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ftc.gov/SmallBusiness 

Scams and Your 

Small Business: 

A Guide for Business 

Scams and Your Small Business

When scammers go after your business or 

non-proft organization, it can hurt your reputation 

and your bottom line. Your best protection? Learn 

the signs of scams that target businesses. Then 

tell your employees and colleagues what to look 

for so they can avoid scams. 

► Scammers’ Tactics 

► Protect Your Business 

► Common Scams that Target 

Small Business 

► Other Questionable Practices 

►Scammers’ Tactics 

● Scammers pretend to be someone you trust. They 

impersonate a company or government agency you 

know to get you to pay. But it’s a scam. 

● Scammers create a sense of urgency, 

intimidation, and fear. They want you to act before 

you have a chance to check out their claims. Don’t 

let anyone rush you to pay or to give sensitive 

business information. 

● Scammers ask you to pay in specifc ways. They 

often demand payment through wire transfers, 

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Scams and Your Small Business

cryptocurrency, or gift cards. Don’t pay anyone who 

demands payment this way. It’s a scam. 

►Protect Your Business 

Train Your Staf 

● Your best defense is an informed staf. Train 

employees not to send passwords or sensitive 

information by email, even if the email seems to 

come from a manager. Explain to your staf how 

scams happen and encourage them to talk with 

their coworkers if they suspect a scam. Order free 

copies of this brochure at ftc.gov/bulkorder and 

share them with your staf. 

Verify Invoices and Payments 

● Make sure procedures are clear for approving 

purchases and invoices and ask your staf to check 

all invoices closely. Pay attention to how someone 

asks you to pay and tell your staf to do the same. 

If someone demands that you pay with a wire 

transfer, cryptocurrency, or gift cards, don’t pay. 

It’s a scam. 

Spot Tech-Related Scams 

● Since scammers often fake their phone numbers, 

don’t trust caller ID. If you get an unexpected 

text message or email, don’t click any links, 

open attachments, or download fles. That’s how 

scammers load malware onto your network or try 

to convince you to send money or share sensitive. 

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Scams and Your Small Business

information. Scammers sometimes even hack into 

the social media accounts of people you know, 

sending messages that seem real — but aren’t. 

Learn more about protecting your small business 

or non-proft organization from cyber scammers 

and hackers: check out Cybersecurity for Small 

Business at ftc.gov/cybersecurity. 

Know Who You’re Dealing With 

● Before doing business with a new company, 

search the company’s name online with the term 

“scam” or “complaint.” Read what others are saying 

about that company. Ask people you trust for 

recommendations. You also may be able to get 

free business development advice and counseling 

through programs like SCORE.org. 

►Common Scams that Target 

Small Business 

Fake Invoices and Unordered Merchandise 

Scammers create phony invoices that look like you 

ordered products or services for your business. They 

hope the person who pays your bills will assume the 

invoices are real and make the payment. Except it’s 

all fake. Or a scammer might call, claiming they want 

to “confrm” an existing order, “verify” an address, or 

ofer a “free” catalog or sample. If you say yes to any 

of those, unordered merchandise will arrive at your 

doorstep — followed by high-pressure demands to 

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Scams and Your Small Business

pay for it. Don’t pay. And remember, if you receive 

merchandise you didn’t order, you have a legal right to 

keep it and use it for free. 

Online Listing and Advertising Scams 

Scammers try to fool you into paying for nonexistent 

advertising or a listing in a phony business directory. 

They may ask you to give your contact information for 

a “free” listing, or say the call is simply to “confrm” 

your information. Later, you’ll get a big bill, and the 

scammer may use details — or even a recording — of 

the earlier call to pressure you to pay. 

Business and Government Impersonation Scams 

Scammers pretend to be someone you know or trust 

and try to scare or rush you into paying or giving them 

information. For example: 

● Scammers say they’re calling from a utility 

company and your gas, electric, or water service is 

about to be interrupted because of a (fake) late bill. 

● Scammers say they’re a government agent and 

threaten to suspend your business licenses, fne 

you, or even sue you. They might say it’s because 

you owe taxes or need to renew a license or 

registration. 

● Some scammers convince you to buy workplace 

compliance posters that you can get for free from 

the U.S. Department of Labor. 

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Scams and Your Small Business

● Some scammers trick you into paying to apply 

for so-called business grants from government 

programs that turn out to be fake. 

● Scammers impersonate the U.S. Patent and 

Trademark Ofce and threaten that you’ll lose 

your trademark if you don’t pay a fee immediately. 

Other times, they lie and say you owe money for 

additional registration services. 

● Some scammers say they’re calling from a tech 

company, threatening that your business will lose 

its website URL if you don’t pay immediately. 

