We think but cannot prove that we were victims of credit fraud. A new customer in Canada bought once, never paid, and went out of business within a month of our first and only shipment. How common a problem is this?

Answer: I cannot really say how common it is, but I can say that business credit fraud is a serious and growing problem. According to one recently published statistic, business credit frauds cost U.S. companies in excess of $600 billion annually. Some analysts suggest that the actually losses are significantly higher - especially when you consider these two facts. One: The best credit frauds are ones in which the victim never knows whether they have been swindled. Two: As it relates to business bankruptcies, it is difficult if not impossible to know the amount of fraud and the dollar cost of this type of fraud to trade creditors.