Business owners should beware of government impersonation scams

Business owners are being targeted by a growing wave of sophisticated scams in which criminals impersonate government agencies to extract money or sensitive company information.

You know how much official paperwork crosses your desk. Licenses, renewals, compliance notices — it’s part of the job. But lately, there’s a new kind of “paperwork” showing up that deserves your immediate skepticism: scam letters and emails posing as government agencies.

These messages are very convincing. You receive a letter that looks polished and authoritative, complete with a notice ID number, formal language, and even official-looking seals or watermarks. The sender’s name may sound legitimate — something like a “United States Business Regulations Department” or a “Department of Records Management.” At first glance, nothing seems out of place.

But look closer. The letter often claims that your business must urgently report ownership or compliance information to a federal entity, such as the Financial Crimes Enforcement Network, or another official-sounding department. In many cases, it includes threats of steep fines, penalties, or legal consequences if you fail to act quickly.

You’re instructed to visit a website, click a link, or scan a QR code to “complete your filing.” That site may look official, but it’s designed to capture sensitive business information — or even payment details.

Scammers rely on urgency and fear to push you into acting without thinking. If a letter or email demands immediate action, that’s your cue to pause, not panic.

So how do you protect yourself? First and foremost, always verify the source. If you receive suspicious correspondence claiming to be from a government agency, don’t use the contact information provided in the letter. Instead, look up the agency’s official phone number or website independently and reach out directly. A legitimate office will be able to confirm whether the notice is real.

Second, pay close attention to the quality of the communication. While some scam letters are highly polished, many still contain telltale signs such as grammar mistakes, spelling errors, awkward phrasing, or inconsistent formatting. Logos may look slightly off, or the layout may feel unprofessional upon closer inspection. These small details can be important clues that something isn’t right.

Third, scrutinize any website you are directed to, especially when using QR codes. While QR codes are convenient, they can easily mask malicious links. After scanning, always check the URL carefully. Legitimate government websites in the United States will end in “.gov” and should begin with “https://,” indicating a secure connection. If the web address looks unusual or does not match an official domain, do not proceed.

Another critical rule: do not engage with suspected scammers. Do not click links, download attachments, or provide any information. Block phone numbers and email addresses associated with the scam to prevent further contact.

Finally, report the incident. Government impostor scams are a serious crime and reporting them helps authorities track patterns and potentially stop the perpetrators. Business owners who encounter these scams should file a report through the FBI’s Internet Crime Complaint Center at ic3.gov. Also, report it to BBB Scam Tracker.

In an era where information is readily accessible and digital tools make deception easier than ever, vigilance is key. Scammers are counting on haste and distraction. By verifying sources and recognizing the warning signs, you can protect yourself and your company from costly and damaging fraud.

Running a business requires vigilance on many fronts, and today that includes guarding against increasingly sophisticated fraud. The good news is that a little skepticism goes a long way. When something feels off, trust that instinct, double-check the source, and remember that real government agencies don’t pressure you into acting blindly.

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