The COVID-19 situation is leading to a lot of financial challenges for people and businesses. As the federal government delivers stimulus checks and SBA loans to those in need, scammers are already creating ways to cash in from the crisis. The increased vulnerability of potential victims makes it even more important to watch out for these scams.
Here are some things you should know to protect yourself. Be cautious about phone calls, emails, or links that claim to be from official government or business sources offering to help you get financial aid.
SBA Loan Scams
- The SBA does not contact individuals or businesses for 7(a) or disaster loans or grants. If someone reaches out to you claiming to be from the SBA, it’s likely a scam.
- The SBA caps broker fees for borrowers at 3 percent for loans of $50,000 or less, 2 percent for loans between $50,000 to $1,000,000, and an extra quarter percent on amounts over $1,000,000. Anything above these rates is not allowed.
- If you’re applying for an SBA loan and you get an email asking for personally identifiable information (PII), confirm that the application number mentioned matches the one you submitted. SBA’s email communications come from sba.gov accounts. It is also important to note that a website displaying SBA’s logo is not necessarily legitimate. Cross-check information you receive with what’s available at www.sba.gov.
- To report suspected SBA fraud, contact the Inspector General’s hotline at 800-767-0385 or online at SBA.gov. Stimulus check scams can be reported at BBB.org/ScamTracker.
Personal Stimulus Check Scams
- Those eligible for an economic impact payment (official term used by the IRS), are not required to sign up, apply, pay any fee, or confirm any information. The IRS uses direct deposit and the last known address from your tax returns. They’ve confirmed that Social Security beneficiaries who typically don’t file tax returns will automatically receive the $1,200 payment.
- A “stimulus check” for an unusual amount (like one with cents), or one that needs online or phone verification, is likely a scam. There’s no way to “jump the queue” or pay to get your check faster. And if you’re asked to purchase gift cards, that’s a scam too.
- Avoid clicking on links in texts, emails, or social media messages asking for your personal or banking information. Neither the government nor Pinnacle would request your information in such a manner. Beware of one scam that directs you to a fake website called “US Emergency Grants Federation”.
Scammers are crafty. Be skeptical of any requests for private or personal information. Remember, if something sounds too good to be true, it usually isn’t.
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Frequently Asked Questions
How can I identify SBA loan scams?
An immediate red flag is if you’re contacted by someone claiming to be from the SBA, as they do not initiate contact on 7(a) or disaster loans or grants. Any attempt to charge you over the SBA’s set broker fees for a loan is also suspect. Be cautious of emails asking for PII, and make sure the application reference number matches the one you applied with.
What’s a clear sign of a stimulus check scam?
Receiving a “stimulus check” for a strange amount, particularly if it includes cents, or anything that requires online or phone verification, is likely fraudulent. Don’t fall for shortcuts or fee payments aiming to expedite your check delivery. If you’re asked to buy gift cards, that’s indisputably a scam.
What should I do if I suspect a scam?
If you suspect an SBA scam, report it to the Inspector General’s hotline or on the SBA’s website. In the case of stimulus check scams, BBB.org/ScamTracker is your best reporting point. Remember never to click links in suspicious texts, emails, or social media messages.
