Regulatory Advisory: Beware of Potential Scam Involving Fake Mandatory Ownership Reporting Forms

Saturday, August 24, 2024

For Immediate Release

The DC Department of Licensing and Consumer Protection (DLCP) is issuing an important advisory regarding a potential scam that may be targeting individuals and businesses within the District of Columbia.

Details of the Potential Scam:

Scammers send out official-looking letters claiming to be from entities like the "United States Business Regulations Department" or the "Department of Records Management." These letters, often addressed to your business, may feature a notice ID number and appear to have official seals and watermarks. They may use information obtained from data breaches to create a sense of urgency and legitimacy.

The content of these letters might mention various obligations, such as:

• "Reporting obligations under the Corporate Transparency Act."
• "Federal filing requirements in accordance with recent legislation against financial crimes.

You could be directed to visit a website or scan a QR code to report your business's ownership information. The letters may also threaten large fines and severe consequences if you fail to comply.

Red Flags with the Document:

• Non-Governmental Payment Requests: The form instructs payment to be sent to a private entity rather than a government agency.
• Pressure Tactics: The document attempts to create urgency by emphasizing harsh penalties.
• Unsolicited and Unverified Requests: Many recipients have no reason to expect such a form or payment demand.

Recommended Actions:

• Do Not Respond or Pay: Refrain from sending money or providing personal information in response to this document.
• Report the Scam:
  • File a complaint with the DC Office of the Attorney General's Office of Consumer Protection.
  • Report the incident to the Federal Trade Commission (FTC).
  • If the document was mailed to you, consider reporting it to the United States Postal Inspection Service.

Spread the Word: Please share this advisory with your colleagues, neighbors, and community networks to ensure everyone is aware of this potential scam.

Your vigilance and quick reporting can help protect your business and others in our community. If you have any questions or need further assistance, please contact our office or visit our website at [email protected].