When scams target your business or non-profit, it can severely damage your reputation and financial health. The most effective defense is understanding the common tactics of con artists and educating your team to recognize and avoid these schemes. This Con Artist Guide will equip you with the knowledge to protect your business.
Scammer’s Playbook: Common Tactics
Scammers often rely on a few key strategies to deceive their victims:
- Impersonation: They pretend to be trusted entities, like well-known companies or government agencies, to trick you into making payments or divulging information.
- Urgency and Intimidation: They create a false sense of urgency, using intimidation and fear to pressure you into acting quickly, before you can verify their claims. Don’t let them rush you!
- Specific Payment Demands: They frequently insist on payment methods that are difficult to trace, such as wire transfers, cryptocurrency, or gift cards. Any demand for these payment types is a major red flag.
How to Safeguard Your Business: A Practical Con Artist Guide
Here’s how to create a con artist guide for your business and implement effective protective measures:
Train Your Employees: Your First Line of Defense
Educate your employees about common scams and red flags. Regular training sessions are crucial. Make sure they understand the potential impact of scams on the business.
Verify Invoices and Payments: Implement Checks and Balances
Establish clear procedures for approving purchases and invoices. Emphasize the importance of thoroughly checking all invoices. Focus on payment methods requested; avoid anyone who demands wire transfers, cryptocurrency, or gift cards.
Alt text: Example of a fake invoice used by scammers to trick businesses into paying for unordered goods or services.
Spot Tech-Related Scams: Stay Updated on Cybersecurity Threats
Be aware of the latest tech support scams and phishing tactics. Regularly update your software and security systems. Implement strong password policies and multi-factor authentication.
Know Who You’re Dealing With: Due Diligence is Key
Verify the identity of all vendors and partners before engaging in business transactions. Check their credentials and references. Be wary of unsolicited offers or requests for information.
Common Scams Targeting Small Businesses: A Con Artist Guide to Awareness
This con artist guide highlights specific scams to watch out for:
Fake Invoices and Unordered Merchandise: Don’t Pay for What You Didn’t Order
Scammers send phony invoices for products or services never ordered. Verify all invoices before payment. If you receive unsolicited merchandise, you have a legal right to keep it for free.
Online Listing and Advertising Scams: Verify Before You Pay
Scammers trick you into paying for nonexistent advertising or listings in fake business directories. They often pressure you with details or recordings from earlier calls. Verify the legitimacy of any online listing or advertising service before paying.
Alt text: An illustration depicting an online listing scam targeting small businesses, where scammers try to trick business owners into paying for fake online advertising or listings.
Business and Government Impersonation Scams: Beware of Imposters
Scammers impersonate trusted entities like utility companies or government agencies to scare you into paying or providing information. Examples include:
- Threats of utility service interruption for fake late bills.
- Threats of license suspension or fines from fake government agents.
- Demands to pay for workplace compliance posters that are available for free.
- Requests for fees to apply for fake business grants.
- Threats of trademark loss from fake U.S. Patent and Trademark Office representatives.
- Threats of website URL loss from fake tech companies.
Tech Support Scams: Protect Your Computer and Data
Scammers call or send alarming pop-up messages claiming to be from reputable tech companies, alerting you to a problem with your computer security. They aim to gain access to your computer, your money, or both.
Social Engineering, Phishing, and Ransomware: Guard Against Cyberattacks
Cyber scammers trick employees into sending money or giving up confidential information through phishing emails, social media contacts, or phone calls that appear to come from trusted sources. They may also use malware to lock your files and demand ransom.
Alt text: An example of a phishing email designed to trick recipients into clicking malicious links and revealing personal information.
Business Coaching Scams: Be Wary of False Promises
Scammers sell bogus business coaching programs using fake testimonials and promises of amazing results. They often lure you in with low initial costs, only to ask for thousands of dollars later.
Changing Online Reviews: Avoid Illegal Practices
Scammers claim they can replace negative reviews or boost your scores on ratings sites. Posting fake reviews is illegal and unethical.
Credit Card Processing and Equipment Leasing Scams: Read the Fine Print Carefully
Scammers promise lower rates for credit card processing or better deals on equipment leasing, using fine print and lies to get you to sign contracts.
Fake Check Scams: Don’t Send Money Back
Scammers overpay you with a fake check and ask you to send the extra money back. By the time the bank discovers the check is bad, the scammer already has your money.
Other Questionable Practices: Stay Vigilant
Be aware of other questionable practices, such as false promises of big-money gig economy jobs or unnecessary services to improve your business’s credit report. After natural disasters, be wary of unlicensed contractors offering quick repairs that never happen.
Conclusion: Knowledge is Your Best Defense
This con artist guide is a starting point. By understanding the tactics of scammers, training your employees, and staying vigilant, you can protect your business from fraud. Remember to report any suspected scams to the FTC and your state Attorney General. Stay informed, stay cautious, and protect your business.
Report Scams
Report fraud to ReportFraud.ftc.gov.
Contact your state Attorney General. You can find contact information at NAAG.org.
