Thanks to the Internet, we are more connected than ever before. One downside to all the connectivity is the proliferation of dishonest schemes designed to cheat and steal from unsuspecting victims. Some scams even target small business owners specifically. Be on the lookout for the following common scams.
The Business Email Compromise
Small business owners may receive an email from someone pretending to be a known source, like a vendor or even an officer of the company. The email may look legitimate, but it will ask the business owner to pay them through gift cards or wire transfers. The scammer may also ask for personal information that can be used for identity theft. According to the FBI, this scam “has resulted in more losses than any other type of fraud in the U.S.”
Phishing for Small Business Owners
The scammer sends an email or text that says to click a link contained in the message. The link could then download a program or virus that steals sensitive company data, often including bank account information.
Directory and Coupon Book Scams
These schemes pre-date the Internet.
Your company might be contacted by someone who claims to be from a legitimate company, like the Yellow Pages, or a fake company that looks legitimate. Small business owners might buy ad space in the directory or coupon book, only to learn they have been cheated.
Bogus Invoices to Small Business Owners
Small business owners might receive an invoice for services that were never ordered or provided. The invoice looks so real that companies may pay the invoices, usually for small amounts, without confirming it’s legitimate. Phony invoices are often for office supplies, domain hosting, website management, and directory listings.
Fake Office Supply Sales
First, someone may call your office to see what kind of supplies you use and the name of the company that fills your office supply needs. Then, someone will call claiming to be from your office supply company. Small business owners that fall victim to this scam find out that they paid for products that don’t exist.
Small Business Administration Scams
Individuals may contact small business owners claiming to be from the Small Business Administration (SBA). Sometimes they may ask for information so the business can get a grant or loan from the SBA. In some cases, they claim to be from a company that can help you get money from the SBA for a small fee. In both cases, a scammer is targeting the small business owner.
Small Business Owners Can Take Steps to Protect Themselves from Scams
Stay aware of current scams. Also, be careful providing sensitive company information to anyone and make sure you verify that you are communicating with a legitimate contact.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.