Avoiding Fraudulent Orders in the Print Industry

Disclaimer: This article is for informational purposes only and is not intended as legal advice.  

Unfortunately, scams are an ongoing headache in today's world and have been an issue within the print industry for years. With the advancements in technology, scammers are only becoming more sophisticated and harder to spot. 

If you receive an order from a new customer that seems too good to be true, it probably is. Trust your gut instinct and take the time for due diligence to ensure the company and order are legitimate before proceeding. 

What are signs of a fraudulent print order?

• The order is placed by someone you do not recognize and is not located within your area.
• The order is placed by an individual (or even a "broker"), rather than a company. 
• The phone number and e-mail address may be personal rather than tied to a company.
  • However, some scammers are using legitimate phone numbers, making the fraud more difficult to spot. 
• The order is typically very large, generic, and vague with basic text. 
• The order is received via e-mail, rather than by phone, and the greeting is very generic rather than addressed to an individual. 
  • In addition, their e-mail address may be generic (common name with numbers), although as scammers continue to become more sophisticated, they are using e-mail addresses that look more and more legitimate. 
• The billing and shipping information do not match. 
• The "customer" asks you to ship outside the country and will be insistent on using their own freight company.
  • The shipping costs alone will usually be exorbitant. 
• The "customer" is unusually urgent with their requests and with processing payment.
• The "customer" is not concerned about price or any terms or conditions. They may insist on paying you immediately. 
• The "customer" will want to pay via credit card. If the card is declined, they will continue supplying additional card numbers. 
  • The credit card is often real card information that has been stolen. If the payment were to go through, it will often be disputed by the true card owner, and you will be out that money.  

What can I do to help prevent being scammed?

• Educate your sales team about these signs of fraudulent activity. 
• Try to verify the identity and legitimacy of the customer over the phone.
  • The phone number and address the "customer" provides may be legitimate. However, that does not mean that the person contacting you works for said company or works/lives at said address. This is why it is important to try and contact them via phone and not rely solely on an internet search to confirm if the phone number or address is recognized. 
  • If the customer is legitimate, they will likely appreciate the additional outreach as a new customer, so it's a win-win. 
• Ask new customers to pay upfront and allow enough time to pass after the payment was submitted before proceeding with the order (this is to allow time for the payment to be disputed if it is fraudulent). 
• If a "broker" is placing the order and you suspect it is a scam, contact the end customer to confirm the order. The end customer the "broker" is referencing may be a real company who is unknowingly and unwillingly part of the scam. They can help confirm if the order is legitimate. 

How can I report a scam?

• You can file a report with your local authorities to document the incident. However, they will unfortunately be unlikely to make any real traction. 
• Report the incident to the FBI’s Internet Crime Complaint Center using their online portal:  https://www.ic3.gov. The FBI is the lead federal agency for investigating cybercrime.

Sources:

• Digital Marketing Services: https://digitalmarketing1.com/commercial-printing-scam/
• Printavo: https://www.printavo.com/blog/common-order-scams-and-fraud-in-the-print-industry/
• American Booksellers Association: https://www.bookweb.org/indiecommerce/fraudulent-orders