--- title: "Owner beware: Scammers target small businesses with these schemes" description: A new report shows that businesses with fewer than 100 employees are especially vulnerable to scams. Protect your business with these tips. image: https://go.hfcu.org/hubfs/Scammers.jpg --- [![MoneyWisdom_HFCU_r2](https://go.hfcu.org/hs-fs/hubfs/MoneyWisdom_HFCU_r2.png?width=464&name=MoneyWisdom_HFCU_r2.png "MoneyWisdom_HFCU_r2")](https://go.hfcu.org/blog) Filter by Category** - [Show All](https://go.hfcu.org/blog) - [Security](https://go.hfcu.org/blog/topic/security) - [Personal Finance](https://go.hfcu.org/blog/topic/personal-finance) - [Auto](https://go.hfcu.org/blog/topic/auto) - [Business](https://go.hfcu.org/blog/topic/business) - [Credit Score](https://go.hfcu.org/blog/topic/credit-score) - [Home](https://go.hfcu.org/blog/topic/home) - [Credit Cards](https://go.hfcu.org/blog/topic/credit-cards) - [Life Changes](https://go.hfcu.org/blog/topic/life-changes) - [Insurance](https://go.hfcu.org/blog/topic/insurance) - [Investments](https://go.hfcu.org/blog/topic/investments) Filter by Category** - [Show All](https://go.hfcu.org/blog) - [Security](https://go.hfcu.org/blog/topic/security) - 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[Divorce (5)](https://go.hfcu.org/blog/topic/divorce) - [Travel (5)](https://go.hfcu.org/blog/topic/travel) - [ATM (4)](https://go.hfcu.org/blog/topic/atm) - [Baby (4)](https://go.hfcu.org/blog/topic/baby) - [Debit Cards (3)](https://go.hfcu.org/blog/topic/debit-cards) - [Motorcycles (3)](https://go.hfcu.org/blog/topic/motorcycles) - [Weddings (3)](https://go.hfcu.org/blog/topic/weddings) - [Boats (2)](https://go.hfcu.org/blog/topic/boats) - [Charity (2)](https://go.hfcu.org/blog/topic/charity) - [Family Finance (2)](https://go.hfcu.org/blog/topic/family-finance) - [Lending (2)](https://go.hfcu.org/blog/topic/lending) - [Credit Unions (1)](https://go.hfcu.org/blog/topic/credit-unions) - [Green (1)](https://go.hfcu.org/blog/topic/green) - [Medical (1)](https://go.hfcu.org/blog/topic/medical) - [Pets (1)](https://go.hfcu.org/blog/topic/pets) - [dormant account (1)](https://go.hfcu.org/blog/topic/dormant-account) - [inactive account (1)](https://go.hfcu.org/blog/topic/inactive-account) # Owner beware: Scammers target small businesses with these schemes ** [Hanscom Federal Credit Union](https://go.hfcu.org/blog/author/hanscom-federal-credit-union) ** Dec 30, 2017 ![Scammers.jpg](https://go.hfcu.org/hubfs/Scammers.jpg) The three-letter message on the caller ID strikes fear in any American’s heart: IRS. You pick up the phone, nervously, to hear a somber voice with an unsettling message. “This is the IRS,’’ the voice intones, confirming the caller ID information. Adjustments have been made to your tax account and an immediate payment is due, the caller is informed. Payment must be made over the phone by cash, wire or services, such as MoneyGram. Even iTunes gift cards will suffice. If not, police will be at your location within an hour. Reading about such an incident should trigger internal alarm bells. This kind of call, with these unusual forms of payment, sounds like a scam. And it is. And these scammers are clever. They use technology to falsify caller ID information and even use the names of actual IRS employees – obtained fraudulently, of course. **The cost to small business can be devastating** Small businesses are especially vulnerable. Businesses with fewer than 100 employees have the highest percentages of fraud, according to a report published by the Association of Certified Fraud Examiners. The same report shows that small businesses lost a median of $154,000 while businesses with 10,000 employees or more were hit with a median loss of $160,000. To put this in perspective, the $154,000 loss averages out to $1,540 per employee, while a much larger business takes a far smaller hit of about $16 per employee. For smaller businesses dealing with a much lighter cash flow than their larger counterparts, losing this much money can have a serious – even a potentially door-closing – impact. **Fight back with this powerful tool** So how to avoid these sophisticated and too often successful scammers? Arm yourself with the most powerful weapon any targeted business can possess: *information*. The IRS reminds the public that understanding their methods of operation can help sound the alarm at unusual activity. The IRS, for example, does not contact people or businesses by phone; they use the U.S. mail. They don’t request personal information such as credit cards and Social Security numbers over the phone. They don’t threaten arrests or lawsuits when making contacts. And unlike your teenage niece, they have no use for iTunes gift cards. Or any gift card for that matter – or for MoneyGram or Western Union transfers. To report a possible IRS scam, fill out the IRS Impersonation scam form at [www.tigta.gov](http://www.tigta.gov) or