Tag Archives: business identity theft

Top Scams Reported by Businesses in 2024

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Of the 3533 scams reported to the Consumer Assistance Program (CAP), 191 were submitted by Vermont businesses. The five most common scams for businesses include: fake orders, utility disconnection threats, imposters of business personnel, government imposters, and business identity theft.

The top scam for businesses to look out for is Order Fraud (fake orders of goods or services):

In 2024, CAP received 65 reports from Vermont small businesses experiencing fake order requests, in which scammers pose as customers initiating purchases. The purchases could be of business’ products, or of the services the business provides. In this scam, businesses are typically offered fraudulent forms of payment (fake checks, stolen credit cards). Sometimes businesses fulfill orders that are never paid for because the scammer’s check bounces, and stolen credit card charges are reversed. 

Sometimes, scammers request overpayments to be sent elsewhere, such as when a scammer sends a fake check to cover the cost of a wedding service but sends too much money and asks the wedding vendor to redirect the overpayment to fake wedding vendor by peer-to-peer payment services (PayPal Friends/Family, Venmo), or wire transfer. In 2024, several Justices of the Peace reported fake requests for wedding officiant services. Scammers similarly targeted realtors by claiming to be property owners seeking a company to help them sell their homes or land. Scammers used actual names listed on deeds, making it difficult for realtors to verify ownership.  

To reduce fraud incidents, always use multiple methods to verify the legitimacy of a potential buyer. While it may be difficult, take steps to verify. Especially for large orders, use address verification services, card verification value checks (CVV), and multifactor authentication for consumer accounts. Do not accept overpayments. Instead, ask for the correct payment amount to be reissued. You never want to be in the position of paying expenses on the consumer’s behalf when that is not a service you provide.

CAP further encourages businesses in Vermont to take the following steps to help prevent scams: 

Train Your Employees: Your best defense is an informed workforce.

Verify Invoices and Payments: Check all invoices closely. Never pay unless you know the bill is for items that were actually ordered and delivered. Train your staff to do the same.

Be Tech-Savvy: Don’t believe your caller ID. Imposters often fake caller ID information so you’ll be more likely to believe them when they claim to be a government agency or a vendor you trust.

Know Who You’re Dealing With: Never send money to parties you cannot verify. Check registration history, recommendations, and confirm contacts by calling. Before doing business with a new company, search the company’s name online with the term “scam” or “complaint.”

Businesses are encouraged to call CAP to report scams, ask questions, and get resources.
ago.vermont.gov/cap
1-800-649-2424

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.