Stop Business Fraud In Its Tracks

Fraud is on the rise for everyone from small businesses to big corporations. Learn how to stop scammers in their tracks.

Whether thieves are on the hunt for personal information or financial gain, a breach in your business not only leads to financial loss…it can also cause serious damage to your reputation. 

Want to stop fraud before it starts? The secret to protection isn’t just awareness: it’s preparation.

How fraudsters operate

Whether they’re faking an invoice or impersonating a tax collector, fraudsters usually fall back on common fearmongering tactics. Understanding these ploys can help you spot fraud attempts in the moment.

According to the Federal Trade Commission, scammers typically use one of three main moves:

• Posing as trusted sources. Scammers impersonate vendors, companies, or government agencies to give the appearance of legitimacy.
• Creating a false sense of urgency. Fraudsters manufacture pressure and fear with “act now” language, trying to stop you from verifying details.
• Demanding risky payments. Scammers often ask for money via wire transfer, cryptocurrency, or gift cards. Legitimate businesses don’t require payment this way, making this a glaring red flag.

Spot the patterns in common scams

While you can read more in-depth about common business scams here, it’s important to learn the overall patterns behind the schemes so you can stop fraud faster.

Payment redirection

Payment-based scams aim to quietly reroute money you already planned to send. The most common scams in this category include:

• Fake invoices: Fraudsters send doctored invoices that route money to criminal accounts.
• Vendor payment change requests: Scammers send messages that a supplier’s banking info has changed. If you don’t stop to verify, payments go straight to scammers.

Red flag: Any unexpected change to payment instructions, especially with pressure to “PAY NOW.”

Check fraud

One of the most common and costly types of business fraud is check fraud, where criminals steal a legitimate check and alter it by changing the payee name, dollar amount, or both before depositing it with one of these two main methods:

• Check washing: Criminals physically alter the check, such as using chemicals to remove existing ink.
• Altered check fraud: Scammers create digital copies of real checks and manipulate the details.

Either way, the result is the same: money leaves your account for a payment you never authorized.

Red flag: A check clears for the wrong amount or is paid to an unfamiliar payee, even though the check number looks legitimate.

Pressure points

Pressure-point scams rely on intimidation to manufacture stress, making you more prone to mistakes or oversights.

• Impersonating officials: Scammers claim to represent a government agency or service provider, often demanding instant payment…or else.
• Service disruption threats: Fraudsters send threatening calls or emails about your internet, utilities, or domain being shut off unless you pay right away.

Red flag: Urgent deadlines.

Tricky transactions

In these scams, thieves often exploit legitimate payment processes to trick you into sending money back to them.

• Overpayment schemes: A “customer” mails you a check for too much money and requests that you refund the difference. Later, the check bounces, but it’s too late…your refund is gone.
• Contract traps: Fraudsters offer “better rates” or savings that are too good to be true, pushing you to sign incomplete documents.

Red flag: “Customers” or “vendors” asking you to send money back or sign documents you haven’t fully reviewed.

Sketchy services

Service-centric scams rely on fake business relationships to extort business owners.

• Unsolicited merchandise: A “vendor” calls offering free samples. They confirm your address and send the “free” products before they start demanding payment.
• Phantom vendors: A “company” you’ve never worked with before bills you for services you didn’t request.

Red flag:  Charges for goods you never ordered or services you didn’t approve.

How to stop fraud

Suspect foul play? Listen to your gut, and keep these key tips in mind to stop scammers in their tracks.

• Slow down, and be wary of false urgency. Scammers use urgent language to scare you into responding. No matter how pressing the situation may seem, the key here is to slow down rather than acting immediately. There's always time to pause and contact a trusted Origin Bank representative.
• Fake links look real. Verify before you click. From phony password reset links to predatory payment portals, fraudsters can fabricate websites to create a false sense of legitimacy. Think twice before you click.
• For codes and credentials, sharing isn’t caring. As a small business, multi-factor authentication is your first line of defense. If someone contacts you and requests that you share or verify key business information like security codes, passwords, or pins, think twice before replying, and reach out to a trusted advisor if you’re unsure.
• Sign up for Positive Pay. Keep your business safe from fraudulent or invalid checks with Positive Pay. With this Origin Bank service, checks presented for payment are matched against the check details you issued. If the amount, check number, or payee doesn’t align, you’re alerted and can make a clear pay or no‑pay decision before funds leave your account.

Don’t fund fraudsters

From spoofed caller IDs to real-looking links, today’s small business scams can fool even the sharpest entrepreneurs. At Origin Bank, we want to help you recognize the red flags before it’s too late. That’s why we created an interactive quiz with real-life scenarios to put your skills to the test.

Take our new business fraud quiz (or test your skills with the consumer-focused version) and find out if you have what it takes to spot fraud. And, as always, reach out to your Origin banker or contact our Customer Support Team at (888) 292-4037 if you notice any abnormal activity.