Running a small business is challenging enough without having to worry about fraud. Unfortunately, scammers frequently target small businesses with deceptive schemes designed to exploit financial vulnerabilities. Understanding these scams and implementing preventative strategies can help protect your business’s bottom line.
Most Common Small Business Scams
- Fake Invoice Scams
Fraudsters send invoices for services or products your business never ordered, hoping your accounting department will pay without verifying. These invoices often look legitimate and reference real business vendors. Always verify invoices before making payments. - Business Email Compromise (BEC)
In this scam, criminals hack or spoof a company executive’s email account, instructing employees to send money or sensitive information. These emails often appear urgent and request immediate wire transfers. To prevent BEC fraud, implement strict verification procedures for high-value transactions. - Fake Government Notices
Small businesses often receive fraudulent letters demanding immediate payment for business licenses, tax compliance, or labor law postings. These scams impersonate state and federal agencies. Always verify government notices by calling the official agency directly. - Tech Support Fraud Scammers pose as IT professionals claiming your business’s computer system has been compromised. They trick employees into granting remote access, installing malware, or paying for unnecessary security services. Train employees to recognize social engineering tactics and never grant remote access to unverified sources.
How to Protect Your Business
- Educate Employees: Regular training can help staff recognize scam tactics.
- Verify All Transactions: Double-check any unusual or urgent payment requests.
- Secure Business Accounts: Enable multi-factor authentication (MFA) on financial and email accounts.
- Monitor Financial Activity: Regularly review bank and credit card statements for unauthorized charges.
Have Concerns? If you suspect fraud targeting your business, contact us for guidance on securing your finances.
