The internet offers a multitude of advantages for businesses. Entrepreneurs can use it to promote their products or connect with prospects. While technology is advancing rapidly, it has also allowed fraudsters to find innovative ways to scam people and businesses.

 

FraudTrac wants consumers and businesses worldwide to remain safe from all kinds of scams. Let’s dive deep to examine the impact of business identity theft and ways to keep an eye out to protect your business from the nuisance.

What’s Business Identity Theft?

Business or corporate identity theft involves the unlawful impersonation of an organization. The victim could be any type of business with a tax identification, ranging from small businesses to individual proprietorships to multinational corporations.

 

According to data from PwC, business identity theft has increased drastically over the past year; nearly 46% of businesses worldwide have experienced fraud of some type in the past two years. Scammers carry out impersonation attacks on businesses to make illegal profits from a renowned brand’s success, leaving the victims with damaging repercussions.

 

In today’s world, it’s indispensable for business owners to take prompt action when they suspect identity theft. The first step is knowing the different tactics cybercriminals use to steal corporate identity information, their consequences, and what can be done against it.

Tactic #1- Counterfeit Social Media Accounts

Scammers create fake social media accounts with images, logos, names, or other identifying information of brands, persons, and businesses for fraudulent purposes. Sometimes the newly created accounts go undetected. Infringers disguised with stolen identities often exploit these visibility timeframes to target potential clients with fake campaigns.

Tactic #2- Look-alike Sites

Impersonators also sometimes replicate the complete design of well-established corporate websites. People unknowingly come across these duplicitous websites through emails, social media campaigns, and search engines.

Tactic #3- Phishing Emails

Implementing a brand’s name or logo in emails sent to employees is another way fraudsters access the company’s personal or financial information. Malware is sent through phishing emails that enable cybercriminals to use the information for financial frauds, such as obtaining credit cards, loans, or credit lines in the company’s name.

Tactic #4- Tax Information Abuse

Cybercriminals sometimes use the information published by companies online to get details about their business license number, sales tax number, and so on. Identity thieves use stolen company information to file fraudulent tax returns for refunds.

The Grave Impact of Corporate Identity Theft

Business identity theft can potentially harm any brand’s reputation. Since reputation is one of the most crucial fragile assets of any company, being targeted by identity thieves can change the way business partners, creditors, and customers perceive your brand dramatically. It leads to significant dents in profit margins.

Loss of clientele trust can also result from the trap of fake websites people end up buying from. When customers don’t receive the products they paid for or aren’t satisfied with the quality or customer service, they’re left deflated from the unpleasant experience. This may make them opt for another brand next time. Complicated tax disputes and loss of financial revenues are also common occurrences businesses face because of identity theft.

How to Prevent Business Identity Theft?

With hundreds of companies falling victim to business identity theft leading to costly outcomes, the goal is to take prompt action. If you’re an entrepreneur, protect your reputation from tarnishing by registering your business on the online digital directory for scam watchers.

FraudTrac’s fraud tracker is used by customers to verify whether a local business is trustworthy. It helps improve online reputation, maximize consumer base, build positive public relations, boost brand awareness, gain more traffic, and connect with current and prospective customers looking for high-authority business listings.

If you’re a consumer who has experienced fraud, Partner with us to promptly report malicious activities, consumer fraud, pension scams, credit card frauds, auto dealer frauds, and more. You can also find business profiles at our online scam tracker website to verify whether the company is authentic or in the market to scam people.

Report online fraud and file scam reports via FraudTrac to help us fight fraud!

 

Cybercriminals constantly brew new tactics to access your personal information or get cash from you through unfair means. With advancements in technology, there has been a surge in consumer fraud cases that have led to hefty losses. Arm yourself with all the information you need to remain protected from such online scams.

What is Consumer Fraud?

Consumer fraud involves an entity using deceptive business practices that result in consumers being misled or sustaining losses. It could include inaccurate claims, false promises, and other illegal business transactions without the victim’s awareness.

 

According to the FTC (Federal Trade Commission), fraudulent scams represented a major chunk of consumer anxiety in 2020, with over 1.6 million recorded complaints being received. Unfortunately, it was also highlighted that consumer fraud victims aged 70 and older had the highest average loss amounts.

 

Anyone can be the target of such fraudsters, from senior citizens to college students. Various types of consumer fraud exist all over the world today. Therefore, it’s integral that people are aware of the common consumer fraud schemes and ways to deal with them to prevent loss.

