Why Online Scams Are So Common For Small Businesses

The reality I see constantly is that small businesses often don’t have the same protections as large companies. In fact, 73% of SMBs operate without a single full‑time security professional. Cybercriminals know this – and they act on it. Symantec’s Internet Secuirty report found that 43% of all cyberattacks now target businesses with fewer than 250 employees. Lacking the budget for layered defences, many owners skip “extra” tools, and crooks fill the gap with fake invoices, phishing emails, and look‑alike websites.

Here are some main reasons small businesses are common targets:

• Fewer resources for cybersecurity
• Employees may not have security training
• Quick, daily financial activity increases risk
• Tend to trust vendors and clients easily

Cybercriminals usually send out the same scam to many people at once. If only a few respond, they can still make money. This is why they often go after smaller companies.

Another factor I’ve noticed is that you may feel pressure to respond quickly to messages or pay bills. Scammers use this urgency to trick you before you notice something is wrong.

Most Common Online Scams Targeting Businesses

In my work with small businesses, I’ve seen many face targeted online scams that focus on stealing money or sensitive data. These fraud schemes are often disguised as real communications or trusted contacts, making them difficult to spot at first.

Invoice And Payment Fraud

This is probably the most common scam I encounter. Invoice and payment fraud happens when scammers send fake invoices that look like they come from real vendors or partners. You may get an email or bill saying you owe money for a service, product, or subscription that you didn’t order. Sometimes, the invoice looks almost exactly like your regular ones, using real company names and logos.

These scams can also include ACH fraud, where thieves give you new bank account details for payments. They may claim the vendor has changed banks, tricking you into sending money straight to the scammer’s account. If your accounts payable team isn’t paying close attention, these fake invoices can slip through and result in lost funds.

My advice is to watch for red flags like changes in payment information, unusual requests, or unsigned invoices. Always check with your vendors directly before sending payments to a new account.

Business Email Compromise (BEC)

Business Email Compromise is one of the most damaging phishing scams for small businesses. Scammers use hacked or spoofed email accounts to impersonate a company executive or trusted partner. They might ask your team to transfer funds, buy gift cards, or send sensitive business or banking info.

The scary thing is, these emails can look convincing. Attackers research your business, then choose the right time to strike – often when a manager is travelling or unavailable. Fraudsters might pressure your staff to act quickly or in secret. Warning signs I tell clients to watch out for include unusual requests, unfamiliar email addresses, or spelling errors. I always recommend setting up strong security steps, such as two-factor authentication and payment verification by phone call, to help block BEC attempts.

Tech Support Or Domain Renewal Scams

I see this all the time; tech support and domain renewal scams often begin with a sudden call, email, or pop-up warning about urgent issues. You may receive a message that your website domain needs immediate renewal or that your computer has a “virus.” Scammers create a sense of urgency to get you to act without thinking. What typically happens is that they may ask you to pay a renewal fee or share your login details. Sometimes, they push you to install remote software, giving them access to your systems and banking info. Here’s what I always advise: legitimate providers rarely demand payment or sensitive information this way. Always verify contact details and instructions with your real tech or domain provider before taking any action.

Fake Ad Agencies Or SEO Consultants

Scammers posing as ad agencies or SEO consultants promise quick improvements in your website ranking or online ads. They reach out by email, phone, or even through social media. Their services sound appealing; better search placement, cheap ads, or immediate growth.

As someone who gets a lot of these via email, the pattern I’ve noticed is that these fraud schemes often require upfront payment and personal business details. Some disappear after getting money, while others may use shady methods that harm your site’s search standing or get your business banned online.

My recommendation is always to research each agency. Check reviews, compare pricing, and make sure they have verifiable contact information. Be wary of high-pressure tactics and guarantees that sound too good to be true.

AI-Powered Scams Small Businesses Need to Be Aware Of 

While many scams rely on classic tricks like fake invoices or phishing emails, AI is making these attacks faster, more convincing, and harder to detect. Criminals are now using machine learning and deepfakes to automate scams and personalise attacks at scale – and small businesses are prime targets.

