Office supply scams are a tricky form of vendor fraud that often exploits behavioral psychology and poor office communication. While they might not cause significant financial losses individually, the costs can add up over time. Fortunately, there are ways to prevent them.
How the Scams Work
These scams usually begin with telemarketing fraud, where someone contacts your business to get your address and an employee’s name. Callers might:
- Ask to speak to the “person in charge,”
- Claim they need information to finalize an order, or
- Falsely state they need to verify the serial number of an office machine.
The goal is to get a name to lend credibility to fake shipments and invoices. For example, a supplier might send low-quality gel pens and follow up with an expensive invoice after a week or two. The delay is
intentional, hoping you won’t notice the inflated price and feel obligated to pay if the pens have been used.
Some scammers might offer a promotional item, like a coffee cup, and casually mention they’ll include printer ink cartridges. They won’t tell you there’s a bill for the ink, expecting you to pay for it.
Another common scam is the “gift horse” tactic. A scammer sends a promotional item to an employee and later sends you unordered merchandise. When you receive the bill with the employee’s name, the scammer hopes the employee will be anxious about accepting the promotional item, leading you to believe they mistakenly ordered the merchandise.
Preventing Office Supply Fraud
Protecting your business requires a collective effort. Instruct all employees to redirect telemarketing calls to designated buyers. These buyers should have formal procedures for recording and authorizing purchases, including generating purchase orders or internal reference numbers. Vendors should be instructed to include these numbers on shipment documents.
When receiving merchandise, your receiving department should verify that it was ordered and that the packing list matches the contents. The final recipient should check the quality and quantity of the items. If everything is correct, the receiving department should forward a copy of the bill of lading to accounts payable for reconciliation.
Treat Unordered Items as Gifts
Legally, your business is not obligated to pay for unordered shipments. You can consider such merchandise as a gift and keep it without payment. If vendors insist on payment, you may need to consult your legal counsel. For more information on preventing fraud, please contact us.
