The Federal Trade Commission (FTC) is warning small businesses that they are being targeted by scammers through a new coronavirus-related scam. The scam “starts with an email that claims to come from the ‘Small Business Administration Office of Disaster Assistance.’ It says you’re eligible for a loan of up to $250,000 and asks for personal information like birth date and Social Security number.”
Unfortunately, many small businesses have been dramatically affected by the coronavirus and are seeking assistance to help retain their employees employed and keep their doors open for business. However, governmental agencies will never send an email advising you that you are eligible for a loan and will never ask for your Social Security number over email. Such material is sent through the mail and on official applications and letterhead.
In addition, governmental agencies will not call to advise you that you have been accepted for relief or ask you for your personal information over the phone. These are scams intended to get you to tell them your Social Security number so the caller can open up credit card or other accounts in your name without your knowledge.
The same is true for scam websites offering assistance with small business loans. If you need to apply for a loan, go to a trusted entity that you have done business with before. Scammers are using the coronavirus, the need for relief, and the government’s Disaster Loan program to fraudulently obtain funds from unwary small business owners. Be wary of these scams and websites and report any fraud to the FTC.