- Advance fee for business loan
| SCAM
Promise business loans for people with no credit, but require low application fee.
PREVENTION
Look for online reviews on performance of these lenders.
|
- Amazon fake merchants
| SCAM
Promotes highly sought products at very low cost. Avoids bad reviews by delayed shipping (2+ weeks) so the purchaser can't enter a review.
PREVENTION
Look for reviews of the seller's products that are older than 1 month. Do not buy a product that is significantly underpriced. You will most likely receive a fake or you will receive nothing at all.
|
- Ask you for your 9-digit FEMA registration number
| SCAM
FEMA agents are NOT allowed to ask you this.
PREVENTION
Do NOT provide it.
|
- Assignment of Insurance Benefits
| SCAM
Contractor will take care of all billing if you sign a form. Later you find that the contractor has inflated the billing and has attorney suing your insurance company for extra funds.
PREVENTION
Do not sign an assignment of benefits form for anyone. Deal with your insurance company yourself, or with a lawyer you hired.
|
- Attorneys or public adjusters who will protect you for a percentage of your claim
| SCAM
Unscrupulous professionals are primarily looking for the % of your claim.
PREVENTION
Use attorneys or adjusters as last resort. Unsurance agents are required by law to use the degree of care necessary to protect the interest of the insured.
|
- Business coaching and promotion
| SCAM
Promise amazing results and exclusive market research
PREVENTION
Search online for their name with the word 'fraud'. Resist any telemarketing or pressure to pay. Contact the people they use in their testimonials.
|
- Business website domain scam
| SCAM
You are told that someone wants to register your brand name in China. They have bought your name in China and want you to pay to get it back.
PREVENTION
Ignore these inquiries.
|
- Cashier's check fraud
| SCAM
People assume bank cashier's checks are guaranteed funds, but if the supporting check bounces, they are NOT.
PREVENTION
Never take a cashier's check for over the amount due. When possible, get cash. When you accept a cashier's check from someone you do not know, wait before sending the product.
|
- Change your online reviews
| SCAM
Promise to change your online reviews or give you all positive online reviews.
PREVENTION
Posting fake reviews or altering reviews is illegal.
|
- Changing the contract
| SCAM
Send you a contract with different terms than you had negotiated. Often it is after sending the contract back and forth several times for amendment, so the customer is anxious to complete the deal.
PREVENTION
Use software to show the differences between different versions of a document.
|
- Charge a fee for a disaster inspection or to fill out forms.
| SCAM
It's a scam.
PREVENTION
Avoid them.
|
- Check tampering
| SCAM
Checks can be tampered in many ways. Click the source link for examples.
PREVENTION
Separate responsibility for issuing and reconciling checks.
|
- Check washing
| SCAM
Erases payee and amount on a check and substitutes their own information
PREVENTION
Click the source for a video and prevention
|
- Computer alert popup
| SCAM
Give you a phone number to call for immediate tech support.
PREVENTION
Do not call or click. Close your browser (on Windows, Control-Alt-Delete). If the message returns, run a virus scan, and record the phone number and do a search on the web. Microsoft, Apple and other system software will NOT call people reporting to advise you of a tech problem.
|
- Contract with blanks
| SCAM
The person may fill in the blanks with any information.
PREVENTION
Don't sign it.
|
- Contractor puts a lien on your property without your knowledge.
| SCAM
You may be legally required to pay the contractor over your agreed price to remove the lien.
PREVENTION
Find out in writing if the contractor or business will place a lien, security interest or mortgage on your property.
|
- Contractor will not provide proof of insurance
| SCAM
If the contractor does not have workers compensation insurance (or disability insurance for the owner), YOU could be held liable for injuries.
PREVENTION
Avoid them.
|
- Credit card equipment hijack
| SCAM
Technician wants to service your point-of-sale equipment, but actually installs an add-on that steals credit card information.
PREVENTION
Verify technician with your POS provider before giving access.
|
- Credit repair scams
| SCAM
The services they can perform are few, and generally free.
PREVENTION
Click on the source link for information.
|
- Customer provides override to declined credit card
| SCAM
Customer's credit card is declined. They provide a code to override the computer's error.
