FinCEN Warns About New BOI Reporting Scams

2024-11-19

Earlier this year, the Corporate Transparency Act became effective, requiring certain businesses to report detailed information on ownership. Known as Beneficial Ownership Information (BOI), it includes details on owners that either directly or indirectly control a company.  By collecting this information, the federal government hopes to increase anti-money laundering rules by increasing the transparency of business and its ownership. Under these rules, companies are required to report the names, dates of birth, addresses, and an identifying number such as Social Security, passport, driver’s license, etc. Not only is this information valuable for transparency, but it has become of increasing interest to scammers.

The Financial Crimes Enforcement Network FinCEN recently revealed several new BOI reporting scams targeting unsuspecting individuals. These include a request for payment to file relevant information, a request to complete Form 4022, a mailing with a custom URL or QR code, and other correspondence from a fictitious US Business Regulations Department. These are all fraudulent; recipients should not respond to or provide any information from such requests. To help clients, prospects, and others, JLK Rosenberger has summarized the key information about each scam tactic below.

BOI Reporting Scams

The concern about scams surrounding BOI Reporting is not new. FinCEN had warned filers about fraudulent communications when the database started accepting submissions. Since that time, the scams have become more sophisticated and twist the truth to compel individuals to share their information. These include:

• Request for Payment Scam – Many individuals have reported receiving correspondence requesting payment in order for the BOI report to be submitted. There is no fee to file BOI directly with FinCEN, and the agency does not send correspondence requesting money or payment. Do not send money to any mailing that claims to be from FinCEN or other government agencies.
• Form 4022 Scam – This scam involves a request to complete Form 4022, which is allegedly needed to complete the filing process. The form which appears to be legitimate is fake because the agency has no such form. Do not send any information to anyone requesting a completed Form 4022.

Source: Frost Law

• QR Code Scam – Since the goal of the scam is to steal information, scammers have created false websites where unsuspecting individuals are directed to enter BOI details. Bad actors distribute communications with custom URLs or QR codes that take the recipient to a seemingly authentic site. However, this is not the case. It is advised not to click on suspicious links or attachments or scan any QR codes provided in emails or unsolicited mailings.
• Phone Scams – There have been multiple reports of companies calling to offer assistance in the filing process. The tone of the calls can vary between friendly reminders about the need to file intimidating threats of daily fines and even jail time for noncompliance. These are fake calls designed to steal personally identifiable information (PII) and should be avoided.
• US Business Regulations Dept Scam – This is one of the cleverer scams in circulation because of the official-sounding name. Bad actors send a request asking for BOI or other personal information and direct it to be submitted to this department. This is not a real government agency, and attempts to collect money using this name are fraudulent.

Reporting Beneficial Ownership Information

All information should be reported directly through the FinCEN website. The e-filing system allows individuals to file a BOIR report or an online BOIR. The former permits an individual to download a PDF document that must be completed and uploaded to the site. The latter receives information through a secure form.  Only submitting information on the FiNCEN site using these two approved methods will ensure sensitive data is not stolen.

Contact Us

Scammers are increasingly targeting small business owners unfamiliar with BOI reporting requirements, creating risks for inadvertent information sharing. While JLK Rosenberger does not provide direct assistance with BOI compliance, we understand the importance of staying informed on this issue. We can connect you with trusted resources to guide you in the right direction. For additional information, call 949-860-9902 or click here to contact us. We look forward to speaking with you soon.