Running a business involves navigating a range of compliance obligations, such as filing formation documents and completing annual reports with state offices, and maintaining intellectual property, like trademarks. But one unintended consequence of completing these required filings is exposure to scam mail.

These filings often require businesses to include a mailing address in the filing, and as a result, it is made public. Shortly after, the business may receive official-looking notices by mail; however, these are often scam mailings taking advantage of the address being made public in the filing. These deceptive solicitations often use official-looking formatting or scare tactics to pressure business owners into paying for unnecessary, or completely fraudulent, services. After having a few of these recently brought to my attention by clients, I thought it might be helpful to blog about them.

How Your Business Becomes a Target

When you complete filings with governmental agencies – such as registering your business with a state agency (e.g., the Secretary of State of your state) or filing for a federal trademark with the United States Patent and Trademark Office (USPTO) – certain information becomes part of the public record and can easily be found online. This may include your business name, business mailing address, and organizer’s name, among other types of information. Unfortunately, scammers use this publicly available data to craft convincing letters which appear to come from government or official-looking agencies, and which seem like they must be paid as a result of the business’s recent activity, when in fact, they are really unnecessary or scams.

Common Types of Scam Mail

Scam mail can be hard to spot. These mailings may include official looking language, official looking phone numbers, government-like form references, bar codes, and formatting similar to filings you may have completed in previous state or federal filings. Some common types of scam mail are listed below, although this is certainly not an exhaustive list.

Annual Report Notices: these mailings seem to require the business to pay for an annual report, or for the completion of filing an annual report. While states do require annual filings, the state will reach out to remind you every year before they are due. By contrast, these scam notices come from private companies posing as government agencies. In these mailings, they may ask to charge a premium to complete these state filings even before they are due, or for something you can file yourself at a much lower cost. They may also be entirely fraudulent and attempt to charge you for a service with no benefit or compliance function.

Certificate of Good Standing: some mailings will state that you need to obtain a Certificate of Good Standing, or will offer to obtain one for you, even if you don’t need one. These services often charge exorbitant fees for a certificate you can obtain directly from your state for a nominal amount. Certificates of Good Standing are really only necessary when a third party (like a bank) asks for proof that your business is current on its state requirements. Certificates of Good Standing are not otherwise needed regularly.

Trademark Monitoring or Renewal: after filing a trademark, you might receive letters offering “monitoring,” “watch services,” or early “renewal assistance.” These may sound legitimate, but are often overpriced and unnecessary, especially if you’re already working with an attorney or managing your filings directly.

How to Spot a Scam

What makes these mailings seem so convincing is how they look. They may come from companies using names that sound similar to government offices, or they may suggest some penalty for not complying with their ask. As a result, it may be hard for a business to feel comfortable ignoring these. Here are some red flags that suggest a mailing may not be legitimate:

• • Government-style formatting, but with vague or incorrect agency names (e.g., “CO Corporate Certificates”). Instead, you should look for whether the mail comes from “Secretary of State,” “United States Patent and Trademark Office,” or whichever relevant state agency you were in contact with.
  • High fees for simple filings, like ordering a certificate of good standing.
  • Urgent language like “IMMEDIATE ACTION REQUIRED,” or threats of fines and penalties.
  • Return addresses that don’t match the address of your state’s actual Secretary of State or the USPTO.
  • No website or unclear contact information. Often the best way to spot a scam is to do an internet search on the name of the sender.
  • Asking for payment by check or credit card, and often for vague things like “compliance services.”

Government agencies, like your Secretary of State and the USPTO, have resources that explain scams reported to them, which may also help you spot scams.

Protecting Your Business

While being able to spot scam mailings is likely enough, there are some further steps you can take to protect your business. These include:

• • Know your deadlines: stay informed about what you need to file (such as annual reports, trademark renewals, etc.) and keep a calendar of important filing dates, so you can tell when you’re being offered an unnecessary service.
  • Verify everything: if you receive a convincing, or suspicious notice, you can always cross-check the details with the official state website or office, or call the agency directly.
  • Work with a professional: an attorney can help filter these communications and can advise on when filings are actually needed.
  • Shred or delete suspicious documents: if you receive something that seems like a scam, don’t respond – and definitely don’t send money or personal information. Simply shred (or delete if electronic).

What to Do If You’re Unsure

Simply ignoring these mailings can be stressful, especially if they include “urgent” language or refer to penalties for noncompliance. If you’re unsure about whether something is legitimate, don’t hesitate to reach out to your attorney or your state’s business services division. It’s always better to double-check.

Conclusion

Public filings are a necessary part of doing business, but they also create a window of opportunity for bad actors. By staying informed and vigilant, you can avoid falling victim to these scams.

If you need help navigating compliance issues (or have any other legal concerns), please feel free to contact our office at info@jrwiener.com to connect with one of our attorneys.

 

Disclaimer: The information contained in this article is for general informational purposes only and does not constitute legal advice. The content provided should not be relied upon as a substitute for consultation with a qualified attorney. For specific legal questions or situations, please consult with a licensed legal professional who can provide advice tailored to your particular circumstances.