Tech Support Scams 

Tech support scams start with a call or an alarming 

pop-up message on your screen. The scammers 

pretend to be from a well-known tech company, 

telling you there is a problem with your computer’s 

security. Their goal is to get your money, access to 

your computer, or both. They may ask you to pay to fx 

a problem you don’t really have, enroll your business 

in a nonexistent or useless computer maintenance 

program, or sneak on your computer network to grab 

confdential data they can use to commit identity theft. 

Social Engineering, Phishing, and Ransomware 

Cyber scammers can trick employees into sending 

them money or giving up confdential or sensitive 

information like passwords or bank information. It often 

starts with a phishing email, social media contact, or 

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Scams and Your Small Business

a call that seems to come from a trusted source — 

for example, a supervisor or other senior employee 

— that creates urgency or fear. Other emails may 

look like routine password update requests or other 

automated messages, but are actually attempts 

to steal your information. Scammers also can use 

malware to lock organizations’ fles and hold them 

for ransom. 

Business Coaching Scams 

Some scammers sell bogus business coaching 

programs, often using fake testimonials, videos, 

seminar presentations, and telemarketing calls. They 

falsely promise amazing results if you pay for their 

exclusive “proven” system to succeed in business. 

They also may lure you in with low initial costs, only 

to ask for thousands of dollars later. In reality, the 

scammers leave budding entrepreneurs without the 

help they sought and with thousands of dollars of debt. 

Changing Online Reviews 

Some scammers claim they can replace negative 

reviews of your product or service, add positive 

reviews, or boost your scores on ratings sites. 

However, posting fake reviews is illegal. FTC 

guidelines say endorsements — including reviews — 

must refect the honest opinions and experiences of 

the endorser. 

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Scams and Your Small Business

Credit Card Processing and Equipment 

Leasing Scams 

Some scammers promise lower rates for processing 

credit card transactions, or better deals on equipment 

leasing. These scammers resort to fne print, halftruths, and fat-out lies to get a business owner’s 

signature on a contract. Some unscrupulous sales 

agents ask business owners to sign blank documents. 

(Don’t do it.) Others have been known to change terms 

after the fact. Ask the salesperson to give you copies 

of all documents right then and there. If they refuse 

or put you of with a promise to send them later, that 

could be a sign you’re dealing with a scammer. 

Fake Check Scams 

Some scammers give you what seems like a plausible 

reason to overpay you with a check. Then, they’ll 

ask you to send the extra money back to them or to 

someone else. But the check will be fake, even though 

it might show up as “cleared” in your account. By 

the time the bank discovers the check was bad, the 

scammer already has the money you sent them. You’ll 

be stuck repaying the bank. 

►Other Questionable Practices 

Sometimes scammers hide behind other questionable 

practices — like claiming to ofer big-money gig 

economy jobs, but then failing to live up to their 

money-making promises. Or they may try to sell 

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Scams and Your Small Business

you unnecessary services with the false claim that 

you need to pay to improve your business’s credit 

report. And after natural disasters strike, unlicensed 

contractors and scammers may show up with false 

promises that they’ll get your business back up and 

running with quick repairs, clean-up, or debris removal 

that never happens. 

►Learn More 

● For more advice on protecting your organization 

from scams, visit ftc.gov/SmallBusiness. 

● Stay connected with the FTC by subscribing to the 

FTC’s Business Blog at ftc.gov/subscribe. 

►Report 

● If you spot a scam, report it to ReportFraud.ftc.gov. 

Your report can help stop the scam. 

● Alert your state Attorney General. You can fnd 

contact information at NAAG.org. 

►Engage 

● Remember: Your best defense is an informed 

workforce. Talk to your staf about how scams 

happen. 

● Share this brochure with your staf. 

● Order free copies of this brochure in English, 

Spanish and other languages at ftc.gov/bulkorder. 

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About the FTC 

The FTC works to help small business 

owners avoid scams, protect their computers 

and networks, and keep their customers’ 

data safe. To fnd information for small 

business, go to ftc.gov/SmallBusiness. 

There you’ll fnd information about scams 

targeting small business and how to avoid 

them, and information on cybersecurity for 

small business to help owners keep their 

networks safe. 

To get the latest information for small 

business, subscribe to the FTC’s Business 

Blog at ftc.gov/subscribe. 
FEDERAL TRADE 

• COMMISSION 

This brochure is part of the FTC’s 

eforts to help small business owners 

avoid scams. It explains common 

scams that target small businesses 

and non-proft organizations, 

describes scammers’ tactics, and 

provides steps business owners can 

take to protect their company from 

scams. Order print copies for free at 

ftc.gov/bulkorder. 

business.ftc.gov 

July 2023