You may be familiar with BBB's annual 12 scams of the holidays. Now BBB is bringing you the same list in a business edition.
Consumers are not the only one susceptible to scams during the holidays.
Businesses are often targets of scams with costly consequences. It's important that business owners take extra precautions to be able to identify, avoid, and protect themselves from scams.
BBB's naughty list - targeting businesses with their Scrooge-like frauds.
1. Business Email Compromise ("BEC").
Business email compromise fraud is an email phishing scam that typically targets people who pay bills in businesses, government, and nonprofit organizations. In BEC fraud, the scammer poses as a vendor who emails an employee and asks them to wire money, buy gift cards or send personal information. The money goes into an account controlled by the con artist, of course.
- The holiday twist: Scammers may impersonate “the boss” and email workers to buy gift cards for a holiday party or donate to a cause.
- The smart solution: Check all email addresses and verify the email with the alleged sender. Don’t click on links if you are not sure.
2. Phony invoices.
Businesses receive fake invoices demanding payment for products or services never ordered or received. The most common scams involve office supplies, website or domain hosting services, and directory listings. If you look closely, you’ll often see the fine print that identifies the bill as a solicitation.
- The holiday twist: Watch for potential fake invoices for holiday decorations or party supplies, or end-of-year invoices for things you didn’t order.
- The smart solution: Scrutinize all invoices carefully, and warn accounting staff of the potential for fake bills.
3. Directory scams.
Con artists attempt to fool businesses into paying for a listing or ad space in a non-existent directory. Sometimes, the directory will technically exist but won’t be distributed to potential customers. Other times, the scammer might lie about being with a legitimate directory. Either way, the business is billed hundreds of dollars for listing services they didn’t agree to or for ads that were never placed.
- The holiday twist: Directory scammers may be asking for ads in a 2025 edition of a real directory.
- The smart solution: Check that the sender is who they say they are. Don’t click on untrusted links. Only list your business in legitimate directories, like BBB.org.
4. Stolen identity.
Scammers often pretend to be legitimate companies to trick consumers. Scammers set up fake websites and “hijack” your company name and address. They may also use brand hijacking - blatant copying and misusing company logos and website content - to impersonate a business and deceive unsuspecting visitors. The company reputation is tarnished when angry customers ripped off by scammers think the real company is responsible.
- The holiday twist: Scammers place ads on social media that rip off your company name or logo, leading to an impostor website.
- The smart solution: Monitor your social media. Set up alerts for mentions of your company name.
5. Fake charity pitches.
Most businesses are regularly asked to donate funds to charitable causes. While many requests are legitimate, small businesses become victims of fraudulent or deceptive charitable solicitation schemes every year.
- The holiday twist: Fraudsters send an email pretending to be a major charity in need of donations for the holidays.
- The smart solution: Research charities and see more giving tips at Give.org.
6. Phishing scams.
Phishing scams attempt to steal sensitive information about your business. These scams often appear to be legitimate emails or text messages. However, when you click on the link, you download a virus that captures personal information or loads a form that asks for bank account or credit card details.
- The holiday twist: Scammers may send a “virtual card” or “funny holiday video” that looks like it’s from a legitimate company or employee.
- The smart solution: Be leery of unsolicited messages, and don’t click on links. Instead, hover over the link with your cursor to see the real address.
7. Office supply scams.
Businesses receive an unexpected call or text from someone claiming to represent a supply company with which the firm often does business. The scam caller will try to sell the business surplus merchandise at a reduced price, citing a cancellation or over-order by another purchaser. The merchandise doesn’t exist.
- The holiday twist: The fake supply company claims to be having a Black Friday sale or an end-of-year clearance on laptops at a major discount.
- The smart solution: Be skeptical, hang up, and call the supplier yourself.
8. Coupon books.
Small business operators are often approached to participate in coupon book or direct mail promotions. The scam business offers discounts or extras in coupon packs that promoters sell to consumers. Then the terms change, or the coupons are not distributed in the right area.
- The holiday twist: This could be combined with a directory scam or end-of-year ad sale.
- The smart solution: Ensure the coupon book or pack is promoted by someone you trust and the terms and conditions are spelled out.
9. Vanity award scams.
A vanity award scheme capitalizes on a company's excitement for an award that essentially holds no value. This con typically targets business owners and congratulates them on their selection for the award, inviting them to click a link for further details on how to claim the prize. But claiming the honor involves paying a several-hundred-dollar fee.
- The holiday twist: “You’ve won an award for Business of the Year!” You’re so excited about the honor that you don’t double-check the source and the terms.
- The smart solution: Always research the organization offering the “award.” Don’t get caught up in the hype.
10. Overpayment scams.
In this scam, the person you are doing business with sends you a check for more than the amount they owe you. Then, they instruct you to wire the balance back to them. The check eventually bounces, and you’re stuck, responsible for the full amount, including what you wired to the scammer.
- The holiday twist: A fake customer could send you a too-big check for a large order, then ask you to send the overage back.
- The smart solution: Be skeptical of overpayments. Check with the bank if you’re given a check for more than the bill.
11. Voicemail hacking scams.
Scammers are clever, and they can hack into your company voicemail software, stealing your messages and then scamming your customers via phone or text when they contact them back.
- The holiday twist: This scam could do major damage during the holidays, causing you to miss important calls or reservations and sully your reputation.
- The smart solution: Update your voicemail PIN/passcode often and check your recorded greeting regularly.
12. Fake AI services.
Artificial intelligence is everywhere, with companies proposing the purchase of AI software to streamline your business. Scammers pose as a legitimate business offering a “free trial” of their product, and then either don’t deliver or impose undisclosed fees.
- The holiday twist: A fake business could offer you an AI solution for your end of year inventory, hoping you’re too busy to double-check their authenticity.
- The smart solution: Ask for references. Check every business on BBB.org, and only do business with BBB Accredited, highly rated AI companies.
BBB Tips to avoid small business scams
Keep good records. Keep documentation of all orders and purchases.
Be extra careful with payment procedures. Establish an approval process for transactions above a certain dollar amount.
Double-check vendors. Make sure that the vendor contacting you is the legitimate one that you know and trust. If you’re not sure, don’t click.
Be careful what information you share. Do not give out information about your business unless you know how the information will be used and who is receiving the data.
Protect your devices. Make sure you have proper computer protection software and a firewall. Don’t click on links in unsolicited emails or texts.
Spread the word. If your employees and colleagues know about the scam, they’ll be more likely to spot it. Educate them.
