Five Business Fraud Trends Every Company Should Watch

Business fraud continues to rise, and advances in artificial intelligence are making scams more convincing than ever. According to the Federal Trade Commission, consumers reported losing $3.5 billion to imposter scams in 2025, nearly tripling the reported losses from 2020. Fraudsters are increasingly targeting businesses through email, phone calls, text messages, payment systems, and online accounts. Here are a few fraud trends to watch:

1. Social Engineering

Social engineering scams manipulate employees into revealing sensitive information or taking unauthorized actions. Common tactics include:

• Phishing: fraudulent emails designed to steal information or deliver malicious links
• Vishing: phone calls from imposters posing as trusted contacts
• Smishing: text messages that prompt recipients to click links or share credentials

2. Business Email Compromise (BEC)

BEC schemes often involve spoofed email addresses, fake websites, or malware that allows criminals to monitor legitimate business communications. Fraudsters then pose as executives, vendors, or business partners to divert funds or obtain confidential information.

3. Account Takeover Fraud

Criminals use stolen credentials obtained through phishing, malware, or other scams to gain access to online banking and business accounts. Once inside, they can initiate unauthorized transactions or access sensitive company data.

4. Payment Fraud Businesses

continue to face fraud involving checks, ACH payments, and wires. Stolen checks may be altered or counterfeited, while ACH and wire fraud frequently stem from phishing attacks, account takeovers, and business email compromise schemes that trick employees into sending funds to fraudulent accounts.

5. Credit Card Fraud

Fraudsters obtain payment card information through skimming devices, phishing attempts, or fake websites, then use the information to make unauthorized purchases.

Protecting Your Business

Organizations can significantly reduce risk by requiring dual approval for ACH and wire transactions, implementing Positive Pay services, using multi-factor authentication, verbally verifying payment changes through trusted phone numbers, and reviewing their business insurance coverage for fraud-related losses.

The most effective defense remains simple: when something seems unusual, contact your financial institution or account representative using a trusted phone number before taking action. One phone call can prevent a costly loss. ABI

Source: [ftc.gov]