Typical Coronavirus Scams to Avoid for Small Companies

What you’ll discover:

What kinds of coronavirus frauds should I be on the lookout for?
What should I do if I suspect wrongdoing?
Receive assistance when you need it.

As a small company owner, you should always be on the lookout for fraud, but with the forthcoming July 15th tax deadline and the broad vulnerability presented by the COVID-19 outbreak, you should be extra cautious. Scams may become more popular during times of uncertainty, therefore it is important to be cautious. We’ve addressed some of your concerns concerning small-business scams, including how to protect yourself and report suspected criminal behavior.

What kinds of coronavirus frauds should I be on the lookout for?

The sorts of crimes are nothing new; criminals are just taking advantage of the epidemic to take advantage of individuals. As a company owner, you should be aware of the following COVID-19 scams:
Government agency impersonation

Scammers may phone, text, or email messages purporting to be from tax authorities such as the Internal Revenue Service (IRS), or public health institutions such as the Centers for Disease Control (CDC) or the World Health Organization (WHO). Keep in mind that these organizations are unlikely to have your email address, and even if they did, there is no need for them to request your Social Security number or other sensitive financial information. If the IRS want to communicate with you, it will usually do so by postal mail rather than phone. If you have any worries and want to guarantee that everything is in order with your taxes, contact the IRS directly.
False charity or financial assistance

Although there are real government assistance initiatives in place to assist small companies in surviving the epidemic, scammers may offer contributions, loans, or government funds in return for an advance charge or personal information. In general, you should not provide sensitive information to uninvited callers. If you are searching for help or want to give and want to confirm the legitimacy of an organization, doing extensive web research might be beneficial.
Business email phishing

Workers may receive emails purporting to be from a superior but are really false. The sender may request that payments be sent or sensitive information be disclosed. In other circumstances, the email may seem to be from your IT department, requesting a password or directing the reader to download software. In any event, you should notify your team as soon as possible about this sort of security incident to ensure that no one on your team is a victim. In general, training all workers on safe Internet surfing and email use is a smart idea, particularly if your employees work remotely.
Scams involving PPE or testing kits

This sort of scam includes a fraudulent actor trying to sell counterfeit or non-existent personal protective equipment (PPE) such as face masks or COVID-19 testing materials. As a recommended practice for safe online buying, make sure you have a secure web connection with a URL that begins with “https” and that the website utilizes legitimate trust seals. Any product that claims to prevent, treat, diagnose, or cure COVID-19 should be avoided. In general, only provide your banking and credit card information to reputable providers. If an offer looks to be too good to be true, it probably is.

What should I do if I suspect wrongdoing?

To begin, if you get an unsolicited email or text message that seems to be fake, do not open any files or click on any links. They have the potential to expose your network to malware. If you have previously mistakenly handed important information away, it may be a smart idea to freeze your credit so that new accounts cannot be started. Of course, you may also need to notify your bank and creditors of any probable fraud.

In addition to being watchful on your own, ensure that your whole workforce learns and recognizes the telltale indicators of possibly fraudulent actions. Examine your Employee Handbook and update it as needed to ensure that it contains up-to-date information regarding data security and breach response procedures.

If you get a strange email, text message, or phone call (or notice a questionable website), you may report it immediately to the Department of Homeland Security at [email protected].

Receive assistance when you need it.

This is already a difficult moment for small companies, so keep alert to prevent extra financial stress. Make sure you understand your government assistance choices and seek legal counsel if necessary. If you have any legal issues or concerns as a consequence of COVID-19, contact the Coronavirus Law Center for Business to speak with a lawyer for free.