
Common Business Scams: How to Spot and Avoid Them
As technology evolves, so do the tactics of scammers that target your businesses. Small and mid-sized businesses continue to be prime targets for fraudulent activity. At Monson Savings Bank, we’re committed to helping our business customers stay informed and protected.
Here are common business scams that you and your employees should be watching out for—and how to avoid them.
Business Email Compromise (BEC)
Scammers impersonate your business employees, executives, or vendors via email to trick employees into providing access to sensitive information or your financial assets.
Red flags:
- Urgent requests for payment or gift cards
- Slightly altered email addresses
- Requests to bypass normal procedures
How to protect your business:
- Always verify unusual requests received via email by making a phone call
- Train staff to spot spoofed emails
- Use multi-factor authentication (MFA)
Fake Invoice Scams
Fraudsters send realistic-looking invoices for goods or services your business never ordered, hoping someone pays without verifying.
Red flags:
- Invoices from unknown or suspicious vendors
- Pressure to pay quickly
- Vague descriptions of services
How to protect your business:
- Verify all invoices with the appropriate department
- Maintain a list of approved vendors
- Use purchase order (PO) systems for tracking
Phishing and Spear Phishing
Emails or text messages designed to trick employees into clicking malicious links or entering login credentials on fake websites.
Red flags:
- Misspelled URLs or email addresses
- Unexpected attachments or links
- Generic greetings like “Dear Customer”
How to protect your business:
- Train employees regularly on phishing awareness
- Use email filtering tools
- Encourage reporting of suspicious messages
Tech Support and Software Renewal Scams
Scammers pose as IT support or software providers, claiming your systems are at risk or your license is expiring.
Red flags:
- Pop-up warnings or cold calls
- Requests for remote access
- Demands for immediate payment
How to protect your business:
- Never give remote access to unknown parties
- Verify software renewals directly with vendors
- Use a trusted IT provider
Social Engineering and Impersonation
Fraudsters manipulate employees into revealing confidential information by pretending to be coworkers, clients, or vendors.
Red flags:
- Requests for sensitive data via phone or email
- Unusual behavior from familiar contacts
- Pressure to act quickly or secretly
How to protect your business:
- Establish clear protocols for sharing information
- Encourage employees to verify identities
- Limit access to sensitive data
Charity Scams
Scammers request donations from your business to support a cause—either for a fake organization or by impersonating a legitimate charity.
Red flags:
- Unsolicited donation requests
- High-pressure tactics or emotional appeals
- Inability to verify the organization’s legitimacy
How to protect your business:
- Research the charity through trusted sources (e.g., IRS, Charity Navigator)
- Avoid donating through links in unsolicited emails
- Confirm donation requests directly with the organization
Investment Scams
Fraudsters persuade business owners or employees to invest in high-risk or fake opportunities with promises of guaranteed returns.
Red flags:
- “Too good to be true” investment offers
- Pressure to act quickly or keep the opportunity confidential
- Lack of documentation or transparency
How to protect your business:
- Consult with a licensed financial advisor before investing
- Research the individual or firm offering the investment
- Avoid making decisions under pressure
Stay Vigilant, Stay Protected
Fraudsters are getting smarter—but so can your business. By staying informed and implementing strong internal controls, you can reduce your risk and protect your bottom line.
Monson Savings Bank Is Here to Help
At Monson Savings Bank, we’re here to help you stay one step ahead. We offer secure digital banking tools, fraud detection services, and personalized support to help protect your business. If you ever suspect fraud or need guidance, reach out to your business banking team.
Visit our Business Security Center for more information on how to protect your business.
This blog post is for informational purposes only and does not constitute legal, financial, or cybersecurity advice. Businesses should consult with qualified professionals for guidance specific to their operations and risk profile. Monson Savings Bank is not responsible for any losses resulting from the use of this information.