June 2010
The hook, line and sinker of online fraud
How scammers are targeting a new online prey of small- and mid-size businesses’ bank accounts. Here’s what you need to know about protecting your cash.
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By Peter Strozniak
Bob Busek has been in the computer business since the 1980s. Yet, it wasn’t until a year ago when he finally decided to open an online business banking account for his Mentor-based company, Digital One Computer Solutions.
“For years, my bank was trying to convince me to do online business banking,” says Busek, whose company specializes in repairing computers and servicing information technology networks.
“Because I know the computer industry and all the issues about fraud, I was the last guy who wanted to go online with my business accounts. The potential for fraud, even in the areas beyond the Web, are at levels I have never seen before. I’m sure it’s a sign of the times and the economy.”
Busek’s concerns are based on a new trend in online fraud. Cyber criminals are focusing on a new and lucrative prey: small- and mid-size companies, according to the Federal Bureau of Investigation (FBI) and the Federal Deposit Insurance Corp. (FDIC).
The FBI sounded its first alarm about this new trend in November.
In addition to mid-size and smaller businesses, the cyber crooks are targeting school districts and municipal governments.
Scamming small business
Here’s a typical scenario: The small business receives a “spear phishing” e-mail that contains an infected attachment or directs the business to an infected Web site. Once the business owner opens the attachment or visits the Web site, malware is installed on the company computer.
The feds report that malware contains a key logger, which can harvest the company’s login information. This enables the criminal to create another user account with the stolen login information or initiate a funds transfer by pretending to be the business owner.
When the money is stolen, it is funneled to bank accounts of willing or unwitting individuals in the United States. The feds say that most of these individuals have been recruited via work-at-home ads or have been contacted after posting their resumes on job search sites.
Some of them are hired to “process payments” or “transfer funds.” The cyber criminals tell them they will receive wire transfers into their bank accounts. Shortly after the funds are deposited, the individuals are directed to immediately forward most of the money overseas via wire transfer services such as Western Union or Moneygram.
“In the last year, I’ve seen Web breaches grow exponentially,” says Tom Suhadolnik, owner of Suhadolnik and Associates of Willoughby, an information technology and management consulting firm that primarily serves small businesses. “In the past, scammers were going after big corporations, but now they are hitting small companies. The scammers usually end up with less money, but they don’t care about that.”
Cyber criminals are targeting small- to mid-size companies because they are more vulnerable. Small-business owners may not be doing enough or don’t have the resources to protect their computer systems, or they simply may not be aware of the potential online fraud dangers that can empty their bank accounts. Protect your company
IT professionals such as Suhadolnik and others say there are practical steps companies can take to reduce their risks of being scammed.
“If you have one locked cabinet drawer in your office, it probably contains your business checks,” Suhadolnik says. “Obviously, you don’t want to leave those all around your office. The same concept applies to your computer system. You should use only one computer at all times for your company’s financial transactions.”
In addition, the computer you use for financial transactions should not be accessed from other computers in your office. Only the company president and/or chief financial officer should have access to the company’s online bank accounts. Before you sign up for online business banking, owners should shop around for a bank that can provide accounts with strong online protection features such as security alerts.
“With my bank, I’ve set up a series of alerts for my online business accounts,” Busek says. “For example, when someone wants to take $5,000 or more out of a business account, my banks sends me an alert that informs me who is making the funds transfer request. When I confirm the transaction with my bank, the funds are released.”
It’s also important to review your bank’s information about online privacy policies and practices. Pay attention to methods the bank uses to encrypt transactions and authenticate user information.
Your business also has the right to limit the information an online bank shares with its parent organization and other banks. You also may want to check with the Better Business Bureau to determine if a bank you’re considering has a history of consumer complaints about privacy violations.
Make security investments
If you have several employees, you may want to invest in additional Web security hardware and software. Busek uses Barracuda Networks hardware solutions that prevent employees from visiting social networking sites, gaming sites, pornography sites and other sites that are suspicious or inappropriate.
Barracuda also provides software that protects networks from spam, virus, spoofing, phishing and spyware attacks. As an added layer of security, you may want to install anti-virus software on every computer in your business.
If your business needs to use social media, however, educate and train your employees about what they can and cannot do on social media sites. For example, if you are not expecting a message from someone you don’t know, don’t open it, just delete it or report it as spam.
Suhadolnik also says to be extra vigilant to keep spyware and firewalls up to date, and immediately address any breaches in security.
