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Delivery Fraud

The New Dangers of Delivery Fraud: How to Protect Your Company and Customers

by LJM Group

The Rise of Delivery Scams

With the surge in online shopping and reliance on delivery services, scammers have found new avenues to exploit. These fraudsters impersonate reputable delivery companies like USPS, FedEx, and UPS, sending out convincing text messages and emails that demand immediate action. They often claim there’s a problem with a package’s delivery, requiring recipients to either reschedule or pay additional fees. Others claim to have tracking information on a non-existent delivery to lure you into providing personal information or financial details.

Of the 40 million UK adults targeted by scammers in the first quarter of 2023, almost half (49%) encountered this kind of scam. Protecting both your company and your customers from these illegal activities is of utmost importance—and it champions your brand in a way that fosters loyal repeat business.

5 Red Flags that Signal Fraud

Being able to identify package delivery scams is your first line of defense. Some key warning signs to look for include:

1. Urgent Messages: Scammers thrive on urgency. If you receive a message demanding immediate action or threatening consequences, be cautious.

2. Unusual Requests: Legitimate delivery companies won’t ask for sensitive information, such as Social Security numbers or banking details, through unsolicited messages.

3. Generic Greetings: Scammers often use generic greetings like “Dear Customer” instead of addressing you by name.

4. Suspicious Links: Hover over any links in the message—without clicking—to verify their legitimacy. Be wary of misspellings or unusual domains.

5. Unfamiliar Numbers: Check the sender’s number against official contact information provided directly by the delivery company.

Educate Your Team

An essential component of defense against delivery fraud is educating your team. Train them to recognize potential scam indicators and the importance of communicating these risks to customers. Conduct regular meetings and send internal messages to keep your staff updated on the latest scam tactics and how to respond appropriately.

Be an Anti-Fraud Champion

By demonstrating commitment to your customers’ safety, you enhance their overall experience and loyalty to your brand. Inform customers about the existence of delivery scams and offer tips on how to identify fraudulent messages. Consider sending out informative emails or including anti-fraud information on your website. 

Helping customers recognize and avoid delivery scams is a distinctive way to build trust. It not only sets your business apart, but it makes the statement to customers that you are a company committed to transparency, one of the top factors that consumers look for when ordering online. Consider providing unique anti-fraud features that customers will appreciate and remember. For example:

1. Secure Tracking: Provide customers with secure and real-time tracking options, enabling them to verify the progress of their deliveries directly from your website.

2. Verification Codes: Implement a verification code system for important actions, like rescheduling deliveries or making payment adjustments. This adds an extra layer of security against scammers.

3. Personalized Communication: Use your customers’ names and order information in communications to prove authenticity.

4. Educational Content: Create blog posts, videos, or infographics that educate your customers about the latest scam tactics and how to stay safe.

Fraud from Within

Did you know that the average business loses over 5% of annual revenue to internal delivery fraud? One of the most common shipping scams involves the creation and use of false addresses for stealing merchandise, enabling employees to divert inventory at will. This type of asset misappropriation is responsible for the majority of internal theft. The solution is to implement advanced Employee Fraud Detection tools that analyze your company data and detect suspicious shipping patterns. This is a highly effective way to reduce opportunities for theft at a strategic point in your supply chain.

Another solution is to employ programs that are traditionally used to uncover errors in Carrier costs. LJM Group offers parcel audit tools that leverage data analytics and algorithms to flag suspicious patterns in shipping activity. By monitoring shipments, charges, and delivery processes, they can identify irregularities that might indicate fraudulent activity. Incorporating such tools into your business operations can significantly enhance your ability to detect and prevent scams.

The dangers of delivery fraud are real and ever-present in today’s digital landscape. As a business leader, it pays to safeguard your company and customers against these threats. By staying informed, adopting advanced fraud detection tools, educating your team, and offering a distinctive and secure service, you can create a safer and more enjoyable shopping experience for your customers. Remember, the foundation of any successful business is trust, and protecting your customers from fraud is a crucial step toward maintaining that trust.

Sources

https://www.forbes.com/uk/advisor/personal-finance/scams-beware-2023/
UPS, Protect Yourself from Fraud and Scamshttps://www.ups.com/us/en/support/shipping-support/legal-terms-conditions/fight-fraud.page

AARP, Package Delivery Problem? Maybe Not!https://www.aarp.org/money/scams-fraud/info-2023/fake-usps-ups-smishing-texts.html

FCC, How to Identify and Avoid Package Delivery Scamshttps://www.fcc.gov/how-identify-and-avoid-package-delivery-scams

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