NOTES & CENTS I BY AMANDA RUETER Defend Against Sneaky Scams
I t’s starting to seem like every week, there’s a new scammer calling or emailing our store with increasingly sophisticated schemes. Each time it happens, I can’t help but wonder if someone I know in the industry could be at risk. The need for robust protective measures has never been more apparent, as illustrated by a recent incident at our dealership, Ernie Williamson Music, which prompted me to share our insights and policies on defending against scammers. In a seemingly routine exchange with a manufacturer, we received an email inquiry about an unpaid invoice. Following up with a detailed
out first reaching out to a known contact within the organization. Be cautious about sending ac- count details. Make sure that the request for invoices, statements or other info is coming from a known contact. Better yet, gener- ate the requested data and email directly out of your system using information on file when possible. Policy No. 3: Exercise caution with pay- ments from unusual sources. Be vigilant about payment meth- ods: If you have an e-commerce website, ensure that you’ve got fraud protection in place to avoid chargebacks from fraudulent pur- chases. Scrutinize payments from unconventional channels. Watch out for scams involving money orders, third-party checks and customers avoiding standard online payment procedures. I’ll be honest: this is one that got us a few years back. It turns out that the nice, out-of-state grandma who wanted to buy a guitar for her grandchild but “couldn’t figure out the internet” actually used a stolen credit card and now has a very nice instru- ment on our dime. We’re not perfect — and we also no longer accept payments over the phone. While we’ve successfully fend- ed off most scam attempts, it’s crucial to acknowledge that the threat landscape is ever-changing. Stay vigilant, continually update security measures and foster a culture of awareness. By sharing our experiences and policies, we hope to help others. MI Amanda Rueter is the vice president of finance and operations at Ernie Williamson Music, a six-location dealer headquartered in Springfield, Missouri.
account statement, the vendor mirrored our records flawlessly. The scam took a cunning turn a few days later when the same vendor proposed a shift to ACH payments within the same email thread. What made this scam stand out? The scammer had authentic invoice details — a result of starting the ploy with the manufac- turer requesting our statement. With well-crafted fake domains and duplicated signature lines, the scammer had enough genuine data to make their attempt almost indistinguishable. Our resilience against this scam lied in the company policies we have put in place. Here, I’ll share these policies with you to help you fortify your business against similar threats. Policy No. 1: Recognize the “red flags.” Teach your team to spot potential scams. Beware of
vendors lacking accurate information — the vendors we communicate with regularly already know how to get ahold of our accounts payable department. Sending emails through our website or calling the main line without knowing who to ask for rings an alarm bell for us. Be cautious of emails that seem overly for- mal and those riddled with grammar mistakes. We’ve all made typos before, but use caution
“Beware of scammers pretending to be employees or vendors seeking alterations in critical data.”
if an email’s tone seems “off” — especially when compared to other communications you’ve received from the same company. Don’t be fooled by unusual urgency. Scammers will often push you to act fast and rush you to make a change or decision. Trust your instincts. If an offer seems too good to be true, it probably is. Policy No. 2: Verify changes with the source. Never modify existing information without confirmation. Beware of scammers pretending to be employees or vendors seeking altera- tions in critical data. Authenticate changes directly with the source using the contact details on file. This means that no employee will ever change the email address, mailing address or payment info for a vendor with-
28 I MUSIC INC. I APRIL 2024
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