The Rise of Scammers Preying on Small Trade Businesses

Scams targeting small trade businesses are on the rise, with dodgy marketing firms and sophisticated fraudsters finding new ways to exploit hardworking tradies. From overpriced SEO services that deliver no results to elaborate financial scams, these threats can leave small businesses out of pocket and struggling to recover.

Understanding how these scams work and how to protect your business is essential.

Common Scams Targeting Tradies

1. SEO and Digital Marketing Scams

Many tradies invest in digital marketing to generate leads, but some SEO firms make big promises and deliver little to nothing in return.

Take the case of Melbourne electrician Jason Rainsforth, who paid nearly $20,000 for SEO services only to receive almost no website traffic or leads. Despite being locked into a costly contract, his business saw no improvement. When he tried to leave, he was asked to pay out half the remaining fees.

Signs of an SEO Scam:

• Guaranteed rankings on Google (no one can guarantee this)
• Pressure to sign long-term contracts without clear deliverables
• Extra fees for services that should be included
• Little to no improvement in search rankings or website traffic

(Image source: Deposit Photos)

2. Fake Invoice and Payment Redirection Scams

Scammers impersonate suppliers or customers, tricking tradies into paying fake invoices or redirecting payments to fraudulent accounts.

How It Works:

• You receive an email or text from what appears to be a trusted supplier, asking you to update payment details.
• You pay the invoice, only to realise later that the real supplier never received the funds.
• The scammers vanish, leaving you to chase the money with little success.

Prevention Tips:

• Always verify bank details directly with suppliers before making changes.
• Use secure invoicing and payment systems.
• Train staff to spot suspicious emails and calls.

3. Spoofing and Bank Scams

Scammers use technology to impersonate banks, convincing tradies to transfer their savings to a ‘safe account’—which turns out to belong to the scammers.

One Melbourne tradie lost $58,000 when he received a text appearing in his bank’s existing message thread. Believing it was genuine, he called the number and followed instructions to transfer his money. By the time he realised it was a scam, it was too late.

How to Stay Safe:

• Never trust messages requesting urgent bank transfers.
• Contact your bank using the official phone number (not the one in the message).
• Enable two-factor authentication on bank accounts.

(Image source: Pexels)

Protecting Your Trade Business from Scammers

1. Be Wary of Long-Term Contracts
   • Whether it’s SEO services or equipment leases, always review contracts carefully. If possible, opt for shorter agreements with performance reviews.
2. Verify Everything
   • Double-check payment details, supplier changes, and marketing claims before committing money.
3. Educate Yourself and Your Team
   • Train employees to recognise red flags in emails, calls, and messages.
4. Use Trusted Platforms
   • Listing your business on reputable platforms like ServiceSeeking can help you gain visibility without falling for dodgy marketing schemes.

Scammers are becoming more sophisticated, and small trade businesses are prime targets. By staying informed, verifying all transactions, and choosing trustworthy marketing platforms, tradies can protect their hard-earned money. If you’re looking for a reliable way to get leads and grow your business, consider listing on ServiceSeeking—a proven platform where tradies connect with real customers.

Don’t let scammers take advantage of your business. Stay vigilant, ask questions, and safeguard your livelihood.