Trick or cheat: Fraudsters and the pub trade

Publicans are very busy people indeed. There are a lot of demands on them. A lot to think about and get done. Which is why they’re such scam magnets.

It seems as though every week some confidence trickster has thought up a new idea to catch them out and take their cash — or even the whole fruit machine. And with Christmas coming we can expect a seasonal upsurge in fraudsters trying it on.

According to Action Fraud, the national fraud reporting centre, there are a couple of scams this year that pubs need especially to watch out for.

If you’ve got a function room or letting rooms beware of big bookings that pay you in advance more than you’re owed — but want you to pay some other ‘fees’ out of it.

As Action Fraud quality assurance manager Steve Proffitt explains: “The function and accommodation might cost £2,000, but they’ll make out a cheque or a banker’s draft for £3,500 and ask you to send the balance on to somebody else’s account saying it’s another fee they have to pay.

“Then the cheque or the money transfer bounces and you’re out of pocket. It’s quite a clever one and you must be very suspicious of anyone who makes an over-payment, especially if it’s for something like a conference for an organisation you’ve never heard of.

“Quite often the order will come in an email from abroad. You should always look twice at something like that.”

The other big scam the authorities are expecting this Christmas is much more traditional — people passing forged money.

“Be very careful if anyone hands you a £50 note,” warns Proffitt. “Pubs are an easy target for passing forged notes when they’re busy in the run-up to Christmas and you have to be extra aware. Ultra-violet money-checking devices are available.”

• For more advice on foiling fraudsters or to report a scam go to www.actionfraud.org.uk​ or phone 0300 123 2040

 Scams targ​e​tin​g businesses​

Scams are big business. Nearly half the UK population have been targeted by fraudsters and more than three million adults have fallen victim, losing them a total of £3.5bn a year.

In the Office of Fair Trading’s (OFT) Scamnesty initiative earlier this year, some 10,000 scam mailings were dumped in the special bins placed around the country. More than 6,000 were prize draws and sweepstakes. The rest of them included clairvoyant rackets, fake lotteries and bogus charity appeals.

And there are scams that target businesses, too, and they are growing increasingly sophisticated. You need to be aware of them. And your staff need to be aware, too. They can be your weak point.

According to the OFT the most common kinds of business scams are:

• Business directories​ — you’re asked to fill in a form with your pub’s details and then find you’ve ordered entries in a directory that will cost you hundreds of pounds a year. Always read the small print in any offer to be clear about what you’re getting and what you’re paying for it.
• Office sup​plies​ — you get a call from somebody selling supplies — till rolls are a classic — and there’ll be a follow-up asking a member of staff to sign a form to confirm an order you haven’t made. Next thing you know you’ve a delivery of over-priced unwanted goods and an extortionate bill. Don’t place an order over the phone unless you know who you’re dealing with.
• Domain name registration​ — you get a call or a letter telling you that you need to re-register your website because somebody else is willing to pay a high price for your domain name. Under pressure you pay an excessive fee. Contact your usual service provider to check.
• Charitable publishing​ — a telesales call asks you to place an advertisement in a publication with the money going to a ‘good cause’. Don’t place an order over the phone — ask to see written details and full terms and conditions first.
• Fake invoices​ — you receive an invoice for goods or services warning you that payment is overdue. But you haven’t actually bought anything. Always check your purchase orders first.
• Bogus Government agencies​ — an official-looking letter or email tells you that you need to pay a fee to comply with some piece of legislation. They might even pose as the OFT! Check first with the Government department responsible for the legislation.
• Premium rate calls ​— an email asks you to ring a number that turns out to be a premium rate line costing you up to £1.50 a minute. Be wary of numbers beginning 09 or 070 and check the cost at www.phonepayplus.org.uk.

How to protect your business​

The OFT offers the following general advice:

• Have a limited number of staff authorised to approve purchases of goods and services and ensure other employees know they can’t discuss orders or payments. Ask them to make a note of conversations they have with cold-callers or people claiming they already do business with you.
• Never agree to anything in a rush. Remember, it’s possible to make a legally-binding contract over the phone. It’s one person’s word against another’s.
• Research the goods or service being offered.
• Read the small print thoroughly before signing any paperwork so you know what you are committing to and how much it might cost.
• Keep copies of all paperwork, proof of posting and other correspondence.
• Don’t be pressured into paying for services you haven’t agreed to, that don’t match what you ordered or were promised and haven’t been provided. Take advice on your legal rights if you’re unsure.
• If you’re threatened with debt collectors or a credit ‘black-listing’ remember that ultimately only a court can decide whether you’re liable to pay.

Telephone Preference Service​

Many scams begin with an unsolicited telephone call.

You can block them all simply by registering with the Telephone Preference Service (TPS).

The TPS is a central opt-out register where you can register your wish not to receive unsolicited sales and marketing telephone calls, and then it’s against the law for companies to cold-call your number.

Sole traders and (except in Scotland) partnerships can register with the TPS by calling 0845 070 0707 or online at www.mpsonline.org.uk/tps​.

TOP 10 PUB SCAMS​

Each of the following have recently targeted pubs:

• The health & safety audit​: “I’m from the Health & Safety Executive and you owe us £1,000 for compliance documentation.”
• The Drinkaware calendar​: “Can I sell you an ad in our calendar?”
• The advert​: “Would you like to buy an ad in our local magazine/pub guide?”
• The charity collector: ​“Hello. I’m collecting money today for a very worthwhile charity. Me.”
• The Champagne Charlie​: “I’d like to buy a case of very expensive Champagne with this stolen credit card.”
• The fictitious Fire & Police Association​: “Would you like to pay for a mention in our fire safety handbook/don’t-drink-and-drive publicity?”
• The fruit machine removal​: “We’re from your fruit machine company and have come to change your machine.”
• The Greek priests’ translator​: “We’d like your pub to host our conference. Would you mind paying the translator?”
• The rogue rates expert​: “Pay us, and we’ll take hundreds off your business rates bill.”
• The fake purchase ​: “Your barman ordered this and if you don’t pay up we’ll take you to court.”