Don’t Fall For It: The Small Business Guide To Avoiding BOIR Scammers

What’s Actually Required?

The Corporate Transparency Act requires Small Business Owners to self-report who the owners of their business are FinCEN. This is a legitimate requirement that began January 1, 2024 to help stop terrorism financing and drugs coming into the United States. Like most new regulations it’s not a clean and easy path to roll out successfully the first year. You should know that:

• Filing is done through FINCEN or Certified FINCEN Partners like Palm 
• The filing fee is FREE → if you are paying, you are probably doing it wrong.

Common BOI Scam Red Flags

Be on alert for these warning signs that you are being targeted.

1. Unsolicited Communications
   • Emails, calls, or text messages claiming to be from FinCEN
   • Messages threatening penalties for non-compliance
   • Urgent demands for immediate action
2. Payment Requests
   • Any request for payment to file BOI reports
   • Demands for filing fees or processing charges
   • Requirements to provide credit card information
3. Suspicious Website Links
   • URLs that look similar to but aren't exactly fincen.gov
   • Links in emails directing to third-party filing services
   • Websites requesting sensitive business information

Examples of Fraud 

How to Protect Your Business

Follow these steps to ensure safe BOI compliance:

1. Use Official Channels Only

• File directly with FINCEN Verified Partners only
• Verify website addresses carefully before entering information
• Make sure you know who you are working with
• If you are paying more than $50.00 for help, it's a scam.

2. Safeguard Your Information

• Keep your business's financial information confidential
• Never share EIN or banking details with unverified sources
• Use secure, official channels for all BOI-related communications

3. Educate Your Team

• Share information about BOI scams with employees
• Establish protocols for handling unsolicited requests
• Create a process for verifying legitimate communications

What to Do If You've Been Targeted

If you encounter a BOI-related scam, Palm can help. We will

1. Report it to:
   • The FBI's Internet Crime Complaint Center (IC3)
   • Your state's attorney general's office
   • The Federal Trade Commission
2. Document everything:
   • Save copies of suspicious emails or messages
   • Record details of any phone calls
   • Screenshot suspicious websites

Conclusion

As BOI reporting requirements continue to roll out, scammers will likely increase their efforts to exploit small business owners. By staying informed and following these guidelines, you can protect your business while complying with legitimate reporting requirements. Palm is a verified FINCEN partner and is here to help you stay compliant AND Safe.

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