One of the primary issues plaguing small business owners is the unfortunate fact that new companies are vulnerable to all sorts of potential problems — scammers included. While large businesses are undoubtedly targeted by shady individuals looking to make money through fraudulent activities, they most often target small companies that don’t have the same level of security.
In such cases, startup owners have to be vigilant not only with business management but also with potential scams. Thankfully, it’s a common enough problem that there’s a pattern to most potential scams, allowing you to avoid potential beginner traps by making the necessary preparations. It would also be wise to look into the reviews of chargeback companies if you’re scammed.
That said, here are a few ways to help you spot scams as a startup.
The problem with insurance fraud
New companies that have a physical establishment will have plenty of trouble with insurance fraud if you don’t cover your bases and choose the necessary policies for your business. The same thing goes for company vehicles, as they are often the target of fraudsters trying to get money from the business.
There are two solutions to the problem. The first is to ensure that you have the necessary coverage, as stated above. The second solution is to have cameras installed in your vehicle and premises to ensure that you have proof to avoid such scams. It’s far too easy for small businesses to fall victim to such things, which is why it’s never a bad idea to be extra prepared.
The dangers of phishing emails
While just about everyone has to worry about phishing emails, new startup owners investing capital in their company stand to lose quite a lot from phishing emails. Things get particularly dangerous for those who pretend to be a part of your bank. While it might be obvious trouble for a bank to ask for your username and password, there are some situations where all you need to do is click on a link for them to acquire your credentials.
Such is the reason why you need to keep an eye out for emails from your bank. If something looks suspicious, give your bank a call and ask about it. If any email from your bank wants you to click on a link, don’t give it the benefit of the doubt.
The subtle threat of fake invoices
Last but certainly not least, startup owners often get overwhelmed by the number of invoices they receive — especially those that don’t have too much experience running a company. In such cases, it’s all too easy for someone to take advantage by sending fake invoices that look just enough like the real thing for you to make a payment. Such is the reason why it’s vital to hire an accountant that can put everything on paper.
While startup management can be a challenge for the ill-prepared, it does not have to be a miserable process of trial and error. Understanding the fraudulent activities above will give you as many tools as you need to push for success without worrying about being scammed.