If you’re using a wireless network, make sure you are encrypting your data so that it cannot be read by others. Any wireless receiver within hundreds of feet can receive data you send wirelessly.
Protect your credit
Nevertheless, wireless and mobile business transactions continue to grow rapidly. Retail merchants, in particular, can protect themselves and their customers from online fraud by using authenticated payment products such as Verified by Visa and MasterCard SecureCode.
Cardinal Commerce of Mentor has developed an industry-leading software solution for merchants, shopping carts, banks and other payment processors that makes it easy to implement payment brands such as Verified by Visa, MasterCard SecureCode, PayPal, Bill Me Later, Google Checkout, Amazon Payments and other merchant service providers.
Business and consumer credit card account numbers facilitate transactions. If your credit card is stolen or lost, thieves can use it to make purchases.
No one, however, can use your business credit card if it’s registered with a payment authentication program, says Michael A. Keresman III, founder and CEO of Cardinal Commerce. Every time you make an online credit card purchase, the payment authentication product will require your unique user name and password to complete the transaction. Even if your credit card is lost or stolen, thieves won’t be able to use it because they don’t know your username and password.
In addition to protecting your business from fraudulent payment attempts, a payment authentication product can reduce costs by preventing fraudulent chargebacks, and it can enhance the confidence of your customers when they make purchases at your store or Web site.
To sign up your business credit card accounts for payment authentication, contact your bank. Peter Strozniak is a contributing editor for the Tri-County Business Journal. He can be reached at Peter55 (at symbol) xemaps.com.
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Put your best image forward
Use these 28 tips to make a splash at your next trade show
There are a lot of activities involved in exhibiting at trade shows and conferences. Familiarize yourself with the process to ensure that your exhibit experience is a good one and that you get the most out of the event. These tips will help prepare you for exhibiting at events.
When using this information, keep in mind that every show and conference is different. Be sure that you understand the rules for each show to avoid problems.
Pre-show checklist
Before you leave for your event, check that you are prepared. This checklist is designed to remind you of the steps to take before leaving for your event:
1. Reserve exhibit space as soon as possible. The longer you wait, the more expensive exhibit space will be as you may pass up early-bird discounts. The purchase of a 10-foot by 10-foot exhibit space (typically, the smallest exhibit space available) usually is recommended. The next largest size typically is 10 feet by 20 feet.
2. Count the cost. Sometimes the registration fee covers equipment like tables, chairs or power, but not always. In such instances, you will have to pay separately for these basic items.
3. Determine additional equipment and service needs. In addition to determining what is included in your exhibit fee, note that you may need to provide items such as carpet, trash receptacles, a computer and accessories, audio-visual equipment, a different-height table depending on what is being exhibited, a business card reader, promotional items and visual displays.
4. Plan pre-show publicity. After you purchase exhibit space, be aware that the show may offer free advertising or the opportunity to have your exhibit number and information listed in pre-show literature.
5. Determine staffing. Develop a staffing plan for the show. Decide who will attend the show from your team or program area. Consider contract support if you need additional staffing at the exhibit. Usually, it's best to plan on having at least two people staff an exhibit at a trade show or conference. That way, if one person takes a break, has lunch or engages with a customer, another person is available to staff the exhibit or answer questions. If you have multiple staff at an exhibit, it's a good idea to develop a schedule delineating coverage times for everyone. Keep in mind that it’s generally not recommended to have more than two people at a normal-size booth simultaneously as this tends to overcrowd the booth.
6. Pre-register staff. In many cases, the show will give exhibitors several complementary full registrations. You also should receive complementary exhibit-only badges. If you have more staff members attending the show than complementary passes, some staff members will need to register. Usually, they can register for full-conference or exhibit-only admissions.
7. Ship display/publications/supplies. Before you ship anything to the show, you will need an address, name and phone number to ship to and shipping deadlines. (If you miss deadlines, you could pay substantial late fees.) Be sure to call the shipping destination or have a trackable shipping method to confirm that your shipment has arrived. In most cases, you will have two options regarding shipping destinations. These include shipping to the warehouse or shipping directly to the show site:
- Warehouse. This option usually is associated with exhibiting at a convention center. Keep in mind that you will need to ship to the warehouse a few weeks before the show.
- Show site. Shipping to the show site usually requires that the exhibit and handouts reach the show site no earlier than a day or two before the show begins.