#1- Identity Theft

You’ve been an identity theft victim if anyone steals your personal or financial information, such as credit card details, full name, and Social Security Number. The scam usually occurs through data mining, a process many organizations use to convert raw data into insightful information.

Unexpected credit card charges or unusual bill payments are common signs of identity theft. If you ever encounter unrecognized charges in your statement, report them to your bank immediately. The Fair Credit Billing Act allows you to make claims within 60 days of statement issuance if the amount is more than $50.

#2- Lottery Fraud

Many victims receive emails, phone calls, and texts notifying them they’ve won some prize, lottery, or sweepstakes. If the sender requests you to send money to cover taxes or other costs, it’s probably a fraudster trying to scam you. Advanced techniques include setting meetings before winning the prize or receiving winner notifications via bulk mail. Don’t fall for this scam; report online fraud right away!

#3- Real Estate or Mortgage Fraud

Consumer fraud also includes illegal real estate and mortgage transactions. Agents scam victims by misusing their specialized knowledge of real estate law and the market in general. Consumers are often misled into signing papers without having the chance to understand or read them.

You might be a real estate or mortgage fraud victim even if you were misled about the information about loans or foreclosure. The Real Estate Settlement Procedures Act has laws to protect consumers that engage in real estate transactions. Title and mortgage companies who don’t disclose the amount and nature of charges or take hidden fees from consumers may be liable for this law violation.

#4- False Advertising

By law, businesses must make accurate statements and representations about their services or products’ qualities, characteristics, and benefits. Whenever any company misrepresents an item they sell by making declarations or claims that aren’t necessarily true, it can come under false advertising. This includes false claims that their products can improve your mental or physical health or other capabilities.

What to Do if You’re a Victim of Consumer Fraud

As soon as you figure out a website or business isn’t legit, report online fraud and file scam reports via FraudTrac. Reporting malicious activities can help ensure no one falls victim to consumer fraud. Partner with us to promptly report malicious activities, consumer fraud, pension scams, credit card frauds, auto dealer frauds, and more.

We also recommend searching business profiles at our online scam tracker website to verify whether the company is authentic or in the market to scam people. Fight bad business behavior with us!

 

During internet surfing, a message may pop up claiming someone sent you an e-card. You may think clicking on the e-card will lead to a cute poem, a singing cat, a virtual flower vase, or anything that’ll make you smile. Beware: you might be on the edge of falling for a popular type of fraud known as the e-card scam. Rather than being delightful, the surprise e-card can cost you money.

 

Many cyber-criminals use e-cards to scam people and steal their identities. They tailor the scams around holidays, seasons, and special events because victims are likelier to fall for the tricks when they look forward to celebrating with their loved ones.

 

Dads, moms, grads, and anyone else marking special occasions must fight the urge to impulse-click on all e-card pop-ups that make it to the email inbox. Whenever you’re sent a link on social media or via text or email claiming it’s an e-card from Hallmark, you’ll be asked to click on the link to open it.

 

You might click to find there are no dancing cats, balloons, or singing penguins. Instead, a scammer sent the link to install malware on your device. Once they’re successful, they can harm in a variety of ways. Here are the top ones experts at FraudTrac want you to know about.

#1- Identity Theft

When spyware, a type of malware, is installed on a device, it may gather personal information like your full name, bank logins, Social Security Number, and other data from keystrokes, websites you visit, or messages you send. Cybercriminals use personal information to steal your identity to apply for credit card accounts or open new bank accounts under the victim’s name.

#2- Scamming Your Friends

Scammers accessing the login credentials may hijack your email and send scam emails to your contacts. The emails may include links that install malware on their devices or might hit them for money.

#3- Annoying Pop-Up Ads

The malware subjects victims to pop-up ads that try to convince them to buy bogus products. Check for malware if you’ve been waking up to unwarranted notifications at 3 AM or messages filled with hawking diet pills and other shady wares.

Knowing the signs of e-card scams is a smart way to keep up with the recommended security protocols. If someone tries to scam you, it’ll be smart not to click on the e-card message without verifying first.

Claims about secret admirers or someone you may know sending you e-cards are almost always red flags that you shouldn’t overlook. Always check you send the card and ask your co-workers, friends, and family to tell you when they send one.

Now that you know what to do if an e-card shows up on your computer, tablet, or phone, don’t forget to warn other people by filing a scam report online through FraudTrac.

As a trusted online scam tracker website, we encourage people to report online fraud and file scam reports to help others be alert. You can report malicious activities, such as consumer fraud, pension scams, credit card fraud, and other types of fraud and cyber scams, by connecting with us.