How to Detect Fraudulent Wholesalers and Companies?


By William King

Recently there has been an influx of fraudulent wholesalers and dubious bulk discount stores on the net. This article concentrates on how to detect such companies and what necessary checks must be carried out before investing in any business venture.

To detect whether the wholesaler or the company, being dealt with is genuine or not, these checks must be considered.

- A professionally designed website with a good layout is not an indicator that the business is genuine. A lot of wholesalers do not have great looking sites but are registered and authentic businesses. Never EVER get convinced by the design of the site.

- Ensure that the wholesaler accepts payments via credit/debit cards and other online payment methods like paypal, nochex etc. If the company ask you to wire (BACS) money directly into their account then avoid trading with them as most definitely they are scamming you. Card payments in most cases can be easily traced and charged back whereas with money transfers, once the funds have left your account, they are gone forever.

- Try to talk to a representative of the company on the phone, it is always nice to talk to someone and clear your doubts.

- Visit their contact page and look for their contact/postal address. Try to determine whether it is a physical postal address or just a mailbox. If it’s a mailbox, find out why the wholesaler doesn’t have a proper postal address and where do they actually trade from?

- Request to visit their warehouse or trading office, even if there is no specific intention of doing so. Any fraudulent company would be hesitant to let you visit their premises.

- Visit the Companies Database provided by governmental bodies such as the one in UK: www.companieshouse.gov.uk and use their search index to determine whether the company is registered with them or not. Sole traders do not have to register and as result this would only serve as a secondary check but none the less will definitely help to clear any doubts.

Performing these checks will most definitely help to differentiate a scam company from legitimate wholesalers. After all any business venture involves a number of risks and seeking professional help is always a better option than making decisions based instincts and feelings. For the creator of scams, only one thing can be said: Fraud in the end secures for its companions only repentance and shame.


More Resources

Three-pronged Trojan Attack Threatens Security on the Internet
Glieder (Win32.Glieder.
Personal Firewalls - Secure Your Computer
There has not been a time in the history of the personal computer that firewalls and anti-virus programs have been more necessary and in-demand. Today, personal computer security is not only threatened by viruses and worms, but also by spyware - those severely annoying programs that are illegally loaded onto your computer from the internet.
Types Of Computer Infections
Computer infections can be broken up into 4 main categories which are explained in detail below:VirusesComputer Viruses are small pieces of software that attach themselves to real programs. An example would be a virus that attaches itself onto windows explorer.
Network Security 101
As more people are logging onto the Internet everyday, Network Security becomes a larger issue. In the United States, identity theft and computer fraud are among the fastest rising crimes.
Secure Your PC From Hackers, Viruses, and Trojans
Viruses, Trojans and Spyware: Protecting yourself.No user on the internet is safe from assault.
Make Money Online - Defend Against The Latest Scam
First, let's do a little recap'. As I stated in the first part of the article, "Make Money Online - The Latest Scam Disclosed", "refund policy scammers" affect the websites that make money online by selling digital products by buying the product and asking for refunds, while keeping the product.
What Every Internet Marketer Should Know About Spyware
If you run any type of Internet business, Adware and Spyware can be a very serious issue. These programs hide themselves on your computer and do all sorts of annoying and potentially dangerous things.
Delete Cookies: New-Age Diet or Common Sense Internet Security?
No, this article isn't about some new, lose-20-pounds-in-a-week, certified-by-some-tan-Southern-California-doctor diet. It's about cookies on your computer - what they are, why they are there, and what to do about them.
Desktop Security Software Risks - Part 1
This is the second in a series of articles highlighting reasons why we need a new model for anti-virus and security solutions.Reason #2: the Desktop Security Software RisksThe risks of placing software on the desktop are such that I will be breaking this article into two parts.
Identity Theft -- 10 Simple Ways to Protect Your Good Name!
Identity Theft is one of the most serious problems facing Internet users. Identity Theft is exactly as the name states -- someone steals your Identity and commits fraud in your name.
How Can Someone Get Private Information From My Computer?
From the "Ask Booster" column in the June 17, 2005 issue of Booster's Auction News, a free ezine for online auction sellers and enthusiasts.Dear Booster,How can someone get private information from my computer?Thank you,Evan S.
Make Money Online - Latest Scam Disclosed
Before we start, I want to make it clear that this article is about scammers that affect people who make money online by selling digital products, like e-books, software, etc. and have a refund policy, because we have a rather long way until the end and, if you are selling physical product or you money online through affiliate programs that don't involve a refund policy it's probably just a waste of time.
Protecting Your Home Both Inside and Out
If you are a parent, you have probably wondered at one time or another, what more you can do to protect your children and yourself, not only physically but emotionally, mentally, spiritually etc. Today many parents and families are discouraged.
7 Ways to Spot a PayPal Scam E-Mail
Paypal is a great site and is used by many to send and receive money. Unfortunately some dishonest people are using the Popularity of Paypal to line their own pockets with gold at the expense of unsuspecting Pay Pal members.
How Free Scripts Can Create Security Problems
With the Internet entering our lives in such an explosive manner, it was inevitable that Internet security issues would follow as well. While credit card frauds are an offline security problem that has been carried over to the Internet as well, spamming and phishing are uniquely Internet security hazards.
Sarbanes-Oxley: A Cross-Industry Email Compliance Challenge
Is your enterprise following the rules?The bulk of financial information in many companies is created, stored and transmitted electronically, maintained by IT and controlled via information integrity procedures and practices. For these reasons, compliance with federal requirements such as the Sarbanes-Oxley Act (SOX) is heavily dependent on IT.
Hacked: Who Else Is Using Your Computer?
A friend called me one day and asked if I would stop by to look at his computer. He said it was running abnormally slow and he had found something on his hard-drive he could not explain.
Spyware, This Time Its Personal!
First the basic definition of Spyware: It is a type of software which is installed onto your computer without your permission..
A Basic Introduction To Spyware
Spyware is the most troublesome software to appear on theInternet in recent times. When spyware infects a computersystem, it may be relatively harmless or it may bedevastating.
Watch Out For That Scam
The IFCC (Internet Fraud Complaint Center) received over 200,000 complaint submissions for 2004, an increase of 66.6% from 2003.

