What are false billing scams involving directories & advertising?
A directory entry or unauthorised advertising scam is a scam that targets small businesses, trying to bill you for a listing or advertisement in a magazine, journal or business register/directory.
The scam might come as a proposal for a subscriptions disguised as an invoice for an entry in a bogus international fax, telex or trade directory. Sometimes they are doctored to look like those used by genuine directory publishers.
Alternatively, you might be led to believe that you are responding to an offer for a free entry—but in fact, the order is for entries requiring later payment. Another common approach used by scammers is to ring a firm asking to confirm details of an advertisement that they claim has already been booked. The scammer might quote a genuine entry or advertisement your business has had in a different publication or directory to convince you that you really did use the scammer’s product.
If you refuse to pay, the scammers might also try to intimidate you by threatening legal action.
If you think that the publication is a legitimate one and you may have authorised an entry, ask for proof of its existence. You should also make sure you keep written records of authorisations for advertising or directory entries so that if you receive an invoice or a telephone call, you can go back to your records to check it. Always get proof of the entry before paying anything. You do not have to pay for any directory entry that you did not specifically authorise in writing.
Another way to look into the legitimacy of the directory is to ask for details of other local businesses who have previously advertised and check with them that they received what they paid for.
Be sure to check with your local fair trading agency—they can tell you if they have taken legal action against the person who has contacted you. Check out the ACCC brochure Scams: protect your business from them for more information and tips about common small business scams.
Never pay for an advertisement or entry you didn’t authorise. If you receive a telephone call or an ‘invoice’ that comes from a publication you have never heard of, or that you don’t remember putting an entry in, don’t pay or give out your details until you have looked into the matter further.
If you have received a fraudulent directory entry or advertising invoice or phone call, or if you have sent money to pay for an entry or advertisement which you now realise is a scam, you can report it through the SCAMwatch website. You should also spread the word to your friends, family and colleagues to protect them.
Unsolicited faxes offer great deals on products, entry into competitions or huge discounts, but the high costs of replying to the fax are buried in the fine print or not provided at all.