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Insolvency Related Scams

Several corporate houses which were functioning with enormous profits have become bankrupts due to the illegal activities of the scammers those who are operating from the far-east and third world countries. Individuals those who are rich and affluent have also lost several million dollars to these scammers those who operate in different names. Though these scammers follow regular and traditional methods like telephone call, mails, couriers and posts to swindle the money they also follow several sophisticated methods to siphon off the individual's money. Customers those who do multiple financial transactions through the banking platforms should exercise maximum caution like changing the online passwords.
Scams related to insolvency are gaining maximum popularity these days and several people have lost their hard earned money to these types of bankrupt people. In these types of general business fraud a company will trade fraudulently after it has been declared as insolvent company. The directors and the top management of the insolvent company will create a new company overnight and will trade with the public without informing anything about the old entity. The individuals or business houses those who receive mails from an unknown company requesting urgent money should show maximum caution while replying. The recipients of the mails should delete them immediately or should not reply to the scammers. The business firms that generally falls trap to these types of companies are credit card companies, hire purchasing companies and other personal loan companies.
Credit card companies or financiers often lend loans to the newly opened companies when they are happy with their credentials. When the scammers receive the loan check from the credit card companies they will deposit the money and siphon it off after it credits into their account. Credit card companies should exercise maximum caution while providing loans to the newly opened companies and also they should perform background verification checks of the directors, general managers and others those who work in the newly opened companies. If they find any malpractice they can easily stop releasing the loan check.
Business houses or commercial establishments should always follow fair practice and follow the rules and regulations that are set out by the government systematically. But certain illegal unregistered entities like chit funds siphon off the hard earned money of the individuals or credit card companies in a wink of time. Individuals and others should be careful while dealing with insolvent companies or the companies that have been declared as bankrupts. Loan disbursing companies should verify the reputation of the companies that are requesting large sums of loans and check verify the credentials of the top management. Only when they are totally convinced can offer loan check to the newly opened companies.
Companies that are offering credit card or personal loan should follow the below mentioned guidelines before taking positive stand:
  • Verify the authenticity and reputation of the companies that are requesting heavy loans
  • Should perform detailed background check of the company and the employees those who are holding high ranks in it.
  • Should analyze their bank books thoroughly and check whether there is any default in payment.
  • Should be thoroughly convinced about the honesty of business houses that are requesting funds.
  • If they find that the company which is asking loan is insolvent one then they have to escalate to police or cyber authorities.
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