As mediators and arbitrators, we acknowledge we’re eager to help people resolve their disputes. It’s part of why we do what we do.
But like every industry and every person has dealt with, there are scammers, fraud attempts, and bad actors who will try to take advantage of you no matter who you are or what you do. We have more experience in flagging scams and fraud attempts than most, because of our backgrounds and the fields we’ve worked in. One member of our team even worked for the Better Business Bureau routinely reporting on new scam and fraud alerts for businesses and organizations, so we’re aware there are always “red flags” to look out for before you trust a request or inquiry.
With the push to spread “AI” and LLM programs beyond commercial use, now some of these bad actors take their previous scams and try to make them more believable.
Part of being an arbitrator or mediator is paying attention, so here are a few points that made us pause on a recent request.
1) The sense of urgency. When they push you to do something, anything, quickly, urgently – it’s a good indicator to step back and see what they are really asking or selling. Yes, a car salesperson will be pushy, but a *good* car salesperson will acknowledge your pace, your price, and give you time to process. When you receive a request for mediation or arbitration services and one of the parties seems overly pushy, demanding specific parameters or outcomes, treat that as a big red flag.
2) The contact info seems sus. This request for arbitration did provide a company name and person’s name that seemed legit; they matched the info on their website. But the email address was generic and the phone number was not the one listed on the website. Sure, the contact person for that dispute for that company could have chosen to use their own personal number and not the company number, but it’s also pretty likely the fraudster copied just enough info from a legit business’ website to make their request look real.
3) Their request for arbitration funds holding had several stipulations, including up to 30% payment before the arbitration was done or resolved. As many others have pointed out, the risk here is that the funds being sent are fake, the arbitrator would then lose that money and the parties would either disappear or declare they settled and ask the arbitrator to release the monies. Either way, the arbitrator is the loser here.
4) Some of the references to arbitration clauses were, well, sloppy. Either they placed a bet the arbitrator or case manager would not fully read their requests, especially with the urgency attached, or their ai/LLM gave them just sightly wrong information (thus, the slop) and they used it anyway, not knowing. So it’s a good idea to stay brushed up on arbitration rules, laws, and clauses, so you know what you’re dealing with.
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A quick list of things to look out for:
* Urgency – what about the request is so urgent?
* Unusual Requests – are they asking you to do something or asking you to provide information that you’re not comfortable doing or providing?
* False info – is the information slightly wrong? is the email address a possible spoofed email? Don’t click on links, just hover over them to identify if the website looks legit.
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Again, scammers will target anyone, in any industry, so try to pay attention. Never click on links you don’t trust, check the sender info to see if it’s legit, and take your time to assess the request.
Share your experiences, too. Yes, even when you’re super aware, sometimes a scam sneaks through and before you know it you’ve clicked on or agreed to something you didn’t think you agreed to. There is nothing to be ashamed about. These bad actors prey on everyone and don’t care. You do care, and that makes a difference.
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