September 8, 2009

• BBB Warns Small Businesses, Pt.1
    Friendly fraud; a growing phenomenon

  During recent years, identity fraud and credit card fraud have become a part of the fastest growing criminal activities in the nation. These criminal activities cost businesses, financial institutions, and consumers billions of dollars a year. Current technology and the worldwide web have made it even easier for credit card and identity thieves to operate their illegal activities. In spite of all the latest high tech knowledge, criminals continue to find creative ways to scam Americans. Individuals are not the only ones being scammed; a growing criminal phenomenon has been attacking small businesses. For their own protection, small business owners are being warned to beware. Better Business Bureaus (BBB) across the country are sending out warnings to small business owners to be on the alert for credit card thieves that have been using the internet, email, and the good old fashion telephone to carry out their intentions to steal.

  The Minnesota and North Dakota BBB's have warned business owners to beware of the latest credit card fraud scheme known as "friendly fraud." Friendly fraud occurs when thieves attempt to get merchandise for free. Friendly fraud is becoming one of the fastest growing credit card scams. Although the cost has not yet reached the levels of computer hackers, the numbers are increasing rapidly. For example, the Wall Street Journal reports that Expedia has experienced a 50% increase in friendly fraud over the past two years. There are a number of methods used to defraud businesses. To protect themselves from becoming a victim of friendly fraud, owners should familiarize themselves with these activities so that they can recognize a possible scam.

  It is not always easy to recognize when one is about to be scammed. Knowing when to trust a credit card customer can be a difficult to discern. For simplicity sake, the best source of trust comes from the gut. If it feels fishy, it could be fishy. Small business owners can begin protecting themselves by becoming familiar with friendly fraud and taking steps to reduce their chances of becoming a victim.

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