Category Archives: Business

Information that is relevant to businesses primarily, whether as the consumer in a transaction, or for resource purposes.

Protect your small business against fraud with secure payment systems

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“This will end my business operations.”

“I can’t afford to stay open.”

“I am just trying to operate my business.”

Vermont small businesses have reported substantial losses from scams. With more than 76,000 small businesses in the state, representing 99% of Vermont businesses and employing 60% of Vermont’s employees, small businesses are the backbone of Vermont’s economy. We can’t afford for businesses to experience scams. And yet, annually, businesses increasingly encounter new and different scam variations.

When businesses are scammed operations are at risk to be shut down. Their consumers are impacted, too. Whether the scam involves the breach of consumer personal information on file with the business or impacts individuals directly, such as when real estate sales transactions are intercepted. Being aware of the scams is one step to prevention. Remaining vigilant about the services, technologies, and training available to businesses has become even more important.

Learn more about the types of scams impacting businesses. [Link to blog outlining the scams, w/ pie chart of Top 10 impacting businesses]

In a digital age, protecting your small business against fraudulent activity can be difficult, but there are multiple safeguards available to help you avoid scams, protect your business, and keep your customers safe.

Payment Card Industry Security Standards Council (PCI Compliance) are standards outlined for the financial industry to protect data and establish safe payment systems worldwide.

  • PCI compliance of a business payment system helps to protect personal information.

Multi-Factor Authentication can help ensure payments are legitimate.

  • Requires users to provide more than just a password to confirm their identity.
    • Information will be something the user has, like a one-time verification code.

Payment Gateways are services that administer electronic payments (Ex. PayPal, Stripe, Square).

  • Encrypts customer information.
  • Sends encrypted payment information between banks.
  • Intended to safeguard the information of all parties involved in the transaction.

Payment Processing Systems are the systems where payments are processed, or the Point-of-Sale system (POS), like a terminal or similar software.

  • Secure payment processors use chip readers and biometrics to authenticate payments.

Fraud Detection and Prevention implementation adds another layer of protection.

  • Use the Address Verification Service (AVS) to compare the customer billing address to the customer address that the card issuer has on file.
  • Require that consumers enter the Card Verification Value (CVV) to reduce the risk of fraudulent use.
  • Monitor transactions: Regularly review transactions for suspicious activities and set up alerts for unusual patterns.

Train Staff: Your best defense is an informed workforce.

  • Train your staff to properly use payment systems and follow security standards for every transaction, including internally dispersed funds.
  • Stay informed about how common frauds may affect your business and make sure all employees are aware about how to avoid them.

 Resources

The Vermont Small Business Development Center (VtSBDC) provides free guidance to Vermont small business owners.

The Small Business Association connects businesses to state and federal resources and an online learning guide.

When a fraud incident occurs, you can report it to the Consumer Assistance Program. This office tracks scam trends to educate the public and can provide recovery support resources.

References:

https://consumer.ftc.gov/articles/use-two-factor-authentication-protect-your-accounts

https://www.ftc.gov/business-guidance/credit-finance/payments-billing

https://www.occ.treas.gov/publications-and-resources/publications/comptrollers-handbook/files/merchant-processing/pub-ch-merchant-processing.pdf

https://www.fiscal.treasury.gov/otcnet/card-processing.html

https://www.federalreserve.gov/paymentsystems.htm

https://advocacy.sba.gov/wp-content/uploads/2023/11/2023-Small-Business-Economic-Profile-VT.pdf

https://www.sba.gov/district/vermont

Scam Targeting Wedding Officiants and Venders

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Do you officiate, photograph, cater or provide other wedding services? If so, scammers may try to steal your money by claiming to be potential clients.

Several Vermont Justices of the Peace reported to the Consumer Assistance Program a scam in which fake wedding planners reached out to them using fake email addresses. First they asked about their rates for service. Next, they sent a check for a large overpayment and requested a refund.

