How to Protect Your Business from Workplace Scams
In today's evolving digital world, scams and cyber attacks are at an all-time high, especially targeting small businesses. As scammers get more sophisticated and creative, taking precautions to protect yourself, your small business, and your employees from these scams is more critical than ever. It is also easier than ever to fall for a scam as these scammers refine their tactics, such as phishing emails and fake calls, to more complex social engineering tactics.
This guide will explore the most prevalent scams targeting small businesses, provide actionable advice on identifying and responding to suspicious activities, and offer guidance on steps to take if you or your employees have already been scammed. By equipping yourself and your team with this knowledge, you can strengthen your organization's cybersecurity and protect your business from the most common workplace scams.
The Most Common Scams to Look for as a Business Owner
There is no shortage of scams to be aware of as a small business. Here are some of the most common scams to watch out for while monitoring your emails, phone calls, and other digital channels.
Phishing Scams
Phishing scams are among the most common methods scammers use to target individuals and businesses. Scammers often send phishing emails to trick recipients into clicking on malicious links or downloading attachments. These emails are intended to catch you off guard when quickly reviewing emails and messages. In the context of business operations, scammers often send emails that appear to be from legitimate sources, such as HR departments or payroll service providers. These emails may contain:
Fake payroll information: Scammers may send emails with false information about payroll changes, such as increased wages or new benefits. The goal is to trick recipients into clicking on malicious links or downloading attachments containing malware that will infect your device.
Requests for personal data: Scammers often impersonate trusted individuals, such as employers, colleagues, or accountants, to trick victims into sharing sensitive personal information. By creating a sense of familiarity, scammers can manipulate victims into sharing data that can be used for identity theft or financial fraud.
Urgent requests: Scammers often employ a sense of urgency to pressure victims into acting quickly without thinking critically. For example, they may claim that there is a problem with the payroll system and that immediate action is required. These scams typically appear to be from legitimate sources, such as supervisors, which exploit the fear of consequences and can lead to employees inadvertently compromising their security.
Identity Theft
Identity theft occurs when scammers use someone's personal information to impersonate them. Similar to the phishing scams listed above, these scams often mimic familiar communication styles. The consequences of identity theft can be severe and complex to address. It is crucial to exercise caution when sharing personal information and only provide it to trusted individuals or organizations. Sensitive information that should be protected from unauthorized access includes:
Social Security numbers: This number is one of the most valuable pieces of personal information that scammers can obtain. They can use an individual's social security number to open new accounts, apply for loans, and commit other types of fraud.
Addresses: Scammers can use addresses to target victims with more personalized scams. For example, they may send phishing emails that reference local events or businesses.
Bank account details: If scammers obtain an employee's bank account information, they can transfer funds out of the account or use it to make fraudulent purchases.
W-2 Scams
W-2 scams are particularly dangerous to businesses when employers are distributing W-2 forms to their employees. Scammers may target both employers and employees in an attempt to steal sensitive personal information. They may send phishing emails impersonating the employer's payroll department or the IRS, requesting employees' W-2 information, or tricking them into clicking on malicious links. Be alert for these types of scams, especially during W-2 season.
Wage Garnishment Scams
Wage garnishment scams involve scammers falsely claiming that an employee's wages are being withheld due to unpaid debts. These scams can be emotionally distressing for employees, as they may fear losing their income.
Scammers often send employees fraudulent court orders or garnishment notices to instill fear and convince them of the scam's legitimacy. To extort money from their victims, scammers may demand payment of a fee to supposedly stop the garnishment.
What to Do if You Suspect a Scam
If you suspect that you or your employees are being targeted by a scam, it's crucial to remain calm and assess the situation. Scammers often rely on victims acting impulsively, so taking a pause can help you identify the red flags.
Here are steps to follow once you suspect that something might be a scam:
Verify the sender: Double-check the email address and sender's name to ensure they are legitimate. Typos or unusual characters are common indicators of a scam.
Research the sender: If the email address appears legitimate but you are still unsure, research online to verify the sender's identity or company.
Look for inconsistencies: Be wary of emails with poor grammar, spelling errors, or unusual formatting. If the sender claims to be an employer or employee, pay attention to the tone and language used, as it may deviate from the sender's typical communication style if it's a scam.
Be cautious of urgent requests: Scammers are most successful when they create a sense of urgency to pressure victims into making hasty decisions.
Don't be afraid to say no: If something feels suspicious, it's okay to decline the request and take your time to investigate its legitimacy.
Never share personal information: Avoid sharing sensitive information such as Social Security numbers, bank account details, or passwords with anyone you don't know or trust.
Inform your employer: If the scam involves your employer, report it to your HR department or supervisor. Scammers often target multiple employees within an organization.
What to Do if You Fall Victim to a Workplace Scam
Unfortunately, falling victim to a workplace scam is not uncommon. It's important to remember that you're not alone, and it is not something to be embarrassed about. Scammers have become increasingly sophisticated in their tactics, making it easier for even the most cautious individuals to be deceived.
If you believe you've been scammed, take the following steps:
Prioritize the Situation: Temporarily pause other tasks to focus on addressing the scam.
Report the Incident: To report the scam, contact the Federal Trade Commission (FTC) or your local law enforcement agency.
Share Your Experience: By sharing your experience with others, you can help raise awareness about scams and prevent others from falling victim.
By following these best practices and staying informed about common scam tactics, you can significantly reduce your risk of falling victim to workplace scams. Educate your employees through regular training to equip them with the knowledge to identify red flags. Implement strong security measures, such as mandating strong passwords, enabling two-factor authentication, and regularly updating security software.
When in doubt, remain calm and always verify information before taking action. By understanding common payroll scams and taking proactive steps to protect your business, you can safeguard your financial assets and maintain the integrity of your payroll system. Schedule a free consultation today with PayWorks to better understand how to protect your business from common workplace scams.
PayWorks is not providing legal or tax advice. The information on this website is for informational purposes only and should not be relied upon as legal or tax advice. You should consult with your own legal and tax advisors before making any decisions about your financial situation.