State Officials Warning CT Businesses About 'Government Imposter Scam'

CONNECTICUT — High-ranking state officials Friday warned businesses to avoid an ongoing potential government imposter scam targeting Connecticut businesses.

The alert was issued by Attorney General William Tong, Secretary of the State Stephanie Thomas, Commissioner of Banking Jorge Perez and Commissioner of Consumer Protection Bryan T. Cafferelli.

In the scheme, they said, a company called CT UCC Statement Service attempts to get businesses to pay $90 for a copy of something called "a Uniform Commercial Code report." While the solicitation is designed to look like a government notice, the company has no affiliation with the State of Connecticut, Tong said.

UCC reports may be accessed for free via the Secretary of the State’s website at business.ct.gov.

A UCC financing statement is a form documenting that a creditor, such as a bank, has a lien on a borrower’s personal property. The forms are filed with the Secretary of the State and provide proof of the assets subject to the lien to other creditors, according to Tong.

While the company notes in small print that it is "not affiliated with any state or government agency," and that businesses are not required to use their services, such a disclaimer may not be sufficient, officials said.

"This company has zero affiliation with the State of Connecticut and there is no need to pay for their useless services. If you receive this letter, do not respond. If you have paid any money to this business, please file a complaint with my office," Tong said.

Businesses should be on "high alert" to avoid becoming a target of scams, especially with the annual report filing deadline coming up on March 31, Thomas said.

"Our business.ct.gov website can provide members of the public with access to many documents free of charge, including copies of UCC reports and liens," Thomas added.

"It is important for businesses to keep an eye out for these types of scams," Perez said. "This company, in particular, targets business entities that recently obtained a loan or other extension of credit. These mailed solicitations are misleading and deceptive as they attempt to charge a fee in exchange for obtaining documents that businesses can access at no cost."

State officials are advising businesses to carefully read any correspondence that appears to charge a fee in order to obtain any documents) associated with a loan or other extension of credit.

"Before paying any type of fee, businesses should independently verify the company and contact the appropriate government agency with any concerns," Perez said.

"Scammers pay attention to when filing deadlines for businesses are looming and then try to take advantage of a stressful and busy time for business owners by asking them to pay for services that are actually free," Cafferelli said. "Business owners should never give in to threatening letters, emails, or calls that encourage them to act immediately or face consequences. Those kinds of pressure tactics are almost always the signs of a scam. And if you’re unsure, you can do research online, or send an email or make a phone call to the correct agency to verify the notice you received is false before paying any money to a scammer."

Government imposter scams can take many forms and can target individuals and businesses alike. Scammers may mail solicitations or send emails to businesses to "advise" them that they must purchase certain products or forms, or file particular reports in order to be in compliance with the law.

The scammers then offer to assist businesses with satisfying these requirements in exchange for a fee, officials said.

Cafferelli said scammers are careful to design their mailings to resemble official government documents by incorporating elements such as seals, bar codes, and references to statutes and regulations. The mailings may include terms such as "IMPORTANT" and "OPEN IMMEDIATELY" or “TIME SENSITIVE” to create a false sense of urgency.

Businesses that fall prey to these tactics end up paying significant fees for services they either do not need, or could take care of themselves for much less money, officials said.

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To report a scam or instance of fraud to the Office of the Attorney General, please file a complaint online here: https://www.dir.ct.gov/ag/complaint.