What is a business account scam: Ways to protect your business account from fraud

Business account scams are a fast-growing threat, with damages exceeding billions of Dollars annually. Cybercriminals use phishing, fake invoices, and account takeovers to steal funds or sensitive data. Not only small businesses, but also large corporations are affected. Find out how to recognise the most common warning signs and implement 5 proven business account protection strategies to reduce your risks significantly.

Business account fraud: Definition

Business account fraud refers to unauthorised access or fraudulent activities, which involves a company’s financial accounts or sensitive business information. Most of these scams appear online and include phishing, hacking, or social engineering tactics.

Once cybercriminals obtain sensitive information, they can transfer funds, alter payment details, or steal confidential data. Targets typically include small to medium-sized businesses with less robust security measures, but larger companies are also at risk. Employees, especially those in finance or IT, are common targets for manipulation or exploitation in these schemes.

The impact of business account frauds

While SMEs in developed countries are most affected, business account scams have become a global phenomenon. According to the Global Fraud Summit, “Fraud against individuals and businesses, has grown rapidly to become one of the most prevalent crimes globally and is an organised transnational threat.”

Nasdaq’s 2024 Global Financial Crime Report attributes $10 billion in losses worldwide to cybercrimes, in which Business Email Compromise (BEC) alone contributes approximately $6.7 billion per year. These data should ring your alarm bells and show the importance of business account protection. As a first step, businesses need to get familiar with common types and warning signs in order to implement efficient countermeasures.

Common types of business account frauds

Common types of business account fraud include a variety of tactics aimed at exploiting vulnerabilities in business systems or manipulating employees.

Most common business frauds include:

• Business Email Compromise (BEC): One of the most common business account frauds. Hackers impersonate high-level executives or trusted partners through email to request fraudulent wire transfers or confidential data.
• Phishing attacks: Fraudsters use fake emails or websites to trick employees into revealing login credentials, financial details, or sensitive information.
• Smishing attacks: Uses fraudulent text messages (SMS) to trick victims into revealing personal details or clicking on harmful links.
• Vishing attacks: Involves phone calls or voicemails, where scammers attempt to manipulate victims into sharing sensitive information.
• Invoice fraud: Fraudsters submit fake invoices to businesses, often disguised as legitimate supplier payments, to divert funds into their own accounts.
• Supplier or vendor fraud: Scammers pose as legitimate suppliers or vendors, offering goods or services, then receive payments without delivering anything in return.
• Social engineering fraud: Fraudsters manipulate employees through psychological tricks or false pretences to gain unauthorized access to company accounts or sensitive data.
• Ransomware and Malware: Cybercriminals infect business systems with ransomware or malware, locking data or systems and demanding a ransom for its release. These attacks can disrupt operations and steal information.

Warning signs of a potential business account fraud

Warning signs of a potential business account scam can often be subtle, but are important to recognise in order to protect your business account against fraud.

One red flag is unusual or urgent payment requests, where a sudden demand for large or expedited payments is made, especially if it deviates from the normal process. Another warning sign is emails or communications with slight inconsistencies, such as minor errors in spelling, grammar, or email addresses that resemble legitimate contacts but have small differences.

Additionally, changes in payment details from vendors or partners, like unexpected alterations in bank account numbers or payment methods, should be verified. Finally, suspicious links or attachments in emails or messages could be an attempt to direct you to phishing sites or introduce malware into your systems.

5 common business account protection strategies

The following strategies are easy to implement and decrease your risks significantly.

Robust security measures

Strong security measures are the first step to improve your business account protection. As of 2025, an alarming number of 51% of small businesses don’t have any cybersecurity measures in place.

While this figure highlights a concerning trend, it’s important to note that cybersecurity preparedness can vary by region. For instance, a survey conducted in the United Kingdom revealed that only 61% of businesses were using anti-virus software, and just 55% had implemented network firewalls. These numbers suggest that a substantial proportion of businesses, regardless of size, may lack adequate cybersecurity defenses.​

One of the most effective and easiest strategies is multi-factor authentication (MFA) for all accounts, which adds an extra layer of security by requiring more than just a password to access sensitive information.

Additionally, strong, unique passwords should be used across all accounts and changed regularly to make it more difficult for unauthorized users to gain access. Lastly, firewalls and intrusion detection systems should be used to monitor and protect business networks from external threats. These measures work together to create a robust defence against fraud and cybercrime.

Employee training

Educating employees on recognising potential threats such as phishing, social engineering, and other fraud tactics helps prevent security breaches. A comprehensive training should cover best practices for creating strong passwords, recognising suspicious emails or communications, and understanding the importance of multi-factor authentication.

Regular sessions on data security and the latest fraud schemes ensure that employees are aware of evolving threats. By fostering a culture of security awareness, businesses can significantly reduce the risk of human error or manipulation.

Regularly reviewing and updating vendor and client information

The larger your business gets, the more important it becomes to verify and confirm the accuracy of your vendor information on a regular basis to catch discrepancies before you conduct domestic or international business payments. This process includes checking banking details, communication channels, and verifying changes with trusted contacts directly.

Regular updates ensure that businesses maintain accurate records and reduce the risk of fraud caused by outdated or manipulated vendor and client information. It also reinforces security protocols across all business interactions and strengthens the bond between you and your business partners.

Using trusted and secure financial software

Reliable and secure financial software typically offers advanced encryption, regular security updates, and robust authentication features to safeguard transactions and account details. It minimises the risk of data breaches, unauthorised access, and fraud by providing secure environments for managing finances.

Moreover, trusted financial software often includes built-in monitoring and alert systems that can detect suspicious activity. By choosing reputable software solutions, businesses can improve their financial operations to reduce vulnerabilities associated with manual or outdated systems.

Security measures for company cards

To enhance credit card protection, businesses should set spending limits for different cardholders based on their roles, so that only authorised personnel can access higher amounts. Geo-blocking is another valuable security feature, which restricts card usage to specific geographical locations, while merchant blocking allows businesses to restrict purchases to approved merchant accounts.

In addition to these features, it is essential to separate user and administrator access. By employing a combination of these security measures, businesses can minimise risks associated with company card usage and maintain tighter control.

Emerging threats and future trends

Emerging threats are increasingly driven by advancements in technology, particularly AI. One such trend is AI-powered scams, which use sophisticated algorithms to mimic human behaviour and enhance the effectiveness of phishing and social engineering attacks.

Scammers are now able to generate highly convincing emails, texts, or phone calls that seem legitimate, which makes it much harder for employees to distinguish fraudulent messages from authentic ones. A recent example includes AI-driven Gmail scams, where attackers use machine learning to craft personalised emails which appear to come from trusted sources. As AI continues to evolve, these scams are expected to become even more targeted and convincing.

To stay ahead, businesses must adopt countermeasures such as AI-powered security solutions and continually educate employees on recognising these emerging scams.

Secure international banking with amnis

With increasingly sophisticated threats emerging, protecting business accounts has never been more crucial – regardless of company size. As an international payment provider, amnis offers a multi-currency account that not only reduces cross-border transaction fees but also strengthens your security infrastructure.

• Detailed payment confirmations at a glance: Sender and beneficiary details are listed on the notification email, confirmation PDF, and payment tracking page of your virtual IBAN account.
• Secure virtual Mastercards with POS & online payment controls, country restrictions, 3DS authentication, 2FA protections, advanced login notifications and more.
• As a licensed payment institution, your funds are secured of up to €100,000 according to EU law.

Try it free for 45 days – get started in under 30 seconds to reduce costs and boost your security infrastructure.