Top 10 Scams to Watch Out for as an Online Business Owner

Scams Are a Reality, But They Don’t Have to Be Your Problem

Top scams to watch out for as an online business owner aren’t just clickbait headlines, they’re real traps costing entrepreneurs thousands every year. Whether it’s fake “marketing experts,” cloned eCommerce sites, or bogus Google Ads reps, these scams have evolved right alongside the digital tools we depend on. As a small business owner, knowing what’s out there (and how to dodge it) can be the difference between steady growth and financial disaster.

In this article, we’ll break down the top 10 scams targeting online business owners like you, in order of least dangerous to most dangerous. By the end, you’ll be better prepared to recognize, avoid, and protect yourself and your business.

 

10 – Fake Social Followers & Engagement Packages

They’re cheap, they look tempting, and they’re useless. Bought followers are usually bots or inactive accounts; they inflate numbers but kill real engagement. Don’t feed the vanity metrics, buyers and platform algorithms sniff fake activity quickly.

How to defend: stop buying engagement. Publish better content, use micro-influencers, and pay for legitimate ads if you want reach.

 

 

9 – Fake “SEO” or Link-Building Services

These services promise backlinks and rankings but deliver low-quality links from spammy sites. Google penalties are a long-term loss; the short-term bump isn’t worth it.

How to defend: demand case studies, inbound links from reputable sites, and avoid any service that promises instant page-one results.

 

8 – Fake Review Schemes

Pay-for-review networks can get you stars fast, until they don’t. Platforms detect fake reviews (and sometimes penalize or remove listings), which can damage credibility more than help.

How to defend: build a review process with real customers. Offer follow-up emails and easy links to leave honest feedback.

 

7 – Fake “Business Booster” Software & Tools

Shiny dashboards promising to “automate your growth” often just scrape your accounts or spam your audience. Some tools even harvest data and expose you to more risk.

How to defend: vet tools via reviews, demos, and trials. If a product needs full account access for questionable ROI, skip it.

 

6 – Subscription Traps & Hidden Fees

Free trials that slip you into hefty recurring charges are common. Small businesses can lose hundreds across multiple services if subscriptions pile up.

How to defend: always check trial end dates, use a single billing card for subscriptions, and schedule cancellation reminders.

 

5 – Fake Job/Contract Scams (Free “Test” Work)

If a potential client asks you to do unpaid “test” work or asks for your full files before paying, that’s a red flag. Some scammers harvest free labor or steal assets.

How to defend: require a deposit, use contracts, and test only via paid trial jobs or well-defined paid milestones.

 

4 – Fake Hosting Deals & Domain Scams

Too-good-to-be-true hosting or domain offers can be a trap – low-cost companies may disappear, hold your site hostage, or hide renewal fees. Losing your site and having to rebuild is both costly and brand-damaging.

How to defend: use reputable hosts (or trusted partners), keep local backups, and register domains with trusted registrars. Keep ownership and recovery contacts up to date.

 

3 – Fake Payment / Traffic Generators

Services that sell “visitors” or “leads” usually deliver bot traffic. That inflates numbers and wastes ad spend while poisoning analytics. Real lead quality > fake volume.

How to defend: focus on SEO, content, and quality paid placements. Use analytics to measure engagement and conversions, not just sessions.

 

2 – Chargeback & Friendly-Fraud Attacks (Huge Cost)

Chargebacks and “friendly fraud” have exploded in recent years: merchants reported steep increases in disputes and abuse, with chargeback rates and costs spiking across e-commerce. A single chargeback can cost you more than the purchase value once fees and operational costs are included; the aggregate impact is enormous for small and mid-market merchants.

 

How to defend: keep proof of delivery, require signature for high-value items, use AVS/CVV checks, and work with payment providers that offer strong dispute tools. Consider chargeback insurance or specialist services if you’re getting hammered.

 

1 – Business Email Compromise (BEC) & Phishing – The Most Dangerous Scam

This is the #1 threat for real, measurable damage. Business Email Compromise and targeted phishing cost companies hundreds of thousands per incident on average; widespread reports show BEC and phishing leading to massive financial losses and data theft. The FBI and internet-crime trackers list BEC and phishing among the top loss drivers, with total reported losses to internet crime climbing into the billions annually.

Why it’s the worst: BEC/phishing attackers impersonate executives, vendors, or platforms (PayPal, Google, hosting providers) to trick employees into wiring money, giving access, or changing payment details. It’s social engineering, and it hits where you’re most vulnerable: trust.

 

How to defend (do this now):

• Enforce multi-factor authentication (MFA) on all accounts.

• Use email authentication protocols (SPF, DKIM, DMARC).

• Train staff with simulated phishing exercises – most breaches involve human error. Recent security studies show BEC/phishing remains a leading source of business losses and data breaches. 

• Keep a “verify by phone or video” rule for any fund-move request. Never change payment instructions via email alone.

 

Quick Action Checklist (Copy/Paste to Ops)

• Backup your sites weekly and keep at least one offline copy.

• Turn on MFA for everything.

• Use a password manager and unique passwords.

• Keep shipping/tracking proof and retain customer communications for 120+ days.

• Log and review all subscriptions and billing cards monthly.

• Vet vendors – do a 5-minute reputation check before giving access.

 

Final Thoughts

Don’t Be Paranoid, Be Prepared

Scams to watch out for as an online business owner are real and evolving fast. Some are small nuisances; some can sink a year’s revenue or worse. The good news: with policies, backups, and a little skepticism, you’ll stop being an easy target. Treat security like insurance, it costs something up front, but it’s a fraction of the cost of a major breach or fraud event.