ROCKFORD, Ill. (WIFR) – A rise in business scams has caused significant financial loss since 2022, according to the Better Business Bureau.
From 2022-2024, the BBB has seen 3,647 scam reports, and the FBI has recorded 74,489. The BBB says these numbers may be smaller than the actual amount of scams, as many go unreported.
These scams can include anything from employee and vendor impersonations, to social media account takeovers, to data breaches.
The BBB says some businesses lose hundreds of thousands of dollars to these scams because they aren’t prepared. The cost of a single data breach averages at $4.9 million per company, showing that the need for business protection is becoming more apparent.
“We just had a very clever scam containing fake but very convincing conversations in an attempt to have our BBB accounting team to send gift cards, but luckily, keeping employees up to speed and alert to these types of scams, no money was lost,” said Dennis Horton, Senior Director of the Rockford Regional Office of the BBB.
Training and preparing employees to identify and respond to scams is the best way to defend your business, according to the BBB, along with the following:
- Use secure payment procedures and follow strict payment protocols
- Research unfamiliar companies before any transactions
- Install firewalls, enable multifactor authentication and keep software updated
- Consult cybersecurity professionals to strengthen defenses
The latest study from the BBB shows the way scams are evolving. Experts predict AI will be a growing concern as fake videos, voices and emails become more refined.
The BBB says businesses should be cautious of the following scam indicators:
- Unsolicited communications from people claiming to represent government agencies or major corporations
- Urgent requests to renew licenses, trademarks or domain names
- Unexpected invoices sent through email
- Unusual behavior from familiar vendors or partners
- Overpromising consultants offering extraordinary results
- Impersonation of executives requesting payment through gift cards or prepaid debit cards
If you encounter a scam, report it to the BBB Scam Tracker.
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