Small businesses: Watch out for these six scams

Image: © AFP/File

There are a number of common scams that specifically target small businesses. From phishing and vanishing clients to impersonation and ransomware, these are the primary threats facing firms. While attacks have increased there are measures that firms can take as the seek to avoid them.

Running a small business is not easy, juggling everything from sales and marketing to customer service and payroll. To add to this, scammers are out there trying to take advantage, explains Michael Moore, Chief Information Officer at Next Perimeter.

Moore tells Digital Journal: “From fake clients to phishing scams, fraudsters see small businesses as prime targets.” He outlines what these scams are together with the best tactics to adopt to repel such attacks.

The “Urgent” Phishing Email Trick

Moore picthes a scenario: Your inbox pings with an email from what looks like a trusted vendor, a financial institution, or even a company executive. The message? “URGENT: Your payment details need to be updated immediately to avoid late fees.”

These emails will look professional, and maybe even include your company’s name and logo. But the moment you click that link, you’ve handed scammers access to your sensitive information—or worse, your business’s bank account.

How To Avoid The Scam:

“Never click links or download attachments from unexpected emails,” warns Moore. “If a financial request seems urgent, confirm it directly with the supposed sender via a trusted contact method, not any of the contact info given in the suspicious email. Train your employees to spot phishing scams and consider multi-factor authentication (MFA) to protect accounts.”

The Fake Invoice Scam

Moore raises a second example: You receive an invoice from a vendor you do not recognize, but it looks legitimate. Maybe it’s for “business consulting services” or “annual software renewal.” It’s not a huge amount—just small enough that you might approve the payment without a second thought.

Except the invoice is fake. Scammers rely on the fact that businesses process invoices quickly and hope whoever does the accounting won’t question it.

How To Avoid The Scam:

Implement a verification system for invoices. Double-check unknown charges before paying, and keep track of approved vendors. If you receive an invoice from an unfamiliar company, don’t pay until you confirm its legitimacy.

The Fake Tech Support Call

Moore draws on another everyday event – Your business’s phone rings: “This is IT support. We’ve detected a security breach on your system. We need remote access immediately to fix it.”

The scammer sounds official, and they’ll pile on the pressure, trying to make you think the problem is urgent. But once they gain access, they can install malware, steal sensitive data, or demand payment to “fix” a problem that never existed.

How To Avoid The Scam:

“Legitimate IT support teams never cold-call businesses,” says Moore. “If someone claims to be from Microsoft, Apple, or any other tech company, hang up and contact the real support team directly via the contact information on their website. You should also train your team to be skeptical of unsolicited tech support requests.”

The Vanishing Client Con

A new client reaches out with a big order, Moore poses, an exciting project, or a long-term service agreement. Everything seems great—but after receiving their products or services, they disappear, leaving you with unpaid invoices.

Some scammers use fake business identities or stolen credit cards, while others just ghost you, knowing small businesses rarely have the legal resources to chase them down.

How To Avoid The Scam:

Always run background checks on new clients, especially for large orders. Require signed contracts, and for big-ticket items, consider partial upfront payment before delivering services or products. If a deal feels too good to be true, proceed with caution.

Ransomware: When Hackers Hold Your Business Hostage

Moore’s net case is – You log into your business computer one morning, and instead of your usual dashboard, you see a message: “Your files have been encrypted. Pay $5,000 in Bitcoin to unlock them.”

This is a ransomware attack, where hackers lock your business files and demand payment to restore access. Even if you pay, there’s no guarantee you’ll get your data back; many criminals take the money and run.

How To Avoid The Scam:

Moore advises: “Regularly backup your business data on external drives or secure cloud services. Invest in strong cybersecurity measures, keep your software updated, and train employees to avoid suspicious links and downloads. If your system is compromised, contact cybersecurity professionals immediately—never pay the ransom.”

Social Media & Website Impersonation

Customers start messaging you, Moore indicates: “Hey, I saw your Instagram post about a giveaway. How do I claim my prize?” Except—you didn’t post a giveaway.

“Scammers create fake social media accounts and websites that mimic your business’s socials and site exactly, tricking customers into sending money or personal details,” says Michael. “Some even hack business accounts and post fraudulent deals or phishing links.”

How To Avoid The Scam:

Regularly search for duplicate pages impersonating your brand. Enable two-factor authentication on all accounts and report impersonators immediately. If you run an online business, consider investing in domain monitoring to prevent scammers from setting up copycat websites.