Security Tips | August 28, 2025
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Impersonation scams are one of the fastest-growing forms of small business fraud. Criminals often pose as banks, pressuring business owners or employees to share sensitive information or transfer funds. While these scams are sophisticated, your business can stay safe with vigilance, training, and the right security practices.
What Is an Impersonation Scam?
Common impersonation scam tactics often begin with a phone call from someone pretending to be your bank’s fraud department or business services team. They may even manipulate your caller ID so it looks like the bank is calling. Once they have you on the line, they create urgency; maybe there’s “suspicious activity” on your account or a “payment problem” that needs to be fixed right away. They’ll ask for account details, online banking credentials, verification codes, or even tell you to move funds into a so-called “safe account.”
Common impersonation scams include:
- Vendor Payment Changes: An email appears to come from a trusted supplier, instructing you to update their bank account details for upcoming payments.
- Tax Authority Calls: Someone impersonates the IRS or state tax agency, demanding immediate payment of back taxes with threats of penalties.
- CEO Fraud: A scammer poses as your CEO or manager, urgently requesting a wire transfer or gift card purchase.
- Tech Support Scams: A caller claims to be from IT support, insisting your computer or payment system is compromised and requires remote access.
Tip: If anything feels wrong, pause, and contact your bank directly using a trusted number.
How to Protect Your Small Business from Scams
Protecting your small business from impersonation scams starts with awareness and caution. The following steps can help reduce risks and keep your accounts safe.
Verify Before You Act
Verifying before you act means slowing down when requests feel urgent. Scammers rely on panic to cloud judgment. Always confirm requests involving payments, account changes, or sensitive details using a trusted phone number or by speaking directly with the requester.
Protect Login Credentials
Protecting login credentials is critical to preventing small business fraud; they are the keys to your online accounts. Your bank will never ask for your online banking username or password.
- Passwords: Use strong, unique passwords that combine letters, numbers, and symbols. Store them securely in a password manager.
- Usernames: Treat usernames just like passwords. They should be unique, not based on personal details (like names, birthdays, or addresses), and kept private. Avoid reusing the same username across multiple systems.
- Multi-Factor Authentication (MFA): Add an extra layer of protection by requiring a verification code sent to your mobile device.
Spot Impersonation Scam Red Flags
Spotting the red flags of a scam helps you avoid costly mistakes. Fraudulent messages often include:
- Misspelled email addresses
- Unexpected attachments or links
- Poor grammar
- Urgent language
If something looks suspicious, resist the urge to click or reply. Verify details through an independent source.
| Red Flag | What It Looks Like |
|---|---|
| Misspelled or Lookalike Email Addresses | Example: [email protected] instead of [email protected] |
| Unexpected Attachments or Links | Files or links from unknown senders that can contain malware or lead to phishing sites |
| Poor Grammar | Awkward phrases, misspellings, or unusual tone |
| Urgent Language | “Act now,” “Immediate action required,” “Your account will be closed” |
Keep Technology Updated & Back Up Data
Keeping technology updated and backed up strengthens your business against impersonation scams. Outdated systems are easier targets. Enable automatic updates, use antivirus protection, keep firewalls active, and maintain secure offline backups. Ensuring you have alternate access to your data will help you recover quickly and keep business running in the event of ransomware or data loss.
Educate Your Team on Fraud
Educating your team about small business fraud creates a strong first line of defense. Regular fraud awareness training keeps everyone alert. Make it clear how to report suspicious activity and encourage employees to slow down and ask questions. When your team feels comfortable speaking up, you create a safety net for your business.
Slow down. Verify now.
Bank impersonation scams succeed by making you feel like you have to act right now. The best defense is to pause and verify before taking any action. By building a culture of awareness, encouraging your team to slow down, and keeping security practices strong, you can protect both your business and your bottom line. If you ever suspect or experience fraud, contact your bank immediately. Acting quickly can prevent further loss and help secure your accounts.
Forward is here to be your partner in fraud prevention. Contact your local Forward location to learn more about how we can help keep your small business safe.