Common Scams & How to Avoid Them…
Operating a business is challenging. Whilst juggling operations, finances, and dealing with customers, business owners often become prime targets for con artists. It’s vital that you recognise scams and learn how to avoid them. Below are some common scams to be aware of.
Phishing Scams
Phishing scams rank among the most common dangers. These schemes usually involve deceptive emails. These look as if it has been sent by a reliable and known source. The objective is to deceive you into disclosing sensitive data, such as login information or financial details. More advanced attacks, known as Business Email Compromise (BEC) involve emails that appear to be from top executives. The email directs employees to transfer money or share confidential data.
How to Avoid:
- Always confirm the sender’s email address.
- Implement multi-factor authentication.
- Educate staff about the indicators of phishing emails.
Fake Invoice and Billing Scams
Fraudsters frequently issue fake invoices for products or services that were never actually ordered. These invoices look genuine, and are settled without a second thought.
How to Avoid:
- Confirm all invoices before processing payments.
- Establish a procedure for approving and paying invoices.
- Train employees to spot suspicious invoices.
Tech Support and Imposter Scams
In these schemes, criminals impersonate I.T support or software companies. They will claim to have discovered an issue with your computer systems and to give them remote access.
How to Avoid:
- Verify the identity of anyone alleging to be from tech support.
- Never provide remote access to systems unless you have verified the individual’s identity.
- Always use reputable I.T service providers.
Bank Impersonation Scams.
Scammers create counterfeit bank websites or login pages to steal online banking credentials. They send messages to alert you that your account has been locked. This also includes a link to a fake site which prompts you to input login information.
How to Avoid:
- Avoid clicking on links in unsolicited emails or texts.
- Bookmark the bank’s official website and use that for logging in.
- Be wary of any communication requesting sensitive information.
Social Engineering and CEO Fraud
Social engineering scams involve manipulating individuals into revealing confidential information. CEO fraud is a specific variation where scammers impersonate high-ranking executives to authorise fraudulent transactions. Scammers even utilise deepfake audio or video to imitate voices or the appearance of executives.
How to Avoid:
- Verify any unusual demands for sensitive information or financial transactions.
- Implement strict procedures for confirming the identity of individuals making such requests.
- Educate employees about the dangers of social engineering.
Staying informed and vigilant is the best defence against scams. Regularly train employees, establish procedures for handling sensitive information, and always verify requests for payments or confidential data. By taking precautions and being vigilant is the best way to prevent falling victim to scams.
