posted on 2012-11-29 by Dean Kaplan
Before extending credit to potential customers, companies
need to validate the
information provided on the credit applications. When fraudsters turn in their credit
applications, they are hoping that creditors will not carefully check the
information, thereby allowing fraudulent purchases. One important step in any credit application
verification is to confirm the physical address of the customer is legitimate
and a commercial building. This can be
accomplished very quickly by any internet user using Google Maps.
Using your web browser, go to Google Maps. You will see an address field near the top of
the page. Enter the customer’s business
address in this field. Using the
satellite view zoom in to quickly determine the type of building at the
address. If it is available, use the
street view for an even closer look.
Continue to investigate if:
·
the address is clearly a residence, not a
commercial building;
·
the signage in front of or on the building does
not show the customer’s name;
·
The building does not look like it would be
appropriate for the type of business the customer has.
One important step is to determine if the address is a
mailbox service, executive suites building, or a UPS store. In our experience, these types of buildings
are frequently used by fraudsters.
There are several ways to determine if a commercial building
is a mailbox service such as a UPS store.
When you search an address on Google Maps, it will typically list the
names of the businesses located at that address. Keep researching if:
·
more than one business is listed at the address;
·
the businesses at the address list suite
numbers, which may actually be P.O. box numbers;
·
The name of one of the businesses listed is
recognizable as a mail service, package, copy or print business.
Once in a while, your Google Map search will yield no
result. If this happens, copy and paste
the address into your regular search engine for a quick search. Recently, when we ran a Google Maps search
the address did not show a UPS store at the address. However, when we ran a search engine search,
the result was a UPS store address and phone number which turned out to be
fraudulent.
It is always risky to ship product to a P.O. Box because you
will have no way to verify if your customer actually took possession of the
merchandise. The only proof you will
have is that the executive suite or mailbox service received the product. In this situation, if the customer ends up
not paying for the merchandise, any collection effort will be unsuccessful.
If you determine that the customer’s address is a mailbox
service, request the physical address and verify it. If the address is inside a mall, confirm that
the physical location is a true store and not a kiosk in common space. Validate any home addresses listed using
Google Maps and search engine searches.
In a case where the business does not have a permanent commercial
location or if the customer provides a personal guarantee, it is critical to
request and verify the home address.
Confirming a customer’s business address is one of several
steps to preventing fraud. For other
tips on fraud prevention, visit The
Kaplan Group’s website for free downloadable resources.
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