“I’m just glad it happened to me and not my team.”
This is what a Battle Creek CEO told me after her paycheck was diverted in a spear-phishing scam. A criminal impersonated her email, contacted HR, and convinced them to change her direct deposit. On payday, her wages went to the scammer’s account instead.
A similar scam cost Grand Rapids Public Schools $2.8 million when money meant for employee insurance was redirected to criminals.
While scams targeting seniors get a lot of attention, businesses are also prime targets. Leaders must be aware of the risks and train their staff on prevention. The good news – simple, low-cost measures can significantly reduce exposure if leadership makes
security a priority.
The Better Business Bureau (BBB) hears about many scams, but most go unreported. Companies often stay silent for fear of reputational damage, but reporting to the BBB, SBAM, law enforcement, the Federal Trade Commission, or the Federal Bureau
of Investigation is the best way to alert others. The BBB will not name a business without permission, and in some cases, reports to law enforcement are not subject to the Freedom of Information Act. You can often remain anonymous; while still protecting the business community.
Three Common Business Scams and How to Avoid Them
1. Fake Invoice Scams
Scammers send invoices that look legitimate, hoping they’ll get paid without question. Sometimes these are outright fakes; other times, they’re disguised solicitations for services you never agreed to.
Solution: Have a process to verify all invoices, especially from new vendors or when contact details differ from the past. Don’t pay bills without confirming they’re legitimate.
2. Fake Check Scams
Version A: A “customer” overpays by check and asks you to send the excess to a third party. The check bounces, and you’re out the money you forwarded.
Solution: Never cash a check for more than you are owed. It’s always a scam.
Version B: Criminals intercept checks you’ve mailed, “wash” them to change the payee and amount, and cash them.
Solution: Work with your bank on services like Positive Pay to prevent unauthorized checks from clearing. Hand-deliver mail to the post office or use a secure pickup service—don’t leave checks in an outdoor mailbox.
3. Phishing Scams
Scammers send emails or texts to trick employees into revealing logins, passwords, or financial details. These details are then used to steal money, install ransomware, or access sensitive information.
Solution: Require unique work passwords (different from personal ones) and train employees to recognize phishing attempts. Ongoing IT security reviews and professional training are smart investments.
Final Thoughts
Scams evolve constantly, and no business is too small to be targeted. Prioritizing training, verifying requests before acting, and reporting scams to organizations like the BBB and SBAM can help protect your company – and warn others before they fall victim.
By Troy Baker, Vice President of Strategic Partnerships at the Better Business Bureau of Michigan; originally published in SBAM’s January/February 2026 issue of FOCUS magazine
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