Termination Scams: Don't Fall for Fake Job and Contract Cancellations

Imagine opening your inbox to find an urgent email from HR saying you've been fired. Or maybe you're a small business owner who receives a message from a trusted supplier claiming they're terminating your contract—along with a final invoice you need to pay immediately.

The instinct to act quickly takes over. But wait—what if it's all a scam?

Cybercriminals have found a new way to manipulate fear and urgency. Fake termination emails—whether posing as job firings, contract cancellations, or supplier exits—are catching employees, freelancers, and small business owners off guard. These emails look real, often mimicking legitimate HR notices or business communications. But their true purpose is to trick victims into giving up login credentials, transferring money, or downloading malware.

Employment scams aren't new, but this tactic flips the script. Instead of offering fake jobs, scammers create chaos by pretending to fire employees or abruptly end business contracts—exploiting panic to push victims into hasty, risky decisions.

If you run a small business, you need to know how these scams work, why they're so dangerous, and how to protect yourself if or when one lands in your inbox.

What Do Termination Scams Look Like?

Scammers disguise their emails to look like real messages from HR, business partners, or even longtime clients. These emails are designed to cause fear and urgency so that the recipient clicks without thinking.

Common termination scam scenarios:

Fake employee termination: An employee receives an email, supposedly from HR or the business owner, saying they've been fired. To see their termination letter, they must log into a portal—but it's a phishing site that steals their credentials.
Fake contract cancellations for small businesses: A small business owner receives a contract termination email from a longtime supplier or vendor. It includes a "final invoice" attachment—but opening it infects the device with malware.

Fake freelancer job cancellations: A freelancer gets an email from a fake client (or the other way around) saying their services are no longer needed. The scammer asks for "final billing details" to process payment, but their goal is to steal bank account information or trick them into sending money.

Why Are Termination Scams Dangerous for Small Businesses?

Unlike large corporations with dedicated IT teams, small businesses and freelancers often lack cybersecurity protections, making them easier targets.

Here's why termination scams pose a big risk:

Loss of access to business accounts. Employees tricked by phishing emails might hand over work credentials, allowing hackers to access company emails, client data, or financial accounts.
Malware infections that steal or encrypt data. Clicking on a fake invoice or attachment could install malware, leading to ransomware attacks that lock a business out of its own files.
Financial fraud and reputational damage. If a small business owner pays a fake invoice, they could lose thousands of dollars. Worse, if scammers gain access to a company's email, they could impersonate the business and trick clients into sending money to a fraudulent account.
Operational disruptions. If an employee believes they've been fired, they may panic, stop working, or share sensitive information before realizing the email was fake.

How Termination Scams are Evolving

Cybercriminals constantly improve their tactics to make fake termination and contract cancellation scams harder to detect.

New threats to watch out for:

More convincing phishing emails. Scammers now use AI-generated emails that have fewer spelling mistakes and look more professional, making them harder to recognize.
Deepfake voice scams. Attackers can use AI-generated audio clips that sound like a business owner or HR manager, tricking employees into believing the message is real.

Fake contract terminations via text (Smishing). Instead of email, scammers may send fraudulent termination messages via SMS or WhatsApp, making them seem urgent.
Compromised business emails (BEC scams). If a hacker gains access to a real HR or supplier email, they can send legitimate-looking termination notices from an actual business account.

How to Protect Your Small Business from Termination Scams

As scams evolve, traditional warning signs like spelling errors and strange email addresses may not be enough—making cybersecurity even more important.

Take these steps to safeguard your business, employees, and data:

Verify before acting. If you receive an unexpected termination or contract cancellation email, don't click links or open attachments. Contact the sender directly using a known phone number or official email.
Educate employees and freelancers. Train your team to recognize phishing scams and always double-check unusual requests.
Enable Multi-Factor Authentication (MFA). Even if attackers steal a password, MFA adds an extra layer of security to prevent unauthorized logins.
Use strong, unique passwords. Never reuse passwords across accounts, and store them securely in a password manager.
Update all business devices regularly. Install software updates on all computers, phones, and apps to patch security vulnerabilities.
Invest in cybersecurity solution that protects you from phishing and scams. One of the most effective ways to protect your business is to block phishing emails before you even see them. A security solution like Bitdefender Ultimate Very Small Business Security detects and filters out fraudulent messages, scam emails, and malicious links, reducing the risk of falling for these attacks. Scam Copilot, also included, helps small business owners analyze emails, identify phishing attempts, and detect scams in real-time—giving you confidence before clicking any link or responding to an urgent message.

Check out our plans for small businesses.

FAQs

What are termination scams, and how do they work?

Termination scams are phishing attacks where scammers send fake job termination or contract cancellation emails to employees, freelancers, or small business owners. These emails often contain malicious links or attachments designed to steal login credentials and financial data or install malware.

How can small businesses protect themselves from termination scams?

Small businesses can protect themselves by training employees to recognize phishing emails, verifying unexpected termination or contract cancellation messages directly with the sender, enabling multi-factor authentication (MFA), and using cybersecurity tools like Bitdefender Ultimate Very Small Business Security to block scams and malware.

How do I recognize a fake job termination or contract cancellation email?

Warning signs of a termination scam email include urgent or threatening language, suspicious sender addresses, unexpected attachments, requests for login credentials or for payment. Always verify such emails with HR, business partners, or vendors before taking action.