A Los Angeles-based bakery recently fell victim to a sophisticated counterfeit check scam, leaving its owner shaken and reevaluating her business practices. Loria Stern, proprietor of Eat Your Flowers, a bakery specializing in edible flower-pressed cakes and cupcakes, recounted the distressing experience that cost her time, resources, and peace of mind.
The incident began when Stern received what appeared to be a substantial order for 1,000 cupcakes, valued at $7,500. Such large-scale requests are infrequent for her small business, occurring roughly five times annually. The order seemed genuine, with the supposed client providing extensive details about their requirements.
Following her standard procedure, Stern waited for payment before commencing work on the order. When a check arrived via priority mail and the funds appeared to clear, she gave her team the green light to begin preparation. This entailed coming into the bakery on a typically closed Friday and rushing to secure necessary supplies, including custom cupcake boxes and additional ingredients.
The situation took an unexpected turn when the client abruptly requested to halve the order. Stern, not wanting to lose such a significant sale, considered offering a partial refund. However, communication with the client suddenly ceased. The following day, Stern discovered the funds had been withdrawn from her account, revealing the check to be counterfeit.
It became clear that the scammers’ intention was to manipulate Stern into transferring half of the payment elsewhere. The realization that the entire order was fraudulent left Stern feeling defeated, having expended considerable effort, resources, and emotional energy on what turned out to be a deception.
The impact of this scam extends beyond the immediate financial loss. Stern, a single female entrepreneur, supports not only herself but also her employees, some of whom are single mothers. The bakery operates on slim margins, utilizing exotic ingredients and eschewing preservatives, which necessitates quick turnover of products.
This incident has prompted Stern to implement stricter protocols for future transactions. She plans to discontinue acceptance of checks and will require advance payment for large orders exceeding $500, with a two-week lead time. Last-minute orders will be subject to more rigorous vetting, and Stern intends to prioritize phone conversations with clients to better assess legitimacy.
The experience has left Stern apprehensive about the future, wondering what other unforeseen challenges may arise in her business operations. She expresses sadness at the necessity of adding another layer of caution to her already demanding role as a small business owner.
Reflecting on the broader implications, Stern notes the difficulties inherent in running a small business, particularly in the baking industry where profit margins are typically narrow. She cites ongoing challenges such as employee management, scheduling, and maintaining personal motivation in the face of modest financial rewards.
Despite these obstacles, Stern remains committed to her craft, driven by creativity and a passion for producing beautiful,
happiness-inducing baked goods. However, the recent scam has undoubtedly dented her confidence and heightened her awareness of potential threats to her business’s security and sustainability.
As Stern navigates the aftermath of this incident, she exemplifies the resilience required of small business owners in today’s increasingly complex and sometimes treacherous commercial landscape. Her story serves as a cautionary tale for other entrepreneurs, highlighting the importance of vigilance and adaptability in protecting one’s livelihood against sophisticated fraudsters.