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1 min read

How to Spot and Avoid a Common UCC Filing Scam

Kristin Alford September 17, 2024

UCC Financing Statements
How to Spot and Avoid a Common UCC Filing Scam

Beware of Fraudulent Solicitations and UCC Filing Scams

Filing UCCs is one of the most common trade credit practices and, rest assured, it is perfectly legal. Unfortunately, as with nearly any practice, there are scammers that aim to take advantage.

One of the most common scams is a letter requesting you pay a fee to obtain a copy of the UCC filing. These letters often use official-sounding language and formatting to trick recipients into believing they need to pay fees to maintain or renew their UCC filings.

Here are some key points to help you recognize and avoid falling victim to these scams:

  1. Verify the Source: Legitimate UCC filings and renewals are managed by state government offices. If you receive a solicitation letter, check if it’s from an official government agency. Contact your state’s Secretary of State office or the appropriate agency directly, using contact information from their official website.
  2. Review the Details: Official notices will typically include specific details about your filing, such as the filing number, date, and sometimes even your business’s registered name. Scammers might use generic or incorrect details.
  3. Look for Red Flags: Be cautious of unsolicited letters that:
    • Ask for payment via unconventional methods (e.g., personal checks, money orders, or wire transfers).
    • Do not provide clear contact information or legitimate business addresses.
    • Have urgent or threatening language, pressuring you to act quickly.
  4. Consult with Professionals: If you’re unsure about the legitimacy of a letter, consult with your attorney, business advisor, or NCS. We can provide guidance on how to handle the situation and ensure your filings are in good standing.
  5. Report Suspicious Activity: If you encounter a deceptive solicitation, report it to consumer protection agencies or the Federal Trade Commission (FTC). This helps prevent others from falling victim to similar scams.

Staying informed and cautious can help protect you from these deceptive practices.

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