When it comes to scam calls, merchant services calls are among the most common, targeting businesses to steal financial information. According to the Truecaller US Spam and Scam Report 2024, over 56.2 million Americans fell victim to spam and scam calls in 2023, resulting in collective losses of $25.4 billion—each victim losing an average of $452,000.
Given these alarming statistics, learning how to protect your business has never been more important. This guide will help you understand what merchant services scam calls are, recognize the most common tactics used by fraudsters, and adopt effective strategies to protect your business from these threats.
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What Are Merchant Services Scam Calls?
Merchant services scam calls are scam calls where fraudsters impersonate legitimate merchant service providers to obtain sensitive financial information or payments from businesses. These scammers often claim to offer better rates on merchant processing services or create a false sense of urgency, insisting that businesses must update their existing merchant accounts immediately.
- For example, a scammer might say: “We noticed an issue with your payment processing account. If you don’t act now, your service could be suspended.”
3 Common Tactics Used in Merchant Services Scams
Scammers have plenty of tricks to make merchant services scam calls sound believable. Knowing how these schemes work can help you avoid falling for them. Here are three of the most common tactics they use:
1. Fake Offers for Lower Merchant Fees
Scammers frequently approach businesses with unsolicited offers, claiming to provide reduced rates on merchant processing services. While these deals may seem attractive, they often involve hidden fees or poor services that only come to light after a commitment has been made.
Example
“Hi, this is Alex from Merchant Processing Deals. I see you’re paying high fees on your credit card transactions. With our program, you’ll only pay half the cost! But this offer is only available today—are you ready to sign up now?”
2. Impersonating Legitimate Merchant Services Providers
Fraudsters typically impersonate reputable merchant service providers, using advanced communication methods to appear genuine. They may create fake websites or use email addresses similar to those of legitimate companies.
Example
You might receive a fake message warning about an issue with your account, directing you to a fraudulent link.
“Hello, this is a security alert from ______. Your account has been flagged for suspicious activity. Please click here to verify your account information and avoid suspension.”
3. Asking for Sensitive Information
Scammers often claim to represent legitimate services, using various excuses to request confidential details such as bank account numbers, login credentials, or credit card information. They may insist on the urgency of “verifying” your account or resolving a technical issue.
Example
“Hi, this is Lisa from Secure Payments. We noticed a problem with your card transactions. Could you confirm your card number, expiration date, and CVV so we can resolve this for you?”
How to Identify Legitimate Merchant Service Providers?
With scams on the rise, it’s helpful to know how to spot a trustworthy merchant service provider. While some experts, like Mastercard, suggest using advanced fraud prevention tools such as machine learning and risk scoring, there are simpler steps you can take. Here’s what to look for:
1. Check Credentials and Certifications
Legitimate providers are affiliated with recognized organizations and comply with industry standards like PCI DSS (Payment Card Industry Data Security Standard). They may also be members of reputable financial institutions, which shows their credibility and commitment to best practices in merchant processing.
2. Verify Company Contact Information
A trustworthy provider will always have verifiable contact details. Check their website to ensure it looks professional and includes a physical address and phone number you can confirm. You can also test their reliability by reaching out to their customer support through official channels—legitimate providers typically respond promptly and clearly.
3. Understand Key Terms and Operations
Real providers explain their services, fees, and processes clearly, without vague or confusing language. Transparency in agreements and contracts is a sign of professionalism, making it easier to understand exactly what you’re agreeing to before you sign up.
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What Are the Best Ways to Avoid Merchant Services Scam Calls?
Protecting yourself from merchant services scam calls means staying alert and taking extra steps. Here are three practical ways to protect your information and reduce the risk of falling victim:
1. Never Share Sensitive Information
If you receive an unexpected call requesting personal or financial details, do not share any information. Instead, hang up immediately and contact the company directly using verified contact information to check if the request is legitimate.
2. Learn About Merchant Processing Services
Recognizing common scam tactics is one of the best defenses against fraud. Scammers often use offers of reduced merchant processing fees or urgent account verification requests to pressure their targets. Familiarizing yourself with these schemes makes it easier to recognize and avoid scams.
3. Use Caller ID Apps to Block Scams
Take advantage of technology to screen and block unwanted calls. Apps such as Truecaller and Hiya can detect scam numbers, block suspicious calls, and provide spam warnings. These tools add an extra layer of protection and reduce your chances of falling victim to fraudulent calls.
Avoid Merchant Services Scams with Help from CDN
Scam calls are still a serious issue, even with efforts by regulators, enforcement agencies like the Federal Communications Commission (FCC), and service providers such as Hiya. Technologies like STIR/SHAKEN and legal actions have helped, but Americans still lost $25.4 billion to scams last year, according to Truecaller.
At Cryptoscam Defense Network (CDN), we’re here to help. Our mission is to empower people with the tools and knowledge they need to recognize scams, understand their rights, and take action to protect their personal information. Through our educational resources—like guides, webinars, and tips—you can stay one step ahead of scammers.
We Want to Hear From You!
Fraud recovery is hard, but you don’t have to do it alone. Our community is here to help you share, learn, and protect yourself from future frauds.
Why Join Us?
- Community support: Share your experiences with people who understand.
- Useful resources: Learn from our tools and guides to prevent fraud.
- Safe space: A welcoming place to share your story and receive support.
Find the help you need. Join our Facebook group or contact us directly.
Be a part of the change. Your story matters.
Frequently Asked Questions (FAQs) About Merchant Services Scam Calls
How do I Know If a Call is From a Scammer?
Scam calls often use high-pressure tactics, unsolicited offers, or requests for sensitive information. Legitimate providers will never ask for personal details over the phone or push you to make immediate decisions.
What Should I Do If I Receive a Suspicious Call?
If you receive a suspicious call, hang up immediately and avoid sharing any personal or financial information. Use verified contact details to reach the company directly and confirm if the call was legitimate.
What is STIR/SHAKEN, and How Does it Help Prevent Scam Calls?
STIR/SHAKEN is a technology used in the U.S. and Canada to prevent caller ID spoofing. It attaches a digital certificate to calls to verify the caller’s identity. Providers such as AT&T and Verizon use it to display warnings like “Spam Risk” for unverified calls, helping to reduce scams.
Photos via Freepik
