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7 Scams Small Business Owners Should Know & Avoid

As a rule, scammers target smaller businesses instead of larger ones. Small businesses don’t have as many resources to fight fraud as big ones. This article is about the common scams that you, as a small business owner, should avoid. Also, it’s about a reliable and cheap small business loan you need to grow your company.

Small Business Loan & Scams

Scammers are getting more and more sophisticated day by day. They’re getting better at finding ways to hack businesses. Theft, financial statement fraud, and misuse of assets… Let’s go through the common types of small business scams you should stay away from:

  1. Unordered Office Supplies Scam: this is when a scammer calls your company and tells you about a recent order you haven’t placed in reality.
  2. Advertising, Marketing, and Directory Listing Scams: in this case, a scammer offers such services claiming your website will rank higher and promises superior results, which are simply words, and nothing more.
  3. Online Business Loan Scams: the large variety of online business funding providers has resulted in increased scams in this regard. Thankfully, there’re reputable alternative online lenders like that’re committed to offering the most secure and cheapest small business loan in the industry.

With FAM, the application is quick and hassle free. FAM is an award-winning high risk business funding provider that boasts and an A+ rating with the BBB.

  1. Fake Invoice Scam: this is when an unknown company sends you an invoice and demands payment.
  2. Fake Government Agencies: scammers usually pretend to work at Homeland Security, the FBI, and the Federal Trade Commission. Remember that government agencies never call people on the phone.
  3. Phishing Scams & Social Engineering: this is when a company pretending to be a legit one asks for passwords and other personal data over the phone.
  4. Utility Company Imposter Scam: in this case, a scammer calls you and creates a sense of emergency, claiming you’ve missed your utility bill date.

Unlike larger companies, small and mid-sized ones are more vulnerable to scams. Thus, they can suffer larger losses and damage when faced with fraud. So, it’s critical to know what scams your business may deal with so to avoid them with success.