OCBA - False billing scam

False billing scam

‘False billing' is the term used to describe the practice of invoicing a company for a product or service that was not authorised. False billers target businesses of all sizes that they hope will be too busy to check their own records. Scammers may intimidate their victims by threatening legal action or threatening to list the business as a credit risk if they do not pay.

The most common form of false billing reported to Consumer and Business Services relates to advertising in publications.

All publications are titled in such a way that they appear to be of value to the community. Common themes are volunteering, child safety, drug awareness, occupational health and safety and emergency services such as fire and police.

There are three common ways that the ‘false billers' operate:

Advertisements for businesses are copied from legitimate publications into the scammer's publication and the business is sent an invoice and a copy of the publication without the business having previously heard of the publication.
The business is contacted about advertising in a publication. It is falsely represented to the potential advertiser that the caller or publication is affiliated or sponsored by a legitimate organisation such as Police Legacy, the Fire Department or the Federal Police.
The business is contacted and told that the advertisement they agreed to place a number of months ago has been printed and they will receive it shortly, when in fact the business has not previously been contacted about the advertisement. The business subsequently receives the publication and an invoice. This method of operation is by far the most common method of false billing reported to OCBA.

Some tactics that false billers use include:

The scammers may print a publication that is for distribution only to the businesses they are targeting, accompanied by an invoice.
Scammers have been known to send a publication via a courier who is then instructed to collect payment on the spot.
Scammers threaten to place the matter in the hands of a debt collector or list the business as a credit risk if the invoice remains unpaid.
Invoices and publications usually only list post office boxes as the publisher's addresses and do not record a physical location.
Publications that are sent to businesses are usually undated or do not contain an edition number.

Checklist for businesses

When contacted by any organisation that is selling advertising space, businesses should ask the following questions:

How many copies of the publication are being printed?
This will tell a business if the print run is large enough to cover associated costs.
Who are they being circulated to?
This will provide valuable information to determine if the circulation run meets the business's specific target group.
Is the circulation audited?
If the circulation is not audited then the business should consider seriously if the publication is one to advertise in. An audit verifies the paid circulation of a publication over a defined audit period.
Which organisation is the publication representing? Do they endorse the publication?
A business may need to verify this information by making a follow up call to the organisation and verifying the publication exists and is endorsed by them.
Maintain good business records
Businesses should keep a record of all advertisements they commission, to guard themselves against false billers. If a business suspects they are being targeted contact Consumer and Business Services on 131 882.

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