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.

5 Ways to Secure your E-Commerce Business

The e-commerce industry is currently experiencing rapid growth, because more and more people now prefer to shop online.  Shopping online may offer unparalleled convenience and unlimited choice for customers, but, it also presents significant risks in terms of cyber-crimes. Hackers and cyber-criminals are themselves having a free run online in tandem with the growth in e-commerce business. This is why e-commerce business owners and even shoppers must always remain cautious against any potential threats from hackers and fraud. Good attention must therefore be paid to cyber security.
If you want to secure your e-commerce business from cyber threats and fraud, following are some of the best ways to go about it.
 
1. Always Prepare for the Inevitable

There is a popular Boy Scouts motto that says “Be Prepared.” It comes quite significant here even though no matter how much you prepare, there is always a chance that your system defenses will be breached one way or the other. That is the scary part but if you have a proactive mindset, you can always have a backup plan ready. Having one enables you to act very quickly whenever there is a threat or if any breach occurs. That’s where preparation comes in. A good backup plan should include but not limited to the following steps. You can quickly report the incident to relevant authorities, make a thorough investigation to find out how and why it happened, and limiting the damage by securing any compromised accounts. If in the course of these steps you discover that customer data is affected, transparency demands that you quickly alert your customers and guide them through the right steps they need to take to keep themselves safe.
 
2. Stay on Top of Industry Regulations

It is usually not easy to fully understand all e-commerce regulations because of the rapid changes in the industry. Making efforts to be up-to-date is certainly helpful. In many countries, if you diligently align your business with consumer protection laws, it will not only help secure your operations but also positively impact your customers’ trust. Even though these rules may vary by location, it is best to comply with all the strict standards and regulations, such as California’s Consumer Privacy Act (CPPA) for instance. To protect your customers’ data and privacy, make sure your online payment partners like PayPal stick to all PCI Security Standards. Doing so helps to safeguard any sensitive customer information and prevents credit card fraud. If you stay fully compliant with the rules/regulations, you can avoid huge penalties and safeguard your customers’ trust.
 
3. Pay Attention to Your Digital Footprint
    
If you do business online, whether you notice it or not, you’re always leaving behind digital footprints.  This is why you must fully understand where your business data is stored online and exactly who has unrestricted access to it. You can get to understand it by auditing all of your physical and digital assets. Do this audit from the computers, servers, all your social media accounts and email addresses that you do business with. If well carried out, these audits can help you uncover any hidden vulnerabilities. You may discover any inactive accounts, overshared data and some unexpected data that may be hidden and can make your business vulnerable.

4. Train Your Workforce

Human errors can make your business vulnerable to cyber-attacks. It is well known that most data breaches usually occur because of human error. The reason you must pay good attention to diligent staff training to reduce such errors to the barest minimum. Granted, even though the best cyber security protocol setups can break down, a well-trained team can help mitigate the effects. If you want your e-commerce business to survive cyber-attacks, never you ignore training your workforce on cyber security best practices. This training should not just be a one-time training session. The best training is long-term and impact regular education sessions and surprise simulation drills to keep your workforce on constant alert. That helps to keep them well prepared, sharp, and ready to spot any phishing scams, weak passwords, and other cyber threats that can gravely hurt your e-commerce business.

5. Implement a Layered Cyber Security Strategy

Layered cyber security setups help to increase the odds that your business will suffer an attack. It is best to set up multiple defenses using strong passwords, multi-factor authentication, and regular software updates if you want to keep your business secure. To make it really secure, you may in addition to these layered defenses add some more security layers like firewalls, antivirus, and anti-malware programs. If you market with email, email security protocols are also recommended.

Summing Up

As e-commerce businesses are growing online, so are the risks. To sustain your e-commerce business online, the foregoing tips can help to secure the business for it to keep thriving. With these tips, you can protect your e-commerce business operations and continue to grow the business without allowing it to fall victim to cyber-crimes.