Online scams are a growing problem for small businesses. One in five small businesses have been scammed, with the average loss amounting to $3,100. As the technology and gaming industries grow, so do their online scams. Online scams can be difficult to find, but there are a few ways to identify scams before you get sucked in.
It is little known that online scams not only target individuals, but also businesses. If you have a small business that sells online, you are at risk to be scammed by predators. However, there are simple ways to avoid these scams.
Small businesses are the backbone of our economy. Unfortunately, there are many online scams that target small business owners. When the economy started to tumble in 2008, many small business owners were unable to pay their bills. As a result, their credit was damaged and they were unable to secure loans. This was the perfect time for scammers to take advantage of these businesses. Their credit was damaged and they were unable to secure loans. The scammers would tell these small business owners that they had what it took to build their credit and be able to secure loans. They would also tell these small business owners that they needed to go to these various websites to learn how to build their credit.
Internet fraud is widespread in our society. Despite existing consumer protection laws, a sufficiently clever criminal can still find a way to scam people.
By small business I don’t mean big corporations or multinationals, but your local shop, hair salon or garage.
Although these scams specifically target small business owners, anyone with an internet connection who knows how scams work can be a thief.
Internet fraud against small businesses
Since you don’t know how to prevent scams or what to look out for the next time someone tries to scam you (especially since many companies don’t advertise their security systems), you need to do what you can to stay safe online yourself.
1. Mystery Shopping:
This scam is best known for its emails, which are usually sent with the title Mystery Shopper. She comes from a company and asks you to be a mystery shopper for them.
The letter states that they will pay you $200 to $500 to visit stores and see how the staff treats customers.
It actually sends the person receiving the email to a link that downloads the malware onto your computer (for example, your home computer).
The malware then gains access to any credit cards you have stored on your computer to use for online or phone purchases.
2. Multi-level marketing systems
Multi-level marketing schemes are similar to the online mystery shopper scam.
They usually present themselves as very high margin opportunities, but always promise very high returns, especially if you sign up as an affiliate, which probably means they pay you a commission to help sell their products.
What this really means is that if you do some of the tasks they offer, they’ll get you started and then recruit even more people below your rank, eventually manipulating your commissions to zero.
Such a plan will also require you to hire more people. The idea is that by the time you realize you’ve been scammed, it’s too late.
3. Company trainer:
This is another internet scam that sounds convincing because it supposedly targets business owners. It’s probably best to avoid them at all costs.
Many of these scammers promise that they can teach you how to start your own business and make millions.
When a business is still in its infancy, many business owners pay a coach to help them. If the company is even larger, it is better to find time to work with an external specialist.
So it can be tempting to hire someone from abroad who costs less and is much cheaper.
This person is not a professional trainer, but someone who wants access to your website or social media page to post spam or ads.
This is sometimes done on freelance sites as well: They send you a cheap offer and immediately start their scam.
Also read : Google launches website to help users avoid online security fraud COVID-19
4. Phishing and smiling
A message is sent to your mailbox that appears to be from a friend. In this case, the email looks very authentic. The subject line will be something like I’m sending you a personal letter or a message from your friend.
In most cases, they try to impersonate someone you know and trust. The letter may seem legitimate, but it raises red flags.
If this has happened to you, it is best to ignore the email completely and delete it immediately instead of clicking on the link it contains. So avoid online scams and be careful.
This is a simple version of the Überzahlungsbetrugs, which is mainly used by hackers. This is usually done by email, although in some cases it is also done by phone or social media.
An overpaid scammer will try to get confidential information from you by claiming to have access to the account and need immediate access to that information.
Many people fall for this and unfortunately lose money or their personal data.
Never give out information such as passwords or bank details over the phone unless you know who you are talking to (and what their plans are).
In this scam, an email scammer pretends to be a friend, relative or bank of the victim and asks him to send money immediately.
Sometimes these emails look like phishing attempts, but sometimes they contain the victim’s correct information.
Determining if this is the case for you can be difficult. This is why it is important not to panic, but to follow your intuition and seek advice from someone you trust.
The letters can look like this:
I’m in Africa and I need financial help. I received an email from the official bank in Uganda saying that I had been chosen to receive the prize.
They send me vouchers with a code, worth $5,000 each. I was told not to use these coupons and to give them to a third party who would then give me a replacement coupon in exchange for mine.
7. Credit card fraud:
They call you and tell you that your credit card has been compromised and that they need to verify the number to make sure your account is real.
You quickly say yes and give them your credit card number over the phone. This scam can easily be avoided by just hanging up on these calls.
That’s right, no one will call you to verify your credit card number.
Unfortunately, sometimes they even try to impersonate collection agencies on the phone.
Always remember that no one has the right to ask for your credit card number unless you initiate the call yourself or expect incoming payments from a pre-approved company.
8. Incorrect invoices
You will get an invoice in the mail from the company that looks legitimate. Normally one would never think such a thing is a lie, but unfortunately it happens to many people.
Sometimes you are asked to pay thousands of dollars for something you never got. You can use someone else’s name and make it look real, including logo, address and all the details you can think of.
How do they do it?
They fake the company’s e-mail address. So if you try to resend an email, the company doesn’t really exist, and there’s no way to ask what happened to your order or if you even ordered from the company.
Also read: 7 Facebook Marketing Myths You Should Know
9. Fax fraud:
This happens when they fax you an invoice and ask you to pay through the system.
The facsimile can be difficult to see, as can the note itself. To avoid these scams, it’s best to be careful who you engage with online.
They may also call before sending you a fax and tell you they are from your bank, the police or another agency. Be sure to research the number before rejecting it – not all numbers turn out to be legitimate.
Online scams are commonplace, and what you can easily avoid, unfortunately, often happens. Maybe you want to buy something online, but someone finds the product cheaper on another website.
There are also leaks from hackers or theft from social media blogs that lead to fake product pages everywhere. The result is that people are losing hundreds of dollars every month.
All you need to do to stay safe is to be aware of potential scams and avoid them. If you follow these tips, you can get your money back in most cases. See also the article 6 scams targeting small businesses.Try to remember that online scams are everywhere. You should check your email regularly, even when you’re on vacation or away from the office, because scammers are constantly trying to trick unsuspecting victims. They use email to carry out scams such as phishing scams; when a scammer tries to trick you into giving up personal information like your credit card number or bank account information.. Read more about scamming businesses and let us know what you think.
Frequently Asked Questions
What are small business scams?
A small business scam is a fraudulent or deceptive scheme that targets small businesses. The most common types of small business scams include: Ponzi schemes Pyramid schemes Phishing Bait and switch Theft Counterfeit goods False advertising Theft Theft What are the most common small business scams? The most common small business scams are: Ponzi schemes Pyramid schemes
What businesses are scams?
Businesses that are scams are usually those that promise you a lot of money but don’t deliver. They usually promise you that they will make you rich in a short amount of time. What are the warning signs of a scam? The warning signs of a scam are usually when the company is asking for a lot of money upfront and not offering anything in return. The company will also usually ask you to send them a lot of money to get started.
What are the most common frauds in small business?
The most common frauds in small business are: – Credit card fraud – Identity theft – Employee theft – Business email compromise – Business email spoofing – Business email spoofing – Business email compromise – Business email spoofing – Credit card fraud – Identity theft – Employee theft – Business email compromise – Business email spoofing – Business email spoofing – Business email compromise – Business email spoofing – Credit card fraud – Identity theft
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