Since 2022, business scam reports to BBB Scam TrackerSM have totaled more than 3,600. These scams involved employee and vendor impersonations, theft of social media accounts, data breaches, and many more scam types.
Reports to Better Business Bureau® show that business scammers can steal hundreds of thousands of dollars in a flash without proper protections. Further reports to federal agencies show total losses of billions each year.
In “BBB Study: How impostors, stolen data, and fake services cost businesses billions ," the International Investigations Initiative examines patterns of reports, reviews the amount of money lost and shares stories from those caught up in the scams so businesses can avoid them.
Key findings:
- Business scams are ubiquitous across North America and come in many forms.
- Losses are staggering for businesses. The average data breach costs a company $4.9 million, a figure that excludes some of the largest losses. Data breaches cost businesses a total of $1.4 billion in 2024, according to FBI data.
- Billions more are stolen through elaborate schemes, such as business email compromise scams, where scammers steal employees’ identities and use them to convince others to hand over cash or sensitive information.
Business scam reports across North America (2023-2024):
- 3,647 – BBB Scam Tracker
- 74,489 – Federal Bureau of Investigation
- 9,286 – Canadian Anti-Fraud Centre
What are the signs of a business scam?
- Outreach from unknown businesses, government agencies and big-ticket buyers
- Invoices from unexpected emails
- Odd behavior from “known” vendors or businesses
- Requests for gift card or pre-paid debit card payments
- Urgent demands to renew or obtain licenses or trademarks
- Claims about expiring domain names
- Consultants making big promises about helping your business
How can I protect my business and employees from scams?
- Train employees to recognize scams. Most scams can be avoided with proper education. Let your employees know about common scams, what to do if they are approached by an unknown source and how to follow cybersecurity best practices.
- Establish payment procedures. Create a framework for payments that builds in security measures. Double-checking a source through another means of communication or with prior records can help avoid future headaches.
- Research unknown companies asking to do business. Scammers know business owners want new customers. Be wary when an unknown company or business makes grand offers.
- Install firewalls, multifactor authentication
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For over a decade, BBB’s International Investigations Initiative has advocated for an ethical marketplace by conducting deep-dive research on the riskiest and most common scams reported across North America.
Visit BBB.org/scamstudies for more on information theft and other scams.
Visit BBB.org to check out a business or register a complaint and BBB Scam TrackerSM to report a scam.
ABOUT BBB: For over a century, the Better Business Bureau of Minnesota and North Dakota (BBB) has been a trusted resource for consumers and businesses, advancing trust and transparency in the marketplace. Through education, accreditation, and advocacy, BBB empowers ethical business practices and strengthens consumer confidence. Contact us out at BBB.org or 651-699-1111, toll-free at 1-800-646-6222.
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