file a complaint with the Federal Trade Commission at [www.ftc.gov](http://www.ftc.gov). **Other popular schemes scammers are using** Unfortunately, phony IRS calls are far from the only scams that target small businesses. The Federal Trade Commission reports that small businesses have been hit by directory scams. A phony “directory company’’ promises to expand the reach of your business by including a listing in a directory that, of course, does not exist. But by the time you realize it, the money sent to the company for this promising listing has vanished, along with any potential directory. Then there are attempts to hack into your business computer to access sensitive information. “Lately we’ve heard reports that people are getting calls from someone claiming to be from the Global Privacy Enforcement Network,’’ Andrew Johnson from the FTC’s Division of Consumer and Business Education said in an alert released by his division. “Their claim? That your email account has been hacked and is sending fraudulent messages. They say they’ll have to take legal action against you, unless you let them fix the problem right away,’’ he said. If victims ask questions, the scammer provides numbers to the Federal Trade Commission or directs them to the web site for the Global Privacy Enforcement Network, a very legitimate web site that works on cross-border privacy issues and has nothing to do with this scam except for the unauthorized use of its name. **Take steps to avoid being victimized** To avoid problems, Johnson recommends taking the following steps: - Don’t give control of your computer to anyone who makes an unsolicited call. - Don’t give our financial or personal information to an unexpected caller. - Don’t let anyone pressure you. When in doubt, hang up. The most crucial step to take is to back up all your data correctly should the worst happen. If you have concerns regarding your computer or a specific piece of software, contact the respective company directly. A representative can confirm whether there is in fact an issue with your computer – or whether that issue strictly exists in the greedy heart of a scammer. Anyone who falls victim to this scheme or other tech-support scams is urged to report the incident directly to the FTC at [www.ftc.gov](http://www.ftc.gov). Other scams make front page news, including the infamous ransomware scheme, that can encrypt digital files and render them useless unless a hefty ransom is paid. About 4,000 ransomware attacks occur every single day in the United States, according to the US Department of Justice. **Know who to trust** Again, information and communication are the best defense against these criminal minds. Remind your employees to use extreme caution when opening email attachments or clicking on links within emails. When in doubt, don’t open it. Instead, reach out to reliable sources, including the software provider itself. Be loyal to those who you know and trust – and be in the business of casting a wary eye to all others. Your livelihood could depend on it.   *Reward your employees by becoming a Hanscom FCU Bank at Work partner. Membership is free, and the benefits will save you and your employees money. * [![Find out more about our Partner Relations Benefits](https://no-cache.hubspot.com/cta/default/118438/4e4ba0d6-a674-462f-b527-945188954edd.png)](https://cta-redirect.hubspot.com/cta/redirect/118438/4e4ba0d6-a674-462f-b527-945188954edd)   *Others are reading:* - *[Pace your business loans: here's why](https://go.hfcu.org/blog/how-do-i-grow-my-business-and-manage-cash-flow-0)* - *[Employee financial wellness impacts your business growth](https://go.hfcu.org/blog/employee-financial-wellness-impacts-your-business-growth)* - *[Employees increasingly taking money problems to work](https://go.hfcu.org/blog/employees-increasingly-taking-money-problems-to-work)* - *[A simple plan that rewards your employees](https://go.hfcu.org/blog/a-simple-plan-that-rewards-your-employees)* - *[You had to let employees go... now what?](https://go.hfcu.org/blog/you-had-to-let-employees-go-now-what)** * ** [Security](https://go.hfcu.org/blog/topic/security), [Business](https://go.hfcu.org/blog/topic/business) [** Easy Ways to Save Money on Your Water Bill ](https://go.hfcu.org/blog/easy-ways-to-save-money-on-your-water-bill) [** Should I Buy, Lease or Look for a Car Leasing Alternative? ](https://go.hfcu.org/blog/bid/154211/should-i-buy-lease-or-look-for-a-car-leasing-alternative) ### About Author ![Hanscom Federal Credit Union](https://go.hfcu.org/hubfs/HFCU-Profile-1000x1000.jpg) Hanscom Federal Credit Union Hanscom Federal Credit Union, a purpose-driven $1.9 billion organization based in Littleton, MA, empowers its members to achieve financial wellness. Hanscom FCU serves over 95,000 members across the country and overseas through 16 branches, over 100,000 surcharge-free ATMs, 5,000 contact centers, and