March 2025: Prevent Scams

Prevent Scams- Protect your business

Written by Alexander Milenbachs

As we all know, fraudulent attacks are widespread, with bad actors appearing everywhere, from phone calls to emails and links on websites. Scam websites aim to deceive users into sharing personal and financial information, downloading malware, or buying nonexistent products. Scammers can go as far as creating realistic fake websites with fake reviews, fake addresses, or even the address of a real business. Given the high sophistication of these con artists, this article outlines key strategies to protect your business from fraudulent attacks.

RECOGNISING FAKE WEBSITES & SCAM EMAILS

Common types of fake websites:

• E-commerce platforms that offer unbelievable discounts to entice users to tender payment details or to buy fake products.
• Phishing pages that resemble login pages to well-known services or popular websites.
• Websites with harmful pop-ups that are designed to download malware for data theft.
• Healthcare portals that request account verification to steal medical information.
• Package delivery sites that ask users to verify personal details or trick them into entering credit card information.
• Third-party airfare booking sites that steal personal information such as passport or credit card numbers or counterfeit tickets.

How to identify fake websites:

• Verify the domain name. Does it match the name of the business? Fake sites often use domain names that are very close to the official URLs, but they are slightly different.
• Look for a closed padlock or shield icon for a valid security certificate. This icon indicates a site has a valid security certificate to block hackers. But beware, scammers can also use certificates to fool visitors into believing fake sites are real– click on the padlock to learn more about the certificate. Information such as registered company name, country of origin, province or state, and locality indicate that the site uses greater security to make it harder to fake.
• Use a website checker that can verify secure sites. There are free online tools such as Google Transparency Report that check billions of URLs daily for unsafe sites.
• Use tools like Whois and Wayback Machine for domain details. Check to see how long the site has been active. Fake sites typically don’t last long.
• Check for spelling and grammar mistakes, bad site design such as pixelated or low-quality images or logos, poor site navigation, and missing information like contact information, phone numbers, and physical address.
• Check street addresses with an online mapping program or the U.S. Postal Service website to verify if the address is real.
• Trust your instincts. Beware of deals that seem too good to be true!
• Look for reviews on various platforms, including the Better Business Bureau, to identify potential fraudulent practices. But be aware that reviews can be phony, too. Be cautious of reviews that sound similar, are from new users, lack details, or are overly positive.
• Verify shipping, return, and other policies to ensure legitimacy. Scam sites usually don’t have return options or basic legal information such as terms and conditions or privacy and data collection policies.
• Check for safer payment methods like credit cards. Fake websites often ask for non-reversible or non-traceable methods such as gift cards, bank transfers, and cryptocurrencies.

How to identify scam emails:

• Check the email address for misspellings and make sure it doesn’t come from a Google account.
• Call the individual if it doesn’t feel right. If you don’t know the person, don’t respond.
• Be aware of poor grammar, spelling errors, or an overly urgent tone
• Be cautious of suspicious links or attachments

PROTECT YOUR BANK ACCOUNTS

Various risks are present in the finance and accounting space, ranging from viruses and worms to check fraud and more advanced methods. Unfortunately, these bad actors are getting smarter. As mail theft increases, daily and monthly disciplines become more important. With that in mind, here are practical tips to protect your bank accounts:

Daily & Routine Monitoring

• Check your bank accounts online daily to keep track of cleared checks and other transactions.
• Make sure to reconcile all of your accounts every month (and preferably more frequently).
• Opt-in for automated alerts provided by your bank to receive notifications about your account activity.

Fraud Prevention & Security Measures

• Utilize two-factor authentication when possible to prevent hackers from gaining access to your accounts.
• Audit users on all software systems to ensure terminated employees are removed promptly and no longer have access.
• Cybersecurity training can be challenging, but it is essential to regularly train and communicate with your employees to ensure consistent education about scams and how to identify and avoid them.

Banking Tools & Fraud Protection Services

• Take advantage of positive pay features offered by platforms like Bill.com. Positive pay and ACH verification procedures are effective tools for reducing fraud.
• Consider using reverse positive pay as an additional measure to prevent fraud.
• Establish a good relationship with a representative at your bank that you can contact directly for assistance.

Additional Protection Measures

• Evaluate the option of purchasing cyber insurance for added protection.

FINAL THOUGHTS

In conclusion, fraudulent attacks are pervasive, with scammers employing sophisticated tactics. To protect against these threats, being proactive and trusting your judgment is crucial. Implement strategies today to safeguard your business. Regularly educate your team, update security protocols, and stay informed about emerging fraud tactics.

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Alexander Milenbachs is a Director at Warren Whitney with over 25 years of experience in financial management, operational oversight, and accounting leadership across nonprofit, banking, and retail sectors. Alex works with organizations to enhance financial accuracy, streamline operations, and support strategic decision-making. He typically services our clients as fractional Controller or Finance Director. If you want additional information on how Warren Whitney might be able to assist you with your needs, please contact Kyle Ficker at kficker@warrenwhitney.com. We do not charge for the initial call. We want to learn more about your business needs.

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