With the e-commerce portion of retail rising by an average of 7.46%each year since 1995, online fraud is naturally rising right along with it. As soon as one scheme gets old, another pops up to take its place. Organizations and even individual employees must stay vigilant and know exactly how to report business scams. When they secure their own interests, they create a safer environment for everyone.
Understanding business scams
Business leaders and individual employees need to know what to watch for before making a report. Phishing scams are one of the most common types of fraud. These deceptive emails trick employees into revealing sensitive information. If one employee bites on the email, scammers can hack into an entire network.
Another thing companies need to watch for is invoice fraud. When fraudsters send fake invoices to organizations and employees, they often appear very similar to legitimate ones.
Businesses must also be on the lookout for charity fraud. This occurs when cyber criminals solicit donations under false pretenses.
Because many people feel less comfortable with new technology, bad actors often rely on tech support scams. These unsolicited calls or internet pop-ups claim to be from reputable tech companies. In exchange for help with non-existent problems, the scammer first asks for some form of personal information.
Most of these are simply a new version of an old con. Organizations can act swiftly and decisively when they learn what to watch for.
File a complaint
To file a complaint, employees will need to collect as much evidence as possible. They will need to present email correspondence, screenshots of fraudulent messages, copies of fake invoices, and bank statements when they report a scam. The more detailed the information, the better the chances of an effective investigation.
They will also want to inform relevant departments in their organization. For example, employees might alert their IT, finance, or dedicated fraud prevention team. Quick internal communication can help prevent the further spread of the scam and protect other employees from falling victim.
They will then contact the appropriate agencies and allow them to investigate. For scams that impact consumers, individuals can contact the office of the Federal Trade Commission. To file complaints against businesses, they will find a helpful form on the Better Business Bureau website. For cybercrimes, they can call a government agency known as the Internet Crime Complaint Center. However, if there’s a risk of immediate threat or loss, the best contact is the local law enforcement.
If financial information is compromised, individuals can reach out to their bank and credit card provider. They can help secure accounts and even reverse fraudulent charges at times. These institutions will also work to guide victims through additional protective measures.
Some industries have specific regulatory bodies that oversee these practices across the entire sector. Reporting to these entities can initiate broader action and raise awareness of the threat to others in the field.
Stop fraud in its tracks
Reporting is by no means the only way to fight this issue. The proactive measures to prevent fraud in the first place are even more important.
Investing in the latest firewalls and antivirus software helps businesses stay ahead of cyber-criminals. Email filtering systems also enable them to safeguard those in their networks from dangerous messages. It’s critical to remember that technology and scams are constantly evolving. If companies want to remain proactive, they will need to regularly update the systems that shield themselves from upcoming threats.
The implementation of software is an important step, but each company leader has an active role to play. It is crucial to train employees with clear policies that outline how to handle sensitive information. Once these policies are in place, businesses need to ensure their employees understand them and adhere to them strictly.
In the aftermath of a scam, businesses may feel like sweeping the unpleasant experience under the rug. However, the best reaction is to turn mistakes into learning opportunities. Rather than dealing with a single employee privately, businesses can respectfully use the incident to prepare the entire team to recognize potential threats and report them.
The most effective training builds a workplace culture where employees feel comfortable reporting suspicious activity. Businesses will catch scams much more quickly if they show employees they have nothing to fear when reporting fraud.
Businesses can band together by forming collaborative networks with other local organizations. They can share information about potential scams and devise strategies to deal with them.
Business scams will never completely disappear from the radar. However, businesses can protect themselves and the wider community by reporting them and implementing preventative measures. Working together empowers the business sector to fight back against fraud and emerge stronger.
