Beware of "fake" invoice business scam

15 October 2004

Summer scams cost business dear

Small and medium sized businesses should beware of 'fake' invoices which could land on their desks over the summer months, warns the Advertising Standards Authority.

Rogue traders, particularly those based in Switzerland, Austria and the Czech Republic, take advantage of senior management being on holiday to trick more junior employees into paying what looks like an urgent invoice. By paying this, the company actually signs up to a contract which forces it to continue paying for years.

Most of these so-called invoices concern subscriptions to print or Internet business directories.

The Advertising Standards Authority is a member of the European Advertising Standards Alliance (EASA) which monitors cross border rogue trader activity in Europe. Robert Hilty, Chairman of EASA's Rogue Trader Prevention Taskforce*, said "over the last 10 years we have noticed a marked increase in fraudulent direct mailings over the summer months. We want to put a stop to this kind of activity and to ensure that from now on those behind it don't profit from it. It is vital that SMEs across Europe are aware of these scams and know how to deal with them."

EASA has produced a five-point guide on dealing with fake invoices:

1. Check all invoices carefully - especially for those coming from abroad or from unknown suppliers.

2. If you are in doubt about the validity of the invoice, call the company for further details or contact the usual sales representative. All reputable firms will be happy to share information.

3. Check the invoice for small print and read it.

4. If you realise that you've mistakenly paid a fake invoice, contact the company and request an immediate refund. Report the mailing to the Advertising Standards Authority, as it may breach section 7.1 of the CAP Code which states that "No marketing communication should mislead, or be likely to mislead, by inaccuracy, ambiguity, exaggeration, omission or otherwise". The case may also be referred to the Office of Fair Trading.

5. Check the European Advertising Standards Alliance's web site (www.easa-alliance.org) and www.asa.org.uk for regular updates on such mailings.

For further details on rogue trader activity in Europe or for case study examples, please contact Kristoffer Hammer at EASA on +32 2 513 7806 or projects@easa-alliance.org
European Advertising Standards Alliance