Small Business Impersonation Scams

Hello and welcome back to Scam Wise! This month we’re diving into business impersonation scams – when crooks pretend to be a trusted company or organization to trick you. These scams are everywhere: the “Amazon” call about a supposed order, the “utility company” threatening to cut power, even fake “tech support” from Microsoft. With reported impersonation scam losses hitting nearly $3 billion in 2024, it’s clear scammers are doing a great job at acting like someone they’re not. Let’s break down how to see through their disguises and keep our hard-earned money safe.

Scam Prevention Tips for Impersonation Attempts

• Don’t trust caller ID or official-looking emails: Scammers can spoof phone numbers and email addresses to appear legit. That “Apple Support” number on your screen? Could be a crook. The email with the exact Amazon logo? Could be a fake site. Always verify by contacting the business directly using contact info you find yourself. For example, if “Chase Bank” calls, hang up and call the number on the back of your debit card to see if it was really them.
• No urgent payments over the phone: Many business imposters create a sense of panic. They might say, “Your power will be shut off in 30 minutes unless you pay now!” or “Your computer has a virus – buy our software immediately!” This is a giant red flag. Real companies don’t demand immediate payments via gift cards, Zelle, or wire transfers – scammers do. If someone pressures you to pay in a non-traditional way on the spot, assume it’s a scam and disengage.
• Beware of “problem with your account” messages: One of the most common phishing lures is an email or text claiming to be from Amazon, PayPal, Netflix, etc., saying there’s an issue with your account or a purchase. They’ll include a link for you to “log in” and fix it. That link often leads to a phony login page to steal your credentials. Instead of clicking, log in to your account through your normal app or website to check if there’s really an issue. 99% of the time, your account is fine – the email was the real problem.
• Internal business scam (Boss scams): If you work at a company, watch out for emails or texts that look like they’re from your boss or CEO asking a “favor.” A classic example: an email from “CEO@YourCompany.co” (notice the slight off spelling) telling you to buy $2,000 in gift cards for a client ASAP. Always verify strange requests in person or with a phone call to a known number . No real boss will ever be upset that you double-checked a surprise gift card request! Better safe than sorry.
• Keep personal info guarded: Never give out passwords, Social Security numbers, or one-time verification codes to someone who contacted you unexpectedly. Banks and businesses will never call to ask for your login password or 2FA code – if someone does, it’s a scam. Likewise, don’t fill in personal data on forms from unsolicited emails. Imposters often trick you into “confirming” your identity as a way to steal it.

Real-Life Scam Example

Impersonation scams can hit anyone – even a savvy finance journalist like Charlotte C. . Charlotte shared her story after she lost $50,000 to a sophisticated Amazon impostor scam . It started with an email and follow-up call claiming to be Amazon: they told her a large purchase was charged to her account and they needed to “verify” it. The scammers had professional-sounding reps and even knew some of her account details. Over a series of steps, they convinced her to “secure” her money by transferring it to accounts they controlled. By the time Charlotte realized the truth, her $50k was gone. 😞 In her column, she admitted she didn’t think it could happen to her – a reminder that these scams can fool even the best of us if we’re caught off-guard .

Another example hitting countless people: fake utility company calls . The scam goes like this: You get a call from someone claiming to be with your electric or gas company. They say your bill is overdue and your service will be cut off in minutes if you don’t pay . They then direct you to pay via a money transfer app or gift cards (which no real utility would ever do). Panicked at the idea of losing power, some folks comply and lose hundreds. Businesses have been targeted too – imagine a restaurant owner getting this call during the dinner rush! Knowing the signs (like strange payment methods and extreme urgency) can save the day.

One more: Amazon remains the #1 impersonated company in scams . In a recent reporting period, one in three business impersonation scams reported to the FTC was an Amazon scam. These range from fake order alerts to calls about “Prime membership issues.” Always remember: Amazon will not call you out of the blue and ask for sensitive info or payments. If you get an unsolicited Amazon call, it’s safest to assume it’s bogus.

Scam Radar: What’s Trending Now?

Impersonation scams are the top fraud category reported to the FTC, with Americans losing $2.7 billion to them in 2023. And they aren’t slowing down. The FTC even enacted a new “Impersonation Rule” to crack down on these scams. Since that rule, they’ve filed multiple lawsuits to stop scammers posing as everything from government student loan programs to the FTC itself! The rule’s one-year anniversary report noted 850,000 imposter scam reports to the FTC in 2024 – staggering numbers that underline how pervasive this is.

Trending now are “wrong number” text scams and AI voice deepfakes . Wrong-number texts (like “Hi, it was nice to see you last week!” from a stranger) often lead to a friendly chat that evolves into a scam pitch – many turning into fake investment opportunities or romance cons. Meanwhile, advances in AI voice cloning have enabled “grandparent scams” where the caller sounds exactly like your loved one pleading for money (we have a whole issue on that coming up!). The point: technology is giving scammers new tools to impersonate in ever more convincing ways. We have to stay on our toes.

One silver lining: education and reporting are helping. Banks and retailers are training staff to spot customers in the midst of scams (like someone buying piles of gift cards, a known sign of imposter fraud). And consumers are getting savvier – many people are now aware that no, the IRS won’t demand payment via Apple Gift Card . Every time you share tips like these with family and friends, you shrink the scammer’s playbook.

Extra Protection: Aura Identity & Credit Monitoring

Impersonation scams often aim to steal your personal information (login credentials, SSN, bank numbers) – which can lead to identity theft if successful. One way to fortify yourself is by using an identity protection service like Aura . Aura acts as a watchdog for your personal and financial info. For instance, if you accidentally give your details to a scammer or a fake website, Aura can alert you if those details show up where they shouldn’t (like being sold on the dark web). It also keeps an eye on your credit reports and bank accounts for signs of fraudulent activity. Think of it as an early warning system – if an impostor tries to open a loan in your name or there’s a sudden change to your credit, you get notified so you can act quickly. Plus, Aura’s team can guide you through recovery if identity theft occurs. Interested in learning more? Visit Aura’s official site for details. It’s not a substitute for vigilance, but it’s a strong backup in case a scammer ever slips through your defenses.

Quick Takeaways

• Verify, verify, verify: If you get any communication about an urgent problem with an account (Amazon, bank, utility, etc.), independently confirm by contacting the company directly. Never use the call-back number or link provided in the suspicious message .
• Caller ID can lie: Your phone saying “Social Security Office” or showing your bank’s number means nothing – scammers spoof those easily . Always treat unsolicited calls with healthy skepticism.
• No legit business asks for gift cards or Zelle payments: Payment via gift cards, crypto, or wire transfer is a screaming red flag in almost any scenario. The moment that comes up, end the conversation.
• Amazon = most impersonated: Be extra cautious with any Amazon-related communication. Log in to your Amazon account from your own app/website to check claims – don’t trust random texts/emails.
• Keep personal info close: Never give out passwords or verification codes to someone who contacts you. Real companies just don’t operate that way. Impersonators do.

Stay safe and smart out there – you’re doing great! By staying informed, you’re already reducing the scammers’ power. 💪 Know someone who could use this info? Forward them this newsletter and spread the Scam Wise wisdom!