It is not uncommon for orders to be placed via e-mail using faked sender data in order to obtain information. The goods are then dispatched, but no payment is ever received. Depending on the size of the order, this can have huge financial consequences, especially for start-ups and fledgling enterprises. What can an SME do to avoid being taken in by such attempts at fraud using fake identities (synthetic identity fraud)?
Minimise The Risk With These Preventive Measures
Processes:
- Install processes that check whether an order of or above a certain amount is genuine. This can be done, for example, by checking the delivery address given (does this match the buyer’s?) and the buyer’s identity
- Depending on the situation, ask for a substantial advance payment, especially if the business relationship is new
Payment:
- Set payment deadlines and stipulate them in your standard terms and conditions
- Use established payment channels such as banks and credit card companies
- Monitor your outstanding payments regularl
