Scams seemed to have increased since the pandemic hit. With more businesses switching to remote jobs and others staying home, the risk of being scammed increases. Even new small businesses are suffering from online and in-person scams. There are ways you might be able to protect your small business from these scams. If you find yourself facing bankruptcy as a result, do not hesitate to ask a Chattanooga bankruptcy attorney for help.
RED FLAGS YOU ARE BEING SCAMMED
Recognizing the red flags of a scam is the first and most important step in avoiding scams. The most common scammer tactics used on small businesses are:
- Intimidation
- Urgency
- Pretending to be someone else
- Using untraceable payment collecting
If the person on the other side of the phone call or message is aggressive or urgent, this is a major red flag. Professional businesses do not tend to act unprofessionally. Most professionals and organizations are trained to be patient with customers and clients.
Scammers are urgent and use intimidating statements to attempt to control the person they are trying to manipulate. Some scammers will try to make you think you are turning down a great deal. Other scammers will attempt to convince you that you will face legal or financial problems if you do not accept the deal. Coercion is another red flag.
Many small businesses face scams in the form of fake invoices, advertising scams, office supplies you did not request, fake checks, business promotion scams, and pretending to be government agencies. Other common small business scams include:
- Email phishing scams
- Directory scams that trick businesses into paying for ad space
- Overpayment scams
- Vanity award scams
Many of these scams involve deals that are too good to be true. The most common theme involved in these scams is a lack of evidence. If a statement cannot be backed up, you are probably dealing with a scam.
HOW TO AVOID SCAMS
Once you can learn to recognize a scam, you can start avoiding them. Even when you cannot always know when you are being scammed, you can use rules to avoid the negative effects. One of the best ways to avoid scams is to never release sensitive information.
This means not releasing your Social Security number or bank information to unsolicited calls or emails. If you do not know the person or have any suspicions, the safest thing to do is hold back. When you do suspect a scam, you can report the scam online or research whether others have been scammed by the same entity.
Contacting the Better Business Bureau can also be helpful. When you cannot find the company through this organization, the company is likely a scammer. Researching more about the company online also helps.
BANKRUPTCY ATTORNEY IN Chattanooga, TN
Being scammed and going through bankruptcy alone can be overwhelming. Feel free to call us at Tom Bible Law today at (423) 690-7712 for a consultation about the financial situation that is leading you to bankruptcy. Our experienced team of Tennessee bankruptcy lawyers can work with you to examine all your options. We serve clients in the Tennessee cities of Chattanooga and Tullahoma.