When Times Are Tough, Scammers Target the Commercial Finance Sector
As the founder of The Coterie Group, I’ve seen firsthand how economic uncertainty brings out not just resilience and creativity—but also opportunistic scammers looking to exploit both lenders and borrowers in the commercial finance world.
Why Our Industry Is a Target
During volatile markets or downturns, businesses and investors urgently seek funding solutions. This urgency can lead to rushed decisions, making both sides—brokers, lenders, and borrowers—more vulnerable to sophisticated fraud attempts.
Scams We See in Commercial Finance
- Fake Lenders and Loan Offers: Fraudsters pose as legitimate lenders, offering “guaranteed” approvals with attractive rates, only to demand upfront fees or sensitive information.
- Impersonation of Brokers: Scammers may impersonate established commercial brokers, using lookalike emails or websites to lure clients and collect deposits or personal data.
- Phishing and Business Email Compromise: Fraudulent emails that appear to come from trusted partners or clients, requesting wire transfers or confidential documents.
- Fake Investment Opportunities: Promises of high-yield, low-risk investments in commercial real estate or business ventures, often backed by forged documents.
How to Protect Your Business and Clients
- Verify Identities: Always double-check the credentials of new contacts, especially if they approach you online or by unsolicited email.
- Educate Your Team and Clients: Make sure everyone is aware of common scam tactics and knows how to spot red flags.
- Secure Communications: Use secure channels for sensitive information and confirm wire instructions by phone using known contact information.
- Trust Your Instincts: If something feels off—unusual urgency, requests for secrecy, or offers that seem too good to be true—pause and investigate.
A Call to Our Community
At The Coterie Group, we believe in building trust and transparency in every transaction. When times are tough, let’s look out for each other and share information about new scam tactics. By staying vigilant, we can protect our businesses, our clients, and the integrity of the commercial finance sector.
Stay safe, stay smart, and let’s keep our industry secure—even when times are tough.
