Beware: Scammers Impersonating Law Enforcement Target Businesses Over PPP Loan

Boise, Idaho… The Idaho Department of Finance (IDOF) urges the public to be aware of a recently reported scam targeting small business owners. Scammers impersonating various law enforcement agencies are contacting business owners claiming they are being investigated for fraudulently obtaining Paycheck Protection Program (PPP) loans, regardless of whether or not they have been repaid or forgiven.

Fake/phony

In the report IDOF received from a local financial institution, a business owner was contacted via phone by a purported deputy, claiming to have an active arrest warrant against them due to a missed court date related to the investigation of their PPP loan. To legitimize the claim, the scammer provided elaborate phony court and/or legal documentation, including documents describing an arrest warrant that purports to require the posting of a cash bond and then instructions to make a payment (through a cryptocurrency kiosk) to resolve the warrant and avoid jail time.

Although the PPP is not accepting new applications, scammers leverage publicly available information to target, intimidate, and exploit small businesses.

Here is what you need to know:

-These scammers use tactics including, but not limited to, impersonating law enforcement agencies, threatening legal action, arrest, or financial penalties, and pressuring the victim to act quickly.

-Law enforcement will never contact you by phone, email, or text to demand money or personal information. Never share personal or financial details over the phone or in response to unsolicited emails or texts.

-Always verify the caller's identity by contacting the agency they claim to represent using a verified phone number.

-Report suspected scams to the Federal Trade Commission (FTC) at https://reportfraud.ftc.gov. For more information on PPP scams, visit the Small Business Administration website at https://www.sba.gov.