BOISE, Idaho — The Idaho Department of Finance (IDOF) is wanting people to be aware of a scam targeting small business owners. The scammers are pretending to be law enforcement, contacting business owners that they are being investigated for Paycheck Protection Program (PPP) loans, regardless of whether they have been repaid or forgiven.
The PPP is not currently accepting new applications. The scammers are accessing public information about small business owners, and leveraging that info to exploit them.
The scam reportedly works like this: the small business owner is contacted via phone by a "deputy," claiming to have an active arrest warrant out in their name, due to a missed court date related to the PPP loans. The scammer will go to great lengths to legitimize the claim, going as far as providing fake court dates and documents.
Scammers then describe the arrest warrant, stating that there is a cash bond attached to it, and to make a payment through a cryptocurrency kiosk. If payment is made, the arrest warrant goes away.
Here's what IDOF wants you to know about this scam:
- They are using a variety of tactics, including impersonating officers, threatening legal action, arrest, financial penalties and pressure on the victim.
- Law enforcement will never contact you by phone, email or text to demand money or personal information.
- Never share personal or financial details over the phone
- Always verify the caller's identity by contacting the agency they claim to be from, using a verified phone number.
- Report suspected scams to the Federal Trade Commission (FTC).
For more information about PPP scams, visit the Small Business Administration.
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