Business scams by con artists are not new and seem to be evolving every day. You probably already know about, or have had some experience with, the most common ones – robocalls about winning a prize, computer problems, quick credit fix etc. Sometimes, it is an “invoice” that is supposedly from a business partner.
And in some cases, a business scam can come in the form of debt-collection notices, or dire warnings about an expiring web address, domain name or trademark if you don’t send money immediately.
There have even been reports of business scams involving toner cartridges or other office supplies showing up at offices out of the blue with a bogus bill.
The common thread with all business scams is that they attempt to sow fear, play on greed or plea to the kind-heartedness of people.
According to the Federal Trade Commission (FTC), these business scams by con artists succeed because the criminals are banking on the likelihood that most small and medium-sized businesses, churches, and not-for-profit groups will end up paying the bogus invoices in the mistaken belief they owe money or that it’s simply a misunderstanding.
The devastating aftermath of successful business scams though, is that the savings of many businesses and organizations are plundered before the scam is discovered. And the sad part of it all is that many are never caught thus making the scam industry a multi-billion-dollar enterprise. Research put it at over $50 billion annually. (more…)