Intