Small firms are being urged to stay vigilant against fraudsters as research suggests one in three firms have been targeted in the past year.
Credit checking firm e-bcm is concerned that smaller firms, which are often unable to carry out appropriate checks, will fall victim to fraudulent practices too easily.
The company said that 57% of credit managers thought fraud was on the rise, most commonly via the setting up of bogus companies or the theft of a legitimate firm’s identity.
“There seems to be no doubt that fraudulent activity is on the increase and unless they take proper measures to protect themselves, small companies are bound to find themselves on the end of one of these scams at some point,” said Dennis Scott, commercial director at e-bcm.
“It is important for them to be vigilant but also to put proper checks and balances in place to minimise the risk of getting stung.”
Scott said that small firms were often reluctant to carry out the proper checks required for fear of turning down potential business.
“When a brand new customer comes in with a big order, the eyes of any small business person are bound to light up.
“But it’s vital to temper your enthusiasm to make a sale by applying a little prudence – without it, what might have seemed to be a great opportunity to make an exceptional profit, can turn into a severe body blow for the business.”
© Crimson Business Ltd. 2007
