Types of Business Fraud: is Coronavirus Causing a Change in Targeted Acts?

Fraud happens all the time, and there are many different types in business. To find out what these are, and how the Coronavirus is exacerbating it all, read on…

Fraudulent acts are not a new thing. Ranging from doorstep mischief, to phishing emails and text messages, all the way to money laundering, there are hundreds of ways fraud can emerge.

With our current global situation, fraudsters and scammers are taking advantage of everybody’s vulnerable situations. Serious fraud office investigations have visibly increased, showing that this is certainly not a time to look the other way!

If you want to hear more about how your business could be attacked by fraudsters, inside and outside the business, you came to the right place. Here, we’ll be discussing the types of business frauds out there, and how to protect yourself from the increase in scams.

What is Fraud? Categories of Fraud to Look Out For
There are a huge number of different types of frauds in business that a company could be exposed to. That said, it’s not just fraud from outside the company that needs to be avoided. Fraud and scams within a company are also part and parcel of owning a business too. Here is a list of some of the most common types of business fraud to watch out for…

Outside of the Company
Starting with fraudulent acts coming from outside the company, the list is pretty extensive. Some typical scams, which will come from the outside in, include:

Corporate Identity Fraud
The most common type of fraud, which most of us have all experienced, is identity fraud. I’m sure you’ve received a suspicious text message or email from your bank, for example, claiming your account had been closed for security reasons? The text will usually ask you to click a link and fill out your details to sort it.

Well, this is a classic case of fraud; where someone impersonates a legitimate business to obtain money, goods, and services from unsuspecting victims. In extreme cases, the fraudster may even change details of the business on Companies House to fit their agenda.

Business Directories
There are a number of directories out there, which have a confirmed list of businesses and their contact details. That said, if you receive a suspicious email or letter asking you to confirm your website and details, this might be worth avoiding. Signing forms like this can commit you to spending a lot of money, unknowingly, with little to no reward.

Invoice Fraud
Invoice fraud occurs when you receive a fraudulent invoice from a supplier, which could be either genuine or fake. Some classic invoice fraud examples include:

· The supplier or scammer might inflate the payment price to gain more money.

· A fraudster may impersonate a company in an invoice so that you send money their way instead.

· An employee might set up a dummy supplier, for their own personal use, and send invoices their way through this account.

Premium Rate Fraud
This is when a fraudster hacks into an organisation’s phone system, and makes a high volume of calls to a premium-rate number. This sort of scam usually fools small businesses, schools, and charities.

Leasing Scams
This type of fraud usually occurs in person, and typically involves a sales-person who requires a signed contract on the door. The goods you sign up for could range from technology, telecommunications equipment, photocopiers, or printers. In any case, the items are usually expensive, and there’s normally a recurring maintenance service attached to it.

Although the initial idea might seem pretty good, the business is often tied into a long-term contract they cannot escape. The pricing of the goods and services may be inflated over time, arbitrarily, as part of the deal. What’s more, the contract may be ceased at any point, when the supplier moves on to something different; it’s all out of your control.

Cash Larceny
This occurs when an unauthorised person collects cash which should have gone to a business. This is one of the most difficult types of fraud to uncover, mainly because they’re so ahead of the game. They’ve tracked where the cash will be before the business gets to it, or has it recorded, so cracking this nut is tough.

Support Publishing and Advertising
A business can also be fooled by faux publishing or advertising companies, offering a space in a publication. The publication, fake or not, will usually rope you in through their association with a big company or charity. They might say that a certain proportion of the money goes towards a charity, but it’s usually minimal.

In most cases, the publication is unlikely to be published at all, leaving the company high and dry. Otherwise, if it is printed, the audience is unlikely to be relevant or local, and will be a real waste of cash.

Unnecessary Services
As a new business owner, there will be a lot to navigate, including licenses and contracts. In these cases, and when a new business owner is still finding their feet, it can be the best time to scam them.

