09/22/2025
I’ll be honest — I’m slightly embarrassed to share this. I like to think I’m careful, but this one almost slipped through. I’m putting it out there anyway in case it saves another small business owner from falling into the same trap.
Refund scams are one of the most common tricks used against small businesses — and they’re getting harder to spot. The playbook is simple: pay big, ask for a partial refund (often to a different account) before the payment clears, then disappear. If you fall for it, you’re left covering the refund and the cost of goods.
That’s exactly what almost happened here. On the surface, everything looked legit: polite customer, professional grammar, references to a real listing on our site, even a company name with a functioning website. It felt credible.
The trap was in the timing. A day after paying the invoice, the “customer” asked to cancel half the order and requested a refund to another bank account — while the funds were still pending. If I had sent the refund, I would’ve been out $2.5K from my own pocket and still owed my vendor $5K for the products.
This experience was a reminder that:
• This is typical of refund scams. They rely on urgency and your willingness to accommodate.
• AI makes scams harder to spot. Poor grammar can still be a red flag, but many scams now read perfectly.
• Your process is your shield. Only refund to the original payment method. Never accept wire transfers. Don’t step outside your systems.
• Boundaries are professional. Saying no to risky requests protects your business.
Scams are evolving, but awareness is the best defense. Sharing this so other small business owners can protect themselves, too.
👉🏻 Have you ever run into a refund scam or something similar?
