The Federal Trade Commission (FTC) warned small businesses of a new COVID-19 related scam targeting them.
In a blog post, Lesly Fair, attorney, Division of Consumer and Business Education, FTC, stated, “There’s a new coronavirus-related scam making the rounds, but this time the crooks are targeting small businesses. It 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. Let’s do a CSI-style investigation to spot clues that the email is a fake.”
Fair said there are three clues the email is a fake:
- The email or phone call claiming to be from the Small Business Administration came from out of the blue;
- You were told you’re automatically eligible for a big loan;
- You’re asked to hand over your date of birth and Social Security number.
“Phishing attempts aren’t the only scam that business owners are reporting. We’ve heard from people who have applied for loans through websites pretending to be part of the SBA’s Economic Injury Disaster Loan program, which has been extended to Dec. 31, 2021. And other people report they’ve been contacted to repay loans they never took out. The likely culprits? Criminals who illegally applied for loans in their name,” Fair stated.
She provided the following steps to help protect yourself:
- Check your credit report;
- Look for reliable sources of information; and
- Check our lenders before sharing personal information.