Phony calls: Business phone scams
Phone scams that target retail hardware businesses happen.
The scammer poses as someone from a name brand in your industry. And it goes from there.
One hardware store owner, Richard Crabtree II, owner of Crabtree’s LoganSales Hardware and General Store, a True Value dealer in Logan, Ohio, shared his views.
[Scroll down for scam-avoidance tips.]
“I have been hearing stories about scammers pretending to be the support department of POS providers such as Epicor, Rocksolid Max, TransAct, and Spruce, and targeting the stores late in the day or over the weekend,” said Crabtree II.
“They feign urgency and a need to diagnose the system to keep it up and running, then try to get the associate to run a credit card test, refund, or activate a ‘test gift card.’ They may even request remote access to the network.” he said.
In these phony scenarios, the owner has instructed the hardware team members on how to handle them.
Any phone calls not directly relating to service their employees can render on the floor such as availability and pricing inquiries are immediately directed to management.
“If the caller ID states ‘SPAM CALL,’ we don’t even bother giving them the time anymore and will hang up immediately,” the Crabtree Hardware owner said.
Should they claim to be from the support department of our POS provider, he said, “they are instructed to tell them the owner will call the POS company back and hang up, then proceed to report the call to the store owners or management immediately.”
He has a few tips for other independent hardware retail business owners on handling phone scams.
“Be on guard for anyone who calls claiming to be from a POS provider. Especially the support department. There is a high likelihood of it being a scammer,” said Crabtree.
As always, remain vigilant.
“Training is important, as is communication of any new threats that may arise,” he said.
Phone security should be no less important, he said, than any other forms of security employed at your hardware business.
Scam-avoidance tips
The U.S. Federal Trade Commission offers tips on protecting your small business from scammers.
“Learn the signs of scams that target businesses. Then tell your employees and colleagues what to look for so they can avoid scams,” said the FTC on its website.
The FTC listed some scammer tactics:
- Scammers pretend to be someone you trust. They impersonate a company or government agency you know to get you to pay. But it’s a scam.
- Scammers create a sense of urgency, intimidation, and fear. They want you to act before you have a chance to check out their claims. Don’t let anyone rush you to pay or to give sensitive business information.
- Scammers ask you to pay in specific ways. They often demand payment through wire transfers, cryptocurrency, or gift cards. Don’t pay anyone who demands payment this way. It’s a scam.
Best defense for the retail hardware store owner?
Train employees not to send passwords or sensitive information by email, even if the email seems to come from a manager.
Explain to your staff how scams happen and encourage them to talk with their coworkers if they suspect a scam.
The FTC said you can order free copies of its brochure at ftc.gov/bulkorder and encourages store owners to share the information with their staff.
The FTC said: “Your best defense is an informed staff.”
