4 Tips to Protect your Small Business from Scams

  • by Rayna Karst
  • May 16, 2024, 14:00 PM

Individuals aren’t the only ones at risk of fraud attacks. Businesses must stay vigilant for scams that could cost them profits or even customers.

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. Make sure your employees know the warning signs of fraud. Common business scams you should watch out for include:
    1. Fake invoices
    2. Utility company or government agency imposters
    3. Tech support scams
    4. Phishing and ransomware
    5. Artificial Intelligence (AI) deep fakes and voice cloning 

      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.