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Fake Bills - Pro Forma Invoicing
What is pro forma invoicing?
This is a bill your receive for goods or services
that you never requested. The scam typically involves sales people from a publishing
company contacting a business and falsely claiming that
the business agreed to advertise in a particular
publication. This is also called "false invoicing" or
"false billing". The scam primarily targets small
businesses. It is a breach of the law to
engage in pro forma invoicing.
A variation of pro-forma invoicing is ads disguised to look like a bill or
invoice: see our page on "Deceptive Ads and Mock bills: sales materials that look like invoices".
How to avoid pro forma invoices
- Ask for proof that the advertisement was agreed
to - no proof, no payment.
- Verify the booking with colleagues.
- Ask if the publisher has had a circulation audit
done by the Circulations Audit Bureau (CAB) or the
Audit Bureau of Circulations (ABC). While the
absence of an audit does not necessarily mean the
publication is not genuine, its presence is positive
evidence otherwise.
- Ask for specific evidence that the publishing
company has been commissioned by an organization to
publish the magazine on their behalf.
- Keep records of telephone conversations
discussing advertising, including date, what was
discussed and who it was discussed with.
- Have an advertising booking system in place and
ensure all staff are aware of it.
- Inform the company in writing that the
advertisement they are charging you for was not
authorized and will not be paid for.
- Seek legal advice if threatened with legal
action.
- In the U.S. file a complaint with the
Federal Trade Commission.
In New Zealand, inform the
Commerce Commission.
List of companies and persons fined for pro forma
invoicing
Companies and individuals that have been fined in
around the world are:
- Debson Holdings Ltd, trading as D&H Publishing
and Debson Publishing
- Hilltop Publishing Ltd
- Mainland Media Ltd
- Pana Publishing Ltd
- Peach Holdings Ltd
- PKL Publishing
- Summit Publishing Ltd, trading as SPL Publishing
- Zennith Publishing Ltd
- Mr Ashley Guy Rhodes
- Mr Peter Dey
- Mr Anthony John Hendon.
- International Business or Fax Directory
(published by IT and T, Switzerland)
- International Trade and Business Directory
(published by United Telecom. Trust Switzerland)
- Internet Business Guide (published by UTP
Digital Directories, Switzerland)
Reports from CFR website visitors
- International Directories Corporation - Feb 2007,
seen again in March 2008 - The invoice
has the company president's forged signature at the bottom of the invoice.
It is not his actual signature but is pretty close. Just above the signature
it says: The following signature and statement were received earlier on a
returned update sheet authorizing making this offer. The payment address
listed is:
International Directories Corporation
130 Church St., #365
New York, NY 10007
Amount of the invoice is usually between $100 and $1,000.
See this page for more
information.
If you receive an invoice from these companies, we
suggest you do not pay, and instead, contact
your state attorney general's office.
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