92 PROFESSIONAL WOMANS MULTICULTURAL MAGAZINE WWW.PROFESSIONALWOMANMAG.COM
SUPPLIER DIVERSITY
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f you own a small business or are part of a non- profit organization, you spend a lot of time and effort making sure the organization works well. But when scammers go after your organization, it can hurt your reputation and your bottom line. Your best protection? Learn the signs of scams that target busi- nesses. Then tell your employees and colleagues what to look for so they can avoid scams.
Scammers' Tactics
! Scammers pretend to be someone you trust. They make themselves seem believable by pretending to be connected with a company you know or a government agency. ! Scammers create a sense of urgency. They rush you into making a quick decision before you look into it. ! Scammers use intimidation and fear. They tell you that something terrible is about to happen to get you to send a payment before you have a chance to check out their claims. ! Scammers use untraceable payment methods. They often want payment through wire transfers, reloadable cards or gift cards that are nearly impossible to reverse or track.
Common Scams that Target Small Business
There are a variety of ways that scammers will try to target your small business, but some of the most common ways are through: ! Fake Invoices: Phony invoices that look like theyre for products or services your business uses - maybe office or cleaning supplies or domain name registrations. Scammers hope the person who pays your bills will assume the invoices are for things the company actually ordered. ! Unordered Office Supplies and Other Products: Someone calls to confirm an existing order of office supplies or other merchandise, verify an address or offer a free catalog or sample. If you say yes, then comes the surprise - unordered merchandise arrives at your doorstep, followed by high-pressure demands to pay for it. ! Directory Listing and Advertising Scams: Scams that trying to convince you to pay for nonexistent advertising or a listing in a nonexistent directory . ! Impersonating a Company or Government Agency : Scammers may pretend to be the gas, electric or water company and demand money for a late bill that never occurred. They may also try to impersonate government agents threatening
Scams and Your Small Business:
Protecting Your Assets
to charge fines and suspend business licenses without proper payment. ! Tech Scams: Tech support scams start with a call or an alarming pop-up message pretending to be from a well-known company, telling you there is a problem with your computer security. Their goal is to get your money, access to your computer or both. This kind of scamming can also occur through fake password update requests, pop-ups and using malware. ! Fake Check Scams: Fake check scams happen when a scammer overpays with a check and asks you to wire the extra money to a third party. Scammers always have a good story to explain the overpayment - theyre stuck out of the country; they need you to cover taxes or fees; youll need to buy supplies or something else. By the time the bank discovers youve deposited a bad check, the scammer already has the money you sent them, and youre stuck repaying the bank. ! Credit Card Processing and Equipment Leasing Scams: Scams that claim to offer especially low rates for otherwise costly services and resources. If it sounds too good to be true, chances are that youre right. ! Fake Business Promotion: Some scammers sell bogus business coaching and internet promotion services. Using fake testimonials, videos, seminar presentations, telemarketing calls and even the promise to post fake positive reviews, the scammers falsely promise amazing results and exclusive market research for people who pay their fees. They also may lure you in with low initial costs, only to ask for thousands of dollars later.
How Can I Protect My Business?
Train Your Employees
! Your best defense is an informed workforce. Explain to your staff how scams happen and share this brochure with them. ! Encourage people to talk with their coworkers if they spot a scam. Scammers often target multiple people in an organization, so an alert from one employee about a scam can help prevent others from being deceived. ! Train employees not to send passwords or sensitive information by email, even if the email seems to come from a manager. Then stick with the program - dont ever ask for sensitive data from employees by email.
Verify Invoices and Payments
! Check all invoices closely. Never pay unless you know the bill is for items that were actually ordered and delivered. Tell your staff to do the same. ! Make sure procedures are clear for approving invoices or expenditures. To reduce the risk of a costly mistake, limit the number of people who are authorized to place orders and pay invoices. Review your procedures to make sure major spending cant be triggered by an unexpected call, email or invoice. ! Pay attention to how someone asks you to pay. Tell your staff to do the same. If you are asked to pay with a wire transfer, reloadable card or gift card, you can bet its a scam.
Be Tech-Savvy
! Dont believe your caller ID. Imposters often fake caller ID information, so youll be more likely to believe them when they claim to be a government agency or a vendor you trust. ! Remember that email addresses and websites that look legitimate are easy for scammers to fake. Stop and think about whether it could be a scam before you click. Scammers even can hack into the social media accounts of people you trust and send you messages that appear to be from them. Don't open attachments or download files from unexpected emails; they may have viruses that can harm your computer. ! Secure your organization's files, passwords and inancial information. For more information about protecting your small business or non-profit organizations computer system.
Know Who You're Dealing With
! Before doing business with a new company, search the companys name online with the term scam or complaint. Read what others are saying about that company. ! When it comes to products and services for your business, ask for recommendations from other business owners in your community. Positive word-of-mouth from trustworthy people is more reliable than any sales pitch. ! Dont pay for free information.
Source: Federal Trade Commission
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