Sudden increase in need for product.(Selected Topic)(Credit bureaus)

It certainly is normal and desirable for a customer to grow and increase its need for product. What is out of the ordinary is when an account, for no apparent reason, suddenly increases the amount of goods it is ordering. An unexplained jump in ordering can mean a fraud artist is ready to make the last move.

What constitutes an unusual increase in orders? A sudden increase or quickening of the pace of the ordering is a common sign. Sometimes a company has taken on a greater capacity than it can actually handle. Often a company does this for legitimate reasons, for example, a company that assembles snow blowers will have a greater need of product after a period of foul winter weather. Often a company is in distress and increases the pace and volume of its business to recover from some loss.

Many times a company is purchased and the change of ownership is not announced. The new owner will take advantage of the company's past credit history for deceptive purposes. It's important to verify principal information regardless if the company is an established customer.

Here's a typical scenario. In just one year, Shady Deal Discount, a retailer and wholesaler of general merchandise, increased its orders for canned nuts from 25 to 250 cases per order. Not only did the company's appetite for nuts skyrocket, it started almost ...