PREVENTION
Only accept override numbers from the cardholder's issuing bank.
|
- Debt collection scams
| SCAM
Demands immediate payment. Makes threats of arrest.
PREVENTION
Contact your lender using information from their official website.
|
- Dishonest pleas for donations
| SCAM
The donation goes into their pocket.
PREVENTION
Ask for the charity's exact name, street address, phone number and website address, then phone the organization directly to confirm that the person asking for funds is an employee or volunteer. Do not pay in cash. Do NOT use an embedded link in an email to pay.
|
- Don't trust caller-id
| SCAM
Caller misrepresents who (s)he is by using someone else's phone number in the caller ID. This is VERY easy to do.
PREVENTION
If you did not initiate the call, NEVER provide confidential information over the phone. Do not trust caller-ID numbers to authenticate anyone.
|
- Equipment leasing deposits
| SCAM
Ask for a large deposit before approval. If you are not approved, they do not return the money.
PREVENTION
Get statement in writing that they will return the deposit (or all but a small sum) if you are not accepted.
|
- Equipment leasing evergreen clause
| SCAM
Adds clause in contract saying if you DON'T notify them after the contract expires, they can automatically renew the contract - even if you owe nothing on the contract.
PREVENTION
Read the contract for any renewal language.
|
- Fake email and fake website
| SCAM
Fake email which leads you to a fake website to steal your identity or download viruses
PREVENTION
View infographic by clicking on Source
|
- Fake invoices
| SCAM
Send you fake invoices that look legitimate.
PREVENTION
Verify any invoice that has a new address
|
- Fake offer of local or federal aid
| SCAM
Asks for a deposit or an advance payment to get a disaster grant.
PREVENTION
Do NOT give it.
|
- False refunds or voids
| SCAM
Employees void a sale or issues a refund and pocks the money him/herself.
PREVENTION
Require manager approval for ALL refunds and voids.
|
- Fraudulent building contractors
| SCAM
Won't put job to be done and costs in writing.
PREVENTION
Avoid them.
|
- Google scam
| SCAM
Falsely claims to represent Google, threatening businesses with removal from Google search results and falsely promising first-place or first-page placement in Google search results.
PREVENTION
Google does not promise placements or remove businesses from search results unless it is spam.
|
- Government employee demanding money or payment
| SCAM
The IRS and state tax authorities will NEVER call you. No government agency will demand that you pay money for a compliance poster. Confirm any unpaid fees by asking for the online page that describes the fee. Then only pay the fee using the instructions on the official website.
PREVENTION
Go to the utility website and pay on that website.
|
- Government grants for businesses
| SCAM
There are no government grants for businesses, with the exception of a few competitive grants for highly innovative businesses. (SBIR grant)
PREVENTION
Ignore these promotions
|
- Housing inspectors claiming to represent FEMA
| SCAM
Ask for your FEMA registration number or your banking or social security number.
PREVENTION
Do NOT provide it.
|
- If contractor pressures you to sign document immediately.
| SCAM
You don't have time to review the document carefully.
PREVENTION
Avoid them. Add a clause giving you the right to rescind within 72 hours.
|
- If you are pressured to make payments beyond the work that has been done.
| SCAM
You may end up paying over your agreed contract just to get the work done.
PREVENTION
Don't pay beyond the work that has been done.
|
- IRS - iTunes scam
| SCAM
Person claiming (s)he is from the IRS demands payment using iTunes
PREVENTION
No reputable company ever demands payment via gift cards or iTunes
|
- Large deposit is required before work is started
| SCAM
Company takes your money, starts the work, but then suddenly stops.
PREVENTION
Check references; verify contractors license; check with the BBB; reduce deposit
|
- Overpayment
| SCAM
Ask you to wire overpaid funds with a valid sounding reason. Later, the entire check bounces or invalid.
PREVENTION
Return any overpaid payment.
|
- Padding an expense account
| SCAM
Employees duplicate receipts, change amounts or dates of expenses
PREVENTION
Detailed auditing of employee expense reports
|
- Password update request
| SCAM
Email asks you to enter your password to create a new one, but steals the password instead.
