Social engineering scams are on the rise, and merchants of all sizes are being targeted. These scams use urgency, authority, and fear to trick employees into revealing sensitive information or making costly changes — often without realizing anything went wrong until it’s too late.

In this guide, we’ll explain what social engineering is, the most common scams targeting merchants, and practical steps you can take to stop attacks before they cost you money or data.

What Is Social Engineering?

Social engineering is a form of fraud where criminals manipulate people into breaking normal security procedures. Instead of hacking systems, scammers exploit trust, pressure, and confusion.

These attacks often happen over:

• Phone calls
• Emails
• Text messages
• Fake support chats

And they frequently impersonate:

• Payment processors
• Banks
• POS vendors
• Internal staff or ownership

Why Merchants Are Prime Targets

Merchants handle sensitive information every day:

• Payment credentials
• Terminal access
• Bank account details
• Customer data

Scammers know that busy employees may act quickly — especially when they believe a payment system issue could interrupt sales.

The Most Common Social Engineering Scams Targeting Merchants

1. “Processor Support” Phone Calls

Scammers pose as payment processor or terminal support and claim there’s a system issue that needs immediate attention.

Red flags include:

• Urgent language
• Requests for passwords or codes
• Pressure to install software or reset terminals

2. Fake Chargeback or Fraud Alerts

Merchants receive emails or calls warning of chargebacks, fraud, or account suspension unless action is taken immediately.

Goal: Get login credentials or bank information.

3. Terminal Replacement Scams

Fraudsters claim the merchant must replace hardware due to EMV upgrades or compliance issues and ask for payment or access.

4. Email Phishing and Invoice Scams

Fake emails look legitimate and may include:

• Payment links
• Attachments
• Requests to “verify” information

Once clicked, malware or credential theft follows.

5. Impersonation of Ownership or Management

Employees receive instructions that appear to come from a company owner or manager requesting urgent payment changes.

Warning Signs That a Scam Is in Progress

Train staff to watch for:

• Unsolicited contact
• Urgency or threats
• Requests for sensitive information
• Pressure to bypass normal procedures
• Caller ID or email addresses that look “almost right”

When in doubt, pause.

Practical Steps to Protect Your Business

1. Establish Clear Verification Procedures

No one should change payment settings or share information without verification.

2. Limit Access

Only authorized staff should have access to:

• Terminals
• Gateways
• Merchant portals
• Banking details

3. Train Employees Regularly

Education is your strongest defense. Teach staff to recognize social engineering tactics.

4. Never Share Credentials

Processors will never ask for passwords, PINs, or verification codes.

5. Use Call-Back Verification

If someone claims to be support, hang up and call the official number on file.

What to Do If You Suspect a Scam

Act quickly:

1. Stop communication immediately
2. Disconnect affected systems
3. Contact your payment provider
4. Change passwords
5. Monitor transactions and bank activity

Fast response can prevent major losses.

Why Payment Partners Matter

A trusted payment provider doesn’t just process transactions — they help protect merchants.

The right partner will:

• Educate merchants on emerging scams
• Offer proactive fraud monitoring
• Provide clear escalation paths
• Never pressure you into rushed decisions

Final Thoughts

Social engineering scams are effective because they exploit human behavior — not technology flaws. Awareness, training, and clear procedures are the best defenses.

By slowing down, verifying requests, and working with a trusted payment partner, merchants can protect their systems, staff, and customers from costly attacks.