Falling victim to a scam can have long-lasting impacts on small businesses, affecting client relationships and profitability. Scammers often target small businesses with fake invoices and unordered merchandise, hoping that they will pay without questioning them. To avoid falling prey to such scams, small business owners should be cautious and not feel obligated to pay for products or services they did not order.
Another type of scam that small businesses should watch out for is fraudulent business coaching services. Not all service providers are legitimate, and some may charge fees for services they never deliver or increase fees unexpectedly. To find reputable business coaching services, it is recommended to contact your local Small Business Administration regional office for assistance.
The Better Business Bureau also warns of directory scams, which have been targeting businesses for many years. Scammers may try to convince businesses to pay for a listing or ad space in a fake directory or falsely claim to be affiliated with a legitimate directory. In both cases, the business ends up paying for something that does not exist.
If you encounter a scam, it is important to report it to the appropriate authorities. You can file a report with the Federal Trade Commission at ReportFraud.ftc.gov or submit a complaint to the Better Business Bureau at BBB.org/ScamTracker. By taking action against scammers, small business owners can protect themselves and their businesses from fraudulent activities.
Small businesses need to be aware of these types of scams and take steps
