BBB small business advice on fighting 'friendly fraud'

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Businesses are increasingly becoming victims of "friendly fraud"--fraud carried out by customers to get items free of charge. The Better Business Bureau warns small business owners to be on the lookout for “friendly” fraud and offers advice on how to protect against this growing online threat.

According to the Wall Street Journal, many companies--for example, the travel site Expedia--are currently seeing up to a 50 percent spike in friendly fraud since October 2008. The most common types of friendly fraud involve cases in which a customer falsely claims they:
  • never received an item ordered online;
  • received the wrong item ordered online; or
  • had their credit card stolen and were charged for items they didn't order.
The customer then demands a refund from the business. When "friendly fraudsters" are unable to coax reimbursements from a business directly, many then issue chargebacks to their credit card companies. Creditors will investigate the situation, asking for the business owner's side of the story before deciding whether or not the business is at fault.

Defending a business against friendly fraud is no easy task, but there are steps to take. The BBB offers the following advice to small business owners:
  • Verify the buyer's billing address before sending merchandise. Some retailers require that the billing and shipping address match before fulfilling an order. However, some businesses have found that simply paying for an Address Verification Service, which confirms that the billing address matches the address associated with the credit card, is sufficient.
  • Use a shipper that tracks delivery. Some shipping firms provide tracking information and signature confirmation. Such information can help shed light on whether or not the customer really didn't receive the goods.
  • Deactivate or deny access to products. For retailers that do not ship tangible items, but rather items such as downloads or access to sites, a plan for denying access is both prudent and practical.
  • Clearly state your return policy on your Web site. This includes any product guarantees, time restrictions, condition requirements or fees--such as for restocking.
  • Be prepared to make your case to the credit card company. Staying organized and presenting a solid case--including records of delivery or reimbursement and your return policy--in the face of a chargeback will assist the credit card company and increase your chances for a favorable resolution.
  • Analyze sales records. This can help you identify consumers who charge back items on a regular basis, enabling you to decide whether or not to stop doing business with them.

For more advice on defending your small business from fraud, visit www.bbb.org.
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Grilled meats get their own online dating service

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SPONSORED POST

Who knew the center of plate could be such a lonely place? A new website called www.grilledandlonely.com, that's who.

Ostensibly a way for "centers to find their true sidemates," Grilled & Lonely lets foodservice operators search for recipe ideas to accompany grilled proteins according to compatibility factors like snuggling, commitment, or a fresh start. You can also "speed date," instant random pairings, and there's a section of success stories called "happily menued after."

As if that weren't fun enough, on Twitter, you can also solicit grilled relationship advice from Mr. Lonely Grill (@mr_lonely_grill), who offers entertaining responses like "don't blame the potato" and "all steaks fall for asparagus at some point." Mr. Lonely Grill is, of course, also there to help you solve your center of plate pairing woes.

The site and tweets are sponsored by Bush Brothers, the good people behind Bush's Best® Baked Beans, the number-one brand of baked beans in the country. So it's no surprise the sides on Grilled & Lonely are bean-based. Sides that incidentally look pretty good.

The site was created for Bush Brothers by Marlin and The Alchemedia Project, both based in Springfield, Mo.
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