Small businesses are being warned about potential fraudsters aiming to exploit the Paycheck Protection Program (PPP) financial relief. These con artists pretend to be representatives from the Small Business Administration or other entities, coaxing businesses into releasing sensitive information.
These fraudsters use deceptive methods such as phishing emails and fake websites to trick unsuspecting businesses. The Federal Trade Commission has issued warnings regarding such scams and is encouraging all PPP recipients to stay alert.
A stark example of such scams is Raleigh-based business owner Victor Font. He received a fraudulent phone call from someone claiming to be from the Wake County Sheriff’s Office.
PPP scams hitting small businesses
The caller said that Font had numerous outstanding arrest warrants and demanded immediate payment to avoid imprisonment.
The scammer, posing as a law enforcement official, falsely claimed that Font’s PPP loan was fraudulent and demanded a ransom. Posing as law enforcement, the fraudster scared Font into transferring funds into a provided account believing he was evading legal trouble.
Font paid a supposed ransom of $5,500 before requested for an additional $6,000. Font later discovered the scam when he found out there were no impending legal actions against him at the Federal Courthouse in Raleigh.
Font is now raising awareness about these scams, advising others to independently verify any claims and exercise caution and diligence when dealing with suspicious communication. He is also working closely with the local law enforcement and cyber-crime units, offering of all necessary information to track down and prosecute these fraudulent individuals.
