Company Verification a Growing Tool to Avoid Fraud

Companies around the world lose millions of dollars each year as victims of internet fraud are growing in nearly every country where statistics are kept.  It is a growing problem and governments and law enforcement agencies seem unprepared and under budget to deal with the threat.  In many cases, police face jurisdictional problems as many criminals operate from other countries.

For CEOs and small business owners eager to succeed in today’s global market, it pays to go abroad.  Finding deals internationally can be quite lucrative, although it does carry higher risk.  It is very hard or impossible to notice the difference between a real company and a fake one, as internet scammers develop professional looking websites that can fool even the most skeptical business people. Even more, false companies are often even registered, so everything seems to check out for the average person attempting to do their due diligence. Company verification service is for those seeking to minimize their risk, and know for certain a company and deal is real.

In the past years, small American businesses, have been seriously threatened with business scams and many of them have gone bankrupt. Internet business fraud is a serious threat.  Doing business with a fraudulent supplier or business partner in China or India or elsewhere can lead to disaster and serious financial losses.  It’s essential to verify unknown companies and even new contacts from established companies.  In some cases, the company may be real and reputable, but the contact person is in no way employed or representing the company or firm.

Besides verifying websites and international businesses with the Better Business Bureau or their local chamber of commerce agency, a company verification investigation is a different level of verification for those serious about due diligence and minimizing risk.  The truth is, company verification is due diligence that should be part of the check list before engaging in a relationship with a foreign country.  This investigation should be conducted by professional investigators that have experience with due diligence and have operations in the country where you’re investing or starting your international operations with a new supplier or business partner.

For seasoned investigators with the proper tools, training and resources, it’s easy to determine if a company is legitimate, fake or involved in fraud, and the verification results should help you avoid the potential pitfalls.  Most international investigators recommend businesses looking to invest or expand in the international markets not to procrastinate and verify first, then decide.  

All the best,

S. Birch 
© 2013 S. Birch