Common Business Fraud Schemes – Smishing (Part 2)

Text Message Scams (Smishing)
Smishing, or SMS phishing, involves text messages that appear to come from legitimate organizations like the CDC, IRS, SBA, or toll authorities. These messages often urge you to click a link and enter personal or business information to receive timely updates related to your small business. Once entered, this sensitive data is immediately sent to fraudsters.

SBA Loan Fraud
SBA loan fraud typically begins with an unsolicited phone call or email offering loan services or financial relief for your business during uncertain times. The fraudster provides an application requiring detailed personal and business information from owners or managers.

With this information, scammers can access and deplete business accounts, initiate unauthorized wire transfers, use Employer Identification Numbers (EINs) to open fraudulent loans or accounts in your organization’s name, or file false tax refunds.

Prevention Tips
Protect your business from smishing and loan fraud with these proactive measures:

·       Train employees to verify requests for sensitive information or urgent financial transactions before acting.

·       Share examples of these scams across your organization to raise awareness.

·       Confirm email requests by calling the sender using a trusted, known phone number.

·       Verify all financial institution requests by contacting the bank directly, even if it requires a follow-up call.

·       Safeguard your organization’s financial information and passwords with robust security measures.

·       Monitor all bank accounts daily to ensure transactions are authorized and accurate.

By staying alert and implementing these safeguards, you can significantly reduce the risk of falling prey to smishing and SBA loan fraud. Contact Fittz & Associates for a comprehensive fraud examination today.