In a world where digital connections are often the foundation of modern relationships, a new report reveals a staggering statistic: Americans lost an estimated $1.14 billion to romance scams in 2023, according to the Federal Trade Commission (FTC). With scammers increasingly utilizing dating apps, social media, and emails to create elaborate facades, small business owners must remain vigilant, not just in their personal lives but also in ensuring that their enterprises remain secure from financial deception.

Chase recently highlighted crucial precautions to help prevent falling victim to these schemes, providing essential insights that small business owners can apply both personally and professionally.

One of the first recommendations from Chase is to minimize online engagement with strangers. This is particularly relevant for small business owners who often network online. “Limit social media connections to people you know,” advises Chase. Those reluctant to transition from online chats to in-person meetings should be treated with caution. Protecting personal and financial information is paramount; blocking texts and calls from unrecognized numbers can help ensure safety.

In the realm of business, verifying identities is equally critical. Scammers frequently use deceptive tactics to manipulate their targets. If a connection on a professional networking site has scant photos or avoids video calls, it’s time to reconsider sharing sensitive information. Understanding the identity of your contacts isn’t just a personal safety measure; it’s also a fundamental business practice.

A vital piece of advice from Chase is straightforward: never send money to someone you’ve only interacted with online. For small businesses that often deal with numerous transactions, this caution cannot be overstated. With various peer-to-peer payment methods available, scammers find it all too easy to exploit unsuspecting users. Chase warns against opening accounts or starting ventures on behalf of others, a practice that can lead to significant financial loss and legal complications.

Urgency is another tell-tale sign of a potential scam. “If someone moves too fast or showers you with intense affection early on, pause and consider why,” the release suggests. This principle holds true in business interactions as well. High-pressure tactics can lead to rushed decisions that may have long-term consequences for a small business.

For small business owners, understanding the implications of these scams extends beyond personal safety. Building a reputable brand requires trust, and being a victim or a perpetrator of financial deception can endanger that trust. By ensuring that you verify connections and protect personal information, you not only safeguard your finances but also bolster your business’s credibility.

Should business owners find themselves on the receiving end of a scam, Chase advises filing a police report or submitting an inquiry to the FTC at ftc.gov/complaint. Immediate action can help mitigate the damage and alert authorities about ongoing scams.

Additionally, Chase invites small business owners to explore online resources designed for financial protection. More details can be found at Chase.com/security, where owners can learn about safety measures and practices to keep their accounts secure.

As small business operations increasingly rely on digital platforms for transactions and networking, awareness of the signs of romance scams—and scams in general—is vital. The tools and strategies offered by Chase can help small business owners not only safeguard their financial well-being but also ensure a stable foundation for their ventures.

To read more about these recommendations and the broader context of romance scams, visit Chase’s original press release here.

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This article, “$1.14 Billion Lost to Romance Scams in 2023: How to Protect Yourself” was first published on Small Business Trends