According to Juniper Research, global e-commerce fraud is increasing, with losses reaching $41 billion in 2022 alone. With the rise of online scams, business owners must stay updated on the latest tactics and safeguard their businesses.
This article will provide insights into common online scams, the strategies scammers use, and practical tips to safeguard your business.
Deception and dirty tricks: How scammers manipulate
Scammers are skilled at manipulating people and businesses. They often use a combination of tactics to create fear, urgency, and trust. Their common tricks include:
- Pretending to be someone you trust, like a company or government agency.
- Generating a sense of urgency to disrupt your thinking.
- Asking for payments in specific ways outside the common payment routes.
Types of scams
Safeguarding your business starts with understanding the various online scams. Scammers are always coming up with new ways to deceive people, but many scams follow similar patterns. Here are the most common scams businesses should know:
Phishing scams
Phishing is one of the most prevalent scams targeting businesses. In a phishing scam, you might receive a call, email, or text message from someone pretending to be from a reputable organization like a bank or government agency. They’ll often claim an urgent issue—such as unpaid taxes, levies, or a compromised account—and pressure you to provide sensitive information like your bank account number, Social Security number, login credentials, or other personal identifiers.
These scammers use fear and urgency to trick you into acting quickly without thinking through the scenario. If you receive an unexpected communication from an unknown source, it’s best to ignore it. Only share personal or business info if you’ve verified the person’s identity. Remember, legitimate organizations will never ask for sensitive information in this manner.
Online ad scams
You’ve likely seen ads online that offer products at unbelievable prices—think high-end electronics, designer clothing, or even cars. These deals often seem too good to be true, and that’s because they usually are. Scammers create fake ads with low prices to lure you in, then trick you into entering your payment information on a fraudulent website.
To avoid falling for online ad scams, stick to well-known and reputable online suppliers. Be wary of deals that seem too good to be true, and always double-check the website URL before making a purchase. If you’re unsure about a website’s legitimacy, a quick search for reviews or complaints can often reveal if it’s a scam.
Safe account scams
Safe account scams are particularly devious because they play on your fear of losing money. In this scam, you might receive a message, email, or phone call from someone claiming to be from your bank or another financial institution. They’ll tell you that your account is no longer safe and that you must move your money to a “safe” account.
These scammers rely on creating a sense of urgency to make you act quickly without questioning the situation. However, remember that banks will never ask you to move money to another account in this way. If you receive such a call, hang up immediately and contact your bank directly using a number you know is legitimate.
Fake tech support scams
Fake tech support scams are another common tactic scammers use. You might receive an email or pop-up message on your computer claiming that there’s a problem with your device and that you need to call a tech support number for help. Once you call the number, the scammer will try to access your computer remotely, claiming they need to fix the issue. In reality, they’re looking to steal your information or install malicious software.
To protect yourself from fake tech support scams, never call a phone number provided in an unsolicited message. If you have concerns about your computer’s security, contact a reliable tech support service.
How to protect your business from online scams
Protecting your business from online scams requires a proactive approach. Here is a summary of practical steps to safeguard your business.
| Action | Description | Key Points |
|---|---|---|
| Train Your Employees | Educate employees about online scam dangers and encourage open communication. |
– Do not share sensitive information via email or phone. – Discuss any suspicious activities or messages. |
| Verify Invoices and Payments | Implement strict verification procedures for invoices and payments. |
– Double-check payment requests, especially from new or unfamiliar sources. – Be cautious of payment requests via wire transfer, cryptocurrency, or gift cards as they are potential red flags. |
| Be Cautious with Tech-Related Communications | Avoid trusting caller ID or unexpected messages. |
– Don’t click on links or provide information from unsolicited messages. – Contact companies directly using verified contact details. |
| Research New Business Partners | Conduct thorough research before entering new business relationships. |
– Search for online reviews and complaints about the company. |
Businesses face a constant threat from online scams. Safeguarding your business involves understanding different scams, identifying scammers’ tactics, and implementing effective security measures. Your best defenses against online scams are caution and awareness.