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Avoid Scams and Fraud

The convenience of shopping online brings with it a heightened risk of scams and fraud. As a prospective buyer of a business for sale, you should always be mindful and vigilant before providing anyone your personal information or sending payment of any kind. We work hard to provide our users the freshest, most comprehensive library of business-for-sale listings, but fraudsters are also working to scam you out of your hard-earned money. When we work together, we can take steps to make our online marketplaces the safest they can be. Be aware that we do not participate in any business buying transactions and cannot refund your money if you are scammed. While we work around the clock to ensure that you have a positive experience using our site, we cannot guarantee that our sites are 100% free from false or fraudulent listings.

What We Do

What We Ask You to Do

Look out for scams. Here are some of the most common red flags:

  1. Business offered below market. Scammers know that innocent buyers will be less cautious if they are motivated to close quickly on a deal so they don’t lose out on something too good to be true.
  2. Reluctant to provide financial documents or business details. As a buyer you should perform your due diligence on the business by reviewing the financial statements, questioning the seller on the reasons for the sale, understanding sales and revenue details, types of customers, staffing specifics, key expenses, etc. Most times the seller will require you to sign an NDA prior to disclosing this information. Be cautious if the Seller is demanding you provide them with personal or financial information before supplying you with details of the business.
  3. Request to wire money. If a seller insists on payment by personal check, cashier's check, wire transfer, cash, or money order, they may be planning a scam. Legitimate sellers do not ask buyers to wire money to an account, especially an account located abroad. Nor do they demand payment has to be made by Western Union, MoneyGram, Cryptocurrency, payment app, or a gift card.
  4. Claim of affiliation with us. Scammers may impersonate BizBuySell, BizQuest, LoopNet, or Find a Franchise to make it seem like we participate in the transaction or transfer of funds. We do not participate in any transactions between owners, brokers, or buyers.
  5. Dramatic seller story. The seller has received a job assignment abroad and must sell the business ASAP. You are invited to drive by the business, but no one can show it to you because the owner is already living abroad. And you need to commit in the next 24 hours because dozens of people are waiting to buy the business. A legitimate owner will meet you in person or hire a broker/intermediary and allow you to view the business before asking for a deposit to secure the business.
  6. Can’t or won’t meet in person. For whatever reason, the owner/broker/intermediary/agent refuses to meet you in person at the business location. If they are reluctant to connect with you after an NDA is signed, that is a Red Flag.
  7. Immediate action is required. Scammers want you to act before you have time to think and perform your due diligence. It is not customary to require an immediate deposit or make a same day decision on the purchase of a business. Honest organizations won’t call, email, or text to ask for your personal information, like your Social Security, bank account, or credit card numbers. The process of buying a business requires careful consideration, due diligence, and can take months from beginning to end.
  8. Bait and switch listings. All advertised listings should be available for sale, unless it has a Sale Pending indication. After inquiring about a business, if you are offered a completely different business, it may be a scam.

Note: Low cost online, virtual, or work from home businesses are popular with fraudsters. When in doubt, contact BizBuySell’s Content Quality department by email at contentquality@bizbuysell.com or by phone at (888) 777-9893.

Report scams immediately and with as much detail as possible (including copies of the communications with the scammer and money transfer details) to:

  1. Us by reporting an issue with the listing or emailing contentquality@bizbuysell.com
  2. Your local police department
  3. The Internet Crime Complaint Center (IC3)
  4. The Federal Trade Commission
  5. If you sent money by Western Union or Money Gram, those vendors’ customer service departments may be able to stop the transfer: