How small businesses can spot unexplained payment scams

An unexpected payment may look like good news for a small business, but money arriving without a clear explanation deserves scrutiny. TechRadar’s Mike Moore reports that scammers exploit the pressure on owners to respond quickly and professionally.

One common scheme starts with a payment that appears to have been sent by mistake. The sender asks for a refund through a different channel, such as a bank transfer or gift cards. If the original payment came from a stolen account or compromised card, it may later be reversed, leaving the business out of pocket for the refund.

Unexpected transactions may also test stolen payment details. A cardholder could dispute the payment, potentially resulting in a chargeback, fees or lost goods. In phishing schemes, the payment serves as bait: a follow-up message may direct the recipient to a fake portal or ask for login credentials or other sensitive information.

Moore advises businesses to verify suspicious payments directly with their bank or payment provider, using its official website or app. They should not send a separate repayment based on an unverified sender’s instructions. Other safeguards include keeping business and personal finances separate, reconciling payments with invoices and orders, using unique passwords and enabling two-factor authentication (2FA) where available.

Clear staff procedures can also help. Moore recommends requiring verification for unexpected refunds, prohibiting repayments through alternative channels and training employees to recognize phishing links and impersonation attempts. The article adds that financial procedures should be supported by cybersecurity measures, since scams can begin through email or fake websites.