The material presented in this learning module provides a description of known circumstances that most frequently reveal the trail of fraud in the making, and help credit professionals identify the steps necessary to protect their firms from financial loss through credit risk. Topics presented include Bust-out and Same Name Scams, Unsolicited Orders, Large Numbers of Reference Requests, Being Used As a Credit Reference in a Possible Fraud, Unverifiable References, Increased Orders and Unusual Product Mixes, Misrepresentations, Undisclosed Changes in Ownership, Unverifiable Backgrounds of Principals, Hidden Ownership, Principal Unavailable, NSF Checks Received, Counterfeit Checks Received, Financial Statement Irregularities, Skip and Assets Removed. After successful completion of this learning module the student should understand the hallmarks of bust-out and same name scams; why unsolicited orders are suspect; why a large number of reference requests should be checked out; how the credit professional can be used as a reference in a fraud; why unverifiable references, unusual product mixes and unverifiable backgrounds are suspect; how to spot misrepresentations; how to spot the warning signs of hidden ownership, the principal being unavailable and NSF and counterfeit checks; how to spot financial irregularities; how to spot a skip; and what assets may be removed from a business.
Debie Wangsgard, CCE, has a Bachelorís degree in Business from Westminster College and has been working in the field of credit for over 32 years , first working in the construction industry, and then as the Corporate Credit Manager for Swire Coca Cola, and most recently for Stock Building Supply in the Credit Training Department. She was recognized as Instructor of the year in 2008 by NACM Business Credit Services. She has given numerous seminars, online webinars, and developed over 40 training programs to strengthen credit managers in their profession and has taught CAP classes for Salt Lake Community College.