Firstly, scammers can get business owners to pay for services that they simply don’t need. They can also fool them into signing contracts to avoid penalties that don’t exist. Some fraudsters may even offer to organise all of this for them, taking money from them for no reason!

Alternatively, where a legitimate fee or penalty is concerned, fraudsters might set up a fake website, claiming to be for that particular service. Whatever it may be, the goods and services are certainly not worth the buck.

Unsolicited Goods
Scammers might also choose to send goods by post to a company, which they didn’t order. Then, after enough time has passed for the business to have used or disposed of the item, an invoice is sent through the post.

Investment Scams
Scammers often assume that business owners will have a high income, so will invest wisely with their money. So, a business owner is the perfect person to target to trick them into investing in a dud.

Investment scammers will convince the business owner to invest in something high-risk, with the promise that the returns will be great. In some cases, the investment is genuine, but the risks are not properly communicated to the recipient. In other cases, the investment is completely bogus, and the money disappears to the scammer.

Within the Company

Insider Fraud
Insider fraud occurs when a former or current employee steals, destroys, or alters company information for personal gain. This could involve threats, blackmail, or collusion with someone else.

Cheque Fraud
A fraudulent cheque is anything that has been either altered, for example the name of the recipient has been changed, or it’s been forged completely. This can then be used to gain unsolicited money from the company.

Payroll Fraud
Payroll fraud can occur in a number of different ways within a company. For example:

· An employee might ask for an advance on their pay without paying it back.

· An employee could lie on their timesheet about how many hours they’ve worked.

· An employee could ask a co-worker to clock in for them even when they’re not actually in work.

Financial Statement Scam
This sort of scam ranges from different types, but is essentially the misrepresentation of a company’s financial state. This could include concealment of assets or an overstatement of profits. Generally, though, this could cause the most long-term damage to a business.

Is Coronavirus Changing the Scammer Game?

With everything going on right now, scammers are taking advantage of the vulnerable situation we all find ourselves in. Whether it be approaching elderly people at their front doors, or inflating prices to profit from the economic downturn, it’s everywhere.

Because of this, it’s really important that company owners, and individuals, remain especially vigilant. Any suspicious phishing emails or texts must be looked at twice, any door salespeople need to be questioned or ignored entirely, and so on. So, what are some of the main ways you can protect your business from Coronavirus frauds?

Ways to Protect Your Business from Coronavirus Fraud
In general, there many ways you can make sure your company is as safe as possible from being targeted by fraud. Especially now, with a rise in scams being reported whilst many of us work from home, it’s paramount you take actions to avoid being targeted. Some classic ways to do this include:

· Securing important documents, cheques, and chequebooks in safe places;

· Maintaining strong passwords and PINs throughout the company;

· Instilling a password policy throughout the company;

· Never pre-signing documents or cheques;

· Ensuring the office building is secure at all times;

· Record details of everything that has gone in and out of the business, particularly money;

· Make sure to shred any important information, rather than binning it;

· Make sure to check your company’s registered details regularly, and make sure your business identity is confirmed under the relevant government agencies;

· Don’t share valuable information, like bank details, on your website;

· Make sure to screen all new staff as they come in, including cleaners, reception staff, and contract staff;

· As soon as a person leaves the company, make sure all their access is terminated;

· Make sure to thoroughly check all invoices before paying them. Check to ensure they are genuine suppliers, and the amount is correct; 

· Perform a security audit;

· Educating yourself and your employees on scams;

· Making sure to scrutinise any online requests;

· Make sure to block all scam emails and premium-rate numbers;

· And monitor all calls to ensure strange activity is detected.

Don’t Fall for Fraud!
Feeling ready to tackle the hackers, scammers, and fraudsters out there? With all this information about the types of fraud and how to avoid them, we hope you feel a little bit more in-the-know.

Have you had any experience in dealing with fraudsters in your business? Let us know in the comments below! Did you fall for the scam, or did you spot it before it was too late?


  1. So sad for many businesses!

  2. Sadly, it's the businesses that can least afford it that the fraudsters target because they know their security checks are weaker.

