N🟁N

On Your Side: Better Business Bureau business scams study: Stolen data, impostors and fake services harm businesses

The article from KY3, published on June 26, 2025, titled "Your Side: Better Business Bureau Business Scams Study - Stolen Data, Impostors, Fake Services Harm Businesses," delves into the findings of a comprehensive study conducted by the Better Business Bureau (BBB) on the various scams that are detrimentally affecting businesses across the United States. The study highlights the increasing sophistication of these scams and provides insights into the most common types of fraudulent activities that businesses need to be wary of.

The BBB's study, which was conducted over the course of a year, involved analyzing thousands of scam reports submitted by businesses. The findings reveal that the most prevalent scams targeting businesses include stolen data, impostor scams, and fake services. These scams not only result in significant financial losses but also damage the reputation and operational integrity of the affected businesses.

Stolen Data Scams

One of the most alarming findings from the study is the rise in stolen data scams. These scams involve cybercriminals gaining unauthorized access to a business's sensitive information, such as customer data, financial records, and proprietary information. The stolen data is then used for various malicious purposes, including identity theft, financial fraud, and corporate espionage.

The study found that small and medium-sized enterprises (SMEs) are particularly vulnerable to stolen data scams due to their limited resources and cybersecurity infrastructure. Cybercriminals often target these businesses because they perceive them as easier targets compared to larger corporations with more robust security measures.

The BBB recommends that businesses, regardless of their size, implement strong cybersecurity practices to protect their data. This includes using encryption, regularly updating software, and training employees on how to recognize and avoid phishing attempts. Additionally, businesses should have a response plan in place in case of a data breach, which includes notifying affected customers and taking steps to mitigate the damage.

Impostor Scams

Impostor scams are another significant threat to businesses, according to the BBB's study. These scams involve fraudsters posing as someone they are not, such as a company executive, a government official, or a trusted vendor. The impostors then use this false identity to deceive the business into sending money, providing sensitive information, or taking other actions that benefit the scammer.

The study found that impostor scams are particularly effective because they exploit the trust that businesses have in their relationships with other entities. For example, a scammer might pose as a supplier and request a change in payment details, leading the business to unwittingly send money to the scammer's account.

To protect against impostor scams, the BBB advises businesses to verify the identity of anyone requesting sensitive information or changes to established procedures. This can be done by using secure communication channels and confirming requests through multiple sources. Additionally, businesses should educate their employees about the signs of an impostor scam and establish clear protocols for handling such situations.

Fake Services Scams

The third major type of scam highlighted in the BBB's study is fake services. These scams involve fraudsters offering services that either do not exist or are not delivered as promised. Common examples include fake advertising services, non-existent consulting services, and fraudulent software solutions.

The study found that fake services scams often target businesses that are looking to improve their operations or expand their reach. The scammers lure these businesses with promises of quick results and low costs, only to disappear after receiving payment.

To avoid falling victim to fake services scams, the BBB recommends that businesses thoroughly research any service provider before engaging their services. This includes checking the provider's reputation through reviews and ratings, verifying their credentials, and requesting references from previous clients. Additionally, businesses should be wary of unsolicited offers and overly aggressive sales tactics, as these are often red flags for a scam.

Impact on Businesses

The BBB's study also examines the broader impact of these scams on businesses. The financial losses incurred from scams can be substantial, with some businesses reporting losses in the tens of thousands of dollars. Beyond the immediate financial impact, scams can also lead to long-term damage to a business's reputation and customer trust.

For example, a data breach can result in customers losing confidence in the business's ability to protect their information, leading to a decline in sales and customer loyalty. Similarly, falling victim to an impostor scam can make a business appear careless or unprofessional, further eroding its reputation.

The study also highlights the emotional toll that scams can take on business owners and employees. Dealing with the aftermath of a scam can be stressful and time-consuming, diverting resources away from core business activities and hindering growth.

Preventive Measures and Resources

In response to the growing threat of business scams, the BBB offers a range of resources and preventive measures to help businesses protect themselves. These include educational materials on common scams, webinars and workshops on cybersecurity and fraud prevention, and a scam tracker tool that allows businesses to report and track scams in their area.

The BBB also encourages businesses to join their accreditation program, which provides additional support and resources to help businesses maintain high standards of integrity and trustworthiness. Accredited businesses are also more likely to be trusted by consumers, which can help mitigate the impact of scams on their reputation.

Conclusion

The BBB's study on business scams serves as a stark reminder of the pervasive and evolving nature of fraud targeting businesses. Stolen data, impostor scams, and fake services are just a few of the many threats that businesses must navigate in today's digital landscape. By understanding these scams and implementing robust preventive measures, businesses can better protect themselves and their customers from the devastating effects of fraud.

The study underscores the importance of vigilance and education in combating business scams. Businesses must stay informed about the latest scam tactics and take proactive steps to safeguard their operations. With the support of organizations like the BBB and a commitment to best practices in cybersecurity and fraud prevention, businesses can build resilience against the ever-present threat of scams.

Read the Full KY3 Article at:
[ https://www.ky3.com/2025/06/26/your-side-better-business-bureau-business-scams-study-stolen-data-impostors-fake-services-harm-businesses/ ]