Scammers are impersonating government to target offices

The Tennessee Secretary of State (SOS) has issued warnings in the past two years about three companies that attempt to get businesses, including churches and nonprofits, to pay exorbitant fees for state documents they may not need. The FTC has warned about similar scams involving federal government agencies.

In 2022, the SOS issued a warning about a Nashville company called the Tennessee Certificate Existence Filing Company that was sending notices to businesses and other organizations telling them they needed to pay a fee of $175.50 to obtain a Certificate of Existence.

The notices contained an official looking seal and other features and language that made it appear to be coming from the State of Tennessee. Fine print disclosed that the company wasn’t affiliated with the government.

There really is such a form that businesses might need in some cases, such as when they apply for a loan, but maybe not even then. And they can get the form from the SOS for $20.

Beware fake government letters demanding immediate payment

The SOS issued a warning about a similar scam in January of this year. A company called the TN UCC Statement Service was sending notices to businesses saying they needed to obtain a UCC-1 financing statement for $107.

Again, a legitimate form that creditors use to give notice that they have a lien on an asset of a borrower, but it’s rarely needed and can be obtained from the SOS for $15.

And in March, the SOS issued an alert about official-looking notices from a company called the Tennessee Business Filing Center telling businesses they have to pay hundreds of dollars to complete an annual filing.

Businesses do have to complete such a filing by April 1 each year to maintain an active status to legally operate in the state, but the SOS warned: “We have seen similar situations in recent years targeting the good faith of our business community, and we want to remind all entities that our office provides these same services at substantially lower costs.”

The Federal Trade Commission also warns about scammers sending fake government letters demanding immediate payment from businesses to register or renew a business license or trademark.

They use phony government agency names and send the businesses to fake websites that ask for their license, Social Security, EIN and credit card numbers.

Email scamming is become more prevalent, too

Businesses should read the fine print on any official-looking notice and be wary of any they receive from third-party companies that claim to be affiliated with or approved by a State or Federal government agency. The government will never ask for payment using a wire transfer, gift cards, cryptocurrency or a payment app.

Before paying money to a supposed government agency, verify it’s legitimate using a number you found on your own. Don’t be pressured by threats of fines or other negative consequences to pay a fee or take another action you aren’t sure is legitimate.

Bogus mailings may contain grammatical or spelling errors that you wouldn’t expect to see on a legitimate government form. And be wary if an email address on the form is Gmail, Yahoo, or something similar rather than .gov.

If the notice comes via email or text, don’t click on a link or attachment; it could download malware. Report it to the FTC or appropriate State agency.

Randy Hutchinson is president & CEO Better Business Bureau of the Mid-south.