Attention Washington Business Owners:

A seemingly annual scam, targeting small businesses, is circulating, posing as the Washington Secretary of State's Office. These sophisticated scammers are sending fake letters demanding excessive fees for business filings and threatening fines, dissolution, or even jail for non-compliance. These scams also include phone calls targeting business owners with specific threats. While, typically, scammers are “easy” to spot, our firm found this version to be quite advanced, compared to the usual methods. We wanted to ensure that our clients, as well as any business owner reading this article, are informed of the new risk.

Scammers

What to Look Out For:

1. Official Appearance: Letters include the state seal, your business name, and the Unified Business Identifier (UBI). This information is included to give that official appearance, but do not be fooled, this information is publicly available.
2. Red Flags: Fake addresses (e.g., a fake ZIP code on a version we received), websites ending in .org instead of .gov, and inflated or unnecessary filing fees.
3. Scare Tactics: Threats of penalties or late fees to create urgency. The dates on the letters, as well as those given during any received phone calls, will instill a sense of urgency to reduce your likelihood of asking questions. Many businesses will receive this letter after already successfully filing with the State, leading to more confusion.

Steps to Protect Yourself:

1. Verify Legitimacy: Always confirm business filing requests directly with the Washington Secretary of State at the Corporations and Charities Filing System (CCFS). All filing fees, and the official mailing addresses, for these government agencies will be found on their respective .gov websites.
2. Report Scams: If you suspect fraud, contact the Attorney General's Office.
3. Stop Payments: If you've already paid, consider halting payment through your bank or financial institution.

Remember: You're not alone! King County Superior Court has had success in numerous cases against similar scammers attempting to demand excessive fees from Washington businesses and nonprofits. Legitimate communications will come from .gov domains, and most business filings can be completed directly with the Secretary of State for minimal fees. Visit their website directly or call (360) 725-0377 for assistance.

Stay vigilant and protect your business from scams! If you have received a notice or letter, regarding your business, that you feel may be fraudulent, please do not hesitate to contact our office to talk to one of our attorneys. The Whipple Law Group is here to help provide business succession plans and assist you in integrating your businesses into estate planning to ensure your legacy is protected.