There are several warning signs you need to watch out for if you want to prevent losses from fraud. No one warning sign means you should immediately claim fraud, but if you notice anything out of the ordinary, you should notify your supervisor.

Here are some warning signs you need to watch out for:

·Unsolicited purchases. Salespeople spend a long time getting new accounts. It isn't often that an account simply jumps up and begs for product. Unsolicited orders from new accounts, particularly with new companies, should be checked carefully.

·Phone orders. The phone is one way to eliminate a paper trail. Without anything in writing, there is little chance of proving fraud.

·Personal pickup. Beware of the new customer who offers to do you a "favor" by picking up a shipment. This could be a sign that the person is simply coming by to steal products right out from under your nose.

·The chameleon. A scam artist will often call in an order under the guise of an established customer. The scam artist then either arranges for shipment to be dropped off at a trucking terminal where "the buyer" will pick up the goods later, or he goes to the warehouse and loads the order on a hired truck. Then the creditor bills the established customer only to find that the order was never placed. Before agreeing to a change in delivery terms with an established customer, call back and verify that the request was actually made by the customer.

·Small initial orders from brand-new companies. New companies need products to stock their shelves or run their businesses. If a new company sends in a meager order, it may mean the people don't really intend to stay in business at all.

·Unusually large orders. Often, the fraud artist makes small orders and pays on time to give the creditor a false sense of trust. Then the fraud artist puts in a large order and takes off with the goods. If a customer suddenly increases its orders, find out why. Is the company planning to expand, move to a larger location, or meet increased demands from its own customers? Without satisfactory answers, you should proceed with extreme caution.

·Trade references. Trade references that give glowing reports on an account without having to look up the file, or references that only return calls left with their answering services are two key signs of fraud. Further, a con artist might give you the phone number of various references that identify themselves by name when you call, but do the references actually exist? Check company names in your phone book or through directory assistance. If the company name exists, make certain the phone numbers match. If they don't, call and ask if the individual listed as a contact even works there.

The keys to avoiding credit fraud? Awareness and persistence. Be aware of who you are dealing with. If you suspect a prospective customer may be trying to pull a fast deal, talk to your supervisor and be persistent in your investigation. Don't give out credit until you are certain this is a true customer.

No one warning sign means you should immediately claim fraud, but if you notice anything out of the ordinary, you should notify your supervisor.