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This scam targets businesses and organizations of all types, attempting to fool them into paying for a listing or ad space in a non-existent directory or Yellow Pages. In some cases, the directory will technically exist, but will not be widely distributed and a listing will be of little or no value—these directories are essentially props in the scammer’s ploy.
How the scam works:
Scammers call companies claiming to represent Yellow Pages or another business directory, real or fabricated. When the scammer gets someone from the business on the phone, he or she will claim to be updating the directory and asks for basic information, such as the business's address, telephone number and email. After the target replies, the representative repeats back the information and prompts the employee to confirm the listing.
A few weeks later, the business receives an invoice for several hundred dollars for an ad or listing in the directory. When the business calls to complain, the representative says that an employee verbally confirmed the placement. In many cases, the scammer even plays back a spliced version of the previous conversation. The altered recording makes it sound like the employee agreed to the charge, when, in fact, he or she was saying "yes" to the listing information.
Tips to spot and avoid this scam:
Train staff. Make sure that the people processing invoices or answering phone calls are aware of these scams.
Exercise caution! You do not know who is calling, where they are from, or if the information they share with you is the truth.
Do not commit right away. Most reputable companies will not pressure you to enter into an agreement during your first conversation. You should be able to ask for time to think things over before you purchase any products or services. Never jump into an agreement or contract with a stranger who calls you out of the blue.
Research the company. Is the business reputable? Are you able to find them online? Do they have a marketplace history? Do they have a physical location you can visit? Make sure you check bbb.org for their contact information, complaint history, and customer reviews.
Train employees to ask questions. Most business owners trust employees to handle telephone inquiries. Take the initiative to coach your staff, so they’re prepared to deal with suspicious callers. Always encourage your team to ask questions and keep personal information private until the legitimacy of a caller can be verified. Immediately end the call if danger is perceived or if any threats have been made.
Terms and conditions unclear? Ask! Again, reputable companies should be able to answer any questions you have, verify their terms and conditions, and be clear about any agreements you’re (potentially) making. It should never feel like you don’t know or understand the full story.
Create a process for inspecting invoices. Always check that goods or services were both ordered and delivered before paying an invoice. Designate a small group of employees with authority to approve purchases and pay the bills.
To report a scam, go to BBB Scam Tracker.
To learn how to protect yourself, go to “10 Steps to Avoid Scams”.
BBB Serving Central Ontario contributed to this article.
