Green eggs & scam: I'll put myself on high alert; I will not let them take my shirt; I will not be scammed here or there; I will not be scammed anywhere

Entrepreneur, Jan, 2002 by Gwen Moran

Something smelled fishy to George Sarris. When the 49-year-old owner of The Fish Market Restaurant in Birmingham, Alabama, opened a letter from a disgruntled customer demanding a $6.89 refund, his gut told him to check it out. He didn't recall the customer and, after a few phone calls, realized that the author of the letter was nowhere to be found. Then, Sarris started hearing that similar letters were popping up in eateries all over town. In fact, the same "customer" who had written to Sarris had blanketed other area restaurants with demands for refunds.

"He didn't ask for a lot of money, so some people would probably send it, no questions asked," says Sarris. "If he sent out 1,000 letters and got half back, that's over $3,000."

Sarris is just one of thousands of entrepreneurs targeted by scam artists each year. In fact, the Association of Certified Fraud Examiners (www.cfenet.com) estimates that fraud, ranging from bogus billing and dishonest direct mail to sales scams, costs U.S. businesses more than $400 billion annually. Shirley Rooker, president of Call for Action Inc., a nonprofit scam-busting organization in Bethesda, Maryland, thinks more businesses need to take the problem seriously.

"I don't think businesses think in terms of being victims of fraud," Rooker says. You must be aware that scam artists are threatening businesses like yours, often preying on employees who may be less likely than you to question their smooth-as-ice approach. Warns Rooker, "Often, the weak point is the person answering the phone who unknowingly gives out information."

ROYAL RIP-OFFS

The tactics used by scam artists range from the classic to the high-tech. Here's a rundown of what to watch out for:

* FRAUDULENT CHARITIES: Within 48 hours of the September 11 terrorist attacks, reports of bogus charities claiming to collect for relief efforts began to surface. You can check out any charity before sending money by visiting the Web sites of watchdog groups such as the Better Business Bureau (BBB) at www.bbb.org and the American Liberty Project (www.libertyunites.org), a cooperative effort between Amazon. com, AOL Time Warner, Cisco Systems, eBay, Microsoft and Yahoo! If you wish to donate to smaller, community-based organizations, which may not be listed on watchdog sites, you should get information in writing and request references. Another tactic: Check the charity's Web site domain through the WHOIS function at Network Solutions (www.networksolutions.com) to find out who registered it and whether the name on the registration matches the name of the charity. If it doesn't, you should be suspicious.

* 90# SCAM: In this scenario, callers who claim to be telephone company representatives ask the receptionist to dial 90# to test the phone. On many systems, this allows a third party to then make calls on your dime. Some variations include callers asking to be transferred to extension 90 or 900. Tell your employees: When a caller asks for 90#, hang up.

* 809 SCAM: Beware of urgent letters or e-mails demanding you call a number in the 809 area code. Originating in the Caribbean, these 809 numbers are often "pay per call," much like 900 numbers in the United States, and may cost you up to $25 per minute. While some 809 numbers are legitimate, make sure to check the origin of any unfamiliar area code before you dial it. You can use the listings of U.S.-based area codes found in most telephone books, or call your long distance provider for information.

* VOICE-MAIL ACCESS SCAMS: The remote access features of Private Branch Exchange (PBX) systems can be cracked by hackers--who can then run up thousands of dollars in long-distance charges in a short period of time. Monitor phone bills closely and change the authorization n mbers often.

* DUMMY INVOICING: Cording to Ron Berry, senior vice president of bureau affairs for the Council of Better Business Bureaus Inc. in Arlington, Virginia, fake invoices turn rake in big bucks for scam artists. our business may receive a "look me" invoice for a product or service at it regularly orders, such as local media or Yellow Pages advertising. Thinking the bogus bill is valid, you may pay it. Berry reminds entrepreneurs to et up systems for invoice verification and approval.

* TONER PHONERS: An employee, usually an assistant or receptionist, gets a call from a company pas your office supply provider. Th scamster asks him or her to verify the make and model of your copier, then sends inferior and overpriced supplies that were never ordered, sing the employee's name and the a acquired copier information as proof of e order. Your company is billed an exorbitant price, and the scamster uses high-pressure tactics, such as the threat of legal action or a collection agency, to get paid. Rooker says this scam is rampant and that you should tell employees never to answer questions about your company's equipment over the phone.

* GOVERNMENT DOCUMENT DUPE: In this scam, you receive an official looking document that leads you to believe you must purchase signage, such as minimum wage declarations, and display it by law. But in most cases, signage that's mandated y law is available for free from the g eminent. In another twist, the BBB on firms that a number of Alabama-based restaurants received demands from the "Environmental Protection enforcement Agency" to fill out a lengthy questionnaire and return it with a fee of $189 or risk being fined $5,000 per day. If you get an offlcial-looking document demanding money call th state or federal agency referenced n the document to verify the de d is valid.