How To Prevent Fake Business Profiles and Impersonation

Scammers are posing as legitimate businesses on social media. Here’s how the scam works and what you can do to protect yourself.

To create a fake profile of a business, scammers can use information that is found online, such as photos and contact information. Additionally, artificial intelligence makes it easy for them to create a near perfect imitation, since AI can generate images and copy writing styles. AI tools are helping this scam grow – in fact, AI is fueling all types of fraud across the Internet, making it important to stay educated. 

What Are Fake Business Profiles?

Fake business profiles are fraudulent accounts pretending to be real companies. Scammers impersonate businesses online to steal money or personal information. They can appear in a number of places, including:

1. Social media, such as Facebook, Instagram or LinkedIn
2. Google listings
3. Online marketplaces
4. Fake websites

Common Types of Business Impersonation Scams

These scams are widespread and can happen in a lot of ways, including: 

• Customer Support Impersonation: Fake bank or company representatives can reach out to victims requesting login info, codes, or payments.
• Fake Online Stores: These fake stores look like legitimate retailers. They offer large discounts to lure quick purchases, but the products never arrive. To make it worse, scammers will often charge much more than what the discount promised. 
• Invoice and Vendor Scams: Fraudsters will pose as your vendors and partners to request payment changes or send you urgent fake invoices. 
• Social Media Copycat Accounts: Scammers can make duplicate profiles, with slight username changes that are easy to miss. They’ll message followers with “offers” or “alerts,” which are a trap to get money or information.

Red Flags to Look For

Common signs of a fake business profile include:

1. Slight misspellings in usernames or URLs
2. New or recently created accounts
3. Limited reviews or suspicious 5-star bursts
4. Urgent, high-pressure language
5. Requesting money via unusual payment methods, such as wire transfers, gift cards or cryptocurrency
6. Requests for login credentials or one-time passcodes

How to Verify a Business is Legitimate

There are steps you can take to check if a business profile is real, including: 

1. Go directly to the company’s official website, and don’t click any links
2. Contact the business using a verified phone number
3. On social media, look for a verified badge
4. Look for consistent branding and communication
5. Cross-check reviews across multiple platforms

How to Protect Yourself

Staying up to date on fraud is your best defense. Consider taking these additional steps to protect yourself.

1. Don’t share sensitive information through messages or email
2. Enableaccount alerts and multi-factor authentication
3. Avoid clicking links from unknown or unsolicited messages
4. Use secure payment methods with buyer protection
5. Monitor your accounts regularly

What to Do If You’re Targeted or Scammed

If you suspect fraud, stop communication with the suspect immediately. Contact your bank or financial institution right away. Report the scam to the FTC, and make sure to include the platform where it occurred, such as social media or an online marketplace. Then, change your passwords and take measures to secure your accounts. 

Jefferson Bank is here to help you stay protected against fraud. Learn more about how to stay safe from fraud at our Learning Center!