What happens when scammers, fraudsters, and hackers target your organization? Do you have the knowledge to recognize a scam when you see one? Is your organization protected to prevent unwanted breaches?

In today’s digital landscape, threats are everywhere. According to a 2020 survey, 47% of Canadian organizations experienced some form of fraud, with consumers and businesses suffering losses of more than $379 million in 2021. So how can you protect your bottom line, reputation, and organization?

Today’s common scams

According to Competition Bureau Canada, the items below are the most common scams affecting small businesses and their employees. Click each to learn more about them.

• Grant and loan scams: Seemingly legitimate grant and loan websites will claim that funding is guaranteed if you apply.
• Directory scams: Know your suppliers. Scammers will call asking you to confirm your address, splice your voice into a clip confirming you agree to purchase ad space in a directory or magazine, then threaten to report you to a collection agency if you refuse to pay the invoice when it arrives.
• Office supply scams: Next time you receive a call or invoice to replace “expired product” or provide “employee training”, make sure it isn’t someone pretending to be your regular provider.
• Phishing, whaling, vishing, and smishing: It goes by many names, but simply put, scammers find subtle, clever ways to trick you into giving them personal banking information.
• CEO scams: Fraudsters will impersonate your organization’s CEO in an attempt to get you to send them money transfers or confidential information.
• Malware and ransomware: Careful what you click on. Certain links, email attachments, and downloads can install “ransomware” onto your computer. Scammers will then lock you out of it and demand payment in order to regain access.
• Intellectual property renewal notice scams: If you receive a letter or email reminding you to renew your organization’s intellectual property rights, confirm that it is from the Canadian Intellectual Property Office before making any payments.

Protecting your organization

Work with a professional accountant
Keeping good financial records and reviewing them regularly not only helps your business run smoother: a good accountant can find ways to save you money, and ensures you know where funds are going. If you can’t afford a full-time accountant, consider hiring a bookkeeper or fractional accountant to do quarterly reviews of your finances.

Protect your digital systems
If your organization takes payment or donations through a website or point-of-sale (POS) system, implement measures to protect them from being tampered with. Ensure your website has a Secure Sockets Layer (SSL) which encrypts (anonymizes) the link between a server and your business. Consider also investing in software that monitors for potential cyberattacks.

Your POS system should be maintained and checked regularly for any tampering (both hardware and software). Implementing an account verification system, CVV2 and CVC2 codes, password protection, and similar protections will help transactions stay secure.

Know what’s out there
Understanding common scams and tactics criminals use to target organizations (and consumers) is one of the best lines of defense – whether you’re an owner, executive director, or employee. The Canadian Anti-Fraud Centre provides up-to-date information on recent scams in Canada and information on what to do should you become a victim.

More on this topic

• Government of Canada | Protect your business from fraud — Common scams targeting Canadian businesses
• Better Business Bureau | BBB Business Tip: Top 10 scams targeting small businesses