Wedding officiants are not the only businesses to encounter these fake orders of services. Photographers, caterers, as well as non-wedding related businesses have reported receiving fake requests for services or goods. The end result is always the same. The scammers claim they sent too much money (sometimes drawn on actual accounts fraudulently) and ask businesses to send the claimed overpayment back.

When businesses comply, they lose large sums of money. When the business remits funds by check, the business checking account and routing numbers are provided to the scammer, making businesses susceptible to possible identity theft.

Safeguard business funds by establishing internal protocols to prevent scams:

  • Consider how the email was sent. Was it sent to multiple parties? Was the email address itself an odd combination of letters and numbers? Does it look like a form letter? Are there spelling errors? These are usually scams.
  • Complete online searches to help make an informed decision . An online email verification checker can give you feedback on how the email address has been used. Cross-reference the information provided with information on wedding planning websites.
  • Call the event location and confirm whether there is an event registration under the parties’ names.
  • Require a video call and interview the parties before completing a written contract.
  • Plan to accept payment for the contractually agreed upon amount. The sender can cancel the overpayment and resend payment for the correct amount.
  • Add a multi-step verification process for abnormal payments (consult colleagues, do online research, talk to your bank’s fraud department about potential scams).

Please help stop scams by sharing this information with someone you know. If you have questions about this scam or have provided personal information or money to the scammers, please contact the Consumer Assistance Program at 1-800-649-2424 or https://ago.vermont.gov/cap/recover-scams.

Small Business Flood Relief Resources and Action Steps

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Update August, 20, 2024: “FEMA announced that federal disaster assistance is available to the state of Vermont to supplement recovery efforts in the areas affected by severe storm, flooding, landslides and mudslides from July 9-11, 2024” (https://www.fema.gov/press-release/20240820/president-joseph-r-biden-jr-approves-major-disaster-declaration-vermont).

As businesses rebuild what was lost and purchase new items after the floods, we urge businesses to engage trusted contacts to help consider the next steps and to help make informed decisions. Businesses with concerns can reach out to the Attorney General’s Consumer Assistance Program (CAP) for help. Vermont businesses are covered by our state’s consumer protection law and CAP is a helpful resource available to businesses. CAP’s Small Business Advocate can assist businesses with any questions relating to consumer purchases and consumer complaint mediation.

Small business flood relief: Resources and action steps. Document everything, apply for relief, beware of scams. ago.vermont.gov/cap

First and foremost, businesses must document everything. Take pictures and write down all actions you are taking. This step will be integral in applying for relief and insurance claims down the road.

Making Repairs to your Business:

Below are a few tips to follow before making changes to your business as you repair and rebuild what was damaged in the flood.

  1. Contact your insurance company as soon as possible and do not make any permanent changes to your business until you get approval from your insurance company.
  2. Beware of dubious contractors that may appear with promises to restore damages immediately in exchange for immediate payment. Never pay in full upfront for a commercial project. Make sure you have a contract. Before working with a contractor, always check the Attorney General’s Home Improvement Fraud Registry and residential contractor registration status with the Office of Professional Regulation in the Vermont Secretary of State’s office.
  3. Contact the Consumer Assistance Program by phone at (800) 649-2424 or by email at ago.smallbusiness@vermont.gov for questions relating to hiring a commercial contractor.

Legal Assistance:

Small businesses may also need the advice or services of an attorney. Below are legal resources available to small businesses during this time.

  • Vermont Bar Association (VBA) offers low-cost consultations. A lawyer will provide a 30-minute consultation for $25 to help answer questions.  You can reach the Lawyer Referral Service at (800) 639-7036 Monday-Friday 8am – 4pm. Please visit vtbar.org for updates.
  • Small Business Legal Assistance Project offers support and outreach on legal topics impacting diverse and disadvantaged businesses and business owners in Vermont.

