Being a victim of scams can be a distressing experience, particularly for small business owners. Such incidents can have long-lasting effects on the profitability and reputation of a business. To avoid falling prey to scams, small businesses need to be vigilant and aware of the tactics used by fraudsters.
One common type of scam that targets small businesses is fake invoices and unsolicited merchandise. Scammers hope that businesses will not notice the fraudulent nature of these invoices or merchandise, leading to financial losses. To avoid such occurrences, it is essential to verify all invoices and orders before making any payments. If you receive an unsolicited bill or merchandise, contact your local Small Business Administration regional office for assistance in verifying its legitimacy.
Another prevalent scam that affects small businesses is the offer of business coaching services. While seeking coaching can be advantageous for new business owners, there are individuals who charge for services they do not provide or inflate fees. To ensure that you receive legitimate coaching services, reach out to your local Small Business Administration regional office or contact the Better Business Bureau (BBB) for guidance on reputable coaches in your area. The BBB also warns against directory scams that have targeted businesses for years. These scammers may try to convince businesses to pay for a listing or advertisement in a fake directory or falsely claim association with a legitimate directory. If you encounter such a scam, report it to ReportFraud.ftc.gov or file a complaint with the BBB at BBB