How to Reduce the Risk of Social Media Scams in Your Small Business

Presently, it appears online scammers and cyber criminals are becoming more and more sophisticated. This is more so on social media where nearly everyone appears to be at the moment. On social media, many people are having fun, many are doing business and many others are always on the prowl searching for victims to scam. Even though social media can be a useful tool for your business, it should never replace due diligence. If for instance a seller, buyer or listing is pushing you to move fast to use an unprotected payment method or trust a screenshot instead of a verified payment, just take a step back. Buy a bit of time before acting.

The more familiar you are with common online scam tactics, the easier it can be for you to spot red flags before concluding transactions. Most importantly, before money leaves your account. When something looks or feels odd, it may be best to diligently verify or simply walk away. You must put security measures in place to protect yourself from social media scams, imposter scams, investment scams, job offer scams, romance scams and more.

Business owners may not be able to avoid every threat, but they can drastically reduce the chances to the barest minimum. A few habits as stated below can help lower the odds of getting caught in a scam online.

Train employees on common scams. This is the first line of defense. If employees help manage purchasing, social media inquiries, billing or sales, make sure they also know how fake seller and fake buyer scams work. A simple internal review process for new vendors, deposits and refund requests may help reduce risk. Since online scams are dynamic, updating your employees regularly on the new scams in town can be really helpful.

Independently verify the business or person. Don’t rely on just a social media profile or direct message to do business with any entity online. Take a bit of time to look up the company’s legitimate website, phone number and contact information on your own before sending money.

Deliberately slow down interactions. Doing this is to buy a bit of time since scammers often want a business owner to act fast before they have enough time to think things through. Building in even a brief review step may help you and your team spot warning signs before goods/money exchange. 

Always confirm payments through your own channels. If you’re selling, do not ship goods, issue refunds or release inventory based only on a screenshot or message sent through social media claiming payment was sent. Before acting, always confirm with your bank or payment platform that funds have landed in your own account.

Compare listings and details. If a social media account claims to represent a business, compare the item, service, price and contact information against the company’s official website. If you can’t find the same item for sale at the same price on the legitimate site, that is a red flag. It may be a scam.