Running a small business means wearing a lot of hats, and “fraud investigator” probably wasn’t the one you signed up for. Small teams often move fast, trust their regular contacts, and operate without a dedicated security department watching every transaction.

Scammers may try to take advantage of those everyday business routines.

October is Cybersecurity Awareness Month, so it’s a good time to get familiar with several fraud schemes that target businesses. Here are five of the most common schemes, how each works, and a few practical steps that can help keep your business protected.

In This Article

1. Business Email Compromise

Business email compromise, or BEC, is one of the most common and most costly schemes small businesses face. A scammer poses as someone you trust, like a company executive, a vendor, or a regular client, and sends an email asking you to make a payment or update banking details. The message often feels urgent and looks completely legitimate.

A classic version of this is an email that appears to come from the owner asking an employee to wire funds right away for a “time-sensitive” deal, and to please handle it quietly. Another common version involves a vendor supposedly “updating” its payment information right before an invoice is due.

What helps: Before you send a payment or change any banking details, verify the request by phone using a number you already have on file, not one from the email. A quick call like this may uncover an impersonation attempt before money is sent.

2. Check Fraud

Even as more payments go digital, checks remain a significant target for fraud. Scammers steal checks from the mail, “wash” them to change the amount or payee, or print counterfeits using a business’s real account and routing numbers.

What helps: Store blank checks securely, keep an eye on your account activity, and consider a tool like Positive Pay, which compares checks presented for payment with information your business has provided. We covered this one in depth in our recent post on how Positive Pay protects your business.

3. Account Takeover

Business account takeover happens when a criminal gains unauthorized access to online banking or another business account. This may happen through a stolen password, compromised credentials, malware, or a phishing link. Once they’re in, the fraudster may attempt to move money, change account details, or lock out an authorized user.

What helps: Use strong, unique passwords and turn on multifactor authentication so a password alone isn’t enough to sign in. Remind employees to avoid using login links in unexpected messages and to access important accounts through known websites or saved bookmarks.

4. ACH Debit Fraud

ACH debit fraud occurs when an unauthorized electronic withdrawal is made or attempted against a business account. Because routing and account numbers appear on every check you write, as well as on other business documents, they’re easier to get hold of than many owners realize.

What helps: Reconcile your accounts regularly so unfamiliar withdrawals stand out quickly. You can also ask our business banking team about available account controls for reviewing or limiting ACH activity.

5. Ransomware

Ransomware is malicious software that encrypts (locks up) files or systems, making them unavailable to the business. Criminals then demand payment in exchange for restoring access. It often sneaks in through compromised credentials, infected email attachments, bad links, or outdated software.

What helps: Keep your software and devices updated, maintain offline or otherwise protected backups of important files, and train your team to think twice before opening unexpected attachments and links. Backups should also be tested regularly so your business knows whether its data can be restored.

The Verification Habit Every Business Needs

Look closely, and you’ll notice these schemes have something in common. They rely on urgency, trust, and the hope that no one will stop to double-check. Scammers count on people being busy and moving quickly.

One of the most useful habits a business can establish is to slow down and independently verify unusual requests. Confirm payment instructions and account changes by calling a phone number or contact you already trust. Avoid relying on contact information included in the request itself.

Fraud prevention works best in layers. Verification procedures, Positive Pay, multifactor authentication, account monitoring, employee education, and appropriate payment controls each address different points of risk.

Want more tips in one place?

Explore our Fraud Resources for practical ways to protect your business accounts and recognize suspicious activity.

Frequently Asked Questions About Business Fraud Schemes

What are common types of small business fraud?

Common threats include business email compromise, check fraud, account takeover, unauthorized ACH debits, invoice and vendor-payment scams, phishing, and ransomware. The risks facing an individual business will depend on its payment methods, systems, employees, vendors, and account controls.

What is the most common type of small business fraud?

Business email compromise is widely considered the most common and most financially damaging scheme. It works by impersonating someone you trust to redirect a payment, which is why verifying requests by phone is so important.

What is business email compromise?

Business email compromise is a scam in which a criminal impersonates or compromises a trusted email contact to request a payment, account change, sensitive information, or another unauthorized action. The message may appear to come from an executive, employee, vendor, customer, or business partner.

How can I protect my small business from fraud?

Start with a few layered habits: verify payment and account changes by phone, use strong passwords with multifactor authentication, reconcile your accounts often, maintain protected backups, and consider account controls such as Positive Pay. No single step prevents every type of fraud, but layered procedures can make suspicious activity easier to identify.

What should I do if I think my business has been targeted?

Contact FNBCC immediately if you notice suspicious account activity or believe your business sent money because of a fraudulent request. Stop additional payments when possible, preserve relevant emails and transaction records, and change compromised login credentials. Cyber-enabled fraud may also be reported to the FBI’s Internet Crime Complaint Center. Recovery isn’t guaranteed, but acting quickly may improve the opportunity to limit additional losses.

Talk With Our Business Banking Team

Fraud prevention isn’t limited to spotting suspicious transactions. Your employees should also know who approves payments, how account changes are verified, and what to do when a request doesn’t look right. A few clear procedures can help your team respond quickly instead of trying to figure out the next step during a stressful situation.

FNBCC can help you review the account controls available for your business and answer questions about suspicious activity. You can also browse our Fraud Resources for more tips on recognizing scams and protecting your accounts.

People you know, service you trust.

Have a question or want to review your account controls? Reach out to us or stop by your local FNBCC branch.

Explore Our Fraud Resources

Fraud prevention tools and features may vary by account or service. Contact FNBCC for complete details.