1. Deepfake Voice & Video Scams

What really concerns me about deepfakes is how accessible the technology has become. Scammers can clone voices from just a few seconds of audio – think about all the voicemails, videos, and presentations floating around online.

Here’s how it typically works: The finance team receives a call from what sounds exactly like their CEO. Same voice, same speech patterns, same favourite phrases. There’s an urgent acquisition that needs funding immediately. The pressure is intense, and the voice is convincing.

The defence is surprisingly simple. Establish verification callbacks using existing phone numbers. Create code words for any high-value transactions. Restrict emergency payment approvals to a small group. If you want to understand what deepfakes are and how these voice and video scams work, I’ve put together a comprehensive guide.

2. AI-Enhanced Phishing

Remember when phishing emails were obvious? Bad grammar, generic greetings, clearly fake. Those days are over. AI now crafts emails with perfect grammar, personalised details, and uncanny timing.

The pattern I’m seeing everywhere: coordinated multi-channel attacks. An email about an invoice, followed by a LinkedIn message “checking if you received it,” then maybe a text for good measure. All fake, all using publicly available information about your business.

The good news? Technical defences work well. Email authentication protocols (SPF/DKIM/DMARC) block most spoofed emails. Link scanning tools catch malicious URLs. These aren’t expensive or complicated to implement. Check out my guide on how to detect AI-powered phishing attacks for a complete breakdown of current tactics.

3. Automated Business Email Compromise (BEC)

This type of scam genuinely frightens me. AI tools can monitor compromised email accounts, learning communication patterns, payment schedules, and invoice formats. Then they wait.

The attack comes when conditions are perfect – CFO travelling, end of month rush, regular vendor payment due. A fake invoice arrives with “updated banking information.” It looks exactly right, arrives at the expected time, and references real projects. Busy accounts payable teams often process it without a second thought.

Essential protections that actually work:

• Dual approval for all payments
• Multi-factor authentication on email accounts
• Phone verification for any banking changes

If you’re still relying on passwords alone, you’re incredibly vulnerable. Setting up two-factor authentication across your business tools is simpler than most people think.

4. Synthetic Identity Fraud

This one still blows my mind. AI doesn’t just steal identities — it creates entirely new ones. Fake vendors with professional websites, manufactured reviews, AI-generated employee photos, and even synthetic credit histories.

The typical approach: They start with small orders and deliver. Build trust over several transactions. Then, when the big order comes, they disappear with the payment. By the time you realise what happened, the website’s gone and the phone numbers are dead.

What actually catches these fakes: Traditional verification. Video calls with the vendor. References you can contact. Physical address verification. The best background check services for employers work perfectly for vendor verification, too. If someone refuses a video call, that tells you everything.

5. AI-Powered Social Engineering

The scariest part about AI-powered social engineering is how much information is freely available. LinkedIn profiles, company websites, social media posts, it’s all intelligence for scammers.

I recently read about a case where attackers knew a new employee’s name, manager, current projects, and even recent company events. They called claiming to be IT support with an ‘urgent security update.’ The level of detail made it seem completely legitimate.

The only real defence is awareness:

• Limit work details on social media
• Normalise verification for unusual requests
• Create a culture where double-checking isn’t offensive

If someone gets angry about identity verification, that’s a massive red flag.

The reality is, AI has supercharged every type of scam, but the fundamentals of protection remain unchanged. Take time to verify. Trust your instincts. Question urgency. No legitimate business deal has ever failed because someone took an extra hour to confirm payment details.

How To Spot A Business Scam

Suspicious Urgency

The biggest red flag I see is when scammers use pressure tactics to force quick action. They might claim your account will be locked, threaten legal action, or say your business will lose out on a big opportunity if you don’t act now.

Messages may warn about ‘suspicious activity’ or ‘urgent payment required.’ The goal is to make you panic and skip careful checks.

But the thing is, legitimate requests, even from banks or suppliers, allow you time to review and ask questions. Be careful if a message demands you move money or give information right away. My advice is not to rush; always double-check claims, especially those with tight deadlines.

Common phrases used by scammers include:

• ‘Act now to avoid suspension’
• ‘Immediate action required’
• ‘Your account has been compromised’

If you get a message like this, contact the company directly using contact details from their official website. Learn how to check if an email is fake or a scam before clicking.

