How to identify fake companies created to scam people.

Fake companies are becoming more common — and harder to spot. These scam businesses often look real online, with slick websites, convincing emails and even fake reviews. Their goal is to gain your trust, then get your money or personal information.

The good news? Knowing what to look for can help protect you. With a few simple steps, you can slow down, check company credibility and avoid becoming a victim of a scam business.

Understanding the threat of fake companies.

A fake company is a business that doesn’t actually exist — or one that pretends to be a real, trusted brand. Scammers create these companies to trick people into sending money, sharing personal details or downloading harmful software.

These scams can impact anyone. Some people lose money. Others face identity theft that can take months or years to resolve. That’s why knowing how to check if a business is legit is an important part of protecting your financial health.

Scammers often rely on urgency, emotion and convenience. They want you to act quickly, without checking the facts.

Common tactics used by scammers.

Scam businesses tend to follow patterns. Knowing these tactics can help you recognize the warning signs early.

• Pressure to act fast. Scammers may claim an offer is “ending today,” your account is “at risk” or action is needed right away. This pressure is meant to stop you from thinking clearly.
• Offers that sound too good to be true. Deep discounts, guaranteed returns or prizes you didn’t enter to win are common red flags.
• Polished online presence. Fake companies often copy logos, layouts and language from real brands. Some sites are even created using AI to look credible and familiar.
• Unusual payment requests. Requests to pay with gift cards, digital wallets, cryptocurrency or wire transfers are common signs of a scam business.
• Unexpected contact. You may receive emails, texts or ads from a company you’ve never heard of — especially if they ask for personal or financial information.

Key indicators of a fraudulent company.

1. Urgency or pressure. You’re told to act immediately.
2. Suspicious contact information. No physical address, a generic email or only a contact form.
3. Inconsistent details. Spelling errors, broken links or mismatched company names.
4. Requests for sensitive information. Asking for passwords, Social Security numbers or full banking details.

If you notice one or more of these red flags, pause before moving forward.

Steps to verify a company’s legitimacy.

1. Pause and plan to verify. Take a few extra minutes before sharing money or personal information — slowing down is your first layer of protection.
2. Search the company name online. Look up the business along with words like “scam,” “review” or “complaint” to see what others are saying about their experience.
3. Examine the company’s website and web address carefully. Watch for small spelling changes, extra characters or unusual URLs, which are common signs of scam websites.
4. Review ratings and reviews with a critical eye. Be cautious if reviews seem overly positive, repetitive or posted around the same time — these can be signs of fake reviews.
5. Verify the company’s contact information. Legitimate businesses should clearly list working contact details, including a physical address and phone number.
6. Trust the process before moving forward. Knowing how to confirm a business is legitimate can help you avoid costly mistakes and protect both your money and your identity.

Utilizing trusted resources for company verification.

These trusted resources can help you verify if a business is legitimate:

• Federal Trade Commission opens in a new window (FTC): Learn about current scams and report suspicious activity.
• State business directories: Confirm if a business is legally registered.
• Consumer protection agencies: Look for alerts or complaints tied to the company.
• Trusted financial institutions: Banks can often help you assess suspicious payments or requests. Commerce customers can report fraud by calling 800-453-2265.

How to report a suspected scam.

If you believe you’ve encountered a fake company:

• Stop all communication.
• Do not send money or personal information.
• Report the scam to the FTC at ReportFraud.ftc.gov opens in a new window.
• Notify your bank or credit card company right away.
• Commerce customers can report fraud by calling 800-453-2265.

Reporting helps protect not only you, but others too.

Protecting yourself from business fraud.

The best defense against scam businesses is staying informed. Here are a few smart habits to build:

• Slow down and trust your instincts.
• Never share personal or financial information without verifying the business.
• Be cautious with links, ads and unsolicited messages. Fake companies often use professional-looking websites and ads to scam consumers.

Scammers rely on speed, confusion and trust. But confidence comes from being informed. Learning how to verify if a business is legitimate helps you stay in control and protect what matters most.

Before doing business with a company you don’t know, take a moment to pause and verify. Learning how to check if a business is legitimate can help protect your finances — and your peace of mind. Explore Commerce Bank’s financial education resources for practical tips, tools and guidance to help you make confident, informed decisions every step of the way.