Most people think identity theft applies only to individuals. Businesses can be hit to. A new scam involves manipulating Secretary of State filings to scam businesses. 

Who is the ideal target for a scam – an individual or a business? The answer is a middle sized business, preferably one with 10 to 100 employees. Why is this? Middle sized businesses tend to be extremely bad at watching their expenses. As a result, smaller rip-offs can occur without anyone really noticing. 

The classic example of this was the fake delivery guy. He would appear in the lobby trying to deliver a package to somebody with an odd name. There was no such person at the business of course. The delivery man would then tell the receptionist that it was a rush delivery and he needed to call his main office to find out what they wanted him to do. The delivery man would then call a line that would charge the business something like $29 a minute. The charge would almost always be skipped when the bill was checked and, walla, the business had been ripped off. 

The new approach goes in a different direction. This scam takes advantage of the slack procedures of the Secretary of State. Most filings are done by mail with no personal interaction. A certain group of scammers have realized this. They’ve started filing forms indicating a change of the board of directors and officers of companies. They then get a certification from the Secretary of the State. The next step is to start opening credit card accounts, credit lines and applying for loans. Businesses in Colorado have been having this problem and only find out when the creditors start calling. 

So, can businesses expect the Secretary of State in their jurisdiction to make changes to their procedures? Please. Most states are reducing the hours and number of staff in their offices. Not only will this new scam not be countered, it should become more prevalent throughout the country. If you own a business, watch out for it.