Scams And Your Business: How To Avoid Them

The growing threat of scams targeting businesses in the United States has become a pressing concern. Common scams include phishing emails, fake checks, phony advertising listings, tech support scams, and fraudulent invoices. These and other scams can strike businesses when least expected, compromising their data, security, and financial well-being. Plus, a business's reputation can be damaged if it becomes a scam victim. 

Be aware of the tactics that scammers use 

Scammers use bold and inventive methods to scam businesses. Understanding and recognizing these tactics can help you spot scams and avoid becoming a victim. For example, scammers often pretend to be someone you know or trust, such as a business or government agency. 

Fraudsters contact business owners and their employees via telephone and/or email. Their modus operandi usually involves creating a sense of urgency and, in some cases, intimidation when asking for business information, financial information, or money. These are clear warning signs of a scam in progress, so it's important to disregard them. 

Common types of scams targeting businesses 

Fraudsters use various scams to deceive businesses of all sizes but the goals are the same: exploit a business's vulnerabilities and trick the business owner or employees into information or financial losses. Here are some of the most common types of scams targeting businesses. 

Phishing  

With this widely used scam, cybercriminals use deceptive emails to trick business owners and employees into revealing sensitive information like passwords or financial details. These emails often appear to come from legitimate sources, making them particularly dangerous. 

Invoice fraud 

If a business owner receives an invoice for products or services they didn't order, it could be a scam. Fraudsters are known to send bogus invoices to businesses, hoping busy accounting departments will process them without verifying the invoice details or checking purchase orders.   

Fake suppliers 

Scammers like to pose as legitimate suppliers offering products at unbeatable prices. Once payment is made, the products never arrive, leaving businesses short of cash and products. It's crucial to vet suppliers and look for reviews or references before purchasing. 

Online business listing scams 

These scams are designed to lure business owners with promises of top-tier placements on business directories or search engines. Once a business owner pays the fee, the scammer vanishes without fulfilling their promise, taking the money and running. 

Online business review scams 

Posting fake reviews online is illegal, according to the Federal Trade Commission (FTC).1 However, some scammers contact businesses offering to write favorable reviews for a fee. Additionally, they may claim that they can have negative reviews removed. Business owners should be cautious of such offers and ignore them if they come through phone calls or emails. 

Fake tech support scams 

Fraudsters seeking to gain business information or remote access to computer systems often pose as tech support representatives. They contact businesses claiming they can fix nonexistent computer or network problems. They may ask for network access, money, or credit card information. If the company falls for the scam, it can lead to financial loss and data breaches. 

Fake check scams 

Unfortunately, check fraud runs rampant, and scammers target businesses. In one fake check scam scenario, the fraudster sends a realistic-looking counterfeit check to a business for more than is expected and asks that the extra money be returned. By the time the financial institution discovers the check fraud, the scammer has already received the additional money from the business. 

Business industry scams 

Last on our list of common scams that target businesses involve industry impersonations. Fraudsters contact businesses saying they work for a utility company, government agency, or website hosting company, among others, with false claims that require immediate payment. They may ask for wire transfers, credit card information, or both. 

The role of employee training 

The best defense against scam artists is a well-informed staff. Everyone in your company should complete a comprehensive training session to learn about scams and how to detect and thwart them.  

Employee training can be tailored to fit your company's size and specific needs, but the basic prevention strategies will apply. These include not opening suspicious emails, not visiting unsecured websites when using company computers and devices, and not sending passwords, login information, or sensitive information via email. Lastly, encourage everyone at your company to notify you or a management team member when they suspect a scam. 

Learn more about Ameris Bank’s commitment to fraud protection. 

 

Sources: 

¹ https://www.ftc.gov/news-events/news/press-releases/2024/08/federal-trade-commission-announces-final-rule-banning-fake-reviews-testimonials 

Ameris Bank is not affiliated with nor endorses Federal Trade Commission (FTC). The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  

Information presented in the Ameris Advice website is provided for educational purposes only and is not related to Ameris Bank's actual products or services. Ameris Bank makes no representations as to the accuracy, completeness or specific suitability of any information presented. Information provided should not be relied on or interpreted as accounting, financial planning, investment, legal or tax advice. Ameris Bank recommends you consult a professional for any specific guidance you are seeking.