Business scams are a widespread problem in today’s era. For one, companies are getting bankrupt due to the large numbers of scammers targeting them. There are various and creative ways that scammers may target a business.

Some of these make use of malicious ads, directories, unwanted services, publications, unsolicited products, advance-fee theft, and investment scams. All of these may allow the scammers to take some of the company’s assets over time.

With the high amount of business fraud happening today, the real question is how to find them and how to avoid them.

How To Avoid Business Scams


As mentioned, scams will cause losses for the company and you’ll most likely have a hard time coping with all the lost assets. To help you out, here are some tips to reduce the risks of getting your company or business into fraud or scam.

Identify The Source


A company handles a lot of people to make production and operation easier. They’re also the ones who make the business outgrow its peak, but they may also be the source of the scam in a company. They may include:

Staff Members:

Staff members pertain to individuals or employees employed by the Human Resources (HR) department. They’re the ones who may manage the company or work in its daily operations. They might easily commit activities to scam the company since they have access inside.


Customers are the ones who return the capital of the business, and allow the company to earn income. They’re also the users of the products and services. Without them, no monetization will happen. However, they can also scam the company by falsely purchasing or claiming to do so.


Suppliers are the providers of materials and necessary equipment in the company’s operations. They’re also the ones who supply all the inventories or materials needed by the company. Beware of an entity pretending to be a supplier. You’ll never know if they would run away with your money before providing the material that they promised to give you.

Third Parties:

Third parties are usually unconnected to the business. However, they’re critical to their success, too. They’re complicated to distinguish as they may be investors or other persons that a company should respect. These people can also scam you in a variety of ways.

By knowing these different people involved in your business, you’ll be able to identify the source of the scamming incident and eliminate them immediately. If not removed, these persons might continue to be a risk for the company. These persons may sell the company’s information, copy the company’s idea, or even steal from the company’s inventory.

Thus, it’s vital to share protocols, procedures, and guidelines to avoid fraud among your workers or other company-related individuals. Doing this may allow them to understand what’ll happen to the business if they commit such a crime.

Always Be Attentive


Depending on its nature, scamming activities are easily identifiable. For instance, scams can easily be seen if it’s made by one of the employees. A behavior change may be easily detected, especially when someone is lying.

Psychological factors may also affect a person, primarily when they’re not used to doing it. Different signs like sweating, avoiding eye contact, and suspicious movements, are the common signs of fraud. Detecting and preventing employee fraud earlier will save the company’s information and reputation.

Scams at cash registers are straightforward to discover. These scams may be started by a deceptive employee or an erring employee. Procedures for avoiding dishonesty and cash register theft are critical strategies in these cases.

Be Wary Of Various Online Scams


The internet had opened many opportunities for scammers to accomplish their goals and steal money from many individuals and businesses. Some modus is sent via email with an attached document.

These documents can include what appears to be a call to action without any apparent commitment. It can also be a document requesting the victim to double-check their information, sign it, and then return it to the sender after. This type of document turns out to be a deal or a subscription upon closer inspection.

Scam emails are also common, yet this type may be easy to identify. They mostly have characteristics, such as many grammatical and spelling mistakes. Formatting is also often poor. When an email came from an unknown sender and the content seems suspicious, don’t download nor click anything on that email.

Planning and identifying common cyber threats and scams are a great way to reduce the impact of these activities on your business. Moreover, it also provides an additional backup if something goes wrong.

Identify And Know Your Location


Would you believe that a company’s location or setting may be a simple factor that attracts many scammers? Surveys show that locations with a high population can bring high income to your business, but they may also bring great downfall. These locations are high in crimes, which can be risky for your business.

It’s also important to know the community and persons living around the company. This practice can help keep your business secured and easily observed by people. Identify locations where the company is prone to fraud and avoid these areas as much as possible.

Learn About A Scammer’s Preferred Payment Method


If the person you’re transacting with, don’t agree with your payment method, you have to beware. If you’re dealing with a legitimate person or company, they’ll accept whatever payment method is convenient on your end.

Meanwhile, scammers will always try to have their victims agree on what they want, especially on receiving payments. It’s a security measure for them as they don’t want to be easily traced after the transaction is made.

They often choose payment options like a wire transfer. Thus, if you encounter a supplier or another company that’ll force you to agree to pay them with a hard-to-trace payment method, don’t be afraid to say no.


Fraudulent and scamming activities are inevitable consequences of a successful business. Others will only destroy you if they know that they can’t beat you. Some are really just after your money.

By following the recommended tips above, you may be able to take some measures to protect your business, people, and yourself. Remember, avoidance is better than recovery.

As a tip, you can read some examples of scam companies or individuals by checking business security-promoting websites or online resources, such as