How to avoid acquisition fraud

One in 10 businesses in the Netherlands encountered acquisition fraud, according to research conducted by the Fraud Helpdesk (in Dutch). Scammers use various tricks to fool you. Often they call or mail you pretending to be from a well-known company

Expensive contracts

You receive an email and all you have to do is 'check the company details' and confirm these with a signature. Or the scammer asks you if you are interested in paying to prolong the free mention of your business on their website. If you say you are not interested, they tell you to 'quickly sign the fax or email'. But your signature locks  you into an agreement that will cost you money. Another trick is for fraudsters to ask you if you want to sponsor a charity publication at a one-time low rate. If you say yes, you end up stuck with a costly, long-running subscription.

Protect yourself against acquisition fraud

1. Always say no to an offer made over the telephone. Do not make verbal agreements.

2. Never just sign and return a fax, email, or letter. Pay attention when an email asks you to confirm your details. The small print may mention you are entering into a contract. 

3. Do not agree to advertise with a company you do not know. Use a search engine like Google to see if you can find more information about the company and read reviews from other customers.

4. Is a scammer calling you? Then report this to Fraud Helpdesk. The helpdesk will give you advice and refer you if necessary. Also, your report helps them warn other entrepreneurs and consumers about scammers.

Unfair Commercial Practices Act

The Wet oneerlijke handelspraktijken (Unfair Commercial Practices Act, in Dutch) prohibits aggressive and deceptive sales tactics. A company may only call you with an offer if you have first agreed to this. Or if you are, or have been, a client of that company. Since the Telecommunications Act (in Dutch) of 1 July, 2021, this protection also applies to consumers and to personal legal forms such as sole proprietorship, general partnership, and partnership.

What if you were duped after all?

Did you say yes to a fake offer, and have you received an invoice? This is what you can do:

• Read the general terms and conditions of the ad agency or other party. Sometimes you can cancel an agreement within a certain number of days.
• Do not pay the invoice. Write to the other party to explain why you will not pay. You can request the recording of the telephone conversation to find out how the conversation went. The other party must prove that there is an agreement. 
• Do not be intimidated by collection agencies. You may be able to have the contract declared invallid. This can be done through a formal complaint to the seller, or by asking a lawyer for help
• The other party can take you to court. Make sure you have a solid written argument, and be pro-active. Hire legal counsel to help you.

Report the fraud

Acquisition fraud is illegal. Report it to the Fraud Help Desk and the police (in Dutch). If you are not in the Netherlands, first go to the police in your country of origin. They can then contact the Dutch police.