Beware of Disaster Relief Scams:

The Consumer Assistance Program is warning Vermonters and small businesses to beware of disaster-relief scams and price gouging. Scammers may impersonate FEMA or the State of Vermont. To learn more about these scams, please review CAP’s Avoid Scams and Fraud During Flood Recovery blog post.

How to Contact the Small Business Advocate:

If you have any questions on the above related material, please contact Emily McDonnell, Small Business Advocate at ago.smallbusiness@vermont.gov or call CAP at (800) 649-2424.

Many Vermonters are going through a traumatic period. If you or someone you know is having a hard time with the emotional impact of this crisis, you can call or text the National Disaster Stress Hotline, (800) 985-5990, or 9-8-8. You are not alone.

Vermont Origins Guidance for Businesses

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Vermont law specifies which products may be labeled and marketed with terms such as “locally grown” and “made in Vermont.” This law is important to protect the integrity and name recognition of the Vermont brand. If your business is intending to use the Vermont name when labeling or branding products, be sure to check out this helpful guidance and review the following rules.

Vermont Origins Guidance

Consult the Vermont Origin Rule—FAQs (Revised 7/7/06)  for more guidance.

Refer to CP Rule 117 and CP Rule 120 before using the Vermont origin label.

If you have any questions about Vermont Origins, reach out to the Vermont Agency of Agriculture, Food & Markets with questions.

Small Business Flood Relief Resources and Action Steps

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Small Business Flood Relief Resources and Action Steps graphic.

On behalf of the entire Vermont Attorney General’s Office, our thoughts are with those affected by this summer’s flooding.

As businesses rebuild what was lost and purchase new items after the floods, we urge businesses with concerns to reach out to the Attorney General’s Consumer Assistance Program (CAP) for help. Vermont businesses are covered by our state’s consumer protection law and CAP is a helpful resource available to businesses. CAP’s Small Business Advocate can assist businesses with any questions relating to consumer purchases and consumer complaint mediation.

Our office has created a list of resources and action steps for businesses that have been impacted by the flood.

First and foremost, businesses must document everything. Take pictures and write down all actions you are taking. This step will be integral in applying for relief and insurance claims down the road. If you have not already, report your damage and unmet needs to the designated Vermont 2-1-1 Flood Damage-Business Form. 2-1-1 is currently cataloging damage and identifying areas and locations that need assistance.

Making Repairs to your Business:

Below are a few tips to follow before making changes to your business as you repair and rebuild what was damaged in the flood.

  1. Contact your insurance company as soon as possible and do not make any permanent changes to your business until you get approval from your insurance company.
  2. Beware of dubious contractors that may appear with promises to restore damages immediately in exchange for immediate payment. Never pay in full upfront for a commercial project. Make sure you have a contract. Before working with a contractor, always check the Attorney General’s Home Improvement Fraud Registry and residential contractor registration status with the Office of Professional Regulation in the Vermont Secretary of State’s office.
  3. Contact the Consumer Assistance Program by phone at (800) 649-2424 or by email at ago.smallbusiness@vermont.gov for questions relating to hiring a commercial contractor.

Legal Assistance:

Small businesses may also need the advice or services of an attorney. Below are legal resources available to small businesses during this time.

  • Vermont Bar Association (VBA) is offering low-cost consultations. A lawyer will provide a 30-minute consultation for $25 to help answer questions.  You can reach the Lawyer Referral Service at (800) 639-7036 Monday-Friday 8am – 4pm or businesses can directly request services here: tinyurl.com/23floodvtbizlegal.  VBA is coordinating landlord/tenant lawyers to draft a short guide on the responsibilities of landlords and tenants during this time. Please visit vtbar.org for updates.
  • Small Business Legal Assistance Project offers support and outreach on legal topics impacting diverse and disadvantaged businesses and business owners in Vermont.
  • FEMA Disaster Legal Services (DLS) provides free legal help to low-income disaster survivors (individuals and small businesses). If you’re not able to get adequate legal services for your disaster-related needs, DLS may be able to help. Call (800) 621-3362 for service. If you use a video relay service, captioned phone, or other communication service, give FEMA the number for that service.

