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IFO Chapter MeetingTampa, Florida
September 9, 2014
Presentation by: Scott Tillesen
Today’s Agenda
About Tech Data Corporation Accounts Receivable Management Cash Application Credit Cards Fraud Debtors Prison And … whatever else the group would like to
discuss
Accounts Receivable Mgmt.
Need to take a tough stand The Seller part is done, now the Buyer needs to
pay Importance of a ‘route of escalation’ Stick to a process Have one or more outsourced steps The value of a strong credit application The importance of a new account process
Collection of A/R:
Cash Application
U.S. Invoicing: 22,000 invoices / $30+ million daily.
EDI, Email, Internet, and Paper payment. Payment via: wire transfer 53%, ACH 10%,
check 35%, credit card 2%. All payments made to banks* Check by phone Handled by Accounting Department
Cash Application - continued
Remittance detail via EDI transaction, bank OCR or keyed, emailed files.
Cash Application Rules:Rule #1. Application is by customer direction only.
Rule #2. If customer doesn’t supply application directions, re-read Rule #1.
Objective of minimizing contact. Typical problems with misapplied credits
Credit Cards
High-cost alternative for a low-margin business. Without encouragement: $200,000,000
annually. Tokenization for PCI compliance Gateway / Acquirer Processor “Level” of processing: I, II, III. Evaluation surcharge opportunity. Individual customer financial performance.
Fraud Schemes –Case #1 The Pretender
BackgroundEnd user: US Dept. of Information Sciences
Product: $160,000 of HP Computers
Customer: Reilly Computer Services, Tampa FL
Financing: Direct payment to De Lage Landen Scheme
Mimic real website site, email, and purchase orders Outcome
Recovered the shipment, alerted Federal authorities
Fraud Schemes –Case #2 Familiar Faces Background
End user: VariousProduct: ComputersCustomer: Several dozenFinancing: Regular supplier credit lines
SchemeMalware intrusion to capture ID’s and PasswordsShip to freight forwarders, ultimately to Eastern Russia
OutcomeStopped shipments in transit to freight forwarders, recovered
some shipments at freight forwarders. Alerted federal authorities. Required password changes on affected accounts. Implemented additional security features.
Fraud Schemes –Case #3 Work at Home Background
End user: VariousProduct: ComputersCustomer: Several dozenFinancing: Regular supplier credit lines
SchemeMalware intrusion by fraudsters to capture ID’s and Passwords
Unwitting accomplices thru www.CareerBuilder.com
Forward products to freight forwarders, then to eastern Russia
OutcomeRecovered some shipments at freight forwarders and at the homes
of unwitting accomplices. Alerted local and federal authorities. Required password changes on affected accounts. Implemented additional security features.
Fraud Schemes –Case #4: Classic Bust-Out
BackgroundEnd User: Two RetailersProduct: Computer Display DevicesCustomer: California Based
SchemeMake legitimate purchases by the Customer, “arms’-length”
B2B resale at a discount, dissolve the Customer business. Outcome
Perpetrators were investigated, brought to trial, and convicted.
Jailing Debtors
Credit in America – Initial funding & expansionColony to colony differences
Stability of statute law
Efficiency of legal system
Colonial bankruptcyHalt race to file individual suits
Reduce incidence of fraud
Equitable distribution
Provide a second chance
Three colonies had debt discharge
Jailing debtors - continued
English law creditor’s rightsSale of personal and real propertyJailing if debt unsatisfied or if potential of fraud.
Debtor’s prisonPossibly were a deterrentSeldom were effective
Indentured servitude Federal abolishment in 1833 United Nations prohibited slavery or servitude
in1948
Jailing debtors –The Case of H. Beatty Chadwick
Lawyer and respected citizen Wife filed for divorce She claimed he sent money out of the country Court ordered him to retrieve the money One year later was imprisoned Released after spending14 years in prison
when: “… incarceration had lost its coercive effect and would not result in him surrendering the money.”
Scott Tillesen
Vice President Credit & Customer Care – The Americas
Tech Data Corporation
5350 Tech Data Drive, MS A#-18
Clearwater, Florida 33760
Email: [email protected]
Phone: 727-538-5880
LinkedIn: www.linkedin.com/in/tillesen
