Scammers seem to be everywhere, and if you don’t know what to watch out for, it can be easy to fall for them. When it comes to your small business, your time and resources are often stretched thin, making you a prime target for scammers. This blog will help you identify frequent tactics that scammers use, recognize common scams that are circulating, and take practical steps to protect your business.
Tactics Scammers Use
- Scammers often impersonate a legitimate business or a person you know. They do this in order to draw you in so that you don’t question who the message is coming from.
- Scammers will create a sense of urgency and panic to take action. They may ask for immediate payment or information in hopes that you act before thinking.
- Scammers usually ask you to pay in specific ways. They may ask for payment in the form of wire transfers, cryptocurrency, or gift cards.
5 Fraud Scams to Look Out For
1. Phishing
Phishing texts or emails usually appear to be sent from someone you know, such as a colleague, a bank, or other business. Common phishing schemes usually say that your account has been compromised or that you’re being audited by the IRS. These texts or emails contain a link that downloads a virus or leads to a website (often a copy of a legitimate website) that has a place for you to enter your personal information.
2. Fake Invoices or Unordered Merchandise
Scammers may create and send a fake invoice with products or services they claim you ordered for your business. They may also pose as your regular supplier and reach out to remind you that it’s time to reorder a product or service that you normally purchase. This is a way they try to access your payment information and make you pay for products or services that don’t exist.
3. Online Listing or Directory Scams
Some scammers may contact you asking for your business information and claiming that they will post it to an online advertising listing or directory for free. However, later you’ll receive a large bill only to learn that the first month is free but subsequent months come at a steep cost, or even worse, the so-called directory doesn’t even exist. While some of these business listings do actually exist, the predatory and misleading enrollment process is definitely unethical.
4. Vanity Award Scams
This scam involves informing you or your business that you’ve been selected to receive an award or appear in a prestigious publication. They may send an email with a link with details and instructions on how to get started, but they will ask for a large amount of money to cover the cost of the publication or other “expenses.”
5. Tech Support Scams
Tech support scams will tell you that there is a problem with your computer’s security. They will try to convince you to pay for a fake computer maintenance program and may even try to remotely access your computer, in an attempt to steal your information.
Protecting your small business from scams requires vigilance, proactive measures, and a clear understanding of what’s at stake. While it’s impossible to predict every scam, there are key steps you can take to safeguard your business. By adopting a mindset of prevention and caution when responding to red flags, you can greatly reduce the chances of falling victim to these scams.
Ways to Protect Your Business Against Scams
- Keep thorough records of all of your purchases, venders, and customers. Always verify information independently, rather than relying on external sources. Staying organized will help you spot inconsistencies and protect your business from suspicious activity.
- Double check email addresses and contact information from messages that look suspicious.
- Don’t click on any links or open any email attachments from senders you don’t know, or those that seem suspicious.
- Research any company, publication, etc. that reaches out to you. Look them up independently, rather than following a link in their email. Log into your accounts independently to track down and verify supposed charges, invoices, or receipts.
- Be careful what information you share online or over the phone. Don’t ever give out financial information to someone you don’t know. If you give your financial information for a “free” service, always assume there will be a renewal for which you will be charged.
- Train to your employees and teams about these scams, the warning signs to look for, and how to respond if they are suspicious.
By staying informed and taking proactive steps to prevent fraud, you can significantly reduce the risk of falling victim to scams. Protecting your small business requires ongoing effort, but the peace of mind it brings is well worth the effort. If you ever find your business caught in a fraud scam, First Independent Bank is here to help. Call one of our branches or contact us as soon as possible so that we can assist you.