Insights & Resources

January 26, 2024 | Alerts

Beware of Fraudulent Efforts to Obtain FinCEN Beneficial Ownership Information

Beware of Fraudulent Efforts to Obtain FinCEN Beneficial Ownership Information

On January 1, 2024, pursuant to the Corporate Transparency Act (the “CTA”), the Financial Crimes Enforcement Network (“FinCEN”), a bureau of the United States Department of Treasury, began accepting Beneficial Ownership Information Reports (“BOI Reports”) from eligible Reporting Companies. This alert is intended to warn recipients to be wary of fraudulent notices demanding recipients to provide their Beneficial Ownership Information (“BOI”) through channels other than those secured by FinCEN.

FinCEN is aware that bad actors may be trying to procure information from individuals by sending fraudulent demands for BOI. It has become increasingly common for malicious actors and fraudsters to exploit new regulatory mandates to advance their schemes and prey on trusting individuals.

To date, FinCEN has given no indication that it intends to send letters to businesses or individuals requesting information related to the CTA filing requirements. Bad actors seek to take advantage of this and have begun sending fraudulent letters in which they misrepresent themselves as FinCEN officials or the notice claims to come from a non-existent government agency.

Please note certain “red flags” which can be used to detect fraudulent attempts to obtain BOI:

  • You receive a notice that purports to be from the “United States Department of Record Management” or any other agency or department which is not an official agency or department of the United States government.
  • You receive a notice that contains an invalid governmental website address (note that all US government websites end in .gov, rather than .com, .org, .net, or .us) or has an insignia affixed that is not that of an official United States insignia.
  • You receive a notice with a “file by” date that is not consistent with the filing deadline requirements of the CTA (note that pursuant to the CTA’s implementing regulations, all Reporting Companies formed: (i) on or after January 1, 2024 but prior to January 1, 2025 have ninety (90) days to file a BOI Report; (ii) before January 1, 2024 have until January 1, 2025 to file a BOI Report; or (iii) after January 1, 2025 have thirty (30) days to file a BOI Report).
  • The only way to submit a BOI Report is through FinCEN’s secure portal or through a third party service company whom you have engaged for the purposes of filing a BOI Report.
  • FinCEN will never ask you to scan a QR code. Scanning fraudulent QR codes may compromise your device and can lead to unauthorized access of your personal and financial information.

See our related alerts below:

New Corporate and Entity Ownership Reporting Requirement

FinCEN’s Beneficial Ownership Information Reporting Portal is Now Available

For legal questions, including whether you may have received a fraudulent notice or other communication in an attempt to obtain BOI, please contact the authors, the Garfunkel Wild attorney with whom you regularly work, or contact the Garfunkel Wild FinCEN Committee at [email protected].