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Protect Your Business from Invoice Scams |
Article details provided by Melissa Walker, VP, Retail Operations & Security In today’s digital landscape, scammers are more sophisticated than ever.Invoice scams, particularly business email imposters, can have devastating consequences for businesses, both financially and reputationally. Melissa Walker, VP of Retail Operations & Security at Croghan Colonial Bank, shares key insights on how businesses can protect themselves from these growing threats. How Invoice Scams WorkScammers often gain access to business emails, posing as legitimate vendors or partners to send fraudulent invoices. These emails look convincing, complete with company logos and prior email threads, pressuring recipients to act quickly or face penalties. A common red flag is a sudden change in payment details or a request to wire funds to a new account. These fraudulent requests can lead to significant financial loss and reputational damage. "Scamming has evolved from something as simple as stealing a checkbook to intricate schemes where scammers can get into your email, impersonate a trusted vendor, and trick you into sending money," says Melissa Walker. "They often know exactly what you owe and use that information to create convincing fake invoices." Key Stat: In 2023, $10 billion was reported lost to fraud, with business imposter scams on the rise (Scam snapshot 2023 FTC). Fraudsters are becoming more adept at targeting businesses of all sizes, often leading to significant losses. Red Flags to Watch For:
Proactive Measures for Businesses
What to Do if You’re TargetedIf your business falls victim to an invoice scam, act quickly. Report the incident to law enforcement, the FBI’s Internet Complaint Crimes Center (IC3.gov), and the FTC. Notify your customers and staff to mitigate further risks. "Unfortunately, once money is sent in these scams, it can be very difficult to recover. The best defense is to take preventive measures like verifying any changes in payment information before taking action," Melissa advises. |