Scam Alert: Protecting Oklahoma Small Businesses and Non-Profits from Fraud
Check out the large hook with a nice ol’ Spinnerbait lure below to catch a potentially hungry fish!
An email from a potential client, received by RedWoodard SBS, is provided below, asking for a quote for website design and social media management. We hope you learn something new or are reminded of the full-time job of scammers.
RedWoodard Small Business Solutions is proudly dedicated to serving Oklahoma by providing affordable, high-quality services to support local small businesses and non-profits. We made that decision because we continually see outside companies and individuals trying to take away from our communities, and we’re here to stand strong for Oklahoma.
Some important reminders to keep up with the latest news:
Scammers are becoming increasingly creative, making it difficult to recognize whether a potential client's business is legitimate when requesting services or products.
An email from a potential client, received by RedWoodard SBS, is provided below, asking for a quote for website design and social media management. We hope you learn something new or are reminded of the full-time job of scammers.
RedWoodard Small Business Solutions is proudly dedicated to serving Oklahoma by providing affordable, high-quality services to support local small businesses and non-profits. We made that decision because we continually see outside companies and individuals trying to take away from our communities, and we’re here to stand strong for Oklahoma.
Some important reminders to keep up with the latest news:
Scammers are becoming increasingly creative, making it difficult to recognize whether a potential client's business is legitimate when requesting services or products.
- Avoid clicking on links from unknown sources without doing your research.
- Links can look legitimate but may be masked under any title.
- After researching, we discovered that the person sending the email messages has a Facebook profile with only one friend—a big red flag for a fake account.
Inside the Scam:
1. The Setup:
- The scammer pretends to be a legitimate customer or client.
- They ask if you accept credit card payments, which is a normal question to build trust and make the request seem legitimate.
2. The Overpayment Request:
- They ask you to pay more than your actual fee (in this case, $2,800) and to forward the excess to a third party (the "consultant").
- They claim they can only pay by credit card, but the "consultant" cannot accept credit cards, so they want you to act as a middleman.
3. The Fraudulent Payment:
- The scammer pays you with a stolen or fake credit card.
- Initially, the payment may appear to clear and show up in your account, giving you a false sense of security.
4. The Financial Loss:
- After you forward the $2,800 to the "consultant" (who is likely the scammer or an accomplice), the credit card company or bank discovers the payment was fraudulent or unauthorized.
- The payment is reversed, leaving you responsible for the $2,800 you sent out of your own funds.
Red Flags in the Message:
1. Unusual Payment Request:
- Legitimate clients rarely, if ever, ask to overpay and have your money forwarded to a third party.
- Scammers often request methods like Cash App, Zelle, or wire transfers because these are hard to trace and nearly impossible to reverse once sent.
- The mention of a "private project consultant" and their inability to accept credit cards is an unnecessary and suspicious detail designed to make the scam seem plausible.
- Scammers often create a sense of urgency or appeal to your goodwill to make you act quickly without questioning the situation.
1. Never Agree to Forward Money:
- Legitimate clients will not ask you to act as a middleman for payments to third parties.
- If you receive a payment, wait for it to fully clear (not just show as "pending") before taking any action. Even then, be cautious.
- Do not send money via Cash App, Zelle, or similar platforms to someone you do not know personally.
- If something feels off or overly complicated, it’s better to decline the transaction.
- If you suspect fraud, report it to your bank, the credit card processor, and local authorities. You can also report scams to the Federal Trade Commission (FTC) or Better Business Bureau.
Can you identify each red flag in the email RedWoodard SBS received below?
Potential Client: “Okay thanks for the response and I just open a new Indian Restaurant which i run now and i need a website for my business to grow, So i need you to go through this example link site: https://...........hom.com but i need something more perfect than this if possible, I will like you to get back to me with an estimate and the estimate should include hosting and I want you to understand I want the same page as the example site I gave you to check and I want only English language and i want you to know you will be updating the site for me.
I want the site up and running before ending of March this year and I don't want a shopping cart in my reservation page also I don't have a domain name yet and i will prefer: GOLDENT…………...COM, My budget is $2,000-$5,000 for the web design, I have a private project consultant, he has the text content and the logos for the site with the image artwork, so please go ahead and check the example site and get back to me with an estimate also I will like to know if you are the owner or the manager and do you accept credit card as payment. Thank you”
Note: We learned from the following email that the person is in Canada for ear surgery and can’t be reached by phone or Zoom. Do you see any other flags in the following response email?
Potential Client: " Yes I want a social media, I would like you to do quote for the set up and monthly maintenance to include posts to Facebook and Instagram and kindly get back to me with the estimate cost, but currently I'm in Canada due to my ear surgery I just had here."
Potential Client: “Thanks for the prayer May God be with you too, and my restaurant is located in Miami, Florida I'm having a little issue with the private project consultant I'm yet to pay his balance because he doesn't accept credit card payment and I only have my credit card with me to make any payment at the moment, can I add the consultant fee of $2,800 alongside with your own fee so I can pay together and once the funds clears into your account you will take your own fee and send $2,800 to the private project consultant via cash app or zelle”
RedWoodard SBS/Rick:
“I apologize; however, we only provide service to those in Oklahoma. My business model is to build relationships with clients and meet in person at least quarterly to provide the best service.
If you are in Tulsa or Oklahoma City in the next month, I would love to meet with you in person to review the quote and discuss how we can best serve your needs.
Best regards, Rick Woodard, CEO.”
The crickets are chirping loudly.
STAY SAFE AND AWARE, OKLAHOMA!