The Price of Ignoring Red Flags: A Lesson in Risk Management
While working at an agricultural export company, I often received unsolicited emails from unknown senders offering databases to "expand our network" or "unlock new business opportunities." I usually disregarded such emails, as it’s impossible to guarantee the quality of the databases before payment. Furthermore, any organization lacking a substantial digital footprint instantly raised my suspicion as a potential scam.
However, on one occasion, senior management requested I investigate a database offer from a company claiming to operate out of Canada. As always, I began my research. The address they provided landed on a residential intersection with single-story houses on all four sides, as revealed by Google Street View. Their contact number, meanwhile, was registered in Florida, USA—thousands of miles away.
Curious, I called the number, only to reach the voicemail of another unrelated business, also in the U.S. Their website was a basic single-page site, featuring portraits of their C-level executives. Digging deeper, I used LinkedIn to search for the individuals listed but couldn’t find matches for the images or names. I then ran a reverse image search on their photos, which revealed multiple websites using the same template, colors, and images—but with different company names and employee identities.
Armed with these findings, I sent a detailed email to management, urging them not to proceed with the purchase. Despite my warnings, the company was under significant business pressure at the time, and senior management decided to move forward. I was tasked with communicating specific audience targets, regions, and parameters to the service provider, who confidently promised a database of 700+ potential importers within three weeks for USD $750.
Weeks passed. After constant follow-ups, the database finally arrived in the sixth week. The results were abysmal:
Did we make any sales from this database? Not a single one.
When an internal inquiry was conducted, I was prepared. I had saved all email threads, WhatsApp messages, and detailed warnings I had sent to decision-makers. Ultimately, my proactive documentation spared me from having to explain what was clearly a poor decision made under desperation.
Key Takeaway: When red flags appear, trust your instincts. Thorough research is invaluable, but it’s equally important to stand firm when the evidence suggests a bad deal. In the rush to address business challenges, cutting corners can lead to wasted resources, time, and opportunities. Risk management isn’t just about identifying threats—it’s about having the courage to push back, even when it’s uncomfortable.