- Randy Hutchinson is president and CEO of the Mid-South Better Business Bureau.
Over the past two years, the Tennessee Secretary of State (SOS) has issued warnings to three companies that try to force businesses, including churches and nonprofit organizations, to pay exorbitant fees to obtain state documents they don't need. I've done it. The FTC has warned of similar scams involving federal agencies.
In 2022, SOS said a Nashville company called Tennessee Certificate Existence Filing Company was sending notices to businesses and other organizations saying they would have to pay a $175.50 fee to obtain a certificate of existence. issued a warning.
The notice included an official-looking seal and other features and language that appeared to be from the state of Tennessee. The fine print reveals that the company is not affiliated with the government.
In reality, such forms exist that may be required in some cases, such as when a business applies for a loan, but even then they may not be necessary. And you can get the form from SOS for $20.
Beware of fake government letters demanding immediate payment
SOS issued a warning about a similar scam in January this year. A company called TN UCC Statement Service was sending notices to businesses that they needed to obtain UCC-1 financial statements for $107. This is also a legal form that creditors use to notify a borrower that they have a lien on their property, but it is rarely needed and is available from SOS for $15.
And in March, SOS alerted businesses to official-looking notices from a company called Tennessee Business Filing Center telling them they had to pay hundreds of dollars to complete their annual returns. .
Such filings must be completed by April 1 of each year for companies to maintain active status to legally conduct business in the state, but SOS warned: . We would like to remind all organizations that our office provides these same services at a significantly lower cost. ”
The Federal Trade Commission also warns about scammers sending out fake government notices demanding immediate payment from businesses to register or renew business licenses or trademarks. They use fake government agency names, send businesses to fake girlfriend websites, and request license, social security, EIN, and credit card numbers.
Email fraud is also widespread.
Businesses should read the details of official-looking notices and be wary of those they receive from third-party companies that claim to be affiliated with or approved by a state or federal agency. there is. The government will never request payment using wire transfers, gift cards, cryptocurrencies, or payment apps.
Before paying money to what appears to be a government agency, use the number you found yourself to verify that it is legitimate. Don't let the threat of fines or other negative consequences intimidate you into paying a fee or taking another action that may or may not be justified.
Fake mailings can contain grammatical and spelling errors that aren't found on legitimate government forms. Also, be wary if the email address on the form is Gmail, Yahoo, or similar instead of .gov.
If you receive a notification via email or text, do not click on any links or attachments. May download malware. Please report to the FTC or appropriate state agency.
Randy Hutchinson is president and CEO of the Mid-South Better Business Bureau.
