BBB warns businesses of rampant overpayment scam

Credit card used for payment likely stolen or fake

The Better Business Bureau Vancouver Island warns the local business community of an overpayment scam that could result in the loss of thousands of dollars.

BBB received multiple reports from local accredited businesses targeted with a sophisticated email scam. It all begins when the business receives an email from a supposed customer requesting the purchase of a specific product or service. Sometimes the email comes directly from the fake customer, other times the email looks as if it has come through a contact form from an online directory webpage. Through an ongoing email dialogue with the business, the scammer requests the ordering of a detailed and very specific product offering provided by the company.

When it comes time for a deposit or partial pre-payment of the product, the “customer” creates some sort of elaborate story or situation in which a third business is involved that cannot accept credit card payment. The local business is asked if they could take a larger lump sum payment from the customer’s credit card. The business is then asked to use the money to pay for the ordered product or service, and to e-transfer the difference to the third-party business.

BBB is warning local businesses not to fall for this classic overpayment scam. In reality, the credit card being used is likely stolen or fake, and the money that is being e-transferred will be lost to the business and virtually untraceable once sent.

Protect Your Business

Ensure all your staff understand how overpayment scams work. Whether the fraudster is using fake cheques or credit cards and requesting wire transfers or electronic transfers, the scam still works the same.

Never accept an overpayment for a product or service.

Ensure you have systems in place to make sure fees, deposits and payments have legitimately cleared through your financial institution before purchasing products or providing refunds etc. Speak to your financial institutions about the best practices for protecting your business from overpayment fraud, and fake payments.

Don’t fall victim to sad or dramatic stories, with high pressure circumstances, under which you must act urgently. Scam artists are great at pulling on your heart strings to try to rip you off.

· Report all incidents of fraud to your BBB and local police.

For information on protecting yourself from fraud visit bbb.org/Vancouver-Island.

editor@ oakbaynews.com

Just Posted

Police tell campers to leave Oak Bay park by 9 a.m.

Tent city leader expects confrontation, campers don’t plan to leave

PHOTOS: Cannabis consumption in the provincial capital

Victoria pot shops responds to the national legalization of marijuana

Homeless campers of Namegans Nation head to Oak Bay

Roughly 30 members of roving tent city settle at Cattle Point in Uplands Wednesday

HALLOWEEN RUNDOWN: Spooky season settles in Victoria

Here’s your list of creepy and spine-tingling events to take in during the month of October

WATCH: Twelve Angry Jurors puts a new spin on an old tale

Canadian College of Performing Arts opens season with reworked version of Reginald Rose teleplay

Find your future at Black Press career fair in Victoria

More than 70 booths expected at Bay Street Armoury on Oct. 25

Chain reaction crash on Vancouver Island leads to boat hitting house

Alcohol and speed may have been a factor in Courtenay crash

POLL: Do you support amalgamation for communities in the Capital Region?

Residents in Victoria and Saanich will be voting on Oct. 20 on… Continue reading

Proportional representation grows government, B.C. study finds

Spending, deficits higher in countries where voting system used

Ucluelet fears orca protection could shut down fisheries

“I beg you to start a process to put a stick in the wheels and slow these people down.”

Black market will thrive until small pot growers and sellers included: advocates

Advocates say the black market will continue to thrive until small retail shops and craft growers are included in the regime.

Goodbye cable, hello Netflix: 1/3 of Canadians cut the cord

Just under half of households no longer have a landline phone

‘Some baloney’ in assertion Canada’s pension fund has highest ethical standards

The Canadian Press Baloney Meter is a dispassionate examination of political statements culminating in a ranking of accuracy on a scale of “no baloney” to “full of baloney”.

Most Read