5 Business Scams You Should Know About

Protect your business from these 5 scams

There are several business scams, where scammers persuade business owners to steal their money. The scammers use different scam techniques to target victims. If a business understands these techniques, the risk of getting scammed can be minimized.

In this article, we have mentioned common scams that businesses need to be aware of and be able to avoid in the first place.


Common Business Scams

1. Directory scams

Scammers may make contact by claiming to assist the company by updating their information, in a printed or online directory. Beware of such scams because they look like simple requests and once you provide your details to be listed, they send you a hefty bill for an entry. In reality, the listings in the directory are worthless or the directory does not exist. Make your employees aware of the scam, and do your research before providing business information to anyone.

2. Bogus invoice scam

This is considered to be the simplest and most blatant scam, businesses receive bogus invoices without any prior contact. The invoices might be for advertisements in fake publications, or non-existent goods, or other fictitious services. In some cases, thieves also research the company’s suppliers to create invoices imitating the original. It is important to check and question every bill received. It is also needed that employees are trained and follow a proper invoice handling procedure to avoid getting scammed.

3. Bank account takeover

For small businesses, the most dangerous scam is account takeover. Fraudsters use techniques such as fake emails, fake websites to deliver e.g malicious software, to obtain sensitive information. This can include IDs and passwords for online banking accounts and used to withdraw money. In addition to being vigilant, make sure to monitor your bank accounts daily to track any unauthorized transfers. Also, contact your bank to ask for an anti-fraud alert service.

4. Office supply scams

Scammers can pose as a regular supplier, by reminding you to re-order supplies (most popular are paper and copy toner). If you are tricked into an order, you will immediately receive an overpriced merchandise order. Be sure to warn your staff of this ploy, and implement a proper ordering procedure that requires signature and receipt of business orders. Another related scam is receiving merchandise you never ordered, then getting harassed for non-payment.

5. Leasing scams

This scam involves a sales agent personally visiting the workplace, to persuade the target to sign up for a contract. This usually involves a lease on expensive equipment. The goods can be telecommunication equipment, photocopier, business equipment, or computer equipment. The scammers offer attractive prices to mislead the victim into signing a long-term lease agreement for poor-quality equipment.

It is surprisingly common to fall for business scams, especially small business owners who experience large pressure to innovate and grow. Here are other dangerous scams, such as Charity Scams that trick people’s generosity into stealing their funds.

If you have any questions about business scams or you have been the victim of a scam, please do not hesitate to leave your information below. Follow our Facebook/Instagram/Linkedin and Twitter for trading assistance, tips on avoiding fraud and professional consultancy services.

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