Is This Business a Scam? How to Tell Before You Get Caught Out

You’re on a website or checking out a business online, and something just doesn’t sit right. You start to wonder, “Is this business a scam?”

That’s a smart question. In 2024 alone, Australians lost more than $480 million to scams, according to the ACCC’s Scamwatch. It's never been more important to double-check who you’re dealing with before handing over your money.

Whether you're shopping, booking a service, or signing up for something new, here’s how to protect yourself.

1. Search the Business Name Online

• Type their name into Google
• Add words like “scam,” “reviews,” or “fraud”

If you see complaints, suspicious posts, or nothing at all, that’s a red flag. A legitimate business usually leaves some kind of digital footprint.

2. Use VerifiedBusiness.ai

VerifiedBusiness.ai is a free and easy way to check if an Australian business is the real deal. It can show you if a company is:

• Officially registered
• Linked to a valid ABN
• Operating under its real business name

Look for the Verified Business badge on the company’s website, often in the bottom left corner. Clicking the badge confirms that the site has passed key verification checks.

3. Review Contact Info and Website Quality

• No phone number or physical address
• Generic or free email accounts like Gmail
• Bad grammar, blurry images, or outdated pages

Legit businesses usually use a branded email, have clear policies, and invest in professional websites.

4. Check Payment Methods

• Be cautious of direct bank transfers or crypto
• Look for secure checkout (https:// and a padlock icon)

Stick with credit cards or trusted payment platforms. Scammers prefer options that can’t be reversed.

5. Look Up Reviews on Google or Forums

Check for real feedback from real people. Be cautious if:

• There are repeated complaints about scams or missing products
• The business has no reviews at all
• The reviews seem fake or overly generic

6. Trust Your Gut

If something feels off, don’t ignore it. Scammers rely on people rushing. Take a breath and double-check.

Also read: How to Check if a Website Is Trustworthy in 5 Steps

Final Advice

With the right tools and a little caution, you can stay ahead of scammers. When in doubt, search for the Verified Business badge or check a company’s status at VerifiedBusiness.ai.