Impersonation is a common tactic used in all sorts of scams, but recently, BBB has received reports of a few different cases where scammers impersonated a reputable local business to trick customers or fellow businesses into handing over their money.
In one case, scammers impersonated a heavy equipment and vehicle sales company based in Marble Hill, Mo. with fake websites and deceptive social media ads, costing consumers over $223,000 in total.
In another, a Cape Girardeau, Mo. real estate company reported to BBB that someone impersonated owners of their listings and hired a tree service company. They asked for two trees to be cut down, then overpaid for the service and asked the tree service company to send a check back with the difference – trying to trick them with an overpayment scheme.
When scammers impersonate a reputable business, they’re trying to abuse its stakeholders’ trust for their own ends. It can be devastating for everyone involved, and if your business is impersonated, it can take a long time for you to build that trust back with your customers or business partners.
Scammers are very accomplished at creating convincing fake websites, logos and listings. It can be tough to tell an impersonator from a real local business. BBB advises taking a thorough look at a few key details and has tips for business owners to recover if their business is impersonated.
What are red flags of an impostor scam?
- Urgency. In most versions of impostor scams, someone will try to pressure you to act now. The impostor will create a scenario that may convince you to respond and follow their instructions, like an overdue invoice or overpaid bill.
- Too-good-to-be-true deals. If the service you're interested in is extremely discounted, think twice before purchasing. Scammers advertise huge discounts to reel people in.
- Lookalike websites, logos and posts. Impostors can create fake websites that look real, with the real company's logo and images and a similar URL. Same goes for social media accounts, letters, phone calls and texts. Look closely at the details.
- Contacting you out of the blue. If anyone contacts you unexpectedly and demands payment, take that as a red flag – even if they insist they’re a business partner of yours. Get familiar with how your favorite local companies communicate with you. They generally won’t text you out of nowhere to demand payment.
How can I avoid impostor scams?
- Stay calm. Resist the urge to act immediately, no matter how dramatic the story is or how intimidating the caller sounds.
- Don't reply directly. Don’t respond to any calls, texts or emails that you think may be from an impostor. Instead, call the company directly to verify the message that was sent or the phone call received.
- Verify the contact information. Go directly to the business's website and find the contact information so you can be sure you are dealing with the actual company. It’s a red flag if the website doesn’t have a physical address anywhere.
- Check the details. Scammers are great at making fake websites or social media pages, but the details will usually tell them apart from the real deal. Look closely at the logo, the website URL and the company’s phone number and address. If something looks off, like blurry images on a website or a strange area code on a text or phone call, think twice before responding or acting.
- Use a credit card. That way, it’s easier to dispute a charge or get your money back if something goes wrong.
- Ask for help. When in doubt, ask a colleague or supervisor for a second opinion. Look at recent reports on BBB Scam Tracker or contact your local BBB – we can tell you if your experience sounds similar to scams that have been reported to us.
What do I do if my business is impersonated?
- Report scams. Report the impersonator to BBB Scam Tracker, your state attorney general, the FTC, and the FBI’s Internet Crime Complaint Center. If you saw an impostor on social media, report it to the social media site.
- Notify your customers and stakeholders. This can help protect your reputation from damage caused by the impersonator’s actions. Notify your customers and business partners as quickly as possible that someone is impersonating you. Let them know what red flags they should look out for and how you will contact them in the future.
