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Classic bust-out scam.(the scoop)
While spectacular corporate frauds producing the bankruptcies of companies like Enron and WorldCom grab headlines, a garden-variety business scam, the "bust-out," has been wreaking havoc for years at businesses without the resources--or commitment--to shut it down. In a classic bust-out, a company is contacted by someone with an offer to buy large quantities of merchandise. The terms: cash on delivery. The supplier delivers the goods, in exchange for a check drawn on a business account. When the check is returned for ...
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Source: HighBeam Research, Classic bust-out scam.(the scoop)