BBB warns business owners of phony grant offers

The Cape Girardeau office of the Better Business Bureau last week warned its Facebook followers of a scam targeting businesses that may be vulnerable because of the pandemic. 

Whitney Quick, regional director of the Cape BBB, spoke to small business owners in a Wednesday Facebook video warning them about phony grants offered by scammers impersonating the U.S. Small Business Administration.

“An email, text or caller ID appears to be from the U.S. Small Business Administration or an attorney representing the SBA,” Quick said, detailing a common scam that’s going around. “The SBA is offering a grant just for small businesses affected by the coronavirus outbreak. The application looks simple and may involve completing a short form requesting banking and business information.” 

But after being approved, Quick said the business owner is asked to pay a processing fee of “up to a couple thousand dollars.”

The fraudulent offer doesn’t stop there, Quick explained. Recent reports to the BBB’s scam tracker have identified “a sophisticated new twist,” she said. 

“After the government agency contacts the business owners about the grant, a friend then reaches out through Facebook,” Quick said, still describing the scam. “This friend claims to have successfully received the money from the exact same grant and wants you to know about the program.”

The “friend” is actually just a compromised Facebook account contacting all of your friends on Facebook, Quick said. 

According to the BBB scam tracker, a handful of scamming incidents have been reported in the Cape Girardeau County area in the last month, including two phishing attempts, a sweepstakes scam and a health care insurance scam. 

“Small business owners are getting hit with a lot of information and making tough decisions on how to survive the COVID-19 crisis,” Quick said. “With all of these messages flooding their inbox, social media and phone, it’s easy to mistake a scam for a real offer.”

No matter how much a small business could benefit from extra money right now, Quick noted the importance of recognizing a scam. 

“Don’t fall for it,” she said. “If you receive an offer that appears to come from the SBA or another state or local government small business agency, research it before sharing any information.”

Quick offered the following tips to help business owners spot a scam when they see one:

• Look for a website that ends in .gov.

n Do a quick internet search for similar offers.

n Government agencies do not typically text or communicate through social media avenues.

• Businesses typically don’t receive government grants, in general. The federal government only offers grants to not-for-profits, educational institutes and state and local governments. 

For more information, visit www.bbb.org or use the BBB’s scam tracker at www.bbb.org/scamtracker.