Small businesses are continuously looking for opportunities to advertise or promote themselves in their respective communities. Often small businesses advertise in local newspapers, magazines and on street poles in order to attract the attention of their communities.

The need of small businesses in promoting their products and services naturally attracts the attention of fraudsters who subsequently infiltrate this market in performing their cunning scams on these institutions.

How the Scam Works

Scammers of the business directory scam will approach small businesses in a certain area and inform these institutions of a new business directory, community newsletter or any other distribution media that will be released and distributed, free of charge, to thousands of residents in the area.

Small business owners will be persuaded to advertise in these publications at very low rates. Often scammers will offer all businesses owners prime advertising space on the front page or full page advertisements throughout the publication if they reserve advertising space immediately. Small business owners will also be offered free advertising design if they sign up with immediate effect.

In order to lend credence to their scams, offenders will request upfront payment from advertisers, but victims will be informed that they only need to pay a 50% deposit. The remaining 50% will be payable once the advertisement has been designed and is ready for placement.

Offenders will receive these 50% deposits from small businesses and then disappear to another area where they will start the scam all over targeting new businesses. The promised publications will never materialize.

Protecting Yourself Against These Scams

Small businesses should always be wary when approached by an individual selling advertising space in unknown publications.

It is highly suggested that the publications be researched before a decision is made on advertising. Things to look out for or ask the agent should include:

• How long has the publication been in circulation
• How many residents will receive the publication
• Who will do the distribution
• Who is the holding company of the publication
• View previous samples of the publication
• Who will be doing the layout and printing of the publication
• Who are previous advertisers

Once these questions are answered, it is suggested that phone calls are made to the company to establish their existence. Contact previous advertisers and ask their comments. Contact the printing and distribution company and ask questions about the publication and the number of the prints that will be released.

By: Kaung | KMKBlog.com