By Kiara Doyal, The Seattle Medium
Washington State Attorney General Bob Ferguson has issued a stark warning to Washington state small businesses about a sophisticated scam targeting them through fraudulent letters and phone calls. These scams, designed to resemble official government communications, demand excessive payments and threaten serious consequences, including fines, business dissolution, or even jail time.
Since early November, the Attorney General’s Office has received at least 40 complaints about these fraudulent letters. The letters, falsely claiming to come from the Secretary of State’s Office, request payments to an entity called “State of Washington Business Entities.” Featuring the Washington state seal and mimicking official government formatting, the letters are designed to mislead business owners into thinking they are legitimate.
One of these fraudulent letters included a “billing summary” exceeding $200 for filings that are either unnecessary or available directly through the Secretary of State’s website at a much lower cost. In addition to these inflated demands, the letters threaten late fees, penalties, or other consequences for failing to comply.
The letters are tailored to appear personal, often addressed directly to businesses and including their Unified Business Identifier (UBI). While this might seem like private information, the Attorney General’s Office clarified that both business names and UBIs are publicly accessible and not confidential.
Key red flags to watch for include mismatched addresses or websites that do not correspond with the real Secretary of State’s website. For example, one letter submitted to the Attorney General’s Office listed a Sacramento, California address on letterhead purporting to be from the Washington Secretary of State. A QR code included in the letter redirected recipients to a website ending in “.org,” rather than the official state domain ending in “.gov.”
The Secretary of State’s Corporations and Charities division has created resources to help businesses identify and avoid scams. Business owners can visit their “Misleading Notices & Solicitations FAQ” webpage to see examples of fraudulent communications and tips for recognizing scams. To confirm the legitimacy of any communication related to a business or nonprofit, the Secretary of State’s factsheet is another valuable reference.
If business owners receive a suspicious letter, they are encouraged to contact the Secretary of State’s office to verify their filing status. Those who have already acted on fraudulent solicitations should immediately contact their financial institution to stop payments.
Protecting small businesses from deceptive practices is a key focus of Attorney General Ferguson’s office.
Last month, a King County Superior Court judge ordered EFile Business Inc. and Online Filing LLC to pay $450,636 after they sent more than 147,000 deceptive text messages and thousands of misleading emails to Washington businesses and nonprofits. These messages demanded inflated fees for standard business filings, preying on recipients’ fears of non-compliance.
The legal actions against these companies began in May 2023, when Ferguson filed a lawsuit to hold them accountable. Later that year, a court order shut down their websites and suspended their internet domains to prevent further scams.
In January, Ferguson launched a third enforcement action against three Michigan brothers accused of running similar scams nationwide. While the specifics of their schemes vary, their tactics follow a similar pattern: sending deceptive solicitations that create the false impression they are mandatory bills from a government agency.
“Scammers can be sophisticated, but don’t be fooled,” Ferguson said. “Be on the lookout for signs of a scam. If you think you’ve been the target of a scam, contact my office.”
Any small business or nonprofit that believes it may have been targeted should file a complaint with the Attorney General’s Office. For guidance, the Secretary of State offers detailed resources for businesses and charities, including the Corporations and Charities Filing System (CCFS).
Businesses can verify their filing status through CCFS and use the Secretary of State’s rapid-response chat feature for additional assistance. They can also call 360-725-0377 or email [email protected] for more information about registration-related concerns.