Financial Assistance- Grants and Community Funds:

There are grants and community funds available for businesses who have been impacted by flooding.

GrantAvailable FundingEligibility
The Business Emergency Gap Assistance Program$20 million in grants, up to $20,000 per applicationPortal to apply goes live in early August. Visit the ACCD Recovery Resource page for more information.  
Vermont Main Street Flood Recovery Fund$2,500 micro grant per businessCovers costs such as equipment replacement, operating expenses, supplies, help with clean-up, etc.
Restaurant Disaster Relief Fund$10,000 cash grants to 100 local restaurantsRestaurants impacted by the flood who:
– Operate a brick-and-mortar location
– Own a maximum of three locations, and employ fewer than 50 employees per location
– Have been open for at least six months
-Have revenues of $3M or less per location in the last 12 months
VT PoC – Flood Relief FundFunds still incomingBlack, Indigenous, and People of Color (BIPOC) small businesses and community members impacted by the flood.

Financial Assistance- Loans:

The U.S. Small Business Administration (SBA) is offering low interest loans for businesses, nonprofit organizations, homeowners, and renters located in regions affected by the floods. To learn more about SBA disaster loans, you may review the fact sheet for Vermont disaster loans and the What you need to know to apply for a business disaster loan page also available in Spanish.

Eligible small businesses and nonprofit organizations can get help with working capital to help overcome the economic injury of a declared disaster. 

Businesses who apply for the SBA loan and are approved are not obliged to take the loan.

The Vermont State Employee Credit Union (VSECU) is offering low-interest loans for small businesses affected by flood water damage.  The loan provides near-term working capital to help with clean-up efforts, real estate repair, equipment replacement, inventory replacement, and other qualifying uses. To learn more about VSECU business loans, visit the VSECU Business Banking page. One does not need to be a state employee to bank at the Vermont State Employee Credit Union.

As a reminder, before applying for any loan, businesses should always consult with a professional and review their business credit situation carefully.

Assistance for Farmers:

If you are a Vermont farmer impacted by flooding, there are resources available to you.

Visit the Vermont Agency of Agriculture Farm Related Assistance page for the most up-to-date information or email agr.floodresponse@vermont.gov or call (802) 828-5667.

Additional resources including loan and grant information for farmers is listed below.

ResourceAvailable ServicesEligibility
USDA Disaster AssistanceVarious funds, grants, and loans available.Farmers, ranchers, communities, and businesses that have been impacted by natural disaster events.  
Farmer Emergency FundGrant up to $5,000Organic and NOFA-VT member farmers who have been adversely affected by natural and unnatural disasters, such as:
– Crop failure
– Extreme weather
– Flooding
– Fire
– Barn collapse
– Financial hardship as the price of organic milk continues to drop
Vermont Farm FundLoan from $10,000 to $15,000Must be a Vermont farmer or food producer who has suffered a devastating loss due to an unexpected natural disaster that puts their farm or farming career in danger; covers buildings, animals, equipment, greenhouses, and hay fields.

Beware of Disaster Relief Scams:

The Consumer Assistance Program is warning Vermonters and small businesses to beware of disaster-relief scams and price gouging. Scammers may impersonate FEMA or the State of Vermont. To learn more about these scams, please review CAP’s Vermont Flood Recovery: Beware of Scams and Price Gouging blog post.

How to Contact the Small Business Advocate:

If you have any questions on the above related material, please contact Emily McDonnell, Small Business Advocate at ago.smallbusiness@vermont.gov or call CAP at (800) 649-2424.

Many Vermonters are going through a traumatic period. If you or someone you know is having a hard time with the emotional impact of this crisis, you can call or text the National Disaster Stress Hotline, (800) 985-5990, or 9-8-8. You are not alone.