PREVENTION
Go to the company's website to make any password changes.
|
- Peer lending scam
| SCAM
Promise business loans for people with no credit, but require low application fee & personal data to conduct a background check.
PREVENTION
Use reputable peer lending platforms. Never wire money.
|
- Placement in a directory
| SCAM
Directory may not exist. Sometimes they claim it is free but later send you an invoice.
PREVENTION
Search for catalog on Internet for confirmation. Make sure they are legitimately from that organization by calling the number on their website.
|
- Potential investor (angel investor) for your business
| SCAM
Requests confidential business and private information and steals your identity.
PREVENTION
Create a pitch deck, network and meet directly with investors before giving any private information
|
- Price gouging
| SCAM
Price gouging after a disaster is illegal.
PREVENTION
Report to State Attorney General
|
- Promise to speed up the insurance, disaster assistance or building-permit process for a fee.
| SCAM
It's a scam.
PREVENTION
Avoid them.
|
- Quoting an interest rate on a lease agreement
| SCAM
Lease agreements quote on dollar payments, not interest rates. Interest rate quotes are deceiving and used by unreputable companies.
PREVENTION
Do not use companies that lure you with interest rates.
|
- Request for employee W-2
| SCAM
Someone pretending to be a corporate manager uses a fake email to ask for an employee W-2.
PREVENTION
Check email against actual company email list.
|
- Request to wire extra funds
| SCAM
Customer pays more than cost of an item, requesting that you wire the excess funds to someone else for pickup and delivery (or similar service). Entire check bounces.
PREVENTION
Do not accept checks for any amount over what is due.
|
- Returning stolen items in exchange for a gift card
| SCAM
Returning stolen items in exchange for a gift card
PREVENTION
Require receipts and identification
|
- SBA assistance scam
| SCAM
Charge a fee to guarantee SBA funding
PREVENTION
Small Business Development Centers provide free assistance to get a loan. The SBA does not give preference to any company or client applying for loans.
|
- SBA assistance scam
| SCAM
Charge a fee to guarantee SBA funding
PREVENTION
Small Business Development Centers provide free assistance to get a loan. The SBA does not give preference to any company or client applying for loans.
|
- Search engine optimization
| SCAM
Business claims that it wants to improve your SEO. Google has changed its algorithms to prevent manipulating search engine results.
PREVENTION
Get references before working with any SEO consultant.
|
- Stop! Before you wire money
| SCAM
Company officials are targeted and convinced they are involved with a legitimate business transaction. After trust is established, they are asked to wire funds.
PREVENTION
Confirm contact information through the company's official website.
|
- Told there is a complaint from BBB or that your bank account has been compromised
| SCAM
Any email asking you to enter your private information is probably fraudulent.
PREVENTION
Go to the official BBB or bank website and contact their customer support.
|
- Trusted, like family - employee fraud
| SCAM
Trusted employees who work overtime, seldom take a vacation, or whose work is not verified by others are often responsible for financial fraud.
PREVENTION
Verify the work of all employees throughout the year.
|
- TTY pre-pay scam
| SCAM
Purchaser uses TTY system (for hearing impaired) to be anonymous. They prepay with credit cards that are valid, but later found to be stolen.
PREVENTION
Verify card with the credit card customer service before processing the order.
|
- Unordered merchandise
| SCAM
Calls to confirm your address, an order or a free sample. Later you are pressured to pay for it.
PREVENTION
If you received something that you didn't order, you may legally keep it without paying.
|
- Urgent call
| SCAM
Pretends they are someone you trust (including a company manager). Asks for sensitive information or to wire money.
PREVENTION
Email them a code at their regular email address and ask them for the code. Ask someone higher in the company for authorization to provide the information or money.
|
- Utility being disconnected for non-payment
| SCAM
The request is urgent. They insist funds be paid with wire transfer, reloadable card or giftcard.
PREVENTION
Go to the utility website and pay on that website.
|
- Valuation fraud from business broker
| SCAM
A business broker offers to find a buyer interested in purchasing your company. They require a payment for a valuation and then disappear.
PREVENTION
Get references before paying any broker.
|
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