Corporate fraud techniques


Been watching a FTC case against a local webhosting company. Interesting reading. So, how does fraud work? Well, here's a quote from the FTC attorneys, revealing at least one technique that is common among frequent fraud abusers:

"The operators repeatedly changed the names of their companies to avoid detection by telephone companies they rely on to bill consumers and to evade scrutiny from law enforcers".

Interesting. I've run across other companies and business leaders who regularly do the same thing: that is, they're always changing their company name, registering new corporations, billing the same client through multiple assumed names or corporations, etc. I take that as a clear "tell" to watch for when determining whether the business guy you're dealing with is a fraudster or not. :)

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Posted: Tue - November 28, 2006 at 04:58 PM

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