If you’re a Georgia business owner, you might be vulnerable to some cleverly disguised scams especially during this part of the New Year when fees, licensing, tax preparation, and more come up all at once. Even if you have run a small business for a while, we live in an ever-changing world and scammers are getting more bold and elusive.
A few weeks ago, we received a fraudulent document that appears to be from the Georgia Secretary of state to render payment for our annual registration. It was actually a “service provider” {read scammer} who was attempting to handle our annual registration for $150. A Georgia annual registration costs $50 a year and there is zero need to have a middleman assist during the process. So essentially they are attempting to charge $100 to do absolutely nothing of value.
It mimicked an official document quite well, and we recognized that lots of business owners in our community could fall victim to this type of scam, so we wanted to create a blog post to keep you informed and safe from this and other scams out there that could come your way in the new year.
Be on the Lookout for Popular Scams Throughout the Year
Scammers will always be on the lookout for new ways to exploit people in the small business sector. Oftentimes it comes from a perceived authority, and people are reluctant to question it. We call these Government Impostors. Aside from offering useless “services” such as filing your business license or getting you an EIN number from the IRS, there are scammers who pretend to be from government agencies that will hit you up for alleged unpaid bills, taxes or fees with threat of legal action, loss of service or loss of business license. Some will attempt to have you pay for posters or materials that are available for free of charge from federal and state labor departments.
Other popular scams that are commonly perpetrated against small business owners are:
- Utility Scams
- Fake Invoicing Scams
- Credit Card Processing Scams
- Fake Check Scams
- Directory Listing Scams
- Brand Building or Business Coaching Scams
How to Protect Yourself from Scammers
- Most government entities or utility companies won’t call you directly. If you fear it is a legitimate entity calling to collect a fee, hang up and directly call the number listed on the government website or your utility bill to ensure you’re not being scammed. If it is via mail, email, or elsewhere online, always double-check with legitimate government websites before you pay for anything.
- Protect business tech with passwords and malware/spyware protection to keep things secure
- Check with the Better Business Bureau before working with new suppliers or prospectors- Search online for the firm’s name plus the words “scam” or “complaint”.
- Check for the true cost of licensing and other application fees directly on government websites.
- Keep up-to-date books and have a system in place to verify all invoices before you pay.
- Trust your gut if it’s telling you something’s not right. We have instincts for a reason. Don’t ignore them, address them.
There are many other things you can put in place to protect yourself. Being aware that these scams are out there is just the first step.
To help you learn more about how to protect yourself from scams against small business scammers, we’re providing this link to the Federal Trade Commission with comprehensive information you can trust.
Check out the full small business section of our blog for more tips for protecting your small business. If you are looking for further legal advice, representation or need a professional lookout for your best interest, get in touch with us today.