Since 2022, a surge in business scams has swept across North America, causing significant financial losses and compromising organizational security.

“These scams — ranging from impersonations and data theft to fraudulent services — have cost businesses billions of dollars,” said Steve Bernas, president and CEO of the Better Business Bureau.

Steve Bernas

Also, experts are predicting A.I. will be a growing concern in business scams as fake videos, voices, and emails become more and more refined. The threat is further amplified by the rapid rise of quickly creating fake messages from real voice samples, using deepfake technologies, which convincingly can mimic voices, videos, and emails.

The BBB Scam Tracker has recorded more than 3,600 reports, highlighting a wide array of scams including employee and vendor impersonations, social media account takeovers, and data breaches.

Between 2022 and 2024, North America saw 3,647 scam reports to the BBB and 74,489 to the FBI. These figures likely under-represent the actual numbers, as many incidents go unreported.

The scale of these incidents is staggering, with some businesses losing hundreds of thousands of dollars quickly due to insufficient safeguards. Federal agencies report annual losses in the billions, emphasizing the urgent need for awareness and preventive action.

“We just had a very clever scam containing fake but very convincing conversations in an attempt to have our BBB accounting team to send gift cards, but luckily, keeping employees up to speed and alert to these types of scams, no money was lost,” Bernas said.

The BBB’s latest study sheds light on the widespread and evolving nature of these scams. From business email compromise schemes — where scammers pose as employees to extract money or sensitive data — to advanced data breaches, the variety and sophistication of these threats are alarming, Bernas said.

Financial repercussions are severe. The average cost of a single data breach is $4.9 million per company, with total losses from data breaches projected to reach $1.4 billion in 2024. When factoring in additional losses from phishing and other scams, the need for robust business protection becomes even more apparent. While smaller businesses may face lower monetary losses, the impact can be more devastating, potentially threatening their survival.

Recognizing scam indicators is the first step in prevention. Scammers often exploit trust and urgency. Businesses should be cautious of:

• Unsolicited communications from entities claiming to represent government agencies or major corporations.

• Urgent requests to renew licenses, trademarks, or domain names.

• Unexpected invoices sent via email.

• Unusual behavior from familiar vendors or partners.

• Overpromising consultants offering extraordinary results.

• Impersonation of executives requesting payments via gift cards or prepaid debit cards.

These red flags often signal fraudulent activity.

Training employees to identify and respond to scams is essential. Prepare your team to know common scam tactics and cybersecurity best practices. An informed workforce is your first line of defense, Bernas said.

Regardless of size, every business should implement secure payment procedures. Establishing and following strict payment protocols — such as verifying payment requests through alternate channels — can prevent costly errors, he said.

Thoroughly researching unfamiliar companies before engaging in transactions also can help avoid scams. Scammers often target businesses seeking new clients.

Cybersecurity must be a top priority for businesses. Installing firewalls, enabling multifactor authentication, and keeping software updated are critical steps. Consulting cybersecurity professionals can further strengthen defenses against ransomware and data breaches, the BBB says.

Bernas said the BBB’s study is a wake-up call for businesses to take fraud and cybersecurity seriously. As scams become more sophisticated, proactive measures are essential. By staying informed, recognizing warning signs, and implementing protective strategies, businesses can reduce their risk and foster a safer commercial environment, he added.

If you encounter a scam, report it to the BBB Scamtracker to help alert others and protect your community. Look for the BBB seal, The Sign of a Better Business. Visit BBB.org or follow @ChicagoBBB on social media.