Businesses beware: Scams that target small business owners
Published May 14, 2025 by Angela Talbot
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Categories:
- Business
- Security & Fraud Prevention
Scams against small businesses are on the rise. From fake invoices to sophisticated phishing emails, fraudsters have become increasingly crafty, putting owners, employees, and company finances at risk. Every year, countless small businesses lose time, money, and sometimes their reputation due to these targeted scams. Understanding the tactics scammers use is the first step in building a more secure future for your business.
Common business scams
Knowing which scams are most common can help you spot trouble before it starts. Here are the top scams reported by small business owners across the country:
Phishing emails
Phishing emails are designed to look like they’re from legitimate sources, such as vendors, clients, or even government agencies. Scammers may ask you to click a link, download an attachment, or share sensitive business information. These emails can be highly convincing, often using company logos and realistic language.
Fake invoices
This scam targets your accounts payable department. A scammer will send an official-looking invoice for goods or services your business never ordered. If not carefully reviewed, these fake bills can easily slip through and get paid, costing your business money and potentially opening the door to future fraud.
Imposter scams
Imposter scams involve someone pretending to be a company executive, trusted supplier, or government representative. They often make urgent requests for money transfers, gift card purchases, or confidential employee data. Because the emails or calls seem to come from someone you trust, employees may comply without question.
Business directory scams
Scammers may contact your business and claim you need to update or confirm your listing in an online directory. After the call, you might receive an unexpected bill for services you never authorized.
Tech support scams
You may get a call claiming to be from a well-known tech company, warning you of viruses or cyber threats detected on your business systems. The scammer offers to “fix” the issue remotely for a fee, only to steal your money or install malware.
Vanity award scams
Your business might receive an email or call informing you that you’ve won a prestigious award or recognition. Scammers in these cases often ask for a payment to claim the award or to be included in an exclusive directory or publication. These awards typically have no real value and are designed to exploit your desire for professional recognition. Always research the legitimacy of such offers before providing any payment or personal information.
Red flags to watch for
Recognizing the warning signs can stop a scam before it starts. Watch for these red flags:
- Unsolicited emails or calls asking for sensitive information or immediate payment
- Spelling mistakes, generic greetings, or unusual language in messages
- Requests to change payment methods or banking details without proper verification
- Pressure to act right away, especially with threats or urgent deadlines
- Unexpected invoices or bills for products or services you don’t recognize
- Emails that seem to come from a familiar contact but use an unfamiliar or slightly altered email address
- Unusual requests for payment by gift cards, wire transfers, or cryptocurrency
Prevention tips to keep your business safe
Taking a few practical steps can greatly reduce your risk of falling victim to business scams:
- Verify all requests for payments or sensitive information. If in doubt, contact the sender using a trusted phone number or email address listed in your records.
- Train your team regularly. Make sure employees know how to spot common scams and encourage them to report anything suspicious right away.
- Implement strong internal controls. Set up processes for reviewing and approving invoices, payments, and changes to vendor details.
- Use secure passwords and update them often. Enable two-factor authentication where possible, and never share passwords over email.
- Keep your systems updated. Ensure your computers and software are equipped with the latest protection against malware and security threats.
- Monitor your accounts frequently. Set up alerts for unusual activity and review transactions regularly.
Helpful resources for reporting and recovery
If you believe your business has been targeted or affected by a scam, there are resources to help:
- Federal Trade Commission (FTC): File a complaint and get recovery resources at reportfraud.ftc.gov.
- Better Business Bureau (BBB): Report scams and check for recent fraud reports in your region at bbb.org/scamtracker.
- Your local law enforcement: Report scams, especially if you’ve lost money or sensitive data.
- Your bank or payment provider: Notify them right away to help prevent further losses or unauthorized transactions.
- State Attorney General’s office: Many states offer hotlines or online portals for business fraud reporting.
Staying vigilant is your best defense
Scammers are always finding new ways to target small businesses. Staying informed, training your staff, and putting strong checks in place can make your business a tougher target. Protecting your company means staying alert and making security a daily habit. Continuous education and open communication with your team and community will build a culture of safety that benefits everyone involved.
If you’re unsure about a suspicious contact or need more personalized advice, don’t hesitate to reach out to your local business network or small business association for support. Your vigilance helps not just your business, but the entire community of small business owners.