Protect Against B2B Ship-to Scams

One of the many forms of fraud targeting businesses today is ship-to fraud. This fraud occurs when a scammer posing as a customer with a good credit history and verifiable billing address has an order shipped to an address not associated with the reputable business and then doesn’t pay for the ordered goods.

The scammer may first place a few small orders and pay promptly to appear legitimate and earn an increased credit limit before placing a larger order.

Experian recently identified seven steps to reduce the risk of ship-to fraud:

• Review business application processes.
• Compare ship-to addresses with operating location addresses.
• Determine whether the ship-to address is a freight forwarder or consolidator.
• Use caution if the ship-to address is a P.O. box.
• Investigate the address online.
• View the location online.
• Help employees identify red flags.

For more detail about each of these tips, view Experian’s blog.