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

Vermont’s Businesses Are Protected Under Vermont’s Consumer Laws

Businesses can be consumers too! Vermont is unique in that our Consumer Protection Act defines “consumer” to include businesses that are the consumer in a transaction, such as when purchasing goods or services that are not for resale (9 V.S.A. § 2451a(a)). If your business needs help, contact our Small Business Advocate by emailing AGO.SmallBusiness@vermont.gov or calling 800-649-2424.

Here are some recent examples of how the Small Business Advocate has helped Vermont business consumers:

  • Small business paid a listing service for over 5 years of online advertising when it realized that advertiser had published the wrong phone number for the small business. The listing service offered to refund the small business $450 to resolve the issue, but this was significantly less than what the small business had paid for the service. Our Small Business Advocate reached out to the listing service on the small business’ behalf and was able to secure a refund of more than $4,000 to recapture the costs paid for the service.
  • Small business attempted to cancel their lease for credit card processing equipment (the lease was entered before new protections took effect on July 1, 2018), but the leasing company claimed that the small business owner was unable to cancel the lease agreement and needed to pay the remainder of the lease term. Our Small Business Advocate reviewed the lease contract and found that it did not conform to Vermont’s Home Solicitation Sales Act (9 V.S.A. § 2454). The leasing company agreed to cancel the contract, saving the business owner more than $600 over the course of the lease.
  • Small business signed up for a lead generator service but was dissatisfied with the quality of the referrals they received. Small business requested a refund but did not receive a response from the lead generator. Frustrated by the lack of response, they contacted our Small Business Advocate who brought the complaint to the lead generator’s attention and facilitated a refund to the small business of nearly $300.

Does your business need help? Review our office’s webpage for small businesses and contact our Small Business Advocate today.