With the flood of information offering to help businesses survive the COVID-19 crisis, the Better Business Bureau (BBB) says it can be easy to mistake a scam for a real offer. The BBB serving Canton Region and Greater West Virginia offered examples of recent scams and advice to help small businesses avoid being taken advantage of.
In one scam, an email, text, or caller ID appears to be from the US Small Business Administration (SBA) or an attorney representing the SBA. The contact says it is offering grants for small businesses affected by the coronavirus outbreak, and has a simple application requesting banking and business information. After being “approved,” the business owner is asked to pay a processing fee up to a couple thousand dollars.
The BBB.org/ScamTracker received several recent reports about a sophisticated new twist. After the “government agency” contacts the business owner about the grant, a friend then reaches out through Facebook. The friend appears to be someone the business owner knows and says he or she received money from the grant. Of course the “friend” is not really a friend, but a compromised Facebook account to lure the business owner.
The BBB offered the following tips to spot a small business loan scam:
· Legitimate government entities will have websites and emails that end with .gov such as www.sba.gov.
· Do a quick internet search for similar scams. Many government agencies helping small businesses are offering loans and other programs. Be sure to confirm that the offer is real before sharing personal or business information. Find the agency website through an online search (never click on a link in an email) and be sure the program is on their website.
· Government agencies do not typically text or communicate through social media avenues such as Facebook. Be wary of unsolicited messages.
· If you are required to pay money to claim a free government grant, it is not really free. A real government agency will not ask you to pay an advance processing fee.
For more information about business resources and loans, visit the SBA at www.sba.gov. For more consumer tips regarding COVID-19, visit www.bbb.org/coronavirus.