8. Select materials to hand out. Decide what handout materials you would like at the show. Think about materials for your team, as well as corporate materials, brochures and publications relevant to show attendees.
9. Don’t forget supplies. Possible supplies include scissors, filament tape (for return boxes), shipping labels and shipping account number, mailing labels, service orders (indicate the items you’ve purchased and what you should expect at your space when you arrive), show agenda, show layout and authorized credit card number to pay for services (in the event you need to purchase anything after you arrive at the show).
10. Bring show address and exhibit number. Remember to bring this information along so you won’t have problems finding the event site. Also, remind others attending the show to bring this information with them, as well.
Pre-show tips
These guidelines are designed to help you prepare for exhibiting. Be sure that you are fully prepared before the event begins.
1. Get your badge. You will need a badge to get into the hall to set up the exhibit. This will be a work pass or your exhibitor badge. Pick this up on-site, usually at a registration desk.
2. Survey the situation. Check that all items shipped to and ordered for the show have arrived. Review your service orders.
3. Set up display. Designated staff will set up the display during show set-up hours. Be sure to check show literature for set-up hours.
Show tips
These guidelines are designed to assist you during the event to get the most out of the showing of your exhibit.
1. Look the part. Create a good impression by looking polished and professional. Wear business-like, comfortable attire. Don't forget your nametag. Get plenty of rest before the show, and pace yourself during the show (you will need breaks, so schedule them).
2. Staff the exhibit booth. Visitors will walk past an empty booth. They will perceive your absence as a lack of interest in providing information. Try not to leave the booth unattended. If you leave for breaks, have another staff member fill in for you. While you’re staffing the booth, keep it presentable: free of food, clutter and noisy distractions.
3. Be approachable. Visitors want face-to-face communication. Use nonverbal cues to show genuine interest in talking with them. Smile, make eye contact, extend your hand and engage them in conversation.
4. Listen. Once you have your visitors’ attention, give them your attention. Listen carefully to their needs and interests. Focus your conversation on their interests. Avoid overwhelming the visitors with more information or literature than they need or want.
5. Take notes. Ask for business cards with accurate mailing or contact information. Write down any specific questions or other important information to help you remember your conversations with people you meet. Keep your notes and cards together.
Other tips:
6. Send a map to customers prior to the show and circle your exhibit.
7. If people walk up and don’t get “what you do” in three to five seconds, you’ve missed your audience.
8. People tend to traffic to the right when entering a show. By the end of a show, people are too tired to go to the left and see what they missed.
9. Try to avoid isolated corners.
10. It’s good to stay against walls because you can go higher with displays and you’ll have fewer restrictions.
11. You may be able to upgrade to a better space the day of the show. Check to see if there has been a paid cancellation and consider moving.
12. Map out the show when arriving and plan to talk to other exhibitors (often your biggest customers are exhibitors).
Post-show tips
These guidelines are designed to help you with the post-show process. Tear down exhibit. Take down the display and roll up any display graphics with image-side out and using sheet spacers to separate graphics. Take note of any repairs that need to be made to the display.
1. Pack up unused literature, label boxes and mail back to your office or contractor. At no time should materials be shipping back in the container with the exhibit.
2. Ship exhibit and unused materials. You may need to get a bill of lading from the service desk. Fill out one for every shipping destination.
3. Date it. If the exhibit is going to another show, write the date that it must arrive at that show on the bill of lading. That way, if the exhibit is diverted to another carrier, it will still arrive on time.
— U.S. Department of Energy - Energy Efficiency and Renewable Energy Communication Standards and Guidelines.
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FOCUS EASTLAKE
Retail projects to help offset falling revenues
By Regina Steffen
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Biaggio Cappadonna, or Mr. Biagio as he is known to customers, is the owner of Biagio's Donuts, a fixture in Eastlake for 46 years. The business recently completed construction on a building next to its former location on Vine Street. |
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Eastlake may not have felt the impact of the economic downturn as quickly as some other cities, but the positive impact of a recovering economy will be slow in bringing relief to city’s coffers, as well.
That’s the assessment of Eastlake Mayor Ted Andrzejewski, who says the city lost about $800,000 in revenue over the past year, mostly from declining income tax collections, not property taxes. Falling property values have had far less of an impact than loss of jobs and income in the city.
“When people get their property tax bill, about 60 percent of that goes to the schools, 30 percent goes to the county for the library, MRDD and then about 10 percent comes to Eastlake,” Andrzejewski says.
