PPP Loan Scam Alert from Idaho Officials

The PPP is no longer accepting new applications. Scammers, however, are utilizing public information about business proprietors to manipulate them.

BOISE, Idaho – The Idaho Department of Finance (IDOF) wishes to alert people concerning a fraudulent scheme targeting small-scale business entrepreneurs. Posing as law enforcement, the scammers inform business owners that they are under investigation for Paycheck Protection Program (PPP) loans, whether or not these loans have been repaid or forgiven.

Despite the current closure of the PPP for new applications, scammers exploit public knowledge about small business proprietors.

The scam reportedly unfolds as follows: A so-called “deputy” contacts the small business owner via a phone call, asserting there’s an active arrest warrant under their name due to an absent court date for PPP loans. To substantiate their claims, the scammer supplies false court dates and documents.

The scammers go on to detail the arrest warrant with a cash bond attached, recommending the payment via a cryptocurrency kiosk. Upon payment, the arrest warrant supposedly disappears.

Important Information from IDOF about this Scam:

Scammers employ a slew of techniques, including officer impersonation, legal action threats, arrest threats, financial penalties, and exerting pressure on their targets.
Never will law enforcement demand money or personal information via phone, email, or text.
Never disclose personal or financial details over the phone.
Always validate the caller’s identity by reaching out to the claimed agency via a verified contact number.
Report any suspected scams to the Federal Trade Commission (FTC).

For additional insights about PPP scams, consult the Small Business Administration‘s website.