Modern businesses depend on the internet to get any trust in other businesses if they are looking into them. This makes it a web of trust, and they have to trust their partners, the supplying team, and also all the consumers. To run checks on entities that you carry out business transactions with is indeed a smart thing to do. Criminals have come up with numerous schemes which make use of fake companies to carry out fraudulent activities. Companies do have the potential and the capability to deal with thousands of customers at the same time, so fake companies do have a way of revealing themselves sooner or later. Fake/ fraudulent companies have a way of casting out a wide net to see who gets caught in it. Here are a few schemes that they might try:
– Cat-fishing: Sending some fake emails with viruses in them to collect information about a company or someone in an illegal way.
– Committing tax fraud: Making it seem like there are employees when there are none and then receiving funds on their behalf and then enjoying the personal benefit.
– Stealing someone’s identity: Setting up some fake jobs to take someone’s personal information and then utilize it to make up some more fake profiles in order to illegally make money.
– Setting up deceptive websites for personal gain: Tricking and luring some unwitting people into a fake website full of irrelevant information and in some cases, even viruses.
Fortunately, it is indeed easy to find out and identify a fake company because there are so many signs. It merely involves putting in the registration information in a government agency and then paying a fee. It is also easy to identify because their fake site will have a lot of telltale signs. It will not be authorized, and it will not have a premium vibe to it either. Everything on the site will have malware, and too many advertisements. At some point, you start to wonder why they go through so much effort to create a fake site and then get caught for it.
Because of this, it is indeed very essential that you validate the company information before you start doing any business with them. As more and more business transactions are done on the internet, an on-site visit is not advised. You should find out the real location of the business and where they operate and how long they have been operating there. You should also know the occupation and the nature of the business. Before getting into business with any organization, you should confirm the purpose of that business and also make sure all their transactions are genuine.