How To Protect Sole Traders and Small-Business Owners From Scams
Targeted guidance for protecting a self-employed person or small-business owner from the scams most likely to affect them.
Last reviewed: 1 June 2026
Sole traders and small-business owners face a distinct set of scam risks on top of everyday personal fraud. Fake invoice requests, CEO impersonation, bogus directory listings, HMRC phishing, and payment redirect scams all specifically target businesses. If you are helping protect a self-employed family member or friend, understanding these business-specific threats makes your support far more effective.
Scams that specifically target small businesses
Sole traders and small-business owners are targeted precisely because they usually lack the layered checks — a separate accounts department, a purchasing policy, a second sign-off — that catch fraud in larger organisations. Common scams include fake supplier invoices for goods or services never ordered, cold calls offering 'compulsory' business listings or website renewals, and phishing emails impersonating a tax authority, a bank, or a real supplier with a slightly altered email address. Domain and trademark renewal scams are also widespread, sending official-looking notices claiming a business's website or name will be lost unless an urgent fee is paid. These rely on a busy owner glancing at a bill between jobs and paying it to make it go away.
- Fake invoice emails redirecting payment to a scammer's account
- Directory and advertising invoice scams — billing for listings never ordered
- CEO or client impersonation asking for urgent payment
- HMRC phishing about overdue tax or new payment schemes
- Fake domain renewal or website services from unrecognised providers
Building payment verification habits
The single most effective habit is a simple rule: no payment goes out based on an email alone. Any invoice, especially one with new or changed bank details, gets a phone call to a number already on file, never one included in the email itself, before it's paid. For example, if a regular supplier emails saying 'our bank details have changed, please update for future payments,' call them directly using a number from a previous invoice or their website to confirm it's genuine, since intercepted email chains are one of the most common ways real business relationships get hijacked. Making this call a fixed habit, not a judgment made under time pressure, is what actually stops the fraud.
- Verify any change in payment details by calling a known number — not one in the email
- Treat any urgent payment request from a client or supplier with extra caution
- Set a rule: no payment over a certain amount without a direct phone confirmation
- Keep a separate, secure note of regular suppliers' actual bank details
Recognising and refusing bogus invoices
Directory and listing scams typically arrive as an official-looking invoice for a 'business listing' or 'compulsory registration' that was never agreed to, often referencing real public information about the business to appear legitimate. The trick relies on the invoice looking routine enough to be paid without question by someone processing paperwork between jobs. Before paying any unfamiliar invoice, ask three questions: did we actually order this, can I find a record of the agreement, and does this organisation match one we've knowingly used before? If any answer is no, don't pay — contact the sender using a number found independently, not one printed on the invoice, and if it's confirmed as fraudulent, report it and warn other local business owners.
- Never pay an invoice without matching it to a purchase order or a signed agreement
- Be alert to invoices arriving from new or slightly misspelled supplier names
- File an objection immediately with the sender and your national consumer authority
Conversation script
“Have you come across any weird invoices or emails recently that didn't quite add up? There's a lot going around targeting self-employed people at the moment.”
“There's one rule that stops most payment scams: never change payment details based only on an email — always call a number you already have to confirm.”
“I can help you set up a simple checklist for payments if you want — it only takes a few minutes and it protects the business.”
Frequently asked questions
My relative paid a fake invoice — can the money be recovered?
Contact their bank immediately on the fraud line. Explain it was an authorised push payment made under fraud. Banks have an obligation to investigate and, in many cases, to reimburse under the Authorised Push Payment (APP) fraud code. Speed matters — the sooner you call, the better the chance of recovery.
How do I help them tell the difference between a real HMRC letter and a fake one?
Real HMRC correspondence arrives by post and directs you to GOV.UK — they do not call demanding immediate payment, send payment links by text, or ask for bank details by email. Any such approach is a scam regardless of how official it looks. When in doubt, log directly into the HMRC portal without using any link provided.