ELECTRONIC HOUSE CALL - November 20, 1998

I sent this alert out on November 16th:

BEWARE OF COD DELIVERIES!
Restaurants are the targets of scam artists. I have learned about two scams involving COD deliveries in Colorado and California. The scam may be headed your way. The bottom line: do not accept unrequested COD packages.

EAST-WEST TRADING CO.
East-West Trading Co., Brooklyn, NY is shipping "cheap, worthless" knives, tongs or spoons with a COD charge of $39.99

HEALTH DEPARTMENT
In addition, restaurants are receiving a COD envelope from the "Health Department." COD charges are $10-$20 and the envelopes turns out to be empty.

Alert your employees and review your company's policies for COD packages to avoid being "taken."

Here is the EHC from November 20th:

SCAMS R US!
I got some interesting responses from my special scam alert earlier in the week

Jeff Thompson of Bozo's Hot Pit BBQ in Mason, Tennessee said:

"Thanks for the message about East-West Trading Company. Unfortunately, your warning came about $40 too late. Several weeks ago a package arrived COD during the one day where I took the afternoon off. My person-in-charge used their best judgement because I do occasionally receive COD packages. Cheap knives. More trouble to send back than the effort was worth.

"However another warning! Another package arrived on the same day of the week two weeks later. This time we refused. Warn your folks that a follow-up scam may come within a week or two of the first package, especially if it was successful."

A NOTE FROM THE DOC
If this hasn't hit your area, be alert. Scam artists will keep this going as long as it is working.

WHO SAYS THERE'S NO CHEAP LUNCH?
Jim Hainey who owns a speakers bureau in Auckland, New Zealand shared another scam:

"This involves two confederates. One goes into a cafe or restaurant and orders something simple like a cup of coffee and a donut. Cost: about $3.00. The second person goes in and orders a much more extensive meal. Cost: say, $25.00. The food is served and the checks are placed in front of the respective diners.

"Person #2 finishes, exchanges checks with person #1, goes to the register, pays the $3.00 and leaves.

"A few minutes later, person #1 picks up the remaining check, goes to the register and reels in horror as he is charged $25.00. The waitress is called over and remembers that, yes, this person in fact just had coffee and a donut. You can only charge him $3.00.

"The waitress (or the house) eats the extra $22.00 while the two scam artists move on down the street or to the next town and reverse the process."

A NOTE FROM THE DOC
Jim did not mention whether this is the way he keeps his meal costs down (!), but it might be worth reviewing your systems to see how vulnerable you might be to a plan like this.

Happy Thanksgiving!

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