Con artists prey on desperation, using what we need the most as an entry point to lure in victims. What is one thing that most of us need desperately, that when we don’t have enough of it the stress precludes us from thinking straight? Money, of course.
Independent contractors, small businesses, and non-profits are particularly vulnerable to scams offering money – in the form of grants and new contracts.
Don’t let a slow month let your guard down. Learn how to identify a scam even when it comes disguised as a business opportunity.
Starting up a business or working for yourself as an independent contractor can be difficult, even with an established client base. For small businesses, non-profits, and contractors alike, hard times mean VERY hard times. A slow month or a missed grant opportunity can run a successful enterprise into the ground very quickly, especially in the face of unexpected expenses. It can be hard to budget for tough times, and con artists know that because of this, contractors, non-profits, and small business owners are hungry for the next source of income.
Here are two scams to keep an eye out for:
Grant Scams
These scams target non-profits and small businesses. While there are a plethora of grant scams that lure small businesses and non-profits into doing exactly the opposite of what they set out to do, a common one arrives via snail mail.
Organizations and businesses will receive what appears to be a certificate. This certificate will arrive at their physical address and appear entitle the organization or business to a government grant for tens or hundreds of thousands of dollars. This certificate will be accompanied by literature that looks pretty legit on its face. It will include phony testimonials from alleged past recipients, along with the grant levels available. Of course, there is a fee scale businesses and non-profits applying must pay up front to get the grant they’ve allegedly received.
If you get one of these letters, do NOT be enticed to pay the fee. Rest assured you will not miss out on a generous government grant. It doesn’t actually exist. Even if there is a return address on the mailing, this is typically a legitimate mailbox that forwards to another mailbox located outside the country.
Contract Scams
Independent contractors know that one slow month can mean taking up a side job, asking for money, budgeting tight, and possibly even going into debt. Even with a stable client base, even the most successful independent contractors can find themselves short on work and strapped for the cash needed to cover even basic expenses. For this reason, contractors and small businesses are always on the look out for new contracts from new and existing clients. Again, this is also something that con artists are well aware of.
This particular con arrives via email and is posited as a contract offer from an existing client. The subject line usually says something along the lines of “contract offer.” Within the body of the email, there is an attachment or link that asks for account details, your user name and password so that you can access the details of this contract.
Of course, with this information, the con artist can sign into your account and redirect payments that come to you right on over to them. They can also test your login details on other accounts, and – of course – upload malware.
If you receive an email like this, even if it comes from an actual account from an existing client, do NOT enter your personal information. Do NOT click on any links. Call your client to confirm before you get yourself into a situation that you and your computer can’t get out of.