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How to Avoid Getting Scammed as a Student Business

Starting a new business can be a challenge, even for the most experienced specialists. It requires extensive market research, loans, and other things before you launch your product or close the first deal. Sometimes, all it takes is luck to make it in the world. When you are a student, you already have a lot on your plate, but it shouldn’t hold you back from kickstarting a project of your dreams.

With a business plan, you need to consider arranging and sorting out your other responsibilities. Get a list and write down your priorities with your studies to keep up with your academic performance. Find a reliable service that can answer your request, get productivity trackers, and prepare for your adventures. Be sure to include some tech and legal support to resolve some common issues new businesses experience.

The most common problem every project or startup encounters is scams. You need to stay vigilant and know how to deal with people who want to take advantage of new businesses. Some scams are hard to spot, so prepare to avoid them.

How to Avoid Getting Scammed as a Student Business

Develop procedures and flows to follow

Create a specific policy of regulations and procedures you and your colleagues need to follow to avoid data breaches or scams. Use your skills to manage the steps that you need to operate your business. It includes planning a budget, understanding your customers and potential collaborators, and other aspects. Without a clear understanding of internal procedures, you risk losing revenue and client base as well.

Invest in antiviruses and trusted software

It may be obvious for every student: an antivirus gets rid of half of your problems. Many antiviruses shield your documents and programs from unauthorised access, junk programs, and spyware. Therefore, a legit and secure software subscription is always a good idea, even if you are not starting your business.

One of the most popular scams is malware and phishing links to get credentials from you or your customers. Your antivirus will immediately block suspicious emails or ads that can infiltrate your OS. At the same time, certified software purchased from a developer eliminates the possibility of downloading pirated or compromised apps. Therefore, you will be protected from digital threats on the ground level.

Attend digital security awareness training

You may think that you know everything about scams and digital security. Yet, every year more scams and fraud schemes are developed along with malicious software and viruses. Digital security awareness includes everything from managing your website to handling hardware. You have to update your knowledge base and regularly attend security awareness workshops and lectures provided by your university or other trusted institutions.

You also can sign up for online courses that will provide you with essential knowledge about digital security. Many online academies like Coursera or Udemy offer flexible courses for anyone who wants to learn or upgrade their knowledge. You can also look for training hosted by Amazon or another industry leader.

Attend digital security awareness training

Do extensive research on new partners

Often, the process of looking for new investors and partners works both ways. You can receive offers or actively search for new opportunities, but you need to stay several steps ahead to stay prepared. The same goes for your potential customers and other types of cooperation.

Doing extensive research is a part of every business process you will encounter during your career. Be sure to read customers’ and other businesses’ reviews on companies you want to cooperate with. It includes asking for recommendations and opinions from the company’s partners. A listed partner might hear about the company that reached you for the first time.

Verify invoices and payment requests

Even if you plan to hire an accountant to handle all financial aspects, you need to have a baseline knowledge of transactions. Be sure to learn it early on, even before starting your business. It can significantly simplify your time avoiding questionable deals and projects.

Another popular scam is fake invoices and payment requests. You need to be aware of what legitimate transaction proofs look like and establish clear payment procedures. Be also aware of payment request types. Note that wire transfers, reloadable or gift card payments can be scams.

Know a scammer when you see one

Many imposters want to gain your trust and make you believe you are speaking with a real representative of a specific company. They can use official-looking emails, create copies of websites, and get every bit of information they can use against you. Some things you should look out for when speaking with an imposter:

  • The sense of urgency. Scammers want to get your information and money as quickly as possible. When they pressure you to make an important decision, you can be sure you talk with an imposter.
  • Be sceptical. If a deal or transaction sounds too good to be true, it might be a fraud.
  • Develop an action plan. If you get scammed, be sure that you know what to do next. You might need legal advice and a plan to retrieve your finances and catch the fraudster.
  • Know your business. Before you start your company, you need to know your business from A to Z: from the services and products you offer to the target market and legal regulations.
  • Report scammers. If you dodge a bullet, stay proactive and report fraudsters to authorities. Be sure to create detailed reports to the Federal Trade Commission (FTC) and the Better Business Bureau as soon as possible. It might help you to prevent future attempts from the same perpetrators.

The bottom line

New businesses are always on the frontline of being targeted by scammers. Fraudsters count on your lack of experience or inattentiveness when it comes to getting what they want from you. Yet, if you are well-prepared and attentive, you can avoid the worst-case scenario. Be sure to always double-check everything before signing documents or paying for products. 

Author

Picture of Pankaj Shah

Pankaj Shah

Pankaj Shah is the founder of DCP Web Designers, an award-winning London-based web design and digital marketing agency. With over 20 years of experience, he specialises in WordPress web design, WooCommerce, SEO and helping businesses build effective online solutions.
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