Small businesses are at risk of falling victim to various scams that can have lasting impacts on their business. These scams can lead to financial losses and damaged reputations, making it crucial for small business owners to be aware of them.
One common scam that small businesses should watch out for is the use of phony invoices and unordered merchandise. Scammers often send fake invoices hoping that businesses will pay without questioning them. Similarly, they may send unordered products and then demand payment for them, even though the business never requested them. Small business owners should be cautious and not feel obligated to pay for products or services they did not order.
Another scam to watch out for is fraudulent business coaching services. While receiving coaching for your small business can be beneficial, not all service providers are legitimate. Some may charge fees for services they never deliver or increase fees unexpectedly. To find reputable business coaching services, it is recommended to contact your local Small Business Administration regional office for assistance.
The Better Business Bureau also warns of directory scams, which have been targeting businesses for many years. Scammers may try to convince businesses to pay for a listing or ad space in a fake directory, or they may falsely claim to be affiliated with a legitimate directory. In both cases, the business ends up paying for something that does not exist.
If you encounter a scam, it is important to report it to the appropriate authorities. You can file a report with the Federal Trade Commission at ReportFraud.ftc.gov or submit a complaint to the Better Business Bureau at BBB.org/ScamTracker