Las Vegas business, Win Distribution, was the target of an office supply scam aimed at duping unsuspecting employees out of hundreds of dollars in office supplies.
“These toner scammers contacted my girls and then sent us about $400 worth of toner for $1,800,” said Al Abolafia, owner of Win Distribution. “We sent the unopened stuff right back and will dispute any charges we receive.”
How the scam works:
An ill-informed employee receives a call from a telemarketer who claims they are the company’s authorized toner supplier. They tell the employee that it’s time to reorder before prices go up, that they’re calling to complete an existing order or are asking for confirmation to send previously ordered merchandise.
The ill-informed employee confirms the order and several days later, the supplies arrive at the office.
An invoice will follow several days later for two reasons: First, the price charged for the supplies is often inflated, a fact that is less obvious if the invoice arrives after the supplies have been received and put away. Second, it is likely that the victim will have opened the package and used the contents before the invoice arrives. Having done so, the victims feel obligated to pay for the products.
Some businesses report receiving multiple invoices stamped “past due” after ignoring the original deceptive bill. In some cases businesses state phony collection efforts are made, they are threatened with litigation or being sent to collections, or are charged a “restocking fee” to return the merchandise.
“About 20-30 percent of our customers are contacted by toner scammers on a regular basis,” said Chuck Burt, Sales Manager for Les Olson, a Better Business Bureau Accredited Office Supply Company with an A+ rating. “It negatively influences our industry as a whole and makes small businesses hesitant to make office supply purchases.”
“This is an ongoing scam that has cost small businesses hundreds of millions of dollars,” said Katie Robison, spokesperson for the Better Business Bureau serving Southern Nevada. “To protect yourself, it’s important to recognize the scams and understand your rights.”
According to the FTC, you can treat unordered merchandise as a gift. By law, it’s illegal for a seller to send you bills or notices for unordered merchandise, or ask you to return it — even if the seller offers to pay for shipping.
Tips to protect your organization:
- Assign designated buyers and document your purchases.
- Check your documentation before paying bills.
- Train your staff.
- If you’ve fallen victim, file a complaint with the FTC, Attorney General and Better Business Bureau.
