Business Scams Reported to BBB Surpass 3,600 Since 2022

SACRAMENTO, Calif. — More than 3,600 business scam reports have been logged with the Better Business Bureau‘s Scam Tracker since 2022. These scams involve impersonations, data breaches, and fake services that can cause major financial losses for businesses.

According to the BBB, business scammers can rapidly steal hundreds of thousands of dollars if proper protections are not in place. Federal agencies report annual losses from such scams in the billions, underscoring their growing threat.

A recent BBB study titled “How impostors, stolen data, and fake services cost businesses billions” investigates these trends and includes narratives from victims to help others protect themselves. The study reveals the alarming frequency and variety of business scams across North America.

Key findings from the study include:

• Business scams are prevalent and take numerous forms.
• The average data breach costs a company about $4.9 million, excluding some of the most significant losses. In 2024, data breaches are expected to result in total costs of $1.4 billion, based on FBI data.
• Many scams, such as business email compromise schemes, involve identity theft used to information and funds from unsuspecting employees.

Business scam statistics from 2023 to 2024 reveal:

• 3,647 reports filed with BBB Scam Tracker
• 74,489 cases reported to the Federal Bureau of Investigation
• 9,286 incidents recorded by the Canadian Anti-Fraud Centre

Experts recommend businesses stay vigilant for signs of scams. Common indicators include: outreach from unknown entities, unexpected invoices, unusual behavior from known vendors, and requests for payment via gift cards or pre-paid cards.

To protect themselves, the BBB advises businesses to:

• Train employees in recognizing scams to enhance awareness and preparedness.
• Establish secure payment procedures along with verification steps.
• Research unfamiliar companies before engaging in business.
• Implement robust cybersecurity measures, including firewalls and multi-factor authentication.

For more than a decade, the BBB’s International Investigations Initiative has worked to promote an ethical marketplace by researching prevalent scams across North America. Businesses and consumers seeking further information can visit their website for resources and assistance.