COMMON FRAUDS AGAINST BUSINESS

BUSINESS TIPS

1 page, latest update 6/99

YELLOW PAGES: FAKE REBATE SCAMS

Like other fake Yellow Pages scams, the envelope and documents that arrive at targeted businesses are designed to deceive the business into believing the correspondence is from the Yellow Pages of the local telephone service's.  Outside the envelope, there is a notation, "Check Enclosed."

Inside, the envelope is a check made out to the victim business and may be called an instant rebate check, instant cash rebate or some similar designation.

Here's how the scam works: The small print on the so-called check includes terminology that shows that by endorsing the check the endorser is signing up for a monthly charge for a service--such as an Internet listing--at a monthly fee that will be billed to the business on the regular monthly telephone bill.

In other words, although the document gives the appearance of being a check it is actually a contract which authorizes a monthly service charge that may not be questioned or even noticed on the business's telephone bill for an extended period.

In one case, reported by the BBB by businesses endorsing a "Yellow Pages Instant Cash Rebate Check" in the amount of $3.50, were actually signing up for a $12.50 per month Internet listing and contracting for one year of service--payable in advance.  That is, the next telephone bill received by the businesses that were victimized by the scam contained an additional $150 charge.  The BBB has called this scam
"Cash a Check, Get a Big Bill."

Businesses, like people, seldom get something for nothing and any unanticipated checks received should be scrutinized to avoid deceptions like this.

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