As telecommunication fraud continues to grow exponentially, with reported losses in 2022 of $530 million in Canada^[1] and nearly $40 billion in the United States^[2], it's never been more important to stay informed. There are several different types of spam calling and texting scams that have contributed to these losses. One of the most prevalent among them is known as imposter scams.

What are Imposter Scams?

Imposter scams refer to scammers who impersonate other people or entities to fraudulently obtain personal information, money, or other assets. These scams can occur via phone calls, text messages, and emails and can take on various forms. Common examples are scammers posing as the IRS, government entities, banks or other financial institutions, student loan providers, or employers. They may impersonate delivery services (particularly during the holidays!), charities, or even target seniors pretending to be family members in trouble.

Many of these scams are targeted at everyday consumers. Sometimes, however, scammers will specifically target businesses, and if done successfully, they can end up being exponentially more profitable for the scammer and equally as detrimental for the business.

How Imposter Scams Target Businesses

In regards to businesses, what scammers are generally after is sensitive information such as passwords, social security numbers, and bank account numbers. Once they obtain this kind of data, they can use it to turn a profit, either by selling it to other companies, or gaining access to corporate accounts themselves to steal money directly from the business.

Here are some common imposter scams specifically targeted at businesses that you should watch out for:

Tech Support Scams

Scammers impersonate your company's tech support in an attempt to obtain your login credentials or gain network access. If they succeed, they may be able to steal data to sell on the black market or take directly from your business accounts.

Government Agencies

Scammers impersonate government agencies, manufacturing a scenario that makes the victim feel like they're in a serious situation. For example, they may claim that you owe taxes or have to renew certain licenses or registrations. All legitimate government agencies have their contact information publicly listed, so if you suspect you're being scammed, always hang up and call them back at a listed number to verify their identity.

Utility Scams

Some imposters might impersonate your gas or electric company, or even your internet provider. These scams can be especially tricky because the scammers may know and pretend to be the actual companies you pay on a monthly basis, and sometimes even contact you at the appropriate time in the payment cycle.

Fake Invoices

Scammers may send fraudulent invoices, hoping an employee will not notice the details and pay them out as if they were legitimate. These phoney invoices may be for things like office supplies, advertising, or even membership dues for fake organizations.

As you can see, there are tons of different imposter scams out there, and more are being created every day. But no matter what the specific scam is, there are some common red flags that apply to all of them. Here are some warning signs for you and your employees to look out for when protecting yourselves against business imposter scams:

Unconventional Payment Methods

Scammers will often request money directly via odd payment methods that are untraceable, such as gift cards or prepaid debit/credit cards. Always be wary of this kind of request and never comply until you have fully verified the identity of who is asking for it.

Caller ID/Neighbourhood Spoofing

Call spoofing refers to the altering of either the Caller ID (CID) phone number or Caller Name (CNAM) displayed to the person receiving the call. Some scammers will go a step further and use "neighbourhood spoofing", which makes their CID displayed as the first 6 digits of the very number it is calling. This gives the false impression that it is a local call, potentially even from a neighbour. Of course, sometimes you may actually receive calls from local numbers, but if you get a suspicious vibe from a caller, don't assume that they're safe just because their number seems familiar.

A Sense of Urgency

Many scammers will demand immediate payment, pretending you have an overdue payment or outstanding debt. Don't be fooled into making an impulsive payment out of fear, as this is exactly what the scammer is hoping for.

Threats and Intimidation

In some cases, scammers take the sense of urgency a step further and add in some serious threats and intimidation. They may use scare tactics to pretend that if you don't pay their proposed fee, you could face fines or even jail time. While it may be tempting to comply so you can ensure these things don't happen, always remember that legitimate institutions will never treat you this way, but rather notify you in more conventional ways if your business actually owes them money.

Typos or Strange Characters

When it comes to text messages or emails, some scammers can be rather obvious with major typos, broken English, or strange and uncommon characters in their message or sender's address. This is generally a good sign that you may be dealing with an imposter.

Here are some final tips to protect yourself against business imposter scams:

• Circulate this information amongst all your employees so everybody at your company is aware and on the same page.
• Verify invoices and payments.
• Be careful with texts and emails, especially when it comes to opening attachments, downloading files, and clicking links.
• Update your firewall and antivirus services.
• Clearly define ordering procedures.
• Regularly monitor your business accounts to make sure no money has gone missing.
• Verify identities. If you're unsure who is on the other side of a call, text, or email, confirm their identity by reaching out to a legitimate phone number, address, or email listed on their website.
• Use Whois by SIPSTACK to check information of the phone number calling you.

How SIPSTACK Fights Fraud

Using the latest technology and machine learning, SIPSTACK's systems authenticate all activity in real time against variables that affect your security. When a carrier implements SIPSTACK's Smart CNAM, they are able to customize a threshold for calls to pass through, based on their specific needs. At SIPSTACK we take an active role in ensuring we are building a secure and connected tomorrow. Contact us today to learn how you can protect yourself from spam.

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