Scam and Fraud Awareness: How to Protect Your Business Payments

Scams and payment fraud are growing risks for businesses operating in a digital, global payments environment. Criminals are becoming more sophisticated, often targeting legitimate companies by impersonating trusted parties, manipulating payment instructions, or pressuring staff into making urgent transfers. In most cases, these scams don’t start with technical breaches. They start with pressure, urgency, and small deviations from normal payment processes.

At Finmo, protecting clients from financial harm is built into how payments are designed, reviewed, and executed. Because scams evolve across the financial ecosystem, understanding how they work and where teams are most vulnerable is one of the most effective ways to stay protected

This guide explains the most common business payment scams, the key warning signs, and practical steps businesses can take to prevent and respond to fraud.

Why businesses are targeted by payment scams

Businesses are frequent targets for scammers because:

• payments are often high value
• transactions can be time-sensitive
• responsibilities are distributed across teams
• changes to payment details are common in day-to-day operations

Many payment scams do not involve system breaches. Instead, they rely on social engineering, where scammers manipulate people into acting quickly, discreetly, or outside established controls. This is why controls alone aren’t enough. Clear verification habits and the ability to pause payments matter just as much.

Watch for:

• requests to change bank details “just this once”
• pressure to pay urgently, especially close to deadlines
• subtle changes in email addresses (extra characters, swapped letters, different domains)
• bank details that don’t match your previous invoices, contracts, or onboarding records

A good habit:

verify any change to payment details using a trusted method you already rely on (for example, call a verified phone number from your internal records , not a number provided in the email). This should be a standard policy, not an exception made under pressure.

Impersonation scams

Impersonation scams attempt to pressure staff by posing as a trusted party, such as a bank, regulator, vendor, senior executive, or support team , to prompt a transfer or extract sensitive information.

Finmo will never ask for your password, one-time codes, or private credentials.

Watch for:

• requests to “confirm” login details or security codes
• urgent calls claiming your account will be locked unless you act immediately
• instructions to keep the request confidential or bypass normal processes

Phishing and account compromise

Phishing attempts may arrive by email, SMS, or messaging apps, aiming to trick users into clicking links, downloading files, or entering credentials. If access is compromised, scammers may try to initiate payments, change account details, or intercept communications.

Watch for:

• unexpected login prompts or “security alerts”
• links that don’t match the official domain
• attachments you weren’t expecting, even if the sender name looks familiar

Investment and “opportunity” scams

Some scams present themselves as professional investment opportunities, often using persuasive “advisers,” impressive-looking dashboards, and high-pressure sales tactics. Businesses may be approached through networking, social platforms, or direct outreach.

Watch for:

• guaranteed returns or unusually consistent performance claims
• pressure to “act now” to secure an allocation
• reluctance to provide clear documentation, licensing details, or independent verification

Mule activity

Mule activity involves being asked to receive money and move it on to another account , sometimes framed as a service, commission opportunity, or “temporary” arrangement. Even if the person claims the funds are legitimate, acting as a pass-through account can expose a business to serious legal, operational, and reputational risk. Even temporary participation can expose a business to regulatory, banking, and reputational consequences

Watch for:

• requests to receive money and forward it elsewhere
• offers of “commission” for moving funds
• unclear, changing, or inconsistent explanations for the transfer

Love Scam

A love scam is a type of social engineering fraud where scammers exploit emotions, often posing as a romantic interest or close personal connection, to manipulate individuals into transferring money. In a business context, this can occur when fraudsters impersonate clients, partners, or employees and create a personal connection over email, social media, or messaging apps. They typically fabricate urgent or emotional situations such as medical emergencies, financial hardships, or travel crises to pressure victims into making payments to personal accounts.

Watch For

• Unexpected romantic or personal messages from someone claiming to be a client, partner, or colleague.
• Requests for urgent payments or financial help for personal emergencies.
• Communication through personal emails, social media, or messaging apps instead of official company channels.
• Attempts to divert funds to personal or foreign accounts.

Good Habit

• Avoid mixing emotions with financial decisions.
• Verify the identity of anyone requesting money, whether in a business or personal context.
• Do not share personal or financial information with people you haven’t verified.
• Always use official channels for business transactions; for personal cases, consider trusted family or friends for advice.
• Report suspicious communications to authorities, banks, or internal security teams.
• Educate yourself and others on social engineering, phishing, and fraud tactics.

Quick warning signs you can train teams to spot

It may be a scam if you notice:

• urgency, secrecy, intimidation, or emotional pressure
• payment instructions that suddenly change
• first-time beneficiaries or new counterparties with limited history
• unusual amounts, timing, destinations, or transaction patterns
• requests to bypass verification steps or approvals

When in doubt, pause and verify. Taking a moment to confirm details is one of the simplest ways to prevent a significant loss.

How Finmo helps protect you

Because Finmo sits directly within payment workflows, we’re able to apply safeguards at the point where payment decisions are made, not after funds have already left the account.. Where appropriate, this can include additional verification, temporary holds on suspicious transactions, and support to assist with recovery efforts when possible. This approach helps reduce risk without turning payments into a slow or manual process.

These protections are designed to reduce scam risk while keeping business payments efficient.

What to do if you suspect a scam

If something doesn’t feel right, acting quickly matters. Delays can significantly reduce the chance of recovery.

First, stop and don’t proceed with the payment. If a payment has already been sent, avoid sending additional funds “to recover” the first payment , this is a common follow-on tactic.

Next, contact Finmo as soon as possible so action can be taken while funds may still be in-flight or recoverable.

You can reach us at:

• support@finmo.net

• dispute@finmo.net

Or contact Finmo Support through your dashboard.

Finally, preserve evidence. Keep the emails, invoices, screenshots, phone numbers used, and any messages or instructions you received. This helps investigation and improves the chance of disruption or recovery.

What happens after you report it

Once you report suspected scam activity, Finmo will review the details, assess risk indicators, and take protective steps where appropriate. This may include holds or restrictions to prevent further loss, and engagement with relevant financial institutions to support recovery efforts where possible.

You’ll be guided through next steps, and we’ll share practical prevention advice to help reduce future risk. While not all scam losses can be recovered, each case is assessed carefully and fairly based on the circumstances.

A few simple habits that prevent most losses

If you only do a few things consistently, make them these:

• verify bank detail changes via a trusted channel
• treat urgency as a red flag, not a reason to rush
• use approvals and dual control for high-value payments
• train teams to spot BEC and impersonation attempts
• report concerns early , even if you’re unsure

If you’re unsure, ask

If you’re uncertain about a payment or a communication that appears to be from Finmo, don’t take chances. Contact support@finmo.net or dispute@finmo.net, or reach Finmo Support through your dashboard.

Early reporting can make the difference between stopping a scam and suffering a loss.