Businesses are targeted for scams more commonly in the age of the internet because scammers and hackers have so many more versatile tools to use to get your attention and con you out of money or data.
You may think that a small business is less vulnerable since they have less to steal, but a scammer assumes that a small business is an easier mark, less equipped with software and training to deal with potential threats.
No matter how big your company is, knowing the common scams that are out there and how to deal with them can make you better prepared to face the modern business age and protect your money and your company data from theft.
Software invasion
Malware is a growing threat to small businesses. It most often takes the form of an email or other message containing news or offers that entice you and your employees to click on them.
These lead to often legitimate-looking websites that will ask you for information or permission to download files to your computer in order to view a video, take advantage of an offer, or see the details of an event.
This file download will be software that allows a hacker to invade your computer in order to steal your files, or see your screen’s activity. This can lead to stolen credit card information, hacked bank accounts, or leaks of company data.
To avoid this scam, advise your employees to use common sense when clicking on ads on company computers, not to accept any unsolicited downloads or offers, and to be aware of how scammers try to invade company mainframes.
The overpayment scam
This scam targets employees of companies who make sales online. It works by manipulating payment methods through refunds so they can steal from you.
It will start with a generous offer for a product or service, which the buyer will then overpay you for, either through a credit card or a check. They will apologize for the oversight or make an excuse to make their mistake sound more believable, such as the overcharge being an unnecessary coverage for shipping.
The buyer will then ask for a refund of the amount that they overpaid you through a money transfer, banking transfer, or money card. Once you do this, you will discover that you’ve been scammed because the original check or credit card payment will bounce, meaning that the overage you refunded them is gone.
Avoid this scam by training your employees to recognize when something isn’t right, such as when someone overpays for a service and then asks for a different refund method, such as a money transfer.
False billing scam
This is one of the more direct scamming methods. A scammer will send the company a fake invoice or some other kind of renewal request (such as for the domain name of a website) to be paid directly to the scammer.
This scam takes advantage of the fact that companies often have distinct departments that handle different jobs. Therefore, someone in accounting may not be aware of whether an advertising service needs to be compensated or an account renewal payment needs to be made.
When this administrator in your company receives the invoice, they will just do their job and pay it. This is why communication is essential between the departments of even a small business. Every administrator should know what activities, promotions, events, and services have been requested by the company and which need to be paid in order to avoid scams like these.
Phishing scams
This scam begins with a personal email to an executive in the company with containing some kind of official business. This could be a customer complaint, vague information about a critical business venture, or legal information.
The goal of this scam is to acquire company data through your response to the email. This could include your passwords, confidential administrative information, financial details (they may ask you to make a purchase of some kind), or through a malware download, as discussed above.
Recognizing phishing scams means keeping up to date on what important information is real so you know what’s actually going on within the company, legally and financially, and can recognize a fake request when you see one.
The Takeaway
Businesses today are vulnerable from information and money theft through these scams. Most of them involve taking advantage of company infrastructure by tricking untrained employees into making a refund, downloading from a link, or entering a password on a computer infected with malware that can detect and record keystrokes.
Avoiding these and other scams is a matter of employee training, awareness of the latest tactics, and common business sense.
Contact a PR company in South Africa or whatever country you ’re based in to request help on how to manage information to protect yourself and your business from scams.
Online Threat Alerts Security Tips
Pay the safest way
Credit cards are the safest way to pay for online purchases because you can dispute the charges if you never get the goods or services or if the offer was misrepresented. Federal law limits your liability to $50 if someone makes unauthorized charges to your account, and most credit card issuers will remove them completely if you report the problem promptly.
Guard your personal information
In any transaction you conduct, make sure to check with your state or local consumer protection agency and the Better Business Bureau (BBB) to see if the seller, charity, company, or organization is credible. Be especially wary if the entity is unfamiliar to you. Always call the number found on a website’s contact information to make sure the number legitimately belongs to the entity you are dealing with.
Be careful of the information you share
Never give out your codes, passwords or personal information, unless you are sure of who you're dealing with
Know who you’re dealing with
Crooks pretending to be from companies you do business with may call or send an email, claiming they need to verify your personal information. Don’t provide your credit card or bank account number unless you are actually paying for something and know who you are sending payment to. Your social security number should not be necessary unless you are applying for credit. Be especially suspicious if someone claiming to be from a company with whom you have an account asks for information that the business already has.
Check your accounts
Regularly check your account transactions and report any suspicious or unauthorised transactions.
Don’t believe promises of easy money
If someone claims that you can earn money with little or no work, get a loan or credit card even if you have bad credit, or make money on an investment with little or no risk, it’s probably a scam. Oftentimes, offers that seem too good to be true, actually are too good to be true.
Do not open email from people you don’t know
If you are unsure whether an email you received is legitimate, try contacting the sender directly via other means. Do not click on any links in an email unless you are sure it is safe.
Think before you click
If an email or text message looks suspicious, don’t open any attachments or click on the links.
