ASA warns advertisers of fake invoices
26 October 2004
Picture the scene. The senior managers are off on holiday, sunning themselves on the other side of the world. You're left in the office sorting out the incoming mail. In front of you is an invoice demanding payment for inclusion in an Internet directory. Payment must be immediate and if you don't pay up, the invoice threatens legal action. What do you do?
Panicking, or perhaps not even thinking about what they are doing, many staff have quickly signed the invoice and sent off a cheque, not knowing they have inadvertently locked their companies into lengthy and expensive contracts, often for subscriptions to, or inclusion in, Internet or printed directories.
In recent years, the rogue traders behind this scam have used the summer holiday period to send out fake invoices relying on senior managers being on holiday, leaving payment of what may look like urgent invoices to more junior members of staff.
The mailings are usually sent from countries such as the Czech Republic, Romania, Switzerland and Austria and are targeted at small and medium sized businesses.
The ASA and CAP are working with the European Advertising Standards Alliance to ensure complaints about these scams are investigated and that businesses are aware of how to identify the fake invoices. Complaints are referred to the country of origin for investigation under the EASA's established cross-border complaints procedures.
The EASA has produced this checklist:
- Check all invoices carefully - especially those coming from abroad or from unknown suppliers
- If you are in doubt about the validity of the invoice, call the company or contact the usual sales rep. All reputable firms will be happy to share information
- Check the invoice for smallprint and read it
- If you realise that you have mistakenly paid a fake invoice, contact the company and request an immediate refund. Report the mailing to the Advertising Standards Authority: it probably breaks clause 7.1 of the CAP Code. And refer it to the Office of Fair Trading.
- Check the European Advertising Standards Alliance website, www.easa-alliance.org, and the ASA website, www.asa.org.uk, for regular updates on such mailings