Common Scams

When it comes to fraud, entrepreneurs are not spared from attempts, but if you know what to look for, detecting these attempts is far from impossible. And if you still fall into the trap of a scam, remember that you're not alone. We've listed the three most common scams and will explain how you can protect yourself!

CEO Fraud

CEO fraud means that the fraudster poses as the company's CEO and asks a company member, in an email, to transfer money to a specific account. These are often large sums, foreign accounts, and almost always urgent. Of course, the sender may also appear to be another company executive or a colleague. The fraudster uses various methods to make it seem like the CEO is the sender.

Elements to Watch Out For:

Ensure that the sender is legitimate and not spoofed. This means that the sender's name and address may appear correct, but if you reply, the fraudster's address will appear in the address field.

Misspelled company name. The fraudster has created a domain name similar to the real company’s, but has added an extension or replaced or removed a letter from the name.

Correct company name, but a different top-level domain

How to Protect Yourself:

The best protection against CEO fraud is having clear, unambiguous rules stating that no one in the company should make financial transactions based solely on an email. Any transaction order, especially if above a certain amount, should always be verified by phone with the client.

This is a so-called ransomware – a malicious software that locks the victim's computer either completely or partially. The software is often sent in an email that appears to come from a credible sender – a bank, the Swedish tax agency, or another well-known company name. The email asks the recipient to read information contained in an attachment or link. Once the software locks the computer, the victim receives a payment request to regain access.

How to Prepare the Response

Here, good IT security applies. Ensure you have appropriate antivirus software and perform regular backups, which should not be connected to the network. Be wary of emails from unknown senders and never click on suspicious links or attachments.

Fake Invoices

Fake invoices are a collective term for a payment request for a product or service that no one in the company ordered or received. It could be that a vendor has been in contact with you, claiming you ordered a product or service, or that the invoice was sent to the company without prior contact.

How to Protect Yourself

Establish good routines for how invoices should be handled. Be cautious when checking invoices from new suppliers. And the invoice? Who in the company approved the order? Check the warning list where you’ll find companies that have been informed of sending false invoices. You'll also receive advice on what to do if you believe you've received an invoice that you should not pay.