Verify urgent requests or unsolicited emails, messages or phone calls before you respond
If you receive a message or a phone call asking for immediate action and don't know the sender, it could be a phishing message.
Be careful with links and new website addresses
Malicious website addresses may appear almost identical to legitimate sites. Scammers often use a slight variation in spelling or logo to lure you. Malicious links can also come from friends whose email has unknowingly been compromised, so be careful.
Secure your personal information
Before providing any personal information, such as your date of birth, Social Security number, account numbers, and passwords, be sure the website is secure.
Stay informed on the latest cyber threats
Keep yourself up to date on current scams by visiting this website daily.
Use Strong Passwords
Strong passwords are critical to online security.
Keep your software up to date and maintain preventative software programs
Keep all of your software applications up to date on your computers and mobile devices. Install software that provides antivirus, firewall, and email filter services.
Update the operating systems on your electronic devices
Make sure your operating systems (OSs) and applications are up to date on all of your electronic devices. Older and unpatched versions of OSs and software are the target of many hacks. Read the CISA security tip on Understanding Patches and Software Updates for more information.
What if You Got Scammed?
Stop Contact With The Scammer
Hang up the phone. Do not reply to emails, messages, or letters that the scammer sends. Do not make any more payments to the scammer. Beware of additional scammers who may contact you claiming they can help you get your lost money back.
Secure Your Finances
- Report potentially compromised bank account, credit or debit card information to your financial institution(s) immediately. They may be able to cancel or reverse fraudulent transactions.
- Notify the three major credit bureaus. They can add a fraud alert to warn potential credit grantors that you may be a victim of identity theft. You may also want to consider placing a free security freeze on your credit report. Doing so prevents lenders and others from accessing your credit report entirely, which will prevent them from extending credit:
- Equifax
- Experian
- TransUnion
Check Your Computer
If your computer was accessed or otherwise affected by a scam, check to make sure that your anti-virus is up-to-date and running and that your system is free of malware and keylogging software. You may also need to seek the help of a computer repair company. Consider utilizing the Better Business Bureau’s website to find a reputable company.
Change Your Account Passwords
Update your bank, credit card, social media, and email account passwords to try to limit further unauthorized access. Make sure to choose strong passwords when changing account passwords.
Report The Scam
Reporting helps protect others. While agencies can’t always track down perpetrators of crimes against scammers, they can utilize the information gathered to record patterns of abuse which may lead to action being taken against a company or industry.
Report your issue to the following agencies based on the nature of the scam:
- Local Law Enforcement: Consumers are encouraged to report scams to their local police department or sheriff’s office, especially if you lost money or property or had your identity compromised.
- Federal Trade Commission: Contact the Federal Trade Commission (FTC) at 1-877-FTC-HELP (1-877-382-4357) or use the Online Complaint Assistant to report various types of fraud, including counterfeit checks, lottery or sweepstakes scams, and more.
- Identitytheft.gov: If someone is using your personal information, like your Social Security, credit card, or bank account number, to open new accounts, make purchases, or get a tax refund, report it at www.identitytheft.gov. This federal government site will also help you create your Identity Theft Report and a personal recovery plan based on your situation. Questions can be directed to 877-ID THEFT.
How To Recognize a Phishing Scam
Scammers use email or text messages to try to steal your passwords, account numbers, or Social Security numbers. If they get that information, they could get access to your email, bank, or other accounts. Or they could sell your information to other scammers. Scammers launch thousands of phishing attacks like these every day — and they’re often successful.
Scammers often update their tactics to keep up with the latest news or trends, but here are some common tactics used in phishing emails or text messages:
Phishing emails and text messages often tell a story to trick you into clicking on a link or opening an attachment. You might get an unexpected email or text message that looks like it’s from a company you know or trust, like a bank or a credit card or utility company. Or maybe it’s from an online payment website or app. The message could be from a scammer, who might
- say they’ve noticed some suspicious activity or log-in attempts — they haven’t
- claim there’s a problem with your account or your payment information — there isn’t
- say you need to confirm some personal or financial information — you don’t
- include an invoice you don’t recognize — it’s fake
- want you to click on a link to make a payment — but the link has malware
- say you’re eligible to register for a government refund — it’s a scam
- offer a coupon for free stuff — it’s not real
About Online Threat Alerts (OTA)
Online Threat Alerts or OTA is an anti-cybercrime community that started in 2012. OTA alerts the public to cyber crimes and other web threats.
By alerting the public, we have prevented a lot of online users from getting scammed or becoming victims of cybercrimes.
With the ever-increasing number of people going online, it important to have a community like OTA that continuously alerts or protects those same people from cyber-criminals, scammers and hackers, who are every day finding new ways of carrying out their malicious activities.
Online users can help by reporting suspicious or malicious messages or websites to OTA. And, if they want to determine if a message or website is a threat or scam, they can use OTA's search engine to search for the website or parts of the message for information.
Help maintain Online Threat Alerts (OTA).