Don’t Fall for Small Business Scams
In tough economic times small businesses can expect to be targeted by even more desperate scammers, so business owners need to be more vigilant than ever. For example, this week the Small Business Administration is warning of a new stimulus scam aimed at small businesses. It seems letters are being sent out to small business owners nationwide with what appears to be the SBA letterhead. Recipients are being informed that they may be eligible for a tax rebate under the Economic Stimulus Act, and are asked to send in their bank account information to determine their eligibility. How creative! And down in Texas a woman named Carolyn Ekar is going around collecting application fees from small business owners in exchange for a promise of grant money that doesn’t exist! And that’s not the only scam out there. According to an article by Rich Mintzer on Entrepreneur.com, there are several common small business scams circulating out there. Don’t fall for these:
- The Pre-Pay Shipping Scam. Someone calls to place an order for a large quantity of heavy items to be shipped to a distant location. They place the order with credit cards that seem valid and go through but later turn out to be stolen, and they ask the merchant to prepay the costly shipping fees to a PO box at the distant location.
- The Overpayment Scam. Someone places an order and deliberately overpays with a check. The merchant fills the order and also sends along a check with the overpayment amount. Of course the scammer’s check was no good anyway and came from a bank account closed long ago.
- The Valuation Scam. Small businesses are contacted about interest in selling their business. They agree to accept help finding buyers and pay an initial valuation fee to determine the value of their business, and the scammer disappears with their money.