a web-based branch. Related Posts [![Navigating Financial Challenges After a Job Loss](https://go.hfcu.org/hubfs/iStock-1444494544.jpg) Navigating Financial Challenges After a Job Loss ](https://go.hfcu.org/blog/job-loss) [![Protect Your Accounts from the Rise of Check Fraud](https://go.hfcu.org/hubfs/Untitled%20design%20(16)-2.png) Protect Your Accounts from the Rise of Check Fraud ](https://go.hfcu.org/blog/protect-your-accounts-from-the-rise-of-check-fraud) [![How to Avoid ID Theft Over the Holidays](https://go.hfcu.org/hubfs/Blog%20Photos%20800%20x%20800px%20(1)-1.png) How to Avoid ID Theft Over the Holidays ](https://go.hfcu.org/blog/bid/155005/don-t-let-identity-theft-ruin-your-holidays) ** - [**](http://www.facebook.com/share.php?u=https://go.hfcu.org/blog/owner-beware-scammers-target-small-businesses-with-these-schemes/) - [**](https://X.com/share?url=https://go.hfcu.org/blog/owner-beware-scammers-target-small-businesses-with-these-schemes/) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://go.hfcu.org/blog/owner-beware-scammers-target-small-businesses-with-these-schemes/&summary=&source=CeBIT) ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ### Comment ### Subscribe To Blog ### Subscribe to Email Updates ### contact **Hanscom Federal Credit Union** 1610 Eglin St. Hanscom AFB, MA 01731 Call us: [800-656-4328](tel:8006564328) [https://www.hfcu.org/](https://www.hfcu.org/) ### About Us [The MoneyWisdom Blog](https://www.hfcu.org/the-moneywisdom-blog.html) ### Social ** ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** ### https://www.facebook.com/HanscomFederalCreditUnion The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** ### https://X.com/HanscomFCU The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** ### https://www.instagram.com/hanscomfcu/ The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** ### https://www.linkedin.com/company/hanscomfcu/ The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ## You are Leaving Hanscom Federal Credit Union #### **Please read the following before proceeding to:** ### http://www.youtube.com/c/HanscomFederalCreditUnion The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. ### Popular Posts [What You Need to Know About Putting Your Home in a Trust](https://go.hfcu.org/blog/what-you-need-to-know-about-putting-your-home-in-a-trust) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/Untitled%20design%20-%202022-02-10T072804.753.jpg) [What You Need to Know About Your Federal Tax Bracket](https://go.hfcu.org/blog/what-you-need-to-know-about-your-tax-bracket) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/Untitled%20design%20-%202021-03-22T123305.900.jpg) [6 Boat Types to Get on the Water](https://go.hfcu.org/blog/6-boat-types-to-get-on-the-water) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/images/Jet_Ski.jpg) [23 Organizations Dedicated to the Needs of Seniors](https://go.hfcu.org/blog/23-organizations-dedicated-to-the-needs-of-seniors) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/Senior%20citizens.jpg) [9 Smart Moves for Lottery Winners](https://go.hfcu.org/blog/lottery) ![older man looking at top retirement worry on digital device](https://go.hfcu.org/hubfs/images/lottery_winner.jpg) ### Recent Posts - [![National Credit Union Administration](https://go.hfcu.org/hs-fs/hubfs/NCUA-logo-small.png?width=95&name=NCUA-logo-small.png) ](https://www.ncua.gov/) [![Equal Housing Lender](https://go.hfcu.org/hs-fs/hubfs/EHL-logo-small.png?width=65&name=EHL-logo-small.png)](https://www.hud.gov/fairhousing) - @ 2023 [Hanscom Federal Credit Union](https://www.hfcu.org/) - Federally insured by the National Credit Union Administration. - [Privacy Policy](https://www.hfcu.org/content/docs/Privacy_Notice.pdf) **Disclosure:** Hanscom Federal Credit Union does not provide and is not responsible for any products, services, or overall website content available at any third-party sites linked within this blog. Moreover, Hanscom Federal Credit Union's privacy policies do not apply to any of the linked websites within this blog. Please consult the privacy disclosures on those linked sites for further information. ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Hanscom Federal Credit Union" }, "dateModified" : "February 1, 2022, 9:01:06 PM", "datePublished" : "2017-12-30 12:00:00", "description" : "A new report shows that businesses with fewer than 100 employees are especially vulnerable to scams. Protect your business with these tips.", "headline" : "Owner beware: Scammers target small businesses with these schemes", "image" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hubfs/118438/Scammers.jpg" }, "mainEntityOfPage" : { "@id" : "https://go.hfcu.org/blog/owner-beware-scammers-target-small-businesses-with-these-schemes", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hubfs/118438/Logo%202.jpg" }, "name" : "Hanscom Federal Credit Union" } } ```