Business scams in the Philippines – Trust

Trust can go along way to bankrupt you, the reason behind this is often businesses are bought on schemes where relying on someone else’s knowledge is paramount. They then gain your trust as well as a close connection with your suppliers, could be electronics, automotive regardless of what it is your trust of them is already where things start to become unstuck.

What happens is that a deal can be cut between your trusted employee and the supplier to overcharge you, sign for things that never get delivered and then the supplier gets paid. Often in these instances the trusted employee and the supplier will split the money they are stealing from you and its more common than you think.

On top of that you have the borrow and slip method where businesses that are similar in product will actually “lend” to each other stock in a way that allows both to benefit from whatever the other does and doesn’t carry as you trade between each other just noting what is missing then its replaced/paid for. But what can happen is that as the item is passed that other things get added by your worker that slowly sees his pocket fill with cash and your stock levels drop as none of these will be added to the sales ticket simply things disappear right in front of your eyes.