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Is a con artist trying to impersonate you or your company? It’s important to report business scams as soon as possible to raise public awareness of the issue and protect your future. This guide explains common types of scams, as well as how to guard your sensitive information best and report suspicious activity to the relevant authorities.
Common business scams
Imagine having a customer show up complaining that you never sent them the products they ordered. Then, when you go to check your records, the order doesn’t exist.
This example is one of the ways employees and company owners learn that criminals are fooling victims into buying merchandise that doesn’t exist. In cases like this, fraudsters set up fake websites or social media profiles that look like yours, siphoning off your legitimate business and tarnishing your reputation.
Malicious actors sometimes impersonate federal government agencies, as well. They will attempt to convince you that you need to pay more for a patent application, or they will claim you haven’t paid the necessary fees to regulatory bodies. For instance, the Department of Labor is happy to send posters about compliance to companies for free, but criminals will demand payment for them.
Some will masquerade as the Small Business Administration (SBA) and offer the possibility of a loan, but only if you pay the application fee. The loan, of course, will never materialize, while your application fee will vanish into the scammer’s pockets.
Likewise, thieves will offer you something for free — such as a listing in a directory that may or may not actually exist — only to turn around and charge you for it later. Others will try to convince you that they represent your trusted distributors by sending invoices, hoping your billing department will pay them even though they have given you nothing in return.
As these examples demonstrate, crooks will use every tool they can to rip off you and your customers. Keeping abreast of your company’s online presence, as well as the emergence of any impersonators, is crucial to preserving your reputation in the marketplace.
Spotting and evading dubious business practices
To monitor your brand’s hygiene, set up a Google Alert for the name of your business. If anything new appears online, Google will notify you immediately, allowing you to launch an investigation into any potential fraudulent activity.
Another best practice is to establish official channels for communicating with your clients and customers. For instance, if you have a secure website with an https designation, then you can assure them that all messages will be sent through their user account, and your company will never contact them through text messages, phone calls, social media platforms, or other informal communication methods. Have a robust privacy policy in place and follow it scrupulously.
Additionally, encourage people to contact you directly if they have any concerns that they may be interacting with a fraudster. Make sure that your contact information is easy to find on your website for this purpose.
Furthermore, train your customers and staff alike in the importance of guarding their personal information. Explain how common scams work and warn them not to share sensitive information — such as their credit card details, social security number, or other official registrations — to avoid identity theft.
In the event that a scam does pop up, it’s vital to report this information to law enforcement and relevant federal agencies in a timely manner.
The importance of reporting fraud and alerting the public
Criminals target companies of all kinds, so the first thing to understand is that it’s not your fault if you discover that you’re in their sights. While it’s normal to feel angry, frustrated, and perhaps even ashamed due to this loss of control, it’s imperative not to let these difficult emotions prevent you from taking action.
Now that you have identified the problem, it’s your responsibility to eliminate the threat quickly. To do so, you should notify several organizations of these attempts to defraud the public.
How to file a complaint
First and foremost, the FBI wants to know if you’ve unearthed a charlatan. File a report to ic3.gov, their Internet Crime Complaint Center. Consider conferring with a criminal law attorney or filing a complaint with your state’s attorney general, as well.
You should also inform the Federal Trade Commission (FTC). Be sure to visit their official website at reportfraud.ftc.gov, as tricksters also attempt to impersonate them.
Other good places to report the problem are the Better Business Bureau (BBB) scam tracker and Google’s malicious website clearinghouse. If someone wrongfully took out an SBA loan in your name, then you will also need to declare this identity theft using the agency’s form.
In each case, the organization will investigate your case and, once the facts have been established, add a post to their database for consumer protection. Visiting these listings periodically to inform yourself about the latest criminal schemes is also recommended.
Protect your business from scammers
No one likes to contemplate the possibility of being duped or having their key data stolen. Yet identity thieves and other malefactors are undoubtedly a permanent feature of our interconnected world.
To preserve your future, monitor your company’s online presence, stay safely connected with customers and business partners, and stay informed about the latest cyber threats. If a problem does arise, warn others without delay.
Also read:
Tips for Detecting Scam Mobile Phone Numbers
Is a Dealership Warranty a Scam?
Image source: Pixabay.com
