Jordan Belfort isn’t the only wolf out there; there are plenty ready to take down small businesses. Protect yourself by understanding 3 of their favorite scams.
Martin Scorsese’s blockbuster film The Wolf of Wall Street depicts how a crooked stockbroker, Jordan Belfort, fleeced investors of more than $250 million. As only Hollywood could do, the movie glorifies Belfort’s over-the-top lifestyle that’s paid for with the stolen funds, and leaves out the story of the victims, many of whom were small-business owners.
Although Belfort eventually got caught and went to jail, there are plenty of criminals scamming people daily, and small-business owners remain a favorite target. What makes small-business owners the perfect target?
- They are extremely busy running their businesses, which means they have to make decisions quickly with limited information (a scammer’s dream).
- If their business is doing well, they likely have significant amounts of cash that need to be put to work.
- If their business is doing poorly, they will be desperate to find a way out and will be more willing to try things that under normal circumstances they would reject.
- Many lack sophisticated financial knowledge, which scammers can exploit.
Do any of those traits sound familiar? Your best defense against being scammed is to know what scams are making the rounds. Watch out for these three criminal favorites.