Yellow Pages America, Inc.

Business owners should be on the lookout for phony business directory schemes that are advertised to help your business, but are really out to steal your money. Yellow Page Directory scams have been around for years and with online resources so readily available, it has becoming easier for scam promoters to solicit businesses for alternative yellow page directories. Small to medium sized businesses, churches, and nonprofit businesses have been hit hard from unscrupulous scammers perpetrating the directory scam.   These alternative directories often are not widely distributed, or may not be published at all.  Businesses are being deceived into paying for what they erroneously believe to be their usual Yellow Pages ads.

Complaints typically allege businesses are contacted from someone claiming they are calling to verify information about the business for their existing listing. Believing that the order was legitimately placed, the employee willingly gives up details such as an address, phone number, or other information said to be for verification purposes.   The caller then fires off a series of questions that may be recorded, sometimes slipping in references to the cost. By recording the calls, the scammers can edit them as needed. Simply saying “yes” can be a big mistake.

Shortly after the “verification” call, the business receives an urgent invoice, and at times a copy of the “directory”. Some of the invoices are for hundreds of dollars. Most often, the directories are useless and are never distributed or promoted as promised. Often, online directories are simply websites with listings of various businesses. In numerous cases, the person responsible for paying bills will simply make a payment, not realizing the company never agreed to pay for the directory service. Once they discover the invoice was paid in error, it is difficult to contact the company, let alone obtain a refund.

In cases where the invoice is caught, oftentimes when the fraudulent scammers are contacted to cancel invoices and services, they threaten collections or legal action to get payment. They commonly refer to the “recording” they made when they called initially, or use the individuals name they spoke with claiming they authorized the charges. Some have even partnered up with collection agencies that further the scam by sending collection letters and making harassing calls for payment. Another approach they may use when businesses refuse to pay the bill is to offer a “discount” or they may allow for the directory to be returned, at the businesses expense, but insist on payment for the so called listing. Unfortunately, many businesses pay, thinking the problem will go away. What they don’t realize is their information can be sold to other fraudsters who will try the same scheme later on.

The U.S. Postal Service requires solicitations that look like invoices, bills, or account statements to carry one of the following notices:

THIS IS NOT A BILL. THIS IS A SOLICITATION. YOU ARE UNDER NO OBLIGATION TO PAY THE AMOUNT STATED ABOVE UNLESS YOU ACCEPT THIS OFFER,

or

THIS IS A SOLICITATION FOR AN ORDER OF GOODS OR SERVICES, OR BOTH, AND NOT A BILL, INVOICE OR STATEMENT OF ACCOUNT DUE. YOU ARE UNDER NO OBLIGATION TO MAKE ANY PAYMENTS ON ACCOUNT OF THIS OFFER UNLESS YOU ACCEPT THIS OFFER.

Before you buy directory advertising or agree to these services consider the following:

·         Check out the business by obtaining a reliability report and also internet searches to verify the company is legitimate and to identify any problems that others may have had with the business.

·         Ask to see the directory and contact some of the businesses listed and ask about their experience and to see if it was a good purchase.

·         Verify where the directory is distributed and how, how often it is published, and circulation information.

Business Consumer Alliance advises business owners to be cautions when contacted by unsolicited sales persons. Pay attention and review invoices that are sent to your business. Make sure your accounting personnel or staff designated to pay your invoices are aware of whom your regular suppliers are and which services your company has authorized.  Educating your staff to recognize these types of scams, and perhaps posting reminders on what to look out for may help foil these scammer’s plans.  Do not pay for products or services you’re not sure are authorized. If you have been victim to this type of scheme be heard. File a complaint to warn others of your experience. You can also contact the US Postal Inspection Service, or your state’s attorney general office.