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Everett Miller
Everett Miller

Bust Out Magazine 'LINK'

A majority of included Harper's magazine employees voted earlier this month to end their association with a union, according to an election certification document filed recently by the National Labor Relations Board.

Bust Out Magazine

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Companies throughout the channel, from the biggest distributor to the smallest solution provider, are "sitting ducks" for these bustouts, said Gary Bares, founder and director of Verifraud, a fraud risk management unit of Direct Alliance, a subsidiary of Teletech.Bares is working with several channel companies. "It's unbelievable how easy it is," he said. "Most computer companies have no defense against this type of fraud, and the losses have been staggering."

And now, as distributors band together to shore up their defenses against scams like these, many in the channel believe the scammers are moving downstream, targeting smaller solution providers that can't afford robust fraud prevention systems.

The $80 million bank fraud by the long-time customer was the final straw that took down Boulder Corp. "He is in prison now," said Taufer of the customer. "All of our inventory was frozen as part of his assets that the FBI used to pay the bank back. They were a secured [debtor] and we weren't. We'd been doing business with him for years. We extended credit on a very large, large, large order for us. Our bill was sitting on his desk when he got busted."

How Big Is The Problem? For the past five years, Bares, a one-time channel credit executive, has fashioned a career out of tracking the rings known for running bustouts. Verifraud has studied more than 700 examples of possible fraud, and Bares' investigations lead him to estimate that bustouts account for up to 25 percent of overall bad debt in the channel.

Bares' research supports a claim that distributors can see about 35 to 50 large-scale bustout attempts a year. Companies without solid antifraud systems are victimized about 75 percent of the time, losing an average of $50,000 to $70,000 per attempt, he said. However, some losses have been known to reach millions for an individual distributor.

Last year, Bares said he warned distributors of a big impending bustout scam. But his warnings went unheeded and the losses were in the millions. "We had watched the perpetrators behind this bustout run several other frauds dating back to 2000," said Bares. "We knew exactly what was coming when they became involved with a Montreal company with several locations."

Bares stopped the fraud attempt for his clients and tipped off several other distributors that he has relationships with. One of these distributors came back a couple of months later and confirmed that the bustout had been carried out and that they were talking with other distributors, one of which was out $2.9 million and another out seven figures as well.

"We know there was a certain amount of fraud within the industry. It wasn't that we didn't think there was none. But the vast majority of it is hidden behind legit businesses and through bustouts. We had very limited fraud checks and procedures in place. We thought they were fairly sufficient," said the finance executive, who asked not to be named.

What Can Be Done? Unfortunately, there are no shortcuts or easy answers to combating fraud like bustouts in the channel. Scammers are buying companies now with the intention of using them four years down the road to run yet another bustout, according to Bares.

This series includes press generated by the label, Kaia Wilson and Tammy Rae Carland, or the record label's bands.The bulk of this series consists of complete copies of magazines with post-it notes indicating the article's location. (The post-it notes were photocopied and removed during processing. They are now clipped to the back page of each magazine.) The series also contains some clippings detailing Kathleen Hanna's career and involvement in the Riot Grrrl Movement, which predated the foundation of the label.

my friend is about to start a whole blog on how women should have a "keep away" box to bust out in case of flirtation emergencies (which i am about to make you all go post on), but first i have to tell you the funny story that got it happening.

The end of January is here, my dears. Time to officially put away the champagne flutes and goofy 2023 New Year\u2019s glasses and bust out the heart-shaped candies and \u201CI Love You\u201D teddy bears.


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