Small business owners never enjoy falling prey to scams. These fraudulent schemes can cause long-lasting damage to a business, including harming client relationships and profits. Fortunately, there are ways to avoid them.
The Federal Trade Commission advises small businesses to stay vigilant for common tactics used by scammers, such as phony invoices and unordered merchandise. Scammers often hope that businesses will not notice the fraudulent invoices or unsolicited merchandise they send. However, staying alert can help prevent these types of fraud from occurring in the first place.
In addition to these tactics, small businesses must also be careful about business coaching services. While seeking coaching can be beneficial for new business owners, there are illegitimate individuals who charge for services they do not provide or inflate fees. To ensure that you are receiving legitimate coaching services, contact your local Small Business Administration regional office for assistance. They may be able to provide guidance on finding trustworthy coaches and avoiding scams in this area.
Finally, small businesses must also be cautious of directory scams that have targeted them for years. Scammers may try to persuade 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, it’s important to report it promptly through ReportFraud.ftc.gov or file a complaint with the Better Business Bureau at BBB.org/ScamTracker.
By staying vigilant and taking necessary precautions, small businesses can protect themselves from harmful scams that could negatively impact their reputation and financial stability.
