Small businesses warned of scam involving this tactic

Small business owners are seemingly the targets of a new scam going around.

The Idaho Department of Finance has reported scammers are impersonating law enforcement agencies and telling small businesses they’re being investigated for fraudulent activity regarding the Paycheck Protection Program (PPP).

A financial institution initially reported to IDOF that “a business owner was contacted via phone by a purported deputy, claiming to have an active arrest warrant against them due to a missed court date related to the investigation of their PPP loan.”

The report added that the scammers provided fake legal documentation, “including documents describing an arrest warrant that purports to require the posting of a cash bond and then instructions to make a payment (through a cryptocurrency kiosk) to resolve the warrant and avoid jail time.”

No new applications are being accepted as part of the PPP, but scammers use publicly available information to target small businesses, IDOF stated in a release. The department advised small businesses to be aware of the following:

• These scammers use tactics including, but not limited to, impersonating law enforcement agencies, threatening legal action, arrest or financial penalties, and pressuring the victim to act quickly.
• Law enforcement will never contact you by phone, email or text to demand money or personal information. Never share personal or financial details over the phone or in response to unsolicited emails or texts.
• Always verify the caller’s identity by contacting the agency they claim to represent using a verified phone number.
• Report suspected scams to the Federal Trade Commission (FTC). For more information on PPP scams, visit the Small Business Administration website.