Submit Corporate Minutes
How the scam works:
This scam occurs regularly in states where corporations are required by law to submit annual reports. It could come your way via telephone or…lime-green envelopes.
Scenario 1. Scammers call companies claiming to be government representatives and inquire about the submission of corporate minutes, sometimes using the expression “Compliance services”.
Not knowing about all the legal aspects, employees fall victims by providing sensitive information about the business.
Scenario 2. In a different variation of the scam, lime-green envelopes (see photo) are being delivered to your business, claiming to be from a company called Corporate Records Service (latest scam was reported to occur in Pennsylvania, but this CRS is not affiliated with the Department of State or the Commonwealth of Pennsylvania).
The form is called an annual minutes form and asks for information on shareholders, corporate directors and minutes from any meetings of shareholders in the past year. The form also asks for a payment of $125.
The letter also claims that any business that does not reply quickly will be listed in bad standing with the state– another bogus claim.
How to avoid:
Educate yourself. Research. Depending on your state, chances are the law requires submission of annual reports, but not of corporate minutes. There’s no filing that a business must send that is called an annual meeting disclosure statement or annual meeting minutes. Tell your employees about this and make sure you keep them updated with the newest legal issues.
How to report:
Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission (FTC) using the link below:
How to protect yourself more:
If you want to be the first to find out the most notorious scams every week, feel free to subscribe to the Scam Detector newsletter here. You’ll receive periodical emails and we promise not to spam. Last but not least, use the Comments section below to expose other scammers.
Related Articles and Pages: