A business scam is a dishonest scheme that aims to get money from its victims or something else of value. Although many well-known scams target private persons or consumers, there are also a variety of scams that target corporations. Scams can affect organizations of all sizes and sorts, with losses ranging from a few tens of pounds to millions of pounds for individual victims. A company’s risk of being found out can be reduced if it recognizes its weaknesses and can detect a scam for what it is.

We understood the nature of business scams by speaking with Faisal Abidi, a marketing and advertising expert with over ten years of experience. Continue reading to learn how scams are ruining your business.

Read More: How to Protect Yourself from Common Scams by Content Writers?

Scammers’ Tactics

• Scammers pose as someone you know and trust. They appear credible by claiming to be affiliated with a firm you know or a government organization.
• Scammers instill a sense of urgency in their victims. They pressurize you into making a hasty decision before you have time to think about it.
• Scammers use intimidation and fear. To encourage you to transfer payment before checking out their claims, they inform you that something horrible is about to happen.
• Scammers employ means of payment that are difficult to trace. They frequently request money via wire transfers, reloadable cards, or gift cards, which are difficult to reverse or track.

Some of the common business scams are:

1. Charity support scams 

In this scam, a shady publisher approaches a company and offers advertising space in a newspaper that supports a good cause. Publications for charity, crime prevention, drug awareness, hospitals, or emergency service personnel could include pamphlets, yearbooks, diaries, calendars, or magazines. Publishers often make misleading claims about their relationships with charities or local law enforcement, and they may even deceive these organizations into becoming linked with them.

2. Fake invoices

Scammers create fake invoices that look like they’re for items or services your firm uses, such as office or cleaning products or domain name registrations. Scammers aim that whoever pays your bills believes the invoices are for things that were requested by the company. Scammers perceive that if the invoice is for something important, such as keeping your website operational, you would pay first and then enquire. Except that it’s all a ruse, and if you pay, your money could vanish.

3. Unordered Office Supplies and Other Products

Someone calls to verify an address, confirm a current office supply or other item order, or give a free catalog or sample. If you say yes, you’ll be surprised when an unorganized product arrives at your door, along with high-pressure demands to pay for it. If you don’t pay, the fraudster may play a video of a previous call as “evidence” that the order was placed. Remember, if you receive anything that you did not order, you have the legal right to keep it for free.

4. Scams in tech support

Scammers start with a phone call or an alarming pop-up message claiming to be from a reputable company and notifying you that your computer security has been hacked. Their objective is to get your money, access to your computer, or both. They may demand payment for a problem you don’t have or enroll your organization in a computer maintenance program that doesn’t exist or is ineffective. They could even have access to sensitive data like passwords, customer records, or credit card details.

5. Business directories

Another common scam involves business entries in printed directories, electronic directories, or online directories. Be wary of ‘official-looking’ trade directory materials that ask you to supply or validate your website, email, or other contact information. These inquiries typically appear to be straightforward requests for a free listing, but the fine print might bind you to spend hundreds of pounds for a listing. The directory listing is often worthless; consider whether, if you were a consumer seeking your business, you would go to this directory instead of a well-known search engine.

6. Leasing scams

Often involving a personal visit from a sales agent, the target business is persuaded to sign up for a contract, usually for a combination of goods and services, involving a lease on expensive equipment. Telecommunications equipment, computer equipment, photocopiers, and other commercial/industrial equipment are examples of possible items. The services may be related to the use and/or maintenance of the equipment.

Read More: How to Spot, Avoid and Report Tech Support Scams

Prevention tips

Experts like Faisal Abidi have suggested the following tips to avoid scams and preserve your business:

• Confirm that the email is coming from a trusted origin.
• Look out for unusual purchase requests.
• When sending money or making purchases, take extra precautions.
• Before shipping merchandise, call the customer’s phone number and confirm the transaction details.
• Priority shipments for fraud-prone items should be avoided since they could suggest a fraudulent transaction.
• Be aware of orders that include a request for expedited delivery, especially if the shipping address differs from the billing address on the payment card.
• Keep an eye out for orders from recurring customers that aren’t in line with their usual spending habits.
• To avoid victimization and limit undesired chargebacks, contact your processor and make sure security safeguards are in place.
• Using the automatic verification tools provided by their acquirer and the payment organizations, merchants who accept Card-Not-Present orders can better avoid fraud.
• Employees at all levels should be taught to be suspicious of unwanted calls.
• Make a list of the companies that your company frequently works with.
• To make the bills appear genuine, fraudsters will use real firm names such as Yellow Pages. Inspect invoices thoroughly before making payment.

There is a lot of confidential information when it comes to fraud in the commercial and service industries. Perhaps this is because people believe they should have known better or noticed the warning indications that something was too good to be true, so they take the cost rather than reporting it. Make sure that you do not fall prey to the nefarious schemes of scammers and do walk the extra mile to do your homework when you think something’s fishy.