How we Avoided a $40K Order Scam

This past week, we received an order for about $40,000 from a sizable organization, but quickly discovered it was a scam. I can't take credit, as I was not involved. But thankfully, we have a team that cares and processes to ensure that these situations are handled properly.

The skilled individual that orcastrated the deal, went to great lengths to ensure that he and his company looked legitimate. The website, email, phone numbers and address looked perfectly real. At first glance, it seemed like a real opportunity. 

The deal was red flagged early on, but our suspisions became apparent when the individual approved the order and requested immediate next day delivery on 30 day payment terms. This request triggered an internal process to investigate the customer. What happen next was astonishing. 

In a single phone call to the organization's head office, it was discovered that we had been targeted by a scammer. The individual was already being investigated. We offered to help, but it seems that they already knew who it was and didn't need further assistance.

When I first heard the details of this of this story, I didn't know if I should be angry or celebrate. Of course I celebrated. I celebrate the fact that we have a great team and that everyone cared enough to avoid a bad situation. 

I wanted to share this story with you because I would hate to learn that anyone has been taken advantage by this or any other scammer. There's a world of honest and amazing people out there that want to work with you, so don't think that you need to rush into every opportunity to make a sale. Be selective of who you work with. Base your relationships on trust and mutual respect. And work with people you like and enjoy dealing with.

The successful businesses that I have had the pleasure to work with, all have something in common. They understand that to succeed you need to have processes, technology to drive the processes and most importantly a strong team of dedicated and trained individuals. Organizations that don't understand this, could end up being taken advantage of and possibly in a difficult financial predicament. 

You've heard the old saying, "If it's too good to be true, it probably is."

The moral of the story is that every organization needs to have popper processes in place to qualify, verify and approve transactions. You also need to have clear policies and stick to them. Don't be seduced by a seemingly large order. Don't bend the rules to accommodate a customer you have no history with. Stick to your policies and don't be afraid to ask for a 50% deposit and/or COD. 

And as a last thought, "It's better to make no deal at all, than to make a bad deal."

(I learnt that one from my father)

I would love to hear your thoughts. Feel free to comment below.

To your success,

Miguel M. Ribeiro