Protect your small business: recognise and prevent common scams

Disclosure Statement: Durand Financial Services Pty Ltd and its advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. General Advice Warning: The information contained within this website does not consider your personal circumstances and is of a general nature only. You should not act on it without first obtaining professional financial advice specific to your circumstances.

Scammers are constantly refining their tactics to target small businesses, making it essential to stay informed and vigilant. 

The federal government’s Scamwatch website is an excellent resource for understanding current scams and reporting new ones.

Knowing the risks and implementing prevention measures can be critical to safeguarding your business. 

 

Here are some common scams and strategies for protecting yourself.

Common Scams Targeting Small Businesses

  1. Phishing Scams 

    Phishing scams involve fraudulent emails that appear to come from legitimate sources. These emails often contain malicious links or attachments designed to steal sensitive information. The scammers rely on recipients clicking harmful content, giving them access to your system.

  • How to Protect Yourself: Always verify the legitimacy of emails before clicking links or downloading attachments. Look out for subtle inconsistencies, such as spelling errors or unfamiliar email addresses.
  1. Invoice Scams 

    Scammers send fake invoices designed to blend in with legitimate ones, hoping they will be paid without scrutiny. These invoices often mimic the appearance of genuine documents, making them difficult to detect.

  • How to Protect Yourself: Implement strict invoice verification processes and maintain open communication with suppliers. Double-check invoice details such as account numbers and payment instructions.
  1. Business Email Compromise (BEC) 

    BEC scams involve hackers impersonating executives or trusted colleagues to request money transfers or sensitive information. These scams are highly sophisticated, often involving the compromise of legitimate email accounts to make requests appear authentic.

  • How to Protect Yourself: Strengthen email security protocols, such as enabling multi-factor authentication (MFA). Train employees to verify unexpected requests, especially those involving financial transactions or confidential data.
  1. Tech Support Scams 

    In tech support scams, fraudsters pose as IT support professionals offering to fix non-existent computer issues. Their goal is to install malware or charge exorbitant fees for unnecessary services.

  • How to Protect Yourself: Be cautious of unsolicited tech support offers. Only seek assistance from known and trusted service providers.
  1. Fake Business Opportunities 

    Scammers present offers that seem too good to be true, often requiring upfront payments or personal information. Falling for these scams can lead to financial loss and compromised data.

  • How to Protect Yourself: Avoid upfront opportunities that demand payment or personal information. Always research the legitimacy of offers before committing.

Stopping Scammers: Practical Steps to Protect Your Business

Education and proactive measures are key to preventing scams. Here’s how to create a scam-aware workplace:

  1. Employee Training:
    • Conduct regular training sessions on recognising scams, using real-world examples to make lessons relatable.
    • Test your team with phishing simulations to identify vulnerabilities and improve their responses.
  2. Reinforce Awareness:
    • Use posters, newsletters, and reminders around the office to keep scam prevention top of mind.
    • Share updates on new scam tactics as they emerge.
  3. Strengthen Financial Controls:
    • Require multiple approvals for large transactions to catch fake invoices or suspicious payment requests.
    • Encourage employees to flag unusual or urgent financial requests for further review.
  4. Promote Red Flag Awareness:
    • Teach your team to be cautious of deals that seem too good to be true, unfamiliar accounts, or urgent demands.
  5. Invest in Cybersecurity:
    • Consider cyber insurance as a safety net in case of a breach. However, it should complement—rather than replace—preventative strategies like robust firewalls, regular system updates, and employee training.

By staying informed and fostering a culture of vigilance, your business can reduce its vulnerability to scams. Prevention starts with awareness and the implementation of robust and consistent security practices.

 

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)

 

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