Top 3 Business Scams You Need To Avoid Today

As a business owner, it's essential to be aware of the different types of online scams that are out there. These scams can often be very costly and can damage your reputation if they're successful. In this article, we'll take a look at some of the three biggest online business-related scams that you need to look out for.

Understanding Phishing

The characteristic of most online fraud, especially since the pandemic started, is phishing. This is by far the most widely used scheme. Phishing scams consist of several different types, all of which intend to acquire personal information from an unsuspecting victim to gain access to their accounts. One of the most common forms is when a user receives an email claiming to come from a known company, such as PayPal or Amazon.

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The email will usually ask the user to click on a link to verify their account information or reset their password. However, this link will take the user to a fake website similar to the real one. Once they've entered their personal information, it will be stolen and used to gain access to their account.

You can avoid such scams by only clicking on links from certain key people within a company and being suspicious of any email you receive that asks for your personal information.

1. Accounting Fraud

This scam often takes the form of fake invoices sent to a business to trick them into paying for something they haven't ordered. The invoice may be for a considerable amount, often resulting in companies making payments before realizing it's a scam.

One way to protect your business from accounting fraud is to always verify invoices before making payments. You can also set up rules within your company that state which employees are authorized to make payments and to what amount.

2. Human Resources Scams

There's no doubt that HR has taken huge strides in recent years with the advent of online and digital services that have made it easier for companies and organizations to hire and retire their employees. To protect and maintain the integrity of their data, companies need to be aware of attempts to access information from HR departments.

One common scam is for a hacker to pose as an employee and request access to the company's HR system. Once they have access, they will often download sensitive data such as social security numbers and addresses.

To protect your business from this type of scam, you should ensure that all employees have unique passwords that are not shared with anyone, and you should verify all new requests for access to your HR system.

3. Insurance Fraud

Insurance companies deal with offering protection against financial loss in exchange for regular premiums. Suppose someone is considering becoming involved in insurance fraud. In that case, it's almost certainly going to take place online, as the information found on the internet about customers is far more accessible than any paper records insurance companies might have.

One common scam involves using another person's social security number to provide proof of insurance. Once this has been done, the person whose information has been used can be held liable for all future claims being made under their name, even if they had nothing to do with it.

How To Report a Scammer

Let your family and friends know about these 3 business scams by sharing the article online. You can also officially report scammers and any suspicious activity to the FTC (Federal Trade Commission) using this link: Report To The FTC Here

How To Protect Yourself More

If you want to be the first to find out the most prevalent scams weekly, feel free to subscribe to the Scam Detector newsletter here. You'll receive periodic emails – we promise not to spam.

Meanwhile, educate yourself with some other business fraud-related articles listed right under this paragraph, so that you know how to stay safe online. Last but not least, use the comments section below to expose scammers.

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