Business owners should watch out for fake government letters, BBB warns

Scammers have a long history of pretending to be government officials, even before the advent of artificial intelligence.

These fraudsters send texts, emails or letters designed to trick unsuspecting people into handing over money or sensitive information. Now, it takes little time to have AI create realistic, official-looking seals and letters, and they’ve turned their sights on small business owners.

The goal? To confuse legitimate businesses into giving up their private information or paying unnecessary fees.

These scams are spreading fast, and many business owners are falling for them because the letters look so convincing. They often arrive in official-looking envelopes and bear the seals, logos, or watermarks of what sound like real departments — names such as the United States Business Regulations Department or the Department of Records Management.

The correspondence often includes a “notice ID number” and language that seems formal and urgent. Scammers use bits of personal information gathered from data breaches to make the letter feel even more real. The notice might mention something like “reporting obligations under the Corporate Transparency Act” or “a federal filing requirement in accordance with recent legislation to combat financial crimes.”

The letter directs you to report ownership information to an agency, such as the Financial Crimes Enforcement Network (FinCEN), and sometimes via a website or a QR code that appears legitimate. Then comes the threat: failure to comply could lead to large fines or even criminal penalties.

In one report submitted to the BBB Scam Tracker, a business owner described receiving “an official-looking letter from the ‘United States Business Regulations Department’” that urged them to visit an unsecured website. The letter threatened “fines for non-compliance.” Another business owner shared a nearly identical experience, receiving a notice from the “Department of Records Management, Business Filing Division,” complete with the same phone number, email, and QR code as a known scam.

Another authentic-looking fake notice circulating widely carries the subject line: “BOI Deadline Past.” The email, written in professional-sounding language, warns that businesses must submit a “Beneficial Ownership Information (BOI) Report” to comply with federal regulations under the Corporate Transparency Act.

The email goes on to list dire consequences for failing to act, which could include daily fines of up to $591, total penalties of $10,000, and even criminal charges. It ends with a friendly reminder to “File Now” via a third-party website — corporateassistance.org — that has no government affiliation.

These scams are dangerous because they prey on a business owner’s sense of responsibility and fear of violating the law. And since legitimate government agencies do send mail and email about compliance, the line between real and fake can be blurry.

Suppose you receive one of these letters or emails. In that case, the best thing you can do is avoid clicking any links, scanning QR codes, or providing any personal or business information.

Verify every piece of government correspondence. Before taking any action, contact the agency directly using an official phone number from their website — not one listed in the suspicious letter or email.

Watch for spelling and grammar errors. Misspelled words, awkward phrasing, and incorrect formatting are all red flags. Real government correspondence goes through several levels of review and rarely contains errors.

Check for secure websites. Before entering any information online, make sure the site address begins with “https://” and ends in “.gov.” Scammers often use convincing imitations that end in “.org” or “.com.”

Be cautious with QR codes. QR codes are convenient but easy to fake. If you’re asked to scan one, verify the source first — or don’t use it. Avoid engaging with scammers. Once you suspect a scam, stop replying or calling back. Block phone numbers and delete emails.

The bottom line: government impostor scams are becoming more sophisticated, but awareness is your best defense. When in doubt, verify before you comply — and share what you know with other business owners. A few minutes of caution could save you from a costly mistake.

• Steve J. Bernas is president and CEO of the Better Business Bureau He can be reached at sbernas@chicago.bbb.org.