Artificial intelligence (AI) is the hot new thing. It’s revolutionizing medical research, challenging the art world, and even helping small business owners streamline and automate tasks. But as with anything new and popular, scammers may quickly take advantage. When evaluating AI products for your business, know what to look for regarding scams. BBB heard from one small business owner who reported signing up for a “free” trial of what appeared to be a promising new AI product. They lamented, “The company charged me $144 plus $12 ‘processing fee’ before the free trial was up… When I explained the situation over email… the 'Sr Success Manager' denied a refund and would not put me in contact with anyone else at the company. I informed him that the company was partaking in misleading and false advertisement, and he failed to respond to my email.”

Small business owners may encounter these scams by getting unsolicited calls, emails, or text messages claiming to offer AI services for small businesses. Owners may even stumble across a convincing-looking ad on social media. The services sound amazing. Your business can pay a reasonable amount upfront, and once the AI is set up, you can expect incredible benefits, such as automating all your marketing needs. If the ROI sounds too good to be true, that’s because it is. If you engage with scammers offering phony AI services, you’ll likely lose any money you pay them. At the very least, your business information could fall into the hands of unscrupulous individuals and put you at risk for identity theft, business email compromise, and other cons.

BBB is providing the following tips on how to avoid AI service scams:

● Research before you hire. Get to know a company before you do business with
them. This requires thorough research. Review their website and social media
accounts. If anything looks unprofessional or the contact information is missing or
doesn’t work, steer clear. Do an internet search for reviews and complaints.
Search the company name with “scam” to find reports or associated dishonest
business practices. You can also look up companies at BBB.org.

● Understand the AI services you need. Don’t let someone you’ve never met sell
you on a service you’ve never heard of. AI technology is relatively new, so you’ll
need to research how it works and how it can benefit your business. It’s best
practice to first have a use for AI clearly in mind, and only then reach out to
reputable companies for the service.

● Watch out for aggressive sales tactics and far-fetched promises. These are
two of scammers’ most effective tactics. If someone pressures you to buy a
service, telling you you’ll miss out if you don’t act right now, or if they promise you
your business will make hundreds or thousands of dollars with little to no effort on
your part, it’s probably a scam.

● Ask for references. If a company reaches out to you, ask them for references
and contact them. Look up the references online to confirm they are real people,
with real businesses. If you can’t find their information, or the service provider
refuses to give you references, find another company to work with.

● Safeguard your money and personal details. Never enter your sensitive
personal information on a website you aren’t familiar with. Don’t send your details
via email to someone you don’t know. Keep your money safe by refusing to send
funds via wire transfer or prepaid debit cards. If you do purchase a service
online, only use your credit card. Credit cards offer extra protection against
fraudulent charges.

● Educate employees about AI scams. Train employees to recognize the signs
of AI scams, such as unusual requests for money or sensitive information, and
also train them to verify the identity of the person making the request.

● Implement multi-factor authentication. Require multi-factor authentication for
all financial transactions, such as wire transfers or online payments, making it
difficult for scammers to impersonate executives or employees and carry out
fraudulent transactions.

For more information see BBB's artificial intelligence HQ at BBB.org/AI. Contact your Better Business Bureau by calling 216.241.7678 or emailing info@cleveland.bbb.org. If your company is interested in becoming a trusted business, apply for BBB
Accreditation.

For additional tips and resources, visit BBB.org to help keep your small business thriving. Contact your Better Business Bureau by calling 216-241-7678 or emailing info@cleveland.bbb.org. Interested in becoming BBB Accredited? Find out how you can apply for BBB Accreditation.

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