For a city like Eastlake, he adds, the best way to keep up municipal income is to continue to attract businesses that create jobs and revenue.
Andrzejewski has been disappointed in the way that federal stimulus funds were handed out to municipalities. That money, he says, went mostly to much larger cities such as Cleveland.
“It (the money) went to big cities and counties,” he says.
“If it had been brought down to the city level, it could have been used to keep people employed locally who would then be spending money here.”
Retail project to alter traffic at intersection
Andrzejewski points to three projects that will help Eastlake in the coming year. Probably the biggest project is the opening of a Walgreens at the intersection of Route 91 and Vine Street. The store being planned is a large one, he says.
The Walgreens will be built at the site of a former used car lot. In anticipation of increased traffic at the intersection, the city and the Ohio Department of Transportation have partnered to build a feeder road that will run parallel to Vine Street (between Route 91 and East 357th Street) that will allow motorists safer and easier access to the back of the drug store’s parking lot. The feeder road was developed after discussions revealed that having people make two turns to access the store would pose a potentially dangerous traffic situation, Andrzejewski says. Roadway construction coupled with the construction of the Walgreens store will be completed by February.
Another retail project is a Dollar General Store on Lakeshore Boulevard near the intersection of Willowick Drive.
Third, the former Brick Oven Restaurant on Lakeshore Boulevard is being turned into a Mexican restaurant, the mayor says.
“Right now there is some remodeling going on,” Andrzejewski says. “I think this will be a good move because Mexican food seems to be very popular among younger people. It’s a way to get a good meal for a moderate price.”
Kmart closing causes concern for city
The city’s big concern for the upcoming year is the loss of the Kmart store on Vine Street near East 337th Street, Andrzejewski says. The store’s last weekend of operation was May 8 and 9.
Now, the city hopes to lure another large retailer into the space without letting it sit empty too long. The city does not offer tax abatements in the area of the now-closed Kmart store.
Last year, Biagio’s Donut and Pizzeria expanded its business into a new building next door on Vine Street, but in doing so left empty commercial space. It is Andrzejewski’s aim to fill that space this year and bring occupancy in that area to 100 percent.
Regina Steffen is a Concord Township-based freelance writer who reports on Lake County cities for the Business Journal. |
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Take me out to the trade show
Experts offer advice on the human side of event exhibiting.
by Maria Shine Stewart
"Just wind me up, and I’ll see you at the trade show!”
Not quite.
There is nothing mechanical about trade show success. It pays to plan ahead, organize carefully and reflect on the experience. “When you’re thinking of the minutiae, make sure that you’re creating optimism,” advises Tracy Tillotson, director of AssistNOW, the employee assistance division of Recovery Resources in Cleveland. This means “taking some time to mentally prepare and envision positive possibilities.”
Tillotson suggests harnessing dreams with sensible tactics, like getting enough sleep, eating breakfast the day of the show, packing a lunch and grooming with care.
“Take care of the machine that is your body first,” she counsels. “It’s kind of like preparing for those standardized tests when we were in school.” If one is tired or hungry, one does not function at one’s best.
Wearing a favorite outfit can help event vendors feel comfortable and perform well. If more than one representative from a business will staff the booth, however, be sure to coordinate the style of clothes to avoid a “Mutt and Jeff” appearance, says Marvin Montgomery, sales and customer service consultant for the Employers Resource Council in Mayfield Village.
“If some are in khaki pants and logo shirts, others in suits and still others in jeans,” he observes, it may inadvertently send the message that a company is not professional.
At the event — despite the goal of generating leads — remember that “it’s not about you” when a prospect stops by your booth. “Really listen,” Tillotson says. Ask what she calls a qualifying question, not just a simple, “Do you use computers every day?” but probing specifically as in, “What do you think of the new touchpad phone?”
Montgomery says that some deals may be closed right at the show, especially if it has been carefully selected, planned and coordinated. His “3 Rs” of trade show success: repeat customers, referrals and requests.
“Almost everybody knows somebody who can bring you business,” Tillotson says. “Keep that perspective of being in the other person’s shoes.”
To sustain rapport, get away from the booth, Tillotson suggests. Remove your nametag and go around the room to see how that feels.
Consider what you wish someone had said to you. Take this perspective back to your booth.
Don’t forget to check out the competition, Montgomery coaches.
