Top 7 Scams Targeting Small Businesses
Gone are the days that small business owners can just focus on dollars and cents. If you're not on the lookout for crimes and scams, you stand to lose more than a little profit.
Scammers can destroy your small business' credit and reputation overnight, so you need to be vigilant when protecting what you've built. But you can't stop a scam if you don't know what to look for, so here are seven of the most common scams targeting small businesses.
1. FTC Warns of 'Consumer Complaint' Email Scam
No business owner wants to get customer complaints, especially fraudulent complaints that look like they're from the FTC. Always confirm the source of complaints before sharing any information about your small business.
2. Don't Fall for Business Website Domain Name Scam
You've got MySmallBusinessNameHere.com, but what about other domains in China or elsewhere? You may want a worldwide presence, but don't get suckered into buying a ransomed domain name.
3. Is 'Corporate Records Service' a Scam? What Businesses Need to Know
If you got a letter from your state's Corporate Records Service claiming that you need to file minutes with the state in order to comply with business regulations, don't worry. And definitely don't send them money order documents. Contact your state's consumer protection commission instead.
4. Declined Debit Card Override Scam: What Businesses Need to Know
And if a customer's card is declined, don't accept an "authorization code" from the customer. These can easily be faked.
5. Don't Route Vendor Payments to Scammers, BBB Warns
A variation on email spoofing or hacking, scammers use vendor email addresses (or ones that look similar enough) to trick unwitting accounts payable employees into wiring payment into bank accounts.
6. W-2 Phishing Scams Target Small Businesses
And your HR department needs to be just as careful as accounting -- make sure they're double checking all requests before sending employee W-2 information to anyone.
7. Craziest Employee Scams
Small business owners don't just need to be worried about scams coming from outside. Sometimes your own employees can be the most dangerous. And crazy.
Related Resources:
- Find Business and Commercial Lawyers Near You (FindLaw's Lawyer Directory)
- Top Small Business Scams Revealed by FTC, BBB (FindLaw's Free Enterprise)
- Small Businesses, Beware Fake Government Agents (FindLaw's Free Enterprise)
- Bitcoin Extortion Scam: 3 Things Business Owners Should Know (FindLaw's Free Enterprise)