Vendor Impersonation Scams: Types, Tips To Avoid, Q&A And Preventing

What is Vendor Impersonation Scam?

Vendor impersonation scams are a type of business email compromise (BEC) scam where the attacker impersonates a trusted vendor or supplier in order to trick the victim into making a fraudulent payment. The scammer may send an email with a fake invoice, or they may even hack into the vendor’s email account and send emails from that account.

10 Types of Vendor Impersonation Scams

• Bogus invoice scam: The scammer sends an email with a fake invoice that appears to be from a trusted vendor. The invoice may be for a legitimate purchase, or it may be for something that the victim never ordered.
• Changed payment instructions scam: The scammer sends an email that claims to be from a vendor, and the email says that the vendor’s payment information has changed. The email may include a link to a fake website that looks like the vendor’s website.
• Phishing scam: The scammer sends an email that appears to be from a trusted vendor, and the email contains a link that, when clicked, takes the victim to a fake website that looks like the vendor’s website. The fake website may ask the victim to enter their login credentials or other sensitive information.
• CEO fraud scam: The scammer sends an email that appears to be from the CEO of the victim company, and the email asks the victim to make a wire transfer to a specific account.
• Account takeover scam: The scammer hacks into the vendor’s email account, and then they use the account to send emails to the victim company. The emails may contain fake invoices, changed payment instructions, or other fraudulent information.
• Supply chain scam: The scammer targets a company that is in the supply chain of a larger company. The scammer sends an email to the victim company that claims to be from the larger company, and the email asks the victim company to make a payment to a specific account.
• Invoice redirection scam: The scammer redirects the victim company’s invoices to a fake website. The fake website may look like the victim company’s website, and the victim company may not realize that they are not actually paying the real vendor.
• Fake vendor scam: The scammer creates a fake vendor website that looks like the website of a legitimate vendor. The scammer then sends emails to potential customers that claim to be from the legitimate vendor. The emails may contain fake invoices, changed payment instructions, or other fraudulent information.
• Social engineering scam: The scammer uses social engineering techniques to trick the victim into making a fraudulent payment. For example, the scammer may call the victim and pretend to be from the vendor’s customer service department.

10 Q&A About Vendor Impersonation Scams

1. What is a vendor impersonation scam?

A vendor impersonation scam is a type of business email compromise (BEC) scam where the attacker impersonates a trusted vendor or supplier in order to trick the victim into making a fraudulent payment. The scammer may send an email with a fake invoice, or they may even hack into the vendor’s email account and send emails from that account.

2. What are the signs of a vendor impersonation scam?

Some of the signs of a vendor impersonation scam include:

* The email is from an unfamiliar email address.
* The email contains grammatical errors or typos.
* The email asks you to make a payment to a new or unfamiliar account.
* The email is urgent or demanding.
* You have not recently done business with the vendor.

3. What should I do if I receive a suspicious email from a vendor?

If you receive a suspicious email from a vendor, you should do the following:

* Do not click on any links in the email.
* Do not reply to the email.
* Contact the vendor directly to verify the information in the email.

4. How can I protect my business from vendor impersonation scams?

There are a number of things you can do to protect your business from vendor impersonation scams, including:

* Train your employees on how to spot suspicious emails.
* Use a spam filter to block suspicious emails.
* Verify the authenticity of emails before making a payment.
* Keep your vendor contact information up-to-date.

5. What is the difference between a vendor impersonation scam and a phishing scam?

A phishing scam is a type of scam where the attacker sends an email that appears to be from a legitimate source, such as a bank or credit card company. The email typically asks the recipient to click on a link or provide personal information, such as their username and password. A vendor impersonation scam is a type of phishing scam where the attacker impersonates a trusted vendor or supplier.

6. How much money is lost to vendor impersonation scams each year?

According to the FBI, businesses lost over $26 billion to vendor impersonation scams in 2020.

7. What are the most common industries targeted by vendor impersonation scams?

The most common industries targeted by vendor impersonation scams are:

* Technology
* Healthcare
* Manufacturing
* Financial services
* Retail

8. How can I report a vendor impersonation scam?

If you believe you have been the victim of a vendor impersonation scam, you should report it to the following organizations:

* The FBI's Internet Crime Complaint Center (IC3)
* The Federal Trade Commission (FTC)
* Your local police department

9. What are the latest trends in vendor impersonation scams?

The latest trends in vendor impersonation scams include:

* The use of social engineering techniques, such as phone calls and text messages, to trick victims into making a payment.
* The use of fake invoices that look like they were sent from a legitimate vendor.
* The use of fake websites that look like they are the websites of legitimate vendors.

10. What can I do to stay up-to-date on the latest vendor impersonation scams?

You can stay up-to-date on the latest vendor impersonation scams by:

* Reading the security advisories of your vendors.
* Following the news about vendor impersonation scams.
* Signing up for security newsletters and alerts.

10 Tips and Preventions for Vendor Impersonation Scams

• Be suspicious of emails that ask you to make a payment immediately.
• Never click on links in emails from vendors.
• Always verify the authenticity of emails before making a payment.
• Keep your vendor contact information up-to-date.
• Train your employees on how to spot suspicious emails.
• Use a spam filter to block suspicious emails.
• Use two-factor authentication for your email accounts.
• Be aware of the latest phishing trends.
• Report suspicious emails to the vendor and to the authorities.

Conclusion

Vendor impersonation scams are a serious threat to businesses of all sizes. By following the tips and preventions listed above, you can help to protect your business from these scams.