Be Aware of Fraudulent Scams Under the Corporate Transparency Act

Understanding FinCEN's Warning

FinCEN has learned about fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act. These scams can cause significant harm, so it's essential to be informed and vigilant.

Types of Fraudulent Schemes

Fraudsters are using various tactics to deceive you. Be aware of the following fraudulent schemes:

• Fake Forms: Scammers may reference a “Form 4022” or “Form 5102.” These forms do not exist. FinCEN does not have any such forms. Therefore, do not send Beneficial Ownership Information (BOI) to anyone based on these false claims.

• Non-existent Departments: Be cautious of any correspondence that mentions a “US Business Regulations Dept.” This is a fraudulent entity; no official government office goes by that name.

  
  

How to Identify Fraudulent Correspondence

It's crucial to recognize the signs of fraud. Here are some common indicators:

• Requests for Payment: Legitimate filings with FinCEN come without any fees. If you receive a request for payment to file BOI, it’s a scam. FinCEN never sends official communication asking for payment related to BOI submissions.

  
  

• Suspicious Links and QR Codes: Be wary of any correspondence that instructs you to click on a potentially harmful URL or scan a suspicious QR code. Such emails or letters might be part of a scam. Always avoid clicking on unknown links or attachments to keep your information safe.

  
  

• Threats of Penalties: The agency does not initiate contact regarding penalties under the Corporate Transparency Act through email or phone. If you receive such communication, do not send payments via phone, mail, or through unsolicited websites.

  
  

Taking Precautions When Receiving Correspondence

When you receive correspondence from an unknown source, take these precautions:

• Verify the Sender: Always check the sender's identity before responding. Directly contact FinCEN through official channels if you have doubts.

  
  

• Protect Your Personal Information: Never disclose personal or sensitive information, especially concerning beneficial ownership, unless you are certain of the other party's legitimacy.

  
  

Why This Matters

Being aware of these fraudulent scams is crucial for protecting your financial and personal security. FinCEN has released alerts to raise awareness about these scams that exploit beneficial ownership reporting, as well as their name and insignia.

Conclusion

FinCEN issued a public alert on December 18, 2024, to inform the public about these fraud schemes. They exploit FinCEN’s reputation for financial gain, primarily through scams targeting beneficial ownership reporting. Awareness is the first step in protecting yourself. Learn more about these schemes and where to report them here.

Stay informed and vigilant. The safest approach is to trust your instincts and verify any suspicious communications. By following these guidelines, you can help protect yourself from fraudulent activities.