As the government continues to roll out new rescue plans and financial aid packages to support businesses during the ongoing pandemic, business owners need to be aware of the potential for scams that may follow. With billions of dollars being distributed to businesses in the form of grants and loans, scammers are likely to see an opportunity to take advantage of vulnerable business owners.
The Small Business Administration (SBA) has already been a target for fraud during the distribution of previous relief funds, and it’s likely that we will see similar scams as the new rescue plan takes effect. Business owners should be on high alert for individuals or organizations claiming to offer fast-tracked access to relief funds in exchange for a fee or personal information.
Here are some common scams that business owners should be on the lookout for:
1. Phishing emails and fake websites: Scammers may send out emails pretending to be from the SBA or other government agencies, asking for personal information or directing business owners to fake websites where they can apply for relief funds. These emails and websites may look very convincing, so it’s important to verify the source before providing any information.
2. False promises of priority access: Some scammers may claim to have insider knowledge or special connections that will allow business owners to access relief funds ahead of others. They may ask for a fee in exchange for this supposed advantage, but in reality, they have no ability to expedite the process.
3. Loan processing fees: Legitimate relief programs do not require business owners to pay any fees to apply for or receive funds. Business owners should be wary of anyone asking for payment in exchange for help with the application process.
It’s important for business owners to be vigilant and take steps to protect themselves from falling victim to these scams. Here are some tips to avoid being targeted:
– Verify the source: Before providing any personal or financial information, verify that the person or organization you are dealing with is legitimate. Contact the SBA directly or visit their official website to confirm the validity of any communications or offers you receive.
– Be cautious of unsolicited offers: If you receive an email, phone call, or other communication out of the blue offering assistance with relief funds, be cautious. Do not provide any sensitive information until you have confirmed the legitimacy of the offer.
– Stay informed: Keep up to date with official announcements and guidance from government agencies regarding the distribution of relief funds. The more informed you are, the better equipped you will be to spot potential scams.
As the new rescue plan is implemented, business owners should remain vigilant and skeptical of any unsolicited offers or requests for information. By staying informed and verifying the legitimacy of any communications, they can protect themselves from falling victim to scams and ensure that they access the financial support they need to keep their businesses afloat.