  3. I think there are more threats as the scammers have time to think of new ideas!

  4. This is interesting! I've heard about a rise in coronavirus threats. Worrying when people already have so many concerns :(

  5. This blog website is actually valuable. as we provide white label identity theft online at affordable prices. for more info visit our website.

  6. It is extremely nice to see the greatest details presented in an easy and understanding manner. coronavirus cleaning services

  7. Actually I read it yesterday but I had some thoughts about it and today I wanted to read it again because it is very well written. Fotografin

  8. Thanks for such a great post and the review, I am totally impressed! Keep stuff like this coming. coronavirus cleaning services

  9. This is very useful post for me. This will absolutely going to help me in my project. daily news leader

  10. I work in a GP surgery, and the fraudulent emails and texts and started very quickly for many of our vulnerable patients, targeted texts with a link to click supposedly from their surgery, fortunately a lot a patients rang to confirm if it was from us, but I'm sure there were some who fell foul to it, and it was across all of the local surgeries too. It amazed me how quick off the mark the scammers were!

  11. Hi to everybody, here everyone is sharing such knowledge, so it’s fastidious to see this site, and I used to visit this blog daily coronavirus cleaning services

  12. Interesting read.

  13. Nice post! This is a very nice blog that I will definitively come back to more times this year! Thanks for informative post. Pakistan Stock Exchange

  14. Very interesting. I didn't know about the phone hacking, so thanks for the head's up!

  15. Glad to chat your blog, I seem to be forward to more reliable articles and I think we all wish to thank so many good articles, blog to share with us. Timeshare Freedom Group

  16. Thanks for the blog loaded with so many information. Stopping by your blog helped me to get what I was looking for. Business Growth

  17. I loved as much as you’ll receive carried out right here. The sketch is tasteful, your authored subject matter stylish. nonetheless, you command get got an nervousness over that you wish be delivering the following. unwell unquestionably come further formerly again since exactly the same nearly a lot often inside case you shield this increase. Water Meter Amico

  18. For niche products, business owners can even target users based on their birthdays, anniversaries and kitchener townhomes for sale important milestone. Audience targeting plays a very crucial role in the outcome of the results.

  19. This post is really valuable that designed for the new visitors. Pleasing work, keep on writing.
    top website agencies

  20. Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. B2B Sales Leads

  21. Very nice article. I enjoyed reading your post. very nice share. I want to twit this to my followers. Thanks !. affiliate commercial insurance program

  22. Goal explanation, for example, who will be approved to possess and maintain the business.online learning

  23. Hi there! I know this is somewhat off topic but I was wondering if you knew where I could locate a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having difficulty finding one? Thanks a lot! Flow Meter Solar

  24. Only one out of every odd independent venture type will be directly for you. It is anyway significant that you pick a self-start venture that you genuinely appreciate. Expert Network

  25. In the event that you make the most of your business, you're bound to succeed and acknowledge money related opportunity. californiamoversusa.com/locations/san-diego-movers/

  26. Thank you for this fascinating post, I am happy I observed this website on Google. Not just content, in fact, the whole site is fantastic. internal audit tracking software

  27. Of course, you'll have an adaptable timetable (once in a while) and are a ultimate conclusion producer on huge and little choices, however being a business person isn't for everybody. gutterstoronto.com

  28. Great! We will be connecting to this enormous post on our site. Continue the good writing.
    pop over to these guys

  29. This is really very nice post you shared, i like the post, thanks for sharing.. website design for small business

  30. It makes sense that full organization subtleties and contact data ought to likewise be on the intro page. Yellow Pages Scraper

  31. For many businesses today, there are many challenges that come along inhibiting success. It is, therefore, important to know the pitfalls that one can run into and the possible solutions. newyork directory

  32. Thank you for your informative article, I have been doing research on this subject, and for three days I keep entering sites that are supposed to have what I am searching for, only to be discouraged with the lack of what I needed. Regard cash for cars. Thanks a million and please keep up the effective work

  33. It's not my very first time to visit this blog; I’m visiting this daily and acquire superb info from here day by day.

