Scams that target small businesses
Recognise the fake notices, payment tricks and supplier frauds that target small businesses.
6 min read
Small businesses are a favourite target for fraud, for one simple reason: money moves in and out all day, the owner is busy, and a payment made in a hurry is hard to take back. Almost every scam relies on the same two things — urgency and trust. Learn to notice both, and most of them fail.
The scams that come up most
The fake payment screenshot
A customer shows a screenshot of a UPI payment, or an SMS saying money was sent, and walks out with the goods. The money never arrived. Screenshots and SMS messages are easy to fake.
Defence: confirm every payment in your own UPI app or bank account, or on a soundbox, before you hand over goods. Never rely on what the customer shows you.
"I sent too much, please return it"
Someone pays you, then calls in a panic: they sent ₹10,000 instead of ₹1,000, please send back the difference. Often the original payment was fake, or reversed later.
Defence: check your own account. If extra money really did arrive, refund only that exact transaction, through the same route, after it has settled — and be suspicious of the urgency.
The "collect request" that takes money
You are told to "approve" or "enter your PIN" to receive a payment. With UPI you never need your PIN to receive money. Entering it sends money out.
A UPI PIN is only ever needed to pay. Anyone asking for your PIN, an OTP or a screen-share so that you can receive money is trying to take it.
The fake supplier or changed bank details
An email or WhatsApp message that looks like it is from a regular supplier says their bank account has changed. You pay the next bill to the new account — which belongs to someone else.
Defence: whenever bank details change, call the supplier on the number you already have — not one in the message — and confirm before paying.
The big order from a stranger
A new customer places a large order, often for a government office or a big company, and asks you to pay a "registration fee", "vendor code charge" or courier fee first. Or they pay with a cheque that later bounces, after the goods are gone.
Defence: a genuine buyer does not charge you to sell to them. For a large first order, take an advance or wait for the payment to clear.
Fake notices and officials
A call, message or letter claiming to be from the tax department, the police or an electricity board demands immediate payment to avoid penalties or disconnection.
Defence: real departments do not demand payment by UPI to a personal number or a gift card. Hang up and check on the department's own portal. The lesson on tax notices covers how.
Signs that something is a scam
| Sign | Why it matters |
|---|---|
| "Do it now or you will lose…" | Urgency stops you checking |
| A new number, email or account | The easiest thing for a fraudster to create |
| A request for an OTP, PIN or screen-share | No genuine payment or official needs them |
| A deal much better than normal | Bait |
| Payment by an unusual route | Gift cards, crypto, a personal account for an "official" fee |
Make one rule for everyone who handles money in your business: no payment to a new account, and no refund, without a check by phone on a number you already had. Write it on a card next to the counter.
If it happens to you
Act fast — speed is what gives you a chance of getting money back.
- Call your bank straight away and ask them to block or trace the transaction.
- Report it on the government's cyber-crime reporting portal, cybercrime.gov.in, or its helpline, and to the local police.
- Keep every screenshot, number and message.
- Tell your staff and nearby shopkeepers. The same trick usually goes round a market.
Describe anything that feels wrong — a message, a call, an order — to the tool below, and it will help you work out whether it looks genuine and what to check.