Diary of a Bad, Bad Bookkeeper (Day 55) – The Sister Company Scam

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Dear Diary,

Today I became a business owner.  That’s right, I’ve opened my own business and am about to make a million dollars the easy way – with little or no money down.  Okay – I spent a little money.  But technically, it wasn’t my money.  It was my boss’s money – or maybe I should call him my “investor” – not that he knows he’s an investor.

If only all those companies touting their “make a million dollars without doing any work at all” plans knew how easy it really was… because my way really is the “no work necessary” way.

Anyway… I went down to the courthouse today on my lunch break, a little bit of petty cash in hand.  I registered a new “DBA,” also known as a Fictitious Business Name.  The form only cost $20 and now I have a business name.  The lady behind the counter told me that I would have to run the new business name in the newspaper for 30 days to announce my new business venture, but it can be any newspaper in the county.  I found a small newspaper company that will do it for about $25 for the whole month.  Pretty good deal, huh?

So once I had my Fictitious Business Name document in hand, I went down to the bank and opened up a “business checking account” for $15 a month.  I even went to the same bank as my boss’s bank.  Figured it means less driving around when I have to go the bank for him.  And normally, I wouldn’t pay so much for a checking account, but again, it’s not my money.

So guess what my new company’s name is…

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Well, Diary, you know how I work for “Smith’s Distribution Company”.  I named my company “Smith’s Distinguished Corporation.”  The reason – stealing, of course.  I’ve seen a lot of deposits come across my desk and I noticed a pattern on the [ad#Word Checks].  People tend to write the checks to “Smith’s,” “Smith’s Dist.,” or “Smith’s Dist. Co.”  Seeing all those checks, I suddenly realized that I can totally steal those checks.  Since “Smith’s Distribution Company” is not fully printed on the check, I can put it into my new business checking account and the tellers will assume that the abbreviations on the checks are short for the name of my company.  They’ll probably even assume that the name of my company is just a sister company to my boss’s business.  And unless he goes down to the bank and asks if I have my own business checking account, there’s no real way that he’s going to know what I’m up too.

After work, I actually made my first deposit.  It was a check for $1,200.  See – the experts were right.  You do have to spend money to make money.  All I had to spend was $60 and I made my first $1,200.  This is going to be sweeeeeet!

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How to STOP the Sister Company Scam:

As mentioned above, it’s nearly impossible to know if someone in your company has begun this scam.  You would first have to guess the Sister Company’s name as closely as possible before you can even look it up – although you can try and look it up at your local County Recorder’s Office.  Most likely, you won’t find anything online about the Sister Company because the Embezzler would have to advertise their theft for it to show up in search engines… and there’s no way they’re going to admit to anyone but a diary that they’re a scum-sucking thief.

Now, just because it’s hard to spot the scam, doesn’t mean it’s hard to stop the scam.  The reason this scam happens is because it’s an easy “crime of opportunity.”  It gets by because no one thinks to double check it, then prevent it.  To do this, all you have to do is get an “For Deposit Stamp” (or to put it another way, an Endorsement Stamp).  e

Think about this:  When you go to a large retailer like Target, what do they do with checks?  As soon as the cashier receives the check, they run it through the machine, and the machine prints an endorsement on the back.  That prevents the check from going into any bank account but the one linked to that business.  That’s what a “Deposit Stamp” can do for you.  When you stamp a check on the back with your company name, account number, and the words “For Deposit Only,” the bank will then make sure that check gets into the correct account.  Period.  It’s that simple.  You can also get a stamp for the front of the check that will stamp your company’s full and accurate name, but the best way to prevent this kind of fraud is to get an Endorsement Stamp.  This kind of custom stamp is often $10-$20 at online sites, but I found a deal to get a free stamp at www.iPrint.com – all you pay is Shipping and Handling. That’s a $15 value for $3.49 S&H total. Check it out and get yours today if you don’t already have one: [ad#Button – Free Stamp]

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Click Here to Read the Previous Entry:  Diary of a Bad, Bad Bookkeeper (Day 40) – Stealing the Boss’s Identity

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7 Responses to Diary of a Bad, Bad Bookkeeper (Day 55) – The Sister Company Scam

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