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Financial scam recovery via business loans
Reported on Thu, 23 Feb 2006
The dangers of businesses falling victim to financial scams have again been highlighted, but a business loan can help to recover from losses to con artists or tighten up operating procedures.
As part of the Office of Fair Trading's (OFT) Scams Awareness Month, a conference was held to emphasise that small and medium sized enterprises (SMEs) are just as likely to be targeted by financial scams as consumers.
John Fingleton, chief executive of the OFT, explained that the effects of falling victim to a con artist could hit businesses especially hard.
"These practices distort markets and undermine consumer confidence," he said.
"We all know that scams have a huge impact on the economy and a huge impact on consumers."
Mr Fingleton issued a pledge that the OFT and Trading Standards would do all they could to help protect SMEs via raising awareness of con artists and promoting scam-busting technology.
In light of new EU legislation on how scams can affect consumers, he also explained the importance of cross-border collaboration.
He said "a lot of scams happen across borders", and that "international cooperation is essential in coordinating activities".
A low-rate business loan can help SMEs to invest in new technology and fund practices that reduce the risk of falling victim to financial scams, as well as helping business get back on their feet if they have lost money as a result of a con artist.
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