Financial Success - Business Scams

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Protect your Small Business from Scams with These 4 Tips

Running a business is hard enough without having to worry about falling victim to a scam, losing profits or even customers. Luckily, a little preparation and diligence are all it takes to protect your business from fraud.

Follow these four tips to keep your business safe:

  1. Educate your Employees. You can’t be everywhere! Make sure your employees know the warning signs of fraud, too. Common business scams you can all watch out for include:
    1. Fake invoices
    2. Utility company or government agency imposters
    3. Tech support scams
    4. Phishing and ransomware

      TIP: Hold a monthly or quarterly training to keep employees informed about ever-evolving fraud tactics.
  2. Secure Passwords and Online Files. Protect your sensitive financial information from phishing or ransomware attacks by making sure your passwords are stored securely, and that you have good anti-virus software on your company computers.

  3. Research Potential Partners. Scammers often pretend to offer services like advertising, office supplies, or online security to get a paycheck and then disappear. Before doing business with another company, research them thoroughly.

    TIP: Search the company’s name and “scam” or “fraud” on your preferred search engine and see what pops up. Consider using recommendations from other businesses in your community when picking products or signing up for services.  

  4. Inspect Invoices and Payments Closely. Never pay a bill unless you know exactly what it’s for and be sure to verify you actually ordered the item. Additionally, if a wire transfer or gift card is the preferred payment for a vendor, it is usually a surefire sign of a scam.