May 19, 2022

Protect Your Small Business Against Scams

Know how to recognize common scams and how to avoid them.

Email fraud

Phishing, or email scams, target customers by sending them an email that appears to be from your business or another trusted source. The scammer will ask the customer to provide personal information and then use the information to open new accounts or to access existing accounts. To prevent these scams from happening, invest in security software to scan emails and other computer software. Inform your customers and employees on best practices to avoid phishing such as changing passwords often and double-checking email credentials.

Fraudulent invoices

Similar to phishing scams, a fake business invoice scam can be used by scammers to take advantage of customers. A fake invoice can take the form of an email that has a “Pay now” button to trick customers into paying a copycat of your business. This scam can also be used against your business in the form of an invoice impersonating a vendor. To prevent this common scam, keep close records of business transactions and limit the number of employees who are authorized to approve transactions. If customers’ personal information is leaked in the breach, inform them and ask them to consider changing their password.

Overpayment scam

This scam happens when a scammer overpays for a product and then requests for you to return the difference through a wire transfer or other payment. The original payment is usually a bad check and this can indicate fraud. When a customer requests a return of funds, especially through wire transfer, be suspicious and report them to the Federal Trade Commission online at reportfraud.ftc.gov.

Ransomware

Scammers can use ransomware attacks to hold important data hostage until the ransom of money or cryptocurrency is paid. These attacks can have a serious impact on your business since your business’s data cannot be accessed during the attack and can even be destroyed. Stay vigilant of any suspicious activity and protect your data with email authentication and the latest updated software for your devices. If a ransomware attack happens on a device at your business, immediately disconnect the affected devices from your network and report the attack to your local FBI office.

Our team can help provide you and your employees with the tools you need to grow your business to the next level. Citizens First Bank offers customized savings and investment plans that will work for your small business. Feel free to stop in, give us a call, or visit our website to schedule a meeting with one of our team members today.