In today’s digital-first world, it’s critical to thoroughly research any company you’re considering doing business with. Whether you’re a startup or an established enterprise, the risks of working with a fraudulent or illegitimate company can lead to lost time, wasted resources, and reputational damage.
Let’s say a new business signs a contract with a supplier that doesn’t actually exist. Not only do they lose money, but they also burn valuable time—and that impact can extend to partners, clients, and stakeholders. That’s why it’s essential to run proper background checks before making commitments.
Review the Company’s Website
Start by taking a close look at the company’s website. Red flags often show up here first. If there’s no contact information—no phone number, physical address, or working contact form—it’s a sign the company may not be legitimate. Try calling any listed phone number to verify it’s active. A disconnected number should raise immediate concern.
Keep in mind: in today’s environment, email addresses and domain names are easy to obtain and don’t always indicate a trustworthy business.
Study the Address Information
Address fraud is one of the most common types of deception. If no address is listed on the website, consider that a red flag. You can also call the company and ask them to describe their location—then use Google Maps or a street view service to confirm the details.
For local businesses, consider visiting the physical address yourself. A quick on-site check can reveal a lot about a company’s authenticity.
Check the Company Registration Number
A legitimate company should be registered with the appropriate national or state agency. Look for a registration or company number, typically listed in the Privacy Policy or Terms and Conditions sections of their website. This unique identifier can be verified through government databases, offering reassurance that the business is operating legally.
Confirm the Privacy Policy
Legitimate companies almost always have a clear and detailed privacy policy. These policies typically include the company’s registered name and address and provide insight into how they collect and handle data. Also, look for Terms of Use or Terms and Conditions pages—sparse or suspicious language in these areas can indicate something isn’t right.
Search for Reviews and References
Customer feedback remains one of the most powerful tools in validating a company. Look beyond the company’s website for reviews on trusted third-party platforms. Search forums, social media, and industry-specific review sites to get an unbiased picture of how the business operates and how it treats its clients.
Quick Checklist Before You Sign with a Company:
- Review the company’s website
- Study the address information
- Check the company registration number
- Look for a privacy policy
- Search for reviews and references
Taking the time to verify a company’s legitimacy can save you from financial loss, operational delays, and reputational damage.
If you’re concerned about a company’s legitimacy—or want help strengthening your own organization’s security posture—contact Technology Architects today. Our team is here to help you navigate risks and ensure you’re doing business with trustworthy partners.