Mismatched Sender Details

Pay close attention to details in emails or other messages. Scammers often use lookalike addresses or change a single letter or number in a trusted sender’s email. This is more common than you might expect.

For example, sales@yourcompany.com could be faked as sales@your-cornpany.com or sales@yourcompany.co. Tiny changes can be hard to spot at first glance.

Watch for:

• Company names that are spelt oddly
• Email addresses that don’t match the official domain
• Poor grammar or odd formatting

If you’re not sure, cross-check the sender’s details with official company records. Never trust contact information given in a suspicious message.

Unverified Payment Or Banking Changes

If you get a message asking you to change banking information or send payments to a new account, be careful. Account takeover scams often use fake invoices or sudden banking updates to steal funds.

Scammers can pose as real suppliers, sending what looks like a routine message about payment changes. My firm rule is to always confirm banking changes using a separate, trusted contact method, like calling the supplier directly with a phone number you already have on file.

Avoid clicking on links or using phone numbers provided in the suspicious message. This small step protects you from wiring money to criminals.

Tools To Help You Stay Safe

Email Scanners

I’ve had great success recommending email security tools because email scams often trick people into sharing private details or clicking dangerous links. Tools I regularly recommend, like Aura and Bitdefender scan your emails for suspicious attachments, fake links, and fraud attempts. They warn you if an email looks unsafe, which helps stop phishing and malware.

What I like about these tools is that setting up an email scanner is simple. Most programs work in the background and update often to catch new threats. Using them keeps your company’s information secure and helps prevent fraud. You can also set rules for blocking certain senders or filtering strange messages, making your inbox safer.

Secure Payment Workflows

Protecting your payments stops scammers from stealing money or banking information. Setting up secure payment workflows means checking each payment step and using safe methods like bank transfers or company credit cards. Avoid paying by wire transfer unless the vendor is verified, since scammers often use this to trick businesses.

I recommend enabling multi-factor authentication (MFA), using payment control systems, and separating duties between staff members to lower risk. Many treasury management tools come with spending limits and alerts for strange activity. Keeping detailed records of each payment and reviewing statements often helps you spot fraud early.

Background Checks On Vendors

Scammers can create fake vendors that look real online. Before working with someone new, you should always run a background check. Use business databases, check for reviews, and look up their website and contact details.

My standard process is to ask vendors for their business license or proof of registration. You can also check for complaints on sites like the Better Business Bureau. Simple steps like calling the business number or searching for a physical address help confirm if a vendor is real.

From my experience, using background check tools and a clear vendor approval process cuts the chance of losing money to fake companies. This protects your purchases and helps with good treasury management by making sure your money only goes to real suppliers.

Case Study

A Business Caught By A Fake Supplier Scam, And How It Could’ve Been Prevented

Here’s a case I worked on recently: a small retail store needed new inventory. They found a supplier online offering products at a lower price. Their website looked professional, and they responded quickly to emails.

What happened next is, unfortunately, common. They wired a large payment for their first order, but the products never arrived. The supplier’s website disappeared, and they could not contact anyone. When I reviewed the case, I realised they had no contract, no clear contact details, and had not checked reviews for the supplier.

To avoid this type of scam:

• Research new suppliers for reviews and business records
• Use secure payment methods, not wire transfers
• Ask for references or samples before big orders
• Always check contact information and trust your instincts if something feels off.

Final Tips

From all my experience with small business security, here are my key recommendations:

• Always double-check who you are doing business with. I tell clients to research new contacts or companies before they pay them money or share information.
• I strongly recommend using strong, unique passwords for each account. Changing passwords often can help stop password theft.
• My rule is not to click on strange links in emails or messages. If something seems off, I always advise calling the person or company directly using a number you trust.
• Something I emphasise constantly is keeping your software and devices up to date. Updates help fix security problems that scammers use.
• I always advise staff training to spot scams. Make sure everyone knows how to handle strange messages or requests.

Here’s a quick safety checklist:

If you suspect a scam, report it right away. Acting quickly can stop more damage.

Stay alert and trust your instincts. If something feels wrong, it’s okay to pause and double-check.