The Reasons Small Companies Are Targeted
Scammers are drawn to small enterprises because they frequently have lean operations. They are vulnerable due to their weak cybersecurity infrastructure, rapid decision-making, and smaller workforce. In order to get their scams past busy teams and limited finances, fraudsters rely on a lack of control.
Phishing Scams
One of the biggest dangers is still email scams. Fraudulent mails sometimes solicit for personal information or payment details while impersonating reliable contacts or suppliers. More sophisticated attacks, known as Business Email Compromise (BEC) use phony emails that seem to be from executives. An employee may receive instructions in these communications to exchange login passwords, update banking information, or submit a wire transfer.
Fake Invoice and Billing Scams
Some scams send false invoices for goods never ordered. These bills could be from phony businesses or pose as legitimate ones. Another method is overpayment schemes, in which the con artist sends a fake payment for more than the invoice amount and then demands that the company reimburse the difference.
Tech Support and Imposter Scams
Scammers may contact you and claim to have identified a computer issue while posing as software providers or IT firms. They may request that you install software that allows them to take control of your machine or grant them remote access. Others pretend to be IRS or SBA representatives and demand money or offer fictitious grants.
Bank Impersonation Scams & Spoofed Login Pages
Sophisticated scams now include spoofed bank websites and login pages designed to steal your online banking credentials. A text or email may arrive, purporting to lock your account and providing a link to your bank's website. Or you might get a phone call from someone pretending to be from the bank’s fraud department.
At Central Bank, we will never ask for:
- Full account numbers over the phone
- Your online banking password
- One-time security codes via phone or email
- Personal information through unsolicited links
Stay alert and never log in through a link sent in a message. Bookmark your bank’s official site instead.
Social Engineering, CEO Fraud & Deepfake Impersonation
Business executives are frequently impersonated by scammers by text, email, or even video. They could pretend to be your CEO and ask for private information or a wire payment. Deepfake technology is sometimes used by criminals to produce convincing audio or video that imitates the voice or face of an executive.
In one instance from 2023, a finance worker at a UK company was instructed to make a seven-figure transfer over the phone using deepfake audio that sounded like the CEO's voice. Only when the employee hesitated and called back via an official channel was the deception discovered.
For critical requests, use multi-channel verification; a simple phone call to a known number can stop a scam in its tracks.
Credit Card and Payment Processing Scams
These frequently entail chargeback fraud, in which a con artist purchases a goods or service and then contests the charge after getting it. Others test the validity of stolen cards by using them in little purchases. They might try making bigger purchases or getting a refund if those work out.
Stay alert with these tips on how to detect a credit card scam.
Payroll and Tax Scams
Phishing efforts and fake IRS notifications aimed at employee W-2 data are frequent. Scammers may pose as business executives and ask for tax documents or payroll information. During tax season, these scams frequently increase.
Find out what scams to look out for during tax season.
How to Protect Your Business
- Train your team to recognize scam tactics
- Require multi-step approvals for wire transfers or sensitive data
- Verify requests through a second channel
- Monitor accounts daily
- Set up fraud alerts and use account monitoring tools
Stay Smart and Stay Safe
Fraud can hit fast, especially when your team is busy. Building good habits and setting up internal checks can reduce your risk.
Make smart security part of your business routine. Explore more protection strategies at the Central Bank Learning Center.
