13 Ways to Avoid Getting Scammed by an Online Company

Unfortunately, recently I have been hearing a lotask them to clarify or reword it. It's better to be
of small business owners complain about onlinesafe then sorry.
companies that have ripped them off in the past.8. Always sign something.
Some experiences involve companies taking theirA copy of a contract with no signature is almost
money when they sign up and not delivering whatas useless as not having anything in writing. A
was promised. Others involve the company simplysignature and date proves that you agreed to
"disappearing" after the customer signs up withoutsomething. If you don't have this, then it's basically
delivering the service paid for.your word against theirs. It's even better if you
It is my goal to educate small business owners soalso get the company to sign the agreement.
that they can avoid these situations fromThat way they are also signing stating that they
happening in the future. There are a lot ofwill give you what is promised in the agreement.
precautions that can be taken and simple research9. Check to see how long the company has been
that can be done so that you, as a small businessin business.
owner, can rest assured that your money is safe.If the company just started 2 months ago, it
1. Do a Google search on the Company's name.might not have the financial stability that you need
If you are dealing with a company with a badit to have in order to be safe from getting
reputation, there is a good chance that someonescammed. There is an easy way to find out how
has posted something somewhere online aboutlong a website has been in existence. Go to and
their experience. A simple search for theenter the website address into the search bar. On
company's name should expose these. If thethe results page, it should give you a date when
company has a very generic name, do a searchthe domain was created. If the date listed is fairly
for the company's website address insteadrecent, you might want to rethink your decision
(Example: search on Google forof signing up with them.
"examplecompany.com").10. Always ask for references.
2. See if there is a phone number and address onIf the company who approaches you is one you
the website.have not heard of before, ask them for
If a company does not post their address orreferences from customers who have been using
phone number on their website, there is probablytheir service for six months or longer. It's very
a good reason for it. A lot of bad onlineimportant to get customers who have been with
companies simply have contact forms on theirthem a decent amount of time because new
site. If this is the case for the company thatcustomers wouldn't have had enough time to
you're investigating - BEWARE - there is probablyjudge the quality of their product.
a reason why it is not there.11. If the price sounds too low, there might be a
3. Do a Google search for the address listed onreason for that.
the company's website.A lot of online scams offer products that are
A lot of bad online companies will try and getfairly inexpensive. Since their motto is to sign up
away with listing a false address on their websiteas many customers as possible, with no focus on
or email signatures. Most people wouldn't think tocustomer retention, it is in their best interests to
check to see if the address is legit, but if youuse low-pricing as a sales technique. If you find
want to avoid being scammed, this is a good idea.that their prices are significantly lower than other
When you type in the address on Google, look tocompanies that have approached you about the
see what shows up in the search results. If thesame service, it might mean that they simply
results show you business listings that aredon't deliver what they promise.
unrelated to the company that you are searching12. Make sure the customer service phone
for, then this should raise a red flag. I've done thisnumber does not take you to a sales person's
before for bad online companies and theirvoicemail.
addresses pulled business results for real estateA lot of small companies that are trying to make
development properties. Or, sometimes a searchsome quick money will have their customer
will reveal that the address is in a residential zone.service number send you straight to one person's
4. If the address is a PO Box, you might want tovoicemail. If the phone number doesn't take you
ask the company for their actual office address.through an automated system that requires you
Anyone can register a PO Box, and if that is theto enter in an extension, it might be because the
only existing address for a particular company, itcompany is run by 1 or 2 individuals, which usually
might be a sign that they're operating theirisn't a good sign. Also, if the customer service
business out of someone's basement.number takes you to the sales department, this
5. Always get it in writing.might give you a clue about how much time and
Any company that asks you for your credit cardmoney the company invests into customer
number over the phone should be avoided.service (none).
Always get a copy of what you're agreeing to13. If you get an email from a company, make
and make sure you read the entire thing. Withoutsure it comes from a company email address.
documentation, it's really hard to prove that aIf the email address is a gmail or hotmail address,
company didn't deliver what they promisedit might be a bad sign because it means the
6. Don't always believe what the sales reps tellcompany hasn't even taken the time to build a
you.website with personalized emails. Company emails
If the sales rep on the phone tells you somethingshould always be in the format It doesn't only tell
that is not listed in the contract you're signing, it'syou that the company is more established, it can
safe to assume it may not be true. If the salesalso assure you that the sales rep does in fact
rep guarantees your business something, theyrepresent the company that he's claiming to be
should have no problem restating that guaranteeassociated with. For example, if someone calls you
in the contract that you sign.claiming that they work for Yellow Pages but their
7. Make sure you understand the Terms &email address is steve234@hotmail, you might
Conditions.want to re-examine whether or not you should
If there is something written in the Terms &do business with him.
Conditions that you don't completely understand,