Top 5 Scams Against Small Businesses Myriam Cruz September 1, 2016

Have you been a victim of a business scam?

Top 5 Scams Internet Directory Overpayment Vanity Awards Office Supply

Internet Scams Ransomware Holds computer hostage until you pay a ransom Malware Damages or disables computer Phishing Poses as a legitimate company Business Compromise (BEC) Compromises official business s accounts to conduct unauthorized fund transfers URL Hustle Tricks into paying a renewal fee claiming URL will expire soon

True Story: Phishing “I thought it was a real BBB complaint.”

Avoid Internet Scams Don’ts Don’t click on links, download files or open attachments from unknown senders Don’t trust based on looks Don’t share personal or financial information through Don’t’ click on pop-ups Do’s Do protect your computer with firewalls, spam filters, anti-virus, and anti-spyware software Do pay attention to URLs Do pay attention to spelling and grammar Do check online accounts and bank statements regularly

Directory Scams Send an Invoice Bill for renewing a listing and/or purchasing ad space in familiar, locally-distributed yellow pages directory It’s really a solicitation Reference an Unknown Directory Alternative directories not widely used Little to no value May never be published or exist Claim Affiliation with Yellow Pages & Uses Logo Falsely state affiliation with local telephone company No connection to publishers or well-known Yellow Pages

True Story: Directory Listing “I thought I was renewing my listing.”

Avoid Directory Scams Don’ts Don’t assume you have an existing listing Don’t assume the directory is legitimate or affiliated with Yellow Pages Don’t take a salesperson’s word on stats – ask for substantiation Do’s Do review invoices before paying Do verify company information Do train staff on how to handle invoices Do assign one person to process payments

Overpayment Scams Pay More Offer to pay more than asking price for a product or service Reconsider and ask for money back Claim Mistake Say the overpayment was a mistake Request Excess Funds be Wired Ask for overpayment to be wired, transferred to another company, or returned in gift cards

True Story: Overpayment “I thought the costumer made an honest mistake.”

Avoid Overpayment Scams Don’ts Do not wire money back to a purchaser Do not assume a check is legitimate – even cashier’s checks Do not accept payment for more than the purchase price Do’s Do know you are ultimately liable to your financial institution Do verify account information with the bank, if necessary

Office Supply Scams Send Unordered Products Usually toner, ink cartridges, light bulbs, and janitorial supplies Include Invoice A legitimate-looking invoice is included with the order Claim to be Going Out of Business Initially offer low prices, but bill at regular price Ask for Restocking & Return Shipping Fee Typically, 15 percent restocking fee and $300 shipping fee

True Story: Office Supplies “I thought I was getting a good deal on supplies.”

Avoid Office Supply Scams Don’ts Do not pay invoices for merchandise you did not order Do not return merchandise you did not order Do not buy from vendors you do not know Do not fall for high-pressure sales tactics or going-out-of-business offers Do’s Do review invoices before paying Do treat unordered merchandise as a gift Do assign a designated buyer Do document all purchases Do train your staff

Vanity Awards Scams Require Payment Ask recipients to purchase plaques or copies of award for friends and family costing hundreds to thousands of dollars Use “Best of” or “Who’s Who” Use names similar to legitimate awards programs to cause confusion and build credibility Lack Specific Details Fail to provide details on selection process, judges, nomination criteria, etc., Play on Ego Rely the individual’s excitement and vanity to avoid detection

True Story: Vanity Awards “I was so excited, I paid right away to be listed.”

Avoid Vanity Awards Scams Don’ts Don’t be afraid to ask questions Don’t pay to receive an award Don’t share personal information before verifying Do’s Do be skeptical Do ask how your company was selected Do ask about cost Do research the awards company Do look for legitimate opportunities

Red Flags Too good to be true High-pressure sales tactics Wire transfer requests Gift cards as payment Lack details Upfront fees Doesn’t feel right

True Story: Utilities Scam “I thought I was calling SRP.”

Report Scams

 Better Business Bureau bbb.org  Arizona Attorney General azag.gov  U.S. Postal Inspection Service postalinspectors.uspis.gov  Federal Trade Commission ftc.gov

Better Business Bureau 1010 E. Missouri Ave Phoenix, AZ bbb.org Thank You