As we mentioned in our recent Fraud Friday article on business identity theft, scams don’t only target individuals–businesses are at risk too. Unfortunately, small businesses are at an even greater risk because scams can be detrimental to their operations.
If you own a small business, review these warning signs and make sure your employees know them too:
- Impersonation – Scammers often pretend to be someone you trust. They impersonate a trust company or government agency in order to get you to pay.
- Urgency – Three of scammers’ favorite manipulative methods include urgency, intimidation, and fear. The biggest one to recognize, call out, and register as a red flag is urgency. Scammers will try to rush you into big decisions like paying money or handing over sensitive business information.
- Unusual Requests – Most scammers will request payment via specific methods, including wire transfers, cryptocurrency, and gift cards. If anyone demands payment this way, it’s a scam.
Common Small Business Scams
- Fake invoices or unordered merchandise
- Phony advertising or business directory listings
- Impersonation scams (utility shutoff, fake government fees, or bogus license renewals)
- Tech support scams asking for access or payment
- Phishing emails or ransomware attacks
- Bogus coaching programs or fake check scams
If something feels off–whether it’s an invoice, call, or email–pause and verify before you pay. It could save your business.
Stay informed, stay cautious, and let’s protect our community’s small businesses!