Running a business comes with its challenges, but one of the most overlooked threats is financial fraud. Scammers are becoming more sophisticated, targeting small businesses with deceptive schemes that seem legitimate at first glance. One of the most common scams is the check overpayment fraud, where businesses receive a fraudulent check, deposit it, and are later asked to send a portion of the funds elsewhere—only to find out the check was fake.
The Proposal That Wasn’t
There are stories that begin with a grand adventure. There are stories that start in the murky depths of mystery. And then there are the ones that start with a simple email—a beacon of hope, an opportunity shimmering like a candle in a dark alley.
Ours began with a new Tapas restaurant opening in Houston. Or so we were told.
A new client, mysterious but eager, appeared in our inbox with the promise of a dream project: a website for an elegant new dining experience, a place where fine cuisine would be served beneath the soft glow of chandeliers, where guests would whisper in hushed tones over glasses of wine. They had the name, the vision, the enthusiasm.
And so, we sent them a proposal.
The response came back swiftly—perhaps too swiftly. The proposal was accepted with little hesitation. A bit of luck? A stroke of fortune? Or was something slithering beneath the surface, unseen?
And then the descent began.
They needed us to pay their “consultant.” A strange request, to be sure, but wrapped in the tragic veneer of human misfortune: the consultant’s father was in the hospital, straddling the line between life and death, and money—ah, money—was needed with urgency. They would send us half the payment first, they assured us. But we, out of the goodness of our hearts, were to take a portion of that and pass it along to this unseen, faceless consultant.
It was, of course, a scam.
The details didn’t quite add up, the urgency reeked of deceit, and the all-too-convenient tragedy was the icing on a rotting cake.
But we did not expose them. Not yet. Instead, we did something far more enjoyable.
We played along.
For weeks, messages fluttered back and forth like moths drawn to the lantern of our feigned gullibility. We agreed to everything. We sympathized with their plight. We asked questions—so many questions. How was the consultant’s father? Was the hospital treating him well? Were the restaurant plans still on track despite this misfortune?
They answered each time, increasingly desperate, increasingly insistent. The scammer thought they had found a fool. But we, dear reader, were spinning them in a web of their own making.
Then, at last, the moment of truth arrived. They asked if we had sent the money.
We had not.
And we never would.
We bid them farewell with a simple message, short and sweet:
"Let's meet in 1 hr at 1 Justice Park Dr, Houston, TX 77092 (FBI office in Houston), hahaha bye Mauricio"
And just like that, the specter vanished, slipping back into the shadows, seeking another prey, another gullible soul who might not recognize the tale of a scam spun from too many convenient tragedies.
They never asked for their money back though.
How Check Scams Work
Check scams are among the most common financial frauds targeting small businesses. In a typical scheme, a scammer poses as a new client, vendor, or partner and offers a payment—often via check—for services rendered. Shortly after, they ask you to forward a portion of the payment to a third party, such as a consultant, supplier, or tax agent. The check appears legitimate and even clears at first, but within days or weeks, the bank reverses it due to fraud, leaving the business owner responsible for the lost funds. According to the Federal Trade Commission (FTC), check fraud has been on the rise, with over 27,000 reports of fake check scams in 2022 alone, leading to millions in losses for businesses and individuals alike.
Source: https://www.ftc.gov/business-guidance/resources/scams-your-small-business-guide-business.
How Small Businesses Fall Victim
Small businesses, eager to secure new clients and partnerships, can fall prey to these scams due to urgency and the promise of lucrative opportunities. Scammers often create a sense of trust and pressure by weaving emotionally charged stories—such as a sick family member or an urgent business need—to prompt quick action. Entrepreneurs who rely on quick cash flow may deposit these fraudulent checks without verifying their legitimacy, leaving them vulnerable to unexpected losses. The Better Business Bureau (BBB) warns that small businesses are disproportionately targeted because they often lack the financial security measures of larger corporations. To stay safe, businesses must verify all transactions, be skeptical of overpayments, and refuse any requests to forward funds on behalf of third parties.
Source: https://www.bbb.org/article/news-releases/19932-bbb-warning-businesses-dont-fall-for-that-scam
A Warning to Business Owners
Scams like these are not rare. They arrive cloaked in professionalism, dripping with credibility, their tendrils reaching out to small businesses, freelancers, and agencies alike. If you receive a request to forward money to a third party, stop. If a client insists on urgency and tragedy in the same breath, pause. If it seems too easy, too quick, too good to be true—it probably is.
Stay vigilant. Stay cautious. And above all, never send money where money is not due.
Because not every proposal is what it seems.
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