Florida’s sunshine state status is about more than beautiful weather and sandy beaches. It also reflects a thriving business environment that attracts many entrepreneurs and investors.
This vibrant landscape, however, can also attract those looking to exploit vulnerabilities. Business fraud, including business-to-business or B2B fraud, is a dangerous threat. Understanding its various forms can mean the difference between securing a lucrative deal and losing your hard-earned money.
3 fraudulent scams to watch out for
Business fraud is not a single crime – it refers to the various tactics used to steal money. The following are some of the most common:
- Charity cons. These fraudsters prey on goodwill, posing as representatives of fake charities to pocket donations. They may target business owners known for their charitable endeavors.
- Delivery and payment scams. In “non-delivery” schemes, you pay for merchandise that never arrives. The flip side is the “non-payment” scam, where a customer receives goods or services but never pays.
- Phishing and take-overs. Hackers can appear as trusted vendors or colleagues and trick you into authorizing payments or downloading malicious files. Often, ransomware is involved, allowing them to lock down your systems until you pay a ransom for access.
Beyond these scams, B2B fraud also occurs through phishing, identity theft and debit card fraud. These sophisticated schemes can inflict severe financial damage and disrupt your operations.
Unfortunately, fraudsters are skilled at creating a veneer of legitimacy. They may present themselves as established companies or tap into your dreams of quick success. Being aware of their tactics is the first step toward preventing business fraud. An ideal second step is speaking with a business law representative about implementing strong fraud protections to better safeguard your interests moving forward.
