Fraud and Scamming on the Rise in Southern Florida: What Small and Mid-Sized Businesses Can Do

In 2024, fraud and scams surged across the United States, with Southern Florida emerging as a hotspot. The Federal Trade Commission (FTC) reported that Floridians lost approximately $866 million to fraud, with the Miami metro area leading the nation in reported cases, about 2,163 per 100,000 residents. Small and mid-sized businesses (SMBs) are particularly vulnerable, often lacking the resources to implement robust cybersecurity measures.​ *Axios

The Escalating Threat Landscape

Nationally, the FTC noted a significant uptick in fraud losses, totaling $12.5 billion in 2024—a 38% increase from the previous year . Investment scams led the pack, accounting for $5.7 billion in losses, followed by imposter scams at $2.95 billion. Notably, 38% of fraud reports involved financial loss, up from 27% in 2023. ​Federal Trade Commission

In Florida, imposter scams are rampant. Residents reported losing $54.8 million to business imposters and $45.7 million to government imposters in 2024, according to Axios. These scams often involve fraudsters posing as legitimate entities to extract money or sensitive information.​

Real-World Impact on Local Businesses

Loria Stern, owner of the small bakery Eat Your Flowers, shared her experience with a counterfeit check scam. After receiving a seemingly legitimate $7,500 order, her team began preparations. However, the client reduced the order and disappeared, leaving the bakery with unrecoverable expenses Business Insider. Such incidents underscore the importance of vigilance and verification in business transactions.​

Expert Insights and Recommendations

Morgan Wright, a senior fellow at the Center for Digital Government, emphasized that small businesses are particularly at risk for cyberattacks. He noted that 50% of affected SMBs close due to the high costs associated with cyber incidents, averaging $500,000 for legal fees, insurance, and technical assistance Midland Reporter-Telegram.​

Cybersecurity experts recommend the following measures:​

• Employee Training: Regularly educate staff on recognizing phishing attempts and other common scams.​
• Secure Systems: Implement firewalls, antivirus software, and regular system updates to protect against malware.​
• Verification Protocols: Establish procedures to verify the authenticity of requests, especially those involving financial transactions.​
• Access Controls: Limit access to sensitive information and systems to authorized personnel only.​

Resources for Florida Businesses

The Florida Department of Financial Services offers a “Check My Contract” portal to help businesses verify the legitimacy of contractors and prevent post-storm fraud FLDFS. Additionally, the Florida Attorney General’s Office provides guidance on protecting against small business scams My Florida Legal.​

What Southern Floridian SMBs Can Do To Prevent and Avoid Scams

As scams continue to target businesses across the Sunshine State—especially in rapidly growing commercial areas like Sarasota, Naples, Fort Myers, and Miami—small and mid-sized business (SMB) owners must take proactive steps to defend their livelihoods.

Actionable Tips for Prevention:

• Vet All New Clients and Vendors: Use secure payment processors and verify large orders or contract details before fulfilling services or shipping products.
• Create a Verification System: Implement dual-approval processes for wire transfers, payroll changes, and financial requests. Never approve such requests based on email or text alone.
• Train Your Team: Host quarterly fraud prevention workshops and conduct monthly phishing drills. Many scams succeed simply because an employee clicked the wrong link.
• Use Multi-Factor Authentication (MFA): Require MFA for logins to financial accounts, CRM platforms, and any email systems tied to billing or vendor communications.
• Secure Your Devices: Keep your business software, antivirus programs, and firewalls up to date. Consider working with an IT firm specializing in small business security.
• Insure Against Cyber Risk: Many insurers now offer cyber liability insurance tailored to small businesses. This can provide financial protection in the event of a breach or fraud attempt.

Connect With Local Resources

Many banks, financial institutions, and community groups across Southern Florida offer workshops, networking events, and fraud prevention training tailored to small businesses:

• Suncoast Credit Union and Regions Bank regularly host free small business fraud prevention seminars. Topics often include identity theft, check fraud, and digital payment security.
• SCORE Mentors South Florida and local chambers of commerce (such as the Greater Sarasota Chamber of Commerce or the Fort Myers Chamber of Commerce) host events that include cybersecurity training, Q&A with financial crime experts, and peer-led panel discussions.
• Small Business Development Centers (SBDCs) at Florida Gulf Coast University and USF Sarasota-Manatee often partner with banks to provide free or low-cost cybersecurity training courses and can help create a fraud response plan.
• Broward County’s Cybersecurity Alliance for Small Businesses holds quarterly meetups and publishes scam alerts in coordination with the Florida Attorney General’s Office.

Regions Bank: Trusted Tools for SMB Fraud Prevention

For business owners in Southern Florida looking to proactively secure their finances, Regions Bank—a trusted institution with a strong regional presence—offers some of the most effective tools available to safeguard day-to-day operations against fraud.

Two standout resources from Regions’ Treasury Management division are ACH Positive Pay and Check Positive Pay, both of which are powerful defenses against unauthorized transactions:

✅ ACH Positive Pay

ACH Positive Pay helps businesses monitor incoming Automated Clearing House (ACH) debit transactions. With this tool, you can:

• Pre-authorize vendors and partners who are allowed to debit your account
• Automatically reject or review unauthorized transactions
• Receive alerts in real time, giving you greater control and faster response capabilities

This is essential for protecting your business account from fraudulent ACH withdrawals—one of the most common tactics used in digital business scams today.

✅ Check Positive Pay

Check Positive Pay is designed to combat check fraud, still a persistent issue even in a digital age. This service works by:

• Comparing checks presented for payment against a list of issued checks provided by your business
• Flagging and rejecting checks that do not match the details on file
• Offering timely alerts and manual approval options to ensure no false positives slip through

Together, these systems provide a multi-layered fraud protection strategy that’s ideal for small to mid-sized business owners who manage payroll, vendor payments, and multiple accounts across different channels.

Regions’ Commitment to Education and Protection

Beyond tools, Regions Bank regularly hosts in-person and online fraud prevention seminars for businesses. These sessions include tips on how to recognize fraud indicators, set up internal controls, and respond quickly to suspected attacks. They also offer dedicated support through Treasury Management Consultants, who can help set up these tools and tailor them to your business’s specific needs.

For many businesses in Sarasota, Naples, Fort Myers, and surrounding areas, partnering with Regions provides peace of mind. Their fraud prevention tools aren’t just software—they’re a full-service solution backed by real people who understand the risks that modern SMBs face every day.