5 Common Scams Small Business Owners Need to Be Aware Of

Chances are, you have encountered at least one or two scams in the past. Unfortunately, small businesses have been a rising target for scams. This causes many small businesses to lose their time, money, and even their reputations are at risk, thanks to these scams. This is why small businesses need to be aware of scams and how to stop them before they become a big problem. Here are a few common scams small business owners need to be aware of:

1. Phishing emails
2. Fake invoices
3. Imposter scams
4. Business directory scams
5. Social media scams

1. Phishing Emails

A phishing email appears to come from a legitimate source, such as one of your clients, a vendor, or even a government agency. Unfortunately, these emails are not legitimate, and often the sender includes a link, attachment, or other download that can then steal your personal information or your customers’ information. If this information is accessed, it can be detrimental to your online reputation.

These emails often look legitimate because they use real company logos and common business language. However, pay attention to the actual email address the sender uses. The name on the email may look legitimate, but often, the actual email address will not match the name.

Phishing emails often tend to use threatening language to get you to share information without thinking before sending. They will often use threats, such as suspending your accounts or other drastic measures. If you ever receive an email like this, be sure to confirm directly with the company. Don’t use the information in the email; instead, research the business, or use any established contact you may already have. That way, you know you are speaking to someone at the actual company and not further communicating with a scammer.

2. Fake Invoices

A scam involving fake invoices will typically target your accounts payable department. In this case, a scammer will send an invoice for services or merchandise you or your business never ordered. Much like phishing emails, these will look like legitimate invoices with realistic logos.

If these invoices are not carefully reviewed and matched to your records, they can easily slip through with other bills and get paid. If this happens, it can cost your business money and may lead to future fraud.

3. Imposter Scams

Another common scam to be aware of is an imposter scam. This is a scam when someone poses as either an employee at your company, a vetted supplier, or even a government employee. These people often ask for money transfers, confidential data, or gift card purchases. Typically, these requests come via email or phone calls, and because the requests seem legitimate, employees tend to comply without second thought.

If your business ever receives a request like this, make sure to speak directly to the person and confirm information and identity. Also, verify phone numbers and email addresses. If the person is claiming to be a government employee, reference their email and contact info through a government website or give their office a call.

4. Business Directory Scams

Sometimes, scammers might contact your business and ask you to update or confirm any information listed in an online directory. If you confirm details, you may actually be agreeing to payment or subscription without your knowledge. Soon after, your business will get a bill for services. If you call to complain, scammers will splice together a phone call that makes it sound like you or an employee agreed to a service or charge.

Before updating your info over the phone or email, be sure to vet the person or company. Ask directly if there is a charge or fee. Reputable directory companies usually give time to consider joining the directory before signing a contract or agreement.

5. Social Media Scams

There are also a few scams to be aware of involving social media. Hackers can access your accounts and steal your sensitive information, as well as any employee or customer data. They can also pose as your business and advertise false products, services, or run fake ads. All of these things can damage your reputation and are just one of the reasons it’s extremely important to secure your social media accounts.

These are just a few common scams small business owners need to be aware of. It’s important to be aware of these scams so you can protect your small business and your employees.