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Scams » Tips to Rip-Off Scams » Pro-forma Invoicing
Pro-forma Invoicing
The scam involves sales people from a publishing company contacting a business and falsely claiming that the business agreed to advertise in a particular publication. This is also called "false invoicing" or "false billing". The scam primarily targets small businesses. It is a breach of the Fair Trading Act to engage in pro-forma invoicing.
How to avoid this invoicing
- Ask for proof that the advertisement was agreed to - no proof, no payment.
- Verify the booking with colleagues.
- Ask for specific evidence that the publishing company has been commissioned by an organisation to publish the magazine on their behalf.
- Keep records of telephone conversations discussing advertising, including date, what was discussed and who it was discussed with.
- Have an advertising booking system in place and ensure all staff are aware of it.
- Inform the company in writing that the advertisement they are charging you for was not authorised and will not be paid for.
- Seek legal advice if threatened with legal action.
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