Scammers have concocted a new coronavirus-related scam, and this time they’re targeting businesses. Business owners reportedly received emails that appeared to be related to government-sponsored loan programs. But they are actually phishing messages, trying to trick people into handing over personal information. The Federal Trade Commission offers tips on how to spot the latest scam and how to defend your company’s good standing (and your good reputation) from other coronavirus scams targeting businesses.
This is how hustle works. An email will appear in your inbox claiming to be from the Small Business Administration’s Office of Disaster Assistance. According to the news, you’re eligible for “personal/business loans up to $250,000,” and applying is easy. Just fill in your name, address, cell phone number, date of birth and Social Security number. The email was signed by an SBA self-proclaimed “loan expert.”
A little CSI-style investigation can help you discover what aspects of your email are moving your Shady-o-Meter into the red zone.
Messages from government agencies appear without any prompting from you? In light of the Federal Trade Commission’s warnings about government imposter scams, this should activate your deflection shields. Are you already eligible for an unsolicited Personal/Business Loan up to $250,000? In your dreams, but unlikely in the real world. Requesting personal information, including date of birth and Social Security number? Email, welcome to the trash.
There is, in fact, an SBA Office of Disaster Assistance, and its mission is, to quote the email, “to provide low-interest disaster loans to businesses of all sizes,” and the email appears to be from a legitimate-sounding agency. “Loan expert”? This just proves that scammers know how to cut and paste.
Phishing attempts are not the only form of financial deception reported by business owners. We have heard from companies applying for loans through websites that falsely claim affiliation with the SBA. This strategy has resulted in FTC enforcement actions and the issuance of multiple FTC-SBA warning letters. We have also heard from business executives who have been asked to repay loans they never took out. What could be the possible culprit? Criminals combine stolen personal information to obtain loans in someone else’s name or in the name of a company.
To stay afloat during uncertain economic times, many business owners are seeking funding through the SBA’s Economic Injury Disaster Loan Program (which has been extended through December 31, 2021) or from other lenders. No matter where a business looks to borrow money, there are steps you can take to help protect yourself.
Check your credit report regularly. The worst time to learn that someone has applied for a loan in your name is when you apply for the loan yourself. So, check your credit report before you start looking for a business loan and monitor it regularly. Please visit www.annualcreditreport.com, an authorized source of free reports where consumers are protected by law. In addition, the three major credit bureaus will provide free weekly online reports to consumers through April 2021. (Of course, if you’re not currently in the market for a loan, freezing your credit can provide an additional, no-cost measure of protection.) If you’re concerned that a loan may be issued in your company’s name, consider checking out a separate service that maintains business credit reports .
Find reliable sources of information. Looking for a business loan? Don’t click on links in unsolicited emails. And don’t play financial disaster roulette by typing terms into a search engine and trusting what appears on the screen. Scammers often use similar-sounding names and URLs, false endorsements, and professional-looking websites to lure their online traps. The safest bet is to start your search at www.sba.gov, the official website of the U.S. Small Business Administration. Or contact a trusted financial institution in your community.
Check the lender before sharing personal information. There’s a reason information crooks sometimes pretend to be lenders. This gives them the perfect excuse to request highly sensitive data – information that scammers use to obtain loans in the names of unsuspecting business owners. So don’t leave your personal information behind by filling out numerous online applications with a lender you don’t know. Take a more selective approach and research potential lenders first. If you see a problem, please submit a report at ReportFraud.ftc.gov.
Follow the Business Blog for the latest news on small business loans and coronavirus-related scams that may be targeting your company.
