Top Scams Reported by Businesses in 2024

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

Imposter Scams: Take Steps to Verify. Video Scam Prevention Project

By Crystal Baldwin

My fellow Consumer Assistance Program (CAP) colleagues and I have heard hundreds of personal stories from those who have experienced loss due to scams. The effects of scams are devastating and overwhelming. We understand where you are coming from when you reflect, “This just isn’t me,” after having sent thousands of dollars. We feel your confusion when you say, “I don’t know where I went wrong.” We band together to rally your call to action to “do something,” because we too “don’t want this scam to happen to anyone else.” 

In chasing the call to do something, in 2019 we applied for a grant through the Sears Consumer Protection and Education Fund to produce three scam awareness and prevention videos with a uniform message for consumers to “Know Your Relationships: Take Steps to Verify.” We were awarded this grant in the middle of the coronavirus pandemic, which slowed, but could not stall our efforts in completing this important project. 

Me in character on the Twincraft Skincare set.

I wrote each script, calling on personal accounts of courageous Vermonters, who were willing to share their stories with one goal in mind: to help prevent scams from happening to others. We drew up character breakdowns, hoping for a diverse cast and put out a casting call for volunteers. In the end, we had two professional actresses, Ruth Wallman and Chloë Clark, donate their talent and expertise to the cause. For the remaining roles, we relied on our personal network of generous souls, including our Assistant Director’s son, Lars Jensen, and neighbor, Dave Saraceno. The remaining roles were brought to life by CAP personnel, Cameron Randlett, Charity Clark, and me. Without any formal acting experience, I was not first in line to fill the role, but when our casted actress relocated as our filming deadline encroached, I stepped up. We finally had a concrete filming date with a spectacular set, thanks to the kindness of Twincraft Skincare to offer up their space. I couldn’t let them or this project down.  So, I put on my actor-in-training hat and broke a couple of legs—so to speak.  

This experience, from start to release date, has reinforced my commitment to providing compassionate service to the people of our state. In completing this project, we have compiled so much more than videos and information. The videos, packaged with our online resources, equip consumers to be aware about imposter scams and apply specific mechanisms to stop scams in their tracks. I am proud of my team and the final product we present to you now. 

Throughout the month of December, we will be showcasing the three produced videos, which highlight three very common scams with dollar loss: the romance imposter scam, the family emergency/imposter scam, and the business email imposter scam. It is our hope that as each video is showcased, it will be shared widely by you. As I hoped to instill throughout this work—this information is best in the hands of everybody. Please share it

:30 – Avoiding the Romance Scam video. Hear the whole story at ago.vermont.gov/romance-imposter
:30 – Avoiding the Family Imposter Scam video. Hear the whole story at ago.vermont.gov/family-imposter
:30 – Avoiding the Business Imposter Email Scam video. Hear the whole story at ago.vermont.gov/business-imposter