Business billing scams

Kentucky businesses should be on the alert for invoices demanding payment for supplies, goods and services never ordered or never received. Every year, businesses lose substantial amounts of money because they fail to question or even recognize these phony demands for payment.

Protect Your Business

Take the following precautions to protect your business against phony billing schemes:

  • Don't place orders over the telephone unless you are certain it is a reputable firm.
  • Be sure of the organization's name, address and phone number as well as the solicitor's name and his or her position with the company. Check records to confirm any claim of past business.
  • Read your mail carefully. Warn employees to be on the alert for any unusual invoices.
  • Check business records to determine if merchandise or services were authorized, ordered and delivered before paying invoices. It may be helpful to have one employee review and approve all invoices.
  • If the company claims to have a tape recording of the order, insist on hearing it.
  • Before placing any advertisements, verify that the publication exists. Make sure its circulation meets your needs.
  • When in doubt about yellow page directories, contact the directory you want to carry your advertisements to verify that renewal invoices have been mailed and clarify procedures for payment.
  • Report phony billings to postal authorities and alert other businesses in your area.