Identity Theft, Counterfeiting, and Fraud: Notes From Tradeloop's Ethics Committee

During 2010, Tradeloop's all-volunteer Ethics Committee dealt with disputes about fraud, counterfeiting, identity theft, and more. Earlier this year, many cases and Fast Track Fraud Alerts involved identity theft. This fall, the Committee has worked on the difficult issue of counterfeit products.

And all year, the Ethics Committee heard complaints involving non-payment, failure to ship prepaid goods, poor quality products, and bounced checks. (Review the details of posted cases.) While a number of these cases did appear to involve fraud, other complaints were filed because of disagreements about the deal's original terms and conditions.

Tradeloop encourages all members to exercise due diligence before setting up a deal - particularly if you're approached by a non-member.

• Purchase agreement: Spell out in detail shipping methods, payment terms, and product condition. You may even want to ask for photos of the product before completing the agreement.
  
• Tradeloop member profile: Make sure the company address and contact information matches the profile information. Also look for warning flags we've added this year including: approval process information, status flags for banned & non-member companies, and warning notices on unverified accounts.
  
• Payment methods and terms: Many members use wire transfers for payment, but check to make sure you're being asked to transfer funds to a verifiable bank account - not an untraceable store front wire transfer service.

While you're checking on other companies, advertise your own credibility and commitment to business ethics. Display Tradeloop's Ethics Seal on your Web site. It's a symbol of integrity that helps improve your conversion rates.

Learn more about the Tradeloop Ethics process, committee, and cases at the Ethics area of the Tradeloop Web site.