Phone Scam Preys on Small Business Owners Looking for a Loan

There is a new scam in circulation that businesses need to be aware of where criminals attempt to take advantage of small business owners who have applied for loans from the Small Business Administration.

One anecdotal report describes a business owner receiving a phone call several months after applying for a loan. The caller was a friendly woman who acted as if she had spoken with the business owner before, even though the business owner had yet to receive any contact regarding her business loan request. The caller informed the business owner that the loan had been approved and requested she call back to provide information about the loan request.

Phone Scam Targets Those Looking for Small Business Loan

Thankfully, the instance described above did not result in the scammer acquiring the information needed to ‘steal’ the loan from the Small Business Administration. However, it is important to spread the word among small business owners that this scam is being attempted by criminals seeking the information they need to redirect approved small business loans.

Many small business owners may be desperate for financial relief and thus be susceptible to handing over private information regarding their loan request which would allow the scammers to claim it for themselves.

Scammers Capitalizing on Need for Financial Support

Tiffany Bernhardt-Schultz, Southwest Wisconsin Regional Director for the Better Business Bureau, commented: “We know that consumers were filing for loans and business owners were filing for some financial support. Scammers have found a way to capitalize and to lure their victims into their tricks.”

“Scammers have become very complex. They want you to feel that their offer is real. You shouldn’t base your decision on calling them back without doing research.”

Better Business Bureau Scam Tracker

Small business owners can report suspected scam attempts on the Better Business Bureau website, as well as read up on all the latest scams being reported. Also, make sure to always conduct research into any person or organization that requests personal or sensitive information regarding a loan request before handing it over.

Image: Depositphotos

This article, "Phone Scam Preys on Small Business Owners Looking for a Loan" was first published on Small Business Trends