Every day, people are scammed by illegitimate companies. They may promise high returns on investments or they may charge for services that should be free. How can you really tell if a company is legit?
There are several ways to check, from a simple Google search to Know Your Business verification (for those that require it). Let’s discuss them in this article.
The quick and logical way is to do a Google search for the company name. If you find any results that seem suspicious, you may be better off staying away from that company.
Now let’s dig a little deeper.
Check their website, including their legal page
You can start your research with the company’s website, so then you can check their contact information, see their place of operation, etc. Legitimate companies will have a legal page on their website, too, where you’ll find their Terms and Conditions, Privacy Policy and other relevant information.
If the company you’re researching about doesn’t have this information on their website, it’s probably not legitimate. And even if they do, try to read and check for possible loopholes or anything suspicious.
Frequent grammar and spelling errors on their site
This may sound simple, but it’s crucial. Sometimes you’d bump into websites that have a lot of wrong grammar and spelling. You’d be surprised that there are many such websites around.
If you notice frequent errors on a website that proclaims or appears to be trading as an Australian company, there’s a chance it’s based overseas. This is a red flag, and you certainly have to investigate further about their legitimacy.
Do they offer secure modes of payment?
One of the biggest red flags for a scam is when a company asks you to pay with wire transfer or gift cards. These are not secure modes of payment, and it’s very difficult to get your money back if something goes wrong.
Legitimate companies will usually accept credit card payments, because they’re much more secure. If the company you’re researching doesn’t offer any secure payment methods, it’s probably not legitimate.
Look for reviews
Another way to check is by looking for reviews online. You can usually find honest opinions about a company on trusted review sites. Be sure to read not only the good but also the bad reviews (of course!). If most of them are negative, there’s probably a reason why.
Check with the local chamber of commerce
If you’re still not sure if a company you intend to transact with is legitimate, you might need to contact your local chamber of commerce. They’ll be able to tell you if the company has any complaints filed against them.
Know Your Business compliance
There are certain types of companies that require Know Your Business (KYB) procedures, and that includes those that make money transfers, such as banks. It’s important for them to verify and examine the business and financial information of all their partners, so they are protected from fraud.
When you are looking for a new company to do business with, it is important to make sure that they are legitimate. There are many scams out there, and it can be difficult to tell if a company is real or not. Hopefully, the tips mentioned above are able to point you in the right direction.
