigilant, particularly during holiday periods, to ensure they do not become the next victim of these fraudsters.