More Security Information:

Related Articles

Three-pronged Trojan Attack Threatens Security on the Internet
Glieder (Win32.Glieder.
Personal Firewalls - Secure Your Computer
There has not been a time in the history of the personal computer that firewalls and anti-virus programs have been more necessary and in-demand. Today, personal computer security is not only threatened by viruses and worms, but also by spyware - those severely annoying programs that are illegally loaded onto your computer from the internet.
Types Of Computer Infections
Computer infections can be broken up into 4 main categories which are explained in detail below:VirusesComputer Viruses are small pieces of software that attach themselves to real programs. An example would be a virus that attaches itself onto windows explorer.
Network Security 101
As more people are logging onto the Internet everyday, Network Security becomes a larger issue. In the United States, identity theft and computer fraud are among the fastest rising crimes.
Secure Your PC From Hackers, Viruses, and Trojans
Viruses, Trojans and Spyware: Protecting yourself.No user on the internet is safe from assault.
Make Money Online - Defend Against The Latest Scam
First, let's do a little recap'. As I stated in the first part of the article, "Make Money Online - The Latest Scam Disclosed", "refund policy scammers" affect the websites that make money online by selling digital products by buying the product and asking for refunds, while keeping the product.
What Every Internet Marketer Should Know About Spyware
If you run any type of Internet business, Adware and Spyware can be a very serious issue. These programs hide themselves on your computer and do all sorts of annoying and potentially dangerous things.
Delete Cookies: New-Age Diet or Common Sense Internet Security?
No, this article isn't about some new, lose-20-pounds-in-a-week, certified-by-some-tan-Southern-California-doctor diet. It's about cookies on your computer - what they are, why they are there, and what to do about them.
Desktop Security Software Risks - Part 1
This is the second in a series of articles highlighting reasons why we need a new model for anti-virus and security solutions.Reason #2: the Desktop Security Software RisksThe risks of placing software on the desktop are such that I will be breaking this article into two parts.
Identity Theft -- 10 Simple Ways to Protect Your Good Name!
Identity Theft is one of the most serious problems facing Internet users. Identity Theft is exactly as the name states -- someone steals your Identity and commits fraud in your name.
How Can Someone Get Private Information From My Computer?
From the "Ask Booster" column in the June 17, 2005 issue of Booster's Auction News, a free ezine for online auction sellers and enthusiasts.Dear Booster,How can someone get private information from my computer?Thank you,Evan S.
Make Money Online - Latest Scam Disclosed
Before we start, I want to make it clear that this article is about scammers that affect people who make money online by selling digital products, like e-books, software, etc. and have a refund policy, because we have a rather long way until the end and, if you are selling physical product or you money online through affiliate programs that don't involve a refund policy it's probably just a waste of time.
Protecting Your Home Both Inside and Out
If you are a parent, you have probably wondered at one time or another, what more you can do to protect your children and yourself, not only physically but emotionally, mentally, spiritually etc. Today many parents and families are discouraged.
7 Ways to Spot a PayPal Scam E-Mail
Paypal is a great site and is used by many to send and receive money. Unfortunately some dishonest people are using the Popularity of Paypal to line their own pockets with gold at the expense of unsuspecting Pay Pal members.
How Free Scripts Can Create Security Problems
With the Internet entering our lives in such an explosive manner, it was inevitable that Internet security issues would follow as well. While credit card frauds are an offline security problem that has been carried over to the Internet as well, spamming and phishing are uniquely Internet security hazards.
Sarbanes-Oxley: A Cross-Industry Email Compliance Challenge
Is your enterprise following the rules?The bulk of financial information in many companies is created, stored and transmitted electronically, maintained by IT and controlled via information integrity procedures and practices. For these reasons, compliance with federal requirements such as the Sarbanes-Oxley Act (SOX) is heavily dependent on IT.
Hacked: Who Else Is Using Your Computer?
A friend called me one day and asked if I would stop by to look at his computer. He said it was running abnormally slow and he had found something on his hard-drive he could not explain.
Spyware, This Time Its Personal!
First the basic definition of Spyware: It is a type of software which is installed onto your computer without your permission..
A Basic Introduction To Spyware
Spyware is the most troublesome software to appear on theInternet in recent times. When spyware infects a computersystem, it may be relatively harmless or it may bedevastating.
Watch Out For That Scam
The IFCC (Internet Fraud Complaint Center) received over 200,000 complaint submissions for 2004, an increase of 66.6% from 2003.