Chair’s Message: How to Spot Fraud, by Melissa Kobus

In today’s connected world, fraud is an epidemic that can hurt any company, big or small, and it’s becoming more common.

In my company, we recently were hit with some large fraud both with “phony” PO’s and stolen credit cards.  As credit managers, make sure that you are diligent about watching for the red flags so that we can stop these before we take a hit.  If something does not smell right, look right, etc. – ASK your credit analyst and investigate further.

Please pay attention to the following details when accepting orders (on terms or credit cards):

  • No contact except via email
  • Phone number is from outside the area or linked to Magic Jack phone
  • Urgency of getting a quote or in shipping material (must have it air freight today)
  • Email address is outside the normal address (gmail and yahoo too)
  • Reluctance to complete online forms
  • Typos and misprints on pre-printed information
  • Material type and quantity is out of the ordinary (hard drives, projectors, testers, etc)
  • Material has a high copper content and seems out of the ordinary for a credit card purchase
  • Shipment going to a different location or a location outside of their territory  (Use google earth to research ship-to address)
  • Shipment made close to a border town
  • Credit card number and name does not match the way the account is setup

Our best defense against fraud is a strong front line, so please make sure to keep your eyes open and ask questions, make phone calls, do the research.  We can continue to stop these thieves from hitting your company.

It is important to make sure everyone on your team gets this information.

What measures are your companies taking to prevent fraud? We welcome your feedback.

Melissa Kobus, CCE, is the Credit Management Association Chairman and Regional Credit Manager for Anixter Inc., based in Anaheim, CA. She can be reached at 714-695-2219, or melissa.kobus@anixter.com

4 Replies to “Chair’s Message: How to Spot Fraud, by Melissa Kobus”

  1. Great article, Melissa! Wish I’d had this about twenty years ago in my first credit job.

    My employer doeesn’t sell to the general public, but before opening an account, one of our sales staff must visit the physical location of the business wanting to buy from us, and provide a report to the Sales Manager. The Sales Manager, in his turn, approves or declines the prospect, and only then does Credit receive the application. We have almost no fraud issues as a result.

  2. Melissa, this was great of you to share. We have 14 retail stores and I sent this article to every single one of the store managers. We are subject to a great deal of fraud. It seems to be the nature of the beast. Thanks again for this valuable information.

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