  34. On the other hand the estimation of the administration put together business can be determined with respect to the estimation of the administration being given in a consultancy . http://www.fokuszpalyazat.hu/

  35. Making a site can be a difficult accomplishment for those not very web canny, anyway it isn't inside and out an undertaking that is considerable in nature. media pitch

  36. The article looks magnificent, but it would be beneficial if you can share more about the suchlike subjects in the future. Keep posting. proveedor marcas de moda

  37. Have you noted that when you go and read the news online, and read through the various stories from the syndicated websites that they usually have a technology section, and that technology section is filled with the latest gadgets, social networking methods, and any of the newest things coming from Silicon Valley? I have, and as a lover of technology, and coordinator for a think tank, I am disturbed by all this. Now then let me explain what I mean. http://canvas.umn.edu/eportfolios/4462/Home/TrustMyPaper

  38. Have you heard about recumbent bikes? Recumbent bikes are not the typical bikes we see driven along by people at the park. Recumbent bikes are exercise equipment wherein the user is positioned in a reclining way once seated. It is becoming famous among those who are health and figure conscious because of the bike's design. Aside from the comfort design, appropriate distribution of weight is also one of its best features. This kind of equipment is famously known due to the comfort it provides when seating and one can easily grab its accessories. motor bicycle shop

  39. From risky business to power couple partnership, discover how couples everywhere are learning the secrets to running a successful business together while deepening their relationship. Find out more about how couple entrepreneurs are building the lifestyle of their dreams and protecting their assets by starting a business, growing their relationship and learning to achieve success together. home insurance claims

  40. Your wealth in financial in affiliate marketing business, like other business, is based on the passive income. It is an absolutely great idea to generate your passive income for your affiliate marketing business.

  41. Do you want to be an Entrepreneur or a Small Business Owner? Is there a difference, and does it matter? There is a difference, and it's easy to confuse the two or use the two terms interchangeably. As you prepare to become your own boss, or if you have already started a small business, it's important to keep your long-term vision in mind. Doing so will help you determine the type of business you start and build, helping ensure that you achieve your definition of success. مصور درون

  42. Thanks for your marvelous posting! I quite enjoyed reading it, you can be a great author.I will remember to bookmark your blog and will often come back later in life. I want to encourage you to ultimately continue your great writing, have a nice weekend! ufabet

  43. I want to encourage you to ultimately continue your great writing,

  44. I want to encourage you to ultimately continue your great writing, have a nice weekend! ufa

  45. I encourage you to read this text it is fun described ... OBU thesis help

  46. I'd prefer necessary . articles or blog posts, Produce beloved, We would desire considerably more facts by using, considering it is especially beautiful., Bless people intended for publishing. Fókuszpályázat

  47. I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. I am impressed with your work and skill. Thank you so much. online review management tools

  48. I have been surfing online for more than three hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. Personally, [URL=https://saking168.com/]sagame[/URL]

  49. This is just the information I am finding everywhere. Thanks for your blog, I just subscribe your blog. This is a nice blog..

    sexy baccarat

  50. When you use a genuine service, you will be able to provide instructions, share materials and choose the formatting style. Presentation Design company

  51. This is an awesome motivating article.I am practically satisfied with your great work.You put truly extremely supportive data. Keep it up. Continue blogging. Hoping to perusing your next post ecommerce consulting

  52. Exactly what I was looking for! A naming agency that will help me spice up my brand ideas with a very reasonable price. Thank you for this! business people

  53. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here! keep up the good work... Australian Domain Registration

  54. This blog is so nice to me. I will keep on coming here again and again. Visit my link as well.. best laptop for chief architect

  55. I might suggest solely beneficial in addition to trusted facts, and so find it: investigate this site

  56. Good thing I took this brand naming course! The names that I thought before taking these course was too boring and unattractive. By having this course I came to know that brand names are important factor in order to attract customers. I am glad that I took this course for the betterment of my business. Email Scraper