It’s not just the other guy who gets taken for a loop. And it’s not only Nigerian princes who mail out incredible sounding stories that only require you to send them money. As a small business owner, there’s a good chance at least once in your business life, you’ll run across a compelling fraudster trying desperately to separate you from your money. Unfortunately, these frauds won’t look like a fraud: They will look just like Robert Redford in the Sting.

That’s where your discernment and investigation comes in. In a previous item, we pointed you to resources the Federal Trade Commission provides to help you learn how to spot frauds and scams. What follows is a short list of some examples of those small business targeted scams, and things you can do to keep from being a victim.

The Directory Listing Scam

So you (or someone who works for you) get a call from a free business directory listing asking you to “claim” or “verify” your business’s contact information. Then, a few weeks later, you receive an urgent billing from the same “company” saying you owe them hundreds of dollars for back payments on the listing. You might call up, angry and confused, saying you never signed up for anything like that, but then they play back a doctored phone call of you (or your employee) approving the listing.

If you still refuse to pay, they may start bullying you with fake debt collectors who pile on late fees and other penalties. It’s scary stuff, imagining your credit going down the tubes; but stand firm. They will eventually back off and offer a phony discount, or claim to stop running your listing since you won’t pay up. Don’t worry about it, though. It was never real to begin with.

Note: They may also contact you first by mail, email or fax. Read the fine print if they do. You’ll see that if you respond, you agree to some wickedly expensive (and bogus) business listing.

How to prevent this fraud: Inform your staff to be wary of anything called a business directory. This includes anything online as well as in print. Notify your local consumer affairs office and local Better Business Bureau. (See the contact list at the bottom of the page.)

The Supply Shakedown

Many, if not most, small businesses don’t have formal procurement processes for their office supplies—which is exactly what scammers know when they show up at your door with supplies you supposedly ordered. You (or an employee) may mistakenly pay for them, or be convinced that you did order them, then find yourself being pressured to pay up.

How to prevent this fraud: Set up a simple procurement system. How simple? Do it just like you would a grocery list at home. If someone showed up at your door with groceries you supposedly ordered, you’d recognize the scam. Having someone in charge of a supply list works the same way.

The Domain Name / Trademark Racket

You receive a call saying either of these:

1. Your internet Domain Name is about to expire if you don’t pay immediately to renew it.

2. You’re going to lose your trademarks if you don’t pay immediately to renew them.

How to prevent this fraud: Know the name of the Domain Registrar you used to register your domain. (Godaddy, for example.) If the call is from a service other than your registrar, hang up. Log in to your registrar’s site for information regarding the status of your domain names.  For scams related to trademarks, refer to this resource on the website of the U.S. Patent and Trademark Office.

The Charity Hustle

Here’s where our Nigerian prince comes in—and people trying to raise money for “firefighters, police officers, troops in Afghanistan, or orphaned children in India.” Just chip in for a space in their calendar or publication, they say. Then they take your money and run.

How to prevent this fraud: Tell the caller you do not contribute to phone solicitations and hang up. If the charity is something you’d like to support, contact the organization direct and ask how to make a direct contribution.

The Check Trick

Scams aren’t always going to involve asking for or demanding money from you; sometimes they show up in the form of a check for a refund or rebate. Read the fine print: By cashing it, you sign up for a service you’ll be billed monthly for (ie Internet) and don’t need.

What you can do to prevent scammers from succeeding

• Train your employees. This means any receptionists or people who pick up a phone. Read them this article, or print out this pdf and tape it to their forehead.
• Take a minute to verify. Call either a business or government agency that can confirm or deny the authenticity of the company. Or do a check on them at the Better Business Bureau (BBB) webite.
• Don’t pay for products or services you’re not sure of. If you don’t have a formal procurement process for supplies and etc., consider implementing one. At least carry a list of all companies you use for directory services and other recurring expenses.
• File a complaint. With the Federal Trade Commission, the BBB, the U.S. Postal Service, or the Attorney General.

(Feature image: Marsmett Tallahassee via Flickr)