The latest scam targeting small enterprises

FE Team | Published: June 23, 2024 20:18:10

Scammers have got a novel way to exploit small businesses by impersonating them online, using videos and photos to produce appealing forged profiles. By mirroring legitimate businesses, scammers cuckold customers into thinking they are getting engaged with the authentic company, ultimately leading to deceitful transactions that harm not only consumers but also the businesses impersonated. These malicious actors create fake websites and social media profiles, even using video content featuring doctored or stolen images of real business owners.
Think of logging into your desired local bakery's Instagram page, only to find a nearly identical profile offering elite discounts on delectable treats. Thrilled, you place an order but the treats never arrive and your money disappears. A new wave of scams targeting small businesses is raging. The black art of fake profiles is so ingenious that even the most discriminating customers can be fooled. This digital deception not only robs customers of their hard-earned money but also stains the hard-earned reputations of small business owners.
This type of scam can have unforeseen consequences for small businesses. Customers who fall victim to these fraudulent schemes often lose trust in the real business. This not only damages the reputation of the business but can also result in financial losses as businesses may have to spend time and resources identifying the fallout. Additionally, the negative reviews and complaints from scammed customers can discourage potential clients, worsening the effect on the business's operation.
Small businesses, often lacking the widespread security measures of larger corporations, are predominantly vulnerable to these impersonation scams. Cyber security experts counsel business owners to habitually monitor their online presence, including social media platforms and websites, to detect and report any fraudulent profiles. Engaging with customers directly through verified channels and educating them about possible scams can also help alleviate the risks. Executing vigorous security practices, such as multi-factor authentication and regular audits of online content, can further defend businesses from such threats.
Consumers, also, have to exercise caution when engaging with businesses online. If something looks distrustful, contacting the business directly through official contact information can ensure legitimacy. By staying alert and well-versed, both small businesses and their customers can better shield themselves against these evolving scams.
Fahad Zeya and Nargis Sultana
Assistant Professors
Dept of Finance and Banking
Comilla University
nargisultana.resrch@gmail.com