Scams can impact every business, but they are especially a problem for small businesses.

Businesses and startups often don’t have the cyber-security support or established accounting processes of larger companies.

If you own or work for a small business, stay informed about common scams and report them if your business is targeted.

Business email compromise

Business email compromise fraud is an email phishing scam that targets people who pay bills in businesses, government and nonprofit organizations. The scammer poses as a vendor or other trusted source, who sends an email to an accountant or chief financial officer.

The email asks them to wire money, buy gift cards or send personal information, often for a plausible reason. If money is sent, it goes into an account controlled by the con artist.

Phony invoices

Businesses receive fake invoices demanding payment for products or services never ordered or received. The most common scams involve office supplies, website or domain hosting services, and directory listings. Often, if you look closely, you’ll see fine print that identifies the bill as a solicitation. Generally, the amount is small enough to not initially raise a red flag.

Directory scams

This scam has plagued businesses for decades. In it, con artists attempt to fool businesses into paying for a listing or ad space in a nonexistent directory. In some cases, the directory will technically exist, but won’t actually be distributed to potential customers. Other times, the scammer might lie about being with a legitimate directory, such as the Yellow Pages. Either way, the business is billed hundreds of dollars for services it didn’t agree to or for ads that were never placed.

Stolen identity

Scammers often pretend to be a legitimate company to trick consumers. Scammers set up fake websites and “hijack” your company name and address. They may also use brand hijacking — the blatant copying and misuse of company logos and website content — to impersonate a business and deceive unsuspecting visitors. In this con, the company doesn’t necessarily lose money. However, its reputation is tarnished when customers who were ripped off by scammers think the real company is responsible.

Charity pitches

Most businesses are regularly asked to donate funds to charitable causes. While many requests are legitimate, every year small businesses become victims of fraudulent or deceptive charitable solicitation schemes.

Phishing scams

Phishing scams attempt to steal information. The scams often appear to be legitimate emails or text messages. However, when you click on the link, you download a virus that captures personal information or load a form that asks for bank account or credit card details. Be leery of unsolicited messages and don’t click on links. Instead, hover over the link with your cursor to see the real address. Also, be sure your computer has the proper firewall and computer protection software.

Office supply scams

Businesses receive an unexpected telephone call from someone claiming to represent a reputable company with which they often do business. Sometimes scammers will call in advance to find out what brand of supplies or equipment the business uses. The scam caller will try to sell the business surplus merchandise at a reduced price, citing a cancellation or over-order by another purchaser. The merchandise doesn’t exist.

Coupon books

Small-business operators are often approached to participate in coupon book promotions. The business offers discounts or extras in coupon books that are sold by promoters to consumers. Problems occur if promoters change the terms of the coupons, oversell the books or distribute them outside a company’s business area. Make sure the book is being promoted by someone you trust, and that the terms and conditions are spelled out.

Vanity award scams

A vanity award scheme capitalizes on a company’s excitement for an award that holds no value. This con typically targets business owners through email campaigns. An email congratulates the owner on their selection for the award and invites them to click a link for details on how to claim the prize. But of course, claiming the honor involves paying a fee. Always research the organization offering the “award.”

Overpayment scams

A person you are doing business with sends you a check for more than the amount they owe. Then, they instruct you to wire the balance back to them. Or, they send a check and tell you to deposit it, keep part of the amount for your compensation and wire the rest back. The results are the same: The check eventually bounces, and you’re stuck, responsible for the full amount, including what you wired to the scammer.

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