Engage attendees
Stay in the game by providing attention. “Body language is a huge indicator if you are involved with the individual,” Tillotson says. Eye contact is key, and tolerating silence is part of being a good listener. If you ask a question and a patron does not have an instant answer, wait.
“Are you comfortable with five seconds of silence or fifteen? Triple it,” she suggests. Offer encouragement. Say: “Take your time.” Montgomery believes it is important to vary greetings and questions. “’How are you doing today?’ ‘You look like you’re having fun.’
Keeping it first-time fresh is important. That way, you won’t get robotic,” he says.
Montgomery, who had a previous career in jewelry sales training, offers that perhaps 60 percent of communication is nonverbal. “You are inviting and engaging people who are walking by with a pleasant look on your face.”
As they come closer to the booth, “mirror and match” their nonverbals. Because people sense discomfort, trade show staffers must never see the task as “punishment,” because that attitude “can do a lot of damage,” he cautions.
If vendors are questioned by a booth visitor, Tillotson advises giving a brief answer, then promoting dialogue.
Montgomery identifies three types of visitors: the information gatherer, the sellers (who are passing out their own cards) and the solution seekers. More time should be spent on the latter without losing sight of others.
There will be times when the booth seems “dead” and other times as if “the bus just unloaded,” he says, “but don’t close that booth early. Be there for the entire show and maximize it.”
Post-show follow up
After the show, being able to count up 350 business cards is not success. Cultivating follow-up is essential.
Organize your prospects into hot, warm and cold right away, Montgomery says. He likes follow up to be personal: in person or by phone if possible.
“High tech has become low touch,” he says. “Time kills a deal, and there is a time factor in electronic communication. I will use e-mail for relationships that I already have established.”
Maria Shine Stewart is a South Euclid-based teacher, writer and writing consultant. She covers eastern Cuyahoga County for the Business Journal.
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Five tips to get the most out of event giveaways
by Tom Mitchell
Trade shows create opportunities for you to market your product or service face to face and promote your company.
According to a study by the Promotional Products Association International, trade show and event attendees had more favorable attitudes toward companies that had given them promotional products. Just giving anything away at a trade show of event, however, does not ensure success.
Here are five tips that will help you:
1. Define what you want to accomplish, and set a budget. Whether you want to create a “buzz” at the show, drive booth traffic or reward prospects for visiting your booth, clarify the purpose of the giveaway and the desired end result. The price of promotional items varies widely. Quality, quantity, custom vs. stock items and rush charges can impact your budget. The greater the quantity, the lower the unit price. Consider using the same item for several shows to take advantage of quantity discounts.
2. Define your audience. The most successful giveaways have a high-perceived value by show attendees. Study the event’s demographics and define the segment of prospects that mean the most to you. Consider having different giveaways for different visitors. You may have different quality giveaways for customers, prospects and general booth visitors.
3. Create a centralized theme and message. A centralized theme used throughout your event on the booth, sales sheets, advertising, etc., can create an instantly recognizable brand image for your company. The centralized theme and message helps form your brand image.
4. Select an appropriate promotional item. With your budget, theme, audience and message in hand, consult with a professional. Look for a firm that is a member of ASI (Advertising Specialty Institute) or PPAI (Promotional Products Association International.) Companies like the Marshfield Group (a member of ASI) have computerized access to literally millions of items that are searchable by key words, cost and other parameters, and are trained to find promotional item ideas that fit your needs. What’s hot now? The hottest promotional products of 2010 can be seen on “The Joe Show” on You Tube (www.youtube.com/watch?v=6xQgRThrSK8).
5. Pre-qualify with a pre-show mailer. Most shows make registered attendee lists available to exhibitors. Select the categories of individuals that mean the most to you and use a pre-show mailer with a redemption coupon. This way, when a prospect brings the coupon or mailer to your booth, your sales people can use their time with the prospect accordingly. Trade shows can be an important component of your marketing mix. Selecting the right promotional item can play a key role in your success during and after the show. The most successful giveaways are integrated with your marketing plan and impart a relevant brand message.
Tom Mitchell is president and CEO of The Marshfield Group in Concord Township. Tom may be reached at tom (at symbol) marshfield.com. |
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We hope you enjoy our monthly feature article (above). Tri County Business Journal is a monthly newspaper filled with news, feature articles and announcements for the Lake County business community. Stay informed about the people, companies and new ideas that make Lake County the place to be. Subscribe to the print edition to read the complete issue. |
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