In today’s world of online shopping and e-commerce, it’s common to come across companies advertising online, through social media, and through listings as you conduct internet searches.
However, not all of these companies are real, and some companies that are real might be conducting scams. It’s important to be wary about where you are inputting your information online, and being cognizant of whether or not a company is legitimate is a big part of this process.
Our guide gives you an overview of the dangers of interacting with a fake company in addition to methods for verifying if a company is legitimate.
The Dangers of Interacting With a Fake Company
Interacting with a fake company can cause a number of problems, especially when it comes to losing your personal and sensitive financial information, dealing with scams, or unknowingly participating in a fake company’s tax evasion or fraud schemes.
If you input your personal details into a website run by scammers, you could suffer a loss of money or identity theft; dealing with false companies could also put your investments and personal businesses at risk, depending on your situation.
Signs of Fake Companies
Signs of fake companies that you need to keep an eye out for include the following:
- The company advertises through social media only, and there is not much of a digital footprint on the company.
- The company does not have a legitimate website, or the website is full of grammar mistakes, strange English, and AI-generated photos.
- The company demands your identification information, credit card information, or banking details with every step, or they require you to create an account and hand over personal information to use their website.
Of course, these are not all of the signs of a fake company, and many fake companies can even look legitimate without massive red flags. However, the signs above should give you pause and allow you to investigate a company further before utilizing it.
There are a few easy ways to verify if a company is legitimate or not; these methods involve researching the company to find proof of their presence online or at a physical location in addition to tracking down licensing details and other business information.
We give you an overview of these search methods below.
Business Documentation Searches
All companies operating within the United States must have the correct licenses, certifications, and documentation.
For small businesses and non-corporate operations, this may involve documentation of an official Limited Liability Company’s (LLC) establishment and a sales license. For corporations, it could be details on how the company is organized and handles user information.
If you are interacting with a company and you cannot find any business documentation, including legal documentation, employee information, business history, or other state and federal requirement business documents, the company may not be legitimate. An internet search or careful search of the company’s website is the best way to track this information down.
Contact Information Searches
Most companies will provide a way for people to contact the company, as customers and clients are essential for a business’s success. If, when researching the company, you cannot find address details, email information, or even phone numbers, it can indicate the company is not legit; you’ll want to use a lookup site like this to see if you can find any contact info plus see if the company has been charged with anything.
Even if a company is an online-only company, it should still have some way for customers to contact customer service or reach out to the company with inquiries.
Social Proof Searches
Social proof for a company includes online activity by the company, social media webpages, customer reviews, and employee feedback on the company. A company that is running a scam or a company that isn’t real may have no online presence and no social media pages, and there may be significant reviews on online websites that indicate the company is not legitimate.
What Do I Do When a Company Isn’t Real?
If, after using the search methods in our article, you discover that a company isn’t real, it’s important that you stop interacting with the company as soon as possible. This means refraining from ordering items, trying to reach out to supposed customer service, or filling out online forms with your contact information.
Fake companies are often an attempt by scammers to steal your money or information or even to launder money, and you mustn’t give them any of your personal details.
Learn How to Verify a Company Is Legit and Keep Your Information Safe
When it comes to interacting with companies that might not be legitimate, it’s important to proceed cautiously and conduct research on the company before trusting it with your information.
If you aren’t too sure whether or not a company you have come across online is real, you can utilize the methods mentioned above to look for the company’s business information, social media presence, and overall physical presence.
Remember, if a company seems too good to be true or if you can’t find anything about a specific company online, there is a high likelihood the company is not real or a scam, and you should proceed carefully.
