Protecting Your Business from Digital Marketing Scams

Digital marketing scams – like any scam – can impact your business’s finances, data, and stability. In 2023, there were at least 330,000 reports of business impersonation alone. With marketing scams, you might not even know you’re a victim unless you’re in-the-know.

What Are Digital Marketing Scams?

Digital marketing is big business, with companies spending $694 billion annually to build their online presence and drive leads to their business. Scams in the digital marketing space involve:

• Deception.
• Financial loss.

For example, you may come across a marketing company that promises you’ll reach the No. 1 position on Google. You pay them money every month, and what happens? Nothing. Your rankings may go up or down, but in the end, you won’t reach the top spot on Google or any search engine because no one can guarantee these results.

Unfortunately, many businesses fall into these “too good to be true” scams because they trust scammers who pose as professionals and make claims that sound good but are impossible to guarantee.

Why Businesses Are Targeted

Businesses are the main target of digital marketing scams because they have the resources to pay for marketing. Small shop owners often do not have the budget for extensive marketing, but other companies will gladly spend more than 5% to 10% of their revenue on marketing.

Why focus on low-value targets when you can focus on businesses?

Larger businesses often have more than enough money to invest in these scams, and many will take months or longer before realizing they’re not getting the results they’ve been promised.

The Financial and Reputational Impact of Digital Marketing Scams

Investing money in marketing is part of running a business, but when it’s a scam, you risk damaging your:

• Finances because your return on investment is unlikely to be recuperated.
• Capital due to scams creating urgency and asking for fees for things, such as domain renewal.
• Resources by sending fake leads to your sales team that have no intention to buy your products or services.

Certain scams may also have reputational repercussions, such as losing credibility because scammers are known to use phishing attacks to target companies, steal credentials, and gain access to critical information.

If you know how to identify common scams, you can protect your business against them.

Beware of These Common Types of Digital Marketing Scams

You know some of the dangers marketing scams pose to businesses, but how do you protect against them? Start by learning how the scams work and training your team to be aware of them and how to spot them.

SEO and PPC Fraud

“We help you reach the No. 1 spot on Google in one month,” or “We guarantee top rankings for your website,” sound like promising phrases, but they’re not. Search engines undergo algorithmic changes multiple times a year.

And no one can promise No. 1 rankings or results because they don’t control search engines.

Everyone is vying for a top spot on Google or Bing, and while SEO can help you reach this goal, companies promising rankings are being dishonest.

PPC can help you buy ad space at the top of the results, but there’s also fraud in pay-per-click advertising. Scammers will:

• Claim higher results than you’re seeing.
• Inflate costs to improve their profit margins.
• Remove all transparency from reporting.

Your digital marketing agency must be transparent, and if they’re not, you have to question, “why?”

Fake Leads and Bots

Your business wants leads, right? Someone fills out your form, you track its accuracy, and a member of your sales team tries to convert the lead into a sale. Scam marketing agencies will send fake leads to your sales team or even bot traffic.

Leads may be up 100% to 300%, but when conversions are down by 100%, what happens?

You’re losing money and spending valuable resources on fake leads. Bot traffic is also similar because bots are not people, nor are they interested in your product or service. If you’re not analyzing the quality of the leads or bots, it’s time for you to question if it’s your marketing agency scamming you.

Phishing and Social Media Scams

Phishing scammers try to trick your team into giving out sensitive information they can then use to steal data. On top of phishing scams, we’re also seeing an uptick in social media scams which can include:

• Buying fake engagement or followers.
• Spending money on influencer marketers who inflate metrics.

Scammers will make it seem like you’re getting results – 20% more followers – but if the followers are bots, they never do the one thing you want them to do: generate sales.

Fake Agency and Consultant Scams

Until you use a marketing agency first-hand or have one recommended to you, it’s impossible to know if they’ve created a fake image of success online. Scammers will create an impressive portfolio and website with great:

• Services.
• Pricing.
• Testimonials.

But these companies may be 100% fraudulent. One way to avoid agency and consultant scams is to reach out to the companies of people leaving reviews and testimonials and see if they’re legitimate or not.

If you’re still unsure if you should train your team to recognize scams, consider the following:

How Digital Marketing Scams Threaten Business Operations

Digital marketing scams can wreak havoc on a business’s operations by costing it money, harming its reputation and putting its sensitive information at risk.

According to the Association of National Advertisers, digital ad fraud alone costs a staggering $120 billion annually.

If you’re not taking steps to protect your business from digital marketing scams, you may be risking:

Wasted Marketing Budget

Social media marketing and PPC can deliver real results for businesses, but when companies use bots to artificially inflate your following, view your ads, and boost your engagement, you’re throwing away your marketing dollars.

A wasted marketing budget means missed opportunities to truly expand your customer base and build brand awareness.

Cybersecurity Breaches

Digital marketing scams can put your business at a higher risk of a cybersecurity breach, which can put your sensitive information at risk.

Damaging Customer Trust

If a digital marketing scam leads to a data breach, it can tarnish your reputation with your customers and damage the trust you’ve worked so hard to build with them.

Scams can damage customer trust in other ways, too. For example, if an agency is buying fake followers and engagement on social media, your customers may find out and lose faith in your business. There’s also a risk your accounts could be banned entirely.

Customer trust is already difficult to win.

Strategies to Protect Your Business from Digital Marketing Scams

Understanding the most common types of digital marketing scams and how they work is an important first step in protecting your business. 

Knowledge will only take you so far, but you need to act. There are several strategies you can employ to safeguard your business from scams.

Due Diligence When Hiring Marketing Agencies or Consultants

One of the most effective strategies you can use to protect against digital marketing scams is to do your due diligence when hiring agencies or consultants.

Anyone can claim they get results for clients, but do they have the proof to back up those claims? What are their credentials? Do they have case studies or references?

Along with researching their reputation and reviews, you should also:

• Review their strategy. Are their objectives realistic and feasible? Do they have a clear path or strategy to achieve these objectives?
• Assess how they measure their results. Which metrics do they track? Do they offer reports, and how often do they meet with clients to update them on their progress?
• Inquire about their experience in your industry. Have they worked with other clients in your industry? Do they understand your target customers and know how to reach them?

Taking the time to carefully vet each potential digital marketing agency can go a long way in helping you protect your business from scams. Reputable agencies will be happy to answer all of your questions and explain their strategies. If an agency is refusing to be transparent, it’s time to move on.

Using Secure Payment Methods and Contracts

Conducting your due diligence is just one piece of the puzzle. Even if you find an agency you’re interested in working with, you still need to take additional steps to protect your finances and ensure the team will deliver on its promises.

Before you even get to the payment stage, make sure there’s a contract and take the time to review the contract’s terms.

• Deliverables.
• Reporting requirements.
• Payment schedules.

If a company is demanding money before delivering its services, this is a serious red flag, and you should consider finding another agency.

Make sure you read the contract carefully and understand the terms and conditions before you sign on the dotted line. You may even want to consult with a lawyer to review the contract first.

Additionally, make sure the company is using secure payment methods to protect your business’s finances. Make sure you understand when payments are due and the payment methods they accept.

Regular Audits and Monitoring of Marketing Campaigns

Whenever you partner with a digital marketing agency, it is crucial to ensure you have a way to track the progress of your campaigns. Having the ability to monitor and audit your marketing campaigns allows you to gauge whether your investment is paying off and if the agency is delivering on its promises.

Any business can fall prey to a digital marketing scam. Knowing what to look for and how to protect yourself is key. Do your due diligence when hiring a marketing agency, ensure there’s a solid contract in place and keep tabs on the progress of your campaigns to ensure your investment is paying off.