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Every day, businesses juggle dozens of tasks. From supervising employees to balancing books, days are jam-packed with details large and small.
Since 2022, Better Business Bureau® (BBB®) has received over 3,600 reports from businesses encountering scams in the course of everyday business.
Stories ranged from light nuisances such as incessant spam emails, to complete disruption, such as scammers holding data for ransom. In nearly every report, fraudsters show little regard for how their schemes could affect the livelihood of countless business owners and their employees.
And the cost is high. Federal agencies report that billions of dollars are lost each year, and the methods used grow in sophistication and number each year. Many businesses expressed dismay when encountering scams, especially those that cost them significant amounts of money. However, there are ways to fight back against scammers.
To help protect businesses, BBB’s International Investigations Initiative put together "BBB Study: How impostors, stolen data, and fake services cost businesses billions."
This study is intended to give businesses, news media, researchers and regulatory agencies an in-depth understanding of:
- How these scams work
- The most common types of business scams
- What businesses can do to protect themselves
- Red flags for businesses
One business owner in Nebraska, David, was looking to buy some equipment for his gas pump repair business. He found a reputable-looking site and decided to purchase over $20,000 in equipment, including a skid steer and a bobcat.
Once the money was wired, the seller disappeared. When researching online, he found that the scammer had stolen a real company's website. David never recovered his money.
Linda, another business owner in Mississippi, runs a commercial cleaning business with her husband. Someone contacted them, attempting to hire them for a job. The duo agreed, and the customer sent them a check, which they deposited in their bank.
Before the job started, the customer asked whether the money had been deposited. When Linda told them it was currently held at her bank, the customer asked for a deposit slip and their banking information to ensure she had actually attempted to deposit it. At this point, Linda knew it was a scam, which was confirmed when the check bounced.
Red flags: Learn these signs
- Unknown businesses, government agencies and big-ticket buyers
- Invoices from unexpected emails
- Odd behavior from “known” vendors or businesses
- Requests for gift cards or pre-paid debit card payments
- Urgent demands to renew or obtain licenses or trademarks
- Claims about expiring domain names
- Consultants making big promises about helping your business
BBB's tips to avoid business scams
- Train employees to recognize scams
- Double-check invoices and payments before sending
- Verify vendor contact information
- Establish payment procedures
- Avoid wire transfers, pre-paid debit cards, and gift cards whenever possible
- Maintain good records to compare against fraudsters' claims
- Don’t trust caller ID or names associated with emails
- Research unknown companies asking to do business
- Install firewalls, multifactor authentication and other security measures
- Obtain verification on social media profiles
- Find more tips and resources at BBB’s Business Scam HQ
Where to report business scams
- BBB Scam Tracker
- Federal Trade Commission (FTC) or call 877-FTC-Help
- Federal Bureau of Investigation (FBI) or call (202) 324-3000
- Canadian Anti-Fraud Centre - or 1-888-495-8501
- Find your state's Attorney General online