Special to IFN

Since 2022, business scam reports to BBB Scam Tracker have totaled more than 3,600. These scams involved employee and vendor impersonations, theft of social media accounts, data breaches, and many more scam types.

Reports to the Better Business Bureau show that business scammers can steal hundreds of thousands of dollars in a flash without proper protections. Further reports to federal agencies show total losses of billions each year.

In “BBB Study: How impostors, stolen data, and fake services cost businesses billions,” the International Investigations Initiative examines patterns of reports, reviews the amount of money lost and shares stories from those caught up in the scams so businesses can avoid them.

Key findings

• Business scams are ubiquitous across North America and come in many forms.
• Losses are staggering for businesses. The average data breach costs a company $4.9 million, a figure that excludes some of the largest losses. Data breaches cost businesses a total of $1.4 billion in 2024, according to FBI data.
• Billions more are stolen through elaborate schemes, such as business email compromise scams, where scammers steal employees’ identities and use them to convince others to hand over cash or sensitive information.

Business scam reports across North America (2023-2024):

• 3,647 – BBB Scam Tracker
• 74,489 – Federal Bureau of Investigation
• 9,286 – Canadian Anti-Fraud Centre

Scam survivor stories

♦ Stevin, a licensed general contractor in North Carolina, was contacted by a client to provide a quote for flooring on a property the client was purchasing. Stevin submitted the quote to the consumer and was sent a cashier’s check for the materials and deposit for the labor, totaling $12,210. Once the check cleared Stevin’s bank account, the client requested that Stevin purchase the flooring materials from a specific supplier the client had already contacted. Stevin agreed and the client sent over an invoice with the material total and payment information, totaling $9,745.04. Stevin submitted the $9,745.04 payment for materials and unfortunately the original check for $12,210 bounced, leaving Stevin out thousands of dollars in his business account.

♦ Whitney, a consumer in North Carolina, was contacted by a Duke Energy impostor who left her a message to call them back, as her services were going to be cut off due to a deposit being owed. Upon calling them back, they had several address mix-ups, and when Whitney asked why she hadn’t received a bill or how she seemed to get to the point of disconnection, they had no answers. They simply told her the only way to clear the situation up was to drive to Walmart to make a payment because a normal credit card payment wouldn’t process in time before disconnection and additional fees. They wanted to send her two barcodes to load money onto, one for $1,000 and the other for $998.97. They also explained that she would need to stay on the phone with them while she drove to Walmart to add the funds. This made things seem very off to Whitney and she disconnected the call. Afterwards, she reached out to the Duke Energy business line to verify her account status and everything was fine. Fortunately, Whitney did not lose any funds to this scammer.

What are the signs of a business scam?

• Outreach from unknown businesses, government agencies and big-ticket buyers
• Invoices from unexpected emails
• Odd behavior from “known” vendors or businesses
• Requests for gift card or pre-paid debit card payments
• Urgent demands to renew or obtain licenses or trademarks
• Claims about expiring domain names
• Consultants making big promises about helping your business

How can I protect my business and employees from scams?

• Train employees to recognize scams. Most scams can be avoided with proper education. Let your employees know about common scams, what to do if they are approached by an unknown source and how to follow cybersecurity best practices.
• Establish payment procedures. Create a framework for payments that builds in security measures. Double-checking a source through another means of communication or with prior records can help avoid future headaches.
• Research unknown companies asking to do business. Scammers know business owners want new customers. Be wary when an unknown company or business makes grand offers.
• Install firewalls, multifactor authentication, and other security measures. Cybersecurity practices are vital to avoiding ransomware and data breaches. Keep software up to date, hire consultants to review practices, and ensure your IT systems are safe.

For over a decade, BBB’s International Investigations Initiative has advocated for an ethical marketplace by conducting deep-dive research on the riskiest and most common scams reported across North America. 

LEARN MORE

Visit BBB.org/scamstudies for more on information theft and other scams.

Visit BBB.org to check out a business or register a complaint and BBB Scam Tracker^SM to report a scam.