When running a small business, the business owner needs to keep in mind the potential for scammers to attempt to profit from your business. Where there is a way to make money off of someone else’s back, there are scammers. They can even be people you know. Here are some common scams to look out for.
Insurance fraud is on the top of the list. Watch for the red flags. If something doesn’t seem right with an insurance claim, then you should definitely investigate it. False claims using your business in any way can affect not only your pocketbook, but also your small business. Small businesses targeted can end up closing their doors over insurance fraud. One of the most common insurance scams is the “slip and fall”. These actors who are after insurance money become professionals at insurance fraud. With just a slip and fall, you could be at risk of losing everything. Often, your security cameras can unmask this type of fraud attempt.
Beware of the email scam. Some of these emails actually phish for information. Make sure your email security is top notch and up to date. A bad phishing expedition at your expense can cost your business as much money as the thieves are able to get away with. Change your passwords often. Never leave bank information in your emails. Even if you are privy to phishing scams, some are so well done and professional looking, you can still get sucked in.
Office supply fraud is getting more common. The thieves learn which company you do business with and will pose as that company to send your company an invoice. Usually, the invoice is for a lot more money than you usually pay. Be sure your employees are aware of these types of scams.
A fraud supplier uses a big name as a backing for their company. This gives the thieves legitimacy when dealing with small businesses they are attempting to scam. Always check into the company and make sure you are dealing with a valid supplier. A little bit of research can go a long way. If the credentials don’t seem right, check it out.
Bank scams are very common. The scammer will attempt multiple methods of getting your company’s banking information, from approaching your employees to posing as someone they are not. The scammer is not interested in doing business. They are just interested in how to get your company’s money for nothing.
Scammers use many tactics to suck you into their scam. They come across as friendly and knowledgeable. The scammers have done it so many times that they are very natural and get your trust. Always research any company wanting to do business with you. A good scammer will have several people posing as different positions in the fake company. The obvious scammer will be from Nigeria, but the not so obvious will come across as your friendly neighborhood company.
Some scammers cold call businesses and investors looking for money for a supposed startup. When they approach another business, they might sell it as looking for a business partner in a new innovative startup. Business owners might think it is a good deal and can benefit their business only to find out later that there was no business to begin with.
Small businesses reinvest and work their heart and soul to get a small business off the ground. This new territory for scammers makes small businesses vulnerable. Small business owners should remain wary and look for red flags. If it seems too good to be true, it probably is. Report any suspected fraud to The Better Business Bureau. They also have an updated scam list targeting small business. Keep your company safe from scammers.