Businesses are frequent targets of fraud, no matter the size. While scams often come through email, criminals are increasingly using phone calls, text messages, fake invoices and even impersonation tactics to deceive employees. When businesses fall victim, the impact can include financial loss, operational disruption, and possibly even compromised sensitive information.
Understanding the most common types of scams, and how they work, is key to protecting your organization.
Common types of business scams
Scammers use a variety of tactics to appear legitimate and create urgency. Some of the most common scams are:
Business email compromise – Fraudsters impersonate executives, vendors, or trusted partners to request payments, sensitive information, or changes to account details.
Phishing messages – These can come via email, text, or messaging platforms and attempt to trick employees into clicking links, downloading malware, or sharing login credentials.
Overpayment and fake check scams – A scammer “overpays” for goods or services and asks for a refund of the difference, only for the original payment to later be discovered as fraudulent.
Imposter and tech support scams – Fraudsters pose as IT staff, financial institutions, or leadership, pressuring employees to provide access, passwords or immediate payments.
While these scams vary in method, they often share common traits: a sense of urgency, a request involving money or sensitive data, and a sender posing as someone familiar or authoritative.
How to protect your business
Preventing fraud requires a combination of awareness, processes and verification. Consider implementing the following best practices:
Verify all requests – Always confirm payment requests, account changes, or sensitive inquiries through a secondary method, such as a phone call with a trusted number or in-person conversation, especially if the request is unusual or urgent.
Train employees regularly – Education is one of your strongest defenses. Ensure employees know how to recognize red flags across emails, phone calls, texts, and invoices.
Be cautious with communications – Do not click links, download attachments, or respond to unexpected or suspicious messages. Even messages that appear legitimate should be carefully reviewed.
Watch for subtle changes – Scammers often use email addresses or contact details that look nearly identical to real ones. Small differences can signal a fraudulent attempt.
Implement internal controls – Require dual authorization or multi-factor authentication for payments whenever possible. Establish approval workflows, and separate responsibilities where possible to reduce risk.
Review invoices carefully – Confirm vendor details, payment instructions, and any changes to billing information before processing payments. Confirm and verify over the phone on a trusted number or in-person.
Watch for fake invoices and orders – Fraudsters impersonate executives, vendors, or trusted partners to request payments by sending fake invoices, ask for sensitive information, or change existing payment account details.
Putting these practices in place can significantly reduce your risk. If your business suspects a scam, notify your financial institution and internal IT team immediately to help minimize potential damage.
