Directory listing scams: how to protect your business

We sell directory listings, so we'll say this plainly: some people who call you about a "listing" are not selling anything real. Directory and advertising scams have targeted small businesses for decades, and the Federal Trade Commission still warns about them. Knowing how they work is the best way to say no to the fake ones and yes, carefully, to the real ones.

How the scam usually goes

The FTC describes a familiar script. Someone calls about your business listing. They might say it's free. They might say they're just confirming your information for an existing order, or renewing a listing you already have. Sometimes they pretend to be from a well-known name like the Yellow Pages.

Then an invoice arrives. It's for a listing you never agreed to buy, and often for a lot of money. If you push back, the FTC says scammers may use details of the earlier call, or even a recording of it, to pressure you into paying. An older FTC publication describes how these outfits send invoice after invoice, sometimes with a useless "directory" attached, and how they threaten collections or legal action, or offer a fake "discount" to get you to settle.

The overdue-bill version

In 2018, as part of a sweep called Operation Main Street, the FTC went to court against a group operating as Premium Business Pages. According to the FTC, callers told small businesses they owed past-due bills for online directory listings, search engine optimization, web design or hosting, and threatened to send the account to collections or "red flag" it if they didn't pay. The businesses had never ordered anything. If a business paid, more calls followed, sometimes claiming the payment was only the first installment.

The FTC's own short video on this puts it simply: if you didn't agree, don't pay.

Fake invoices that look routine

A close cousin is the fake invoice. The FTC says scammers send phony bills that look like they're for things your business actually uses: office or cleaning supplies, or domain name registrations. They count on whoever pays the bills assuming it's real, especially when it looks urgent, like something that keeps your website running.

How to protect your business

The FTC's guidance boils down to a few habits:

1. Never pay an invoice unless you can confirm you ordered it and received it. Tell your staff the same.
2. Limit who can approve purchases and pay invoices. Make the process clear so a convincing caller can't talk a new employee into it.
3. Don't "confirm" anything on an unexpected call. Don't give your business details for a "free" listing or agree to "verify" an existing order. Ask for everything in writing and check it against your records.
4. Verify through a contact you already know. If a call or invoice claims to be from a company you work with, contact that company yourself using information you trust.
5. Avoid untraceable payment methods. The FTC warns against paying by wire transfer, reloadable card or gift card.
6. Keep unordered merchandise. If you receive merchandise you didn't order, the FTC says you have a legal right to keep it and use it for free. Don't pay for it.

A quick script for your front desk

Something like this works well:

"Thanks for calling. We don't confirm or renew listings by phone. Please email the details, including what we'd be paying and who ordered it, and the owner will review it."

Real businesses are fine with that. Scammers usually aren't.

How to evaluate a real directory before you pay

Legitimate directories exist, ours included, and some are worth paying for. The FTC's older guidance says that if you're considering a listing in a legitimate business directory, check it out before you spend any money. Questions worth asking:

• Who runs it, and can you find a real company name, contact email and policies on the site?
• Does it show you the actual page where your listing would appear, and do those pages show up when people search?
• Is pricing written down before you pay, with clear renewal and cancellation terms?
• Are paid placements labeled as featured or sponsored, so readers aren't misled?
• Do they ask you to pay through a normal, traceable method like a credit card?

Our guide on deciding whether a directory listing is worth paying for goes deeper, including how to track the calls and clicks you actually get.

If you've already been hit

• Don't pay the bill if you didn't agree to it.
• Dispute card charges with your card issuer quickly if you paid by card.
• Keep everything: invoices, emails, call notes and any recordings they mention.
• Report it. The FTC takes reports at ReportFraud.ftc.gov, and your state attorney general's office handles consumer and business fraud complaints too.

Frequently asked questions

They have a recording of my employee saying "yes." Do we have to pay?

The FTC says scammers may use details or recordings from earlier calls to pressure you, and its guidance is that if you didn't agree to buy, you shouldn't pay. If the pressure continues, talk with a lawyer and report it.

The caller says they're from Google and my listing will be removed unless I pay. Is that real?

Be skeptical. Google describes its Business Profile as free. Check your profile directly in your own Google account rather than through a caller. Our Google Business Profile basics guide has more.

How do I know your directory listings are real?

Fair question, and the same checks apply to us. Every listing appears on a public page you can look at, prices are listed on our advertise page before you pay, payment goes through a standard card processor, and paid placements are labeled. Our refund policy is published too.

This is general information, not legal advice. If you're facing collection threats over a bill you didn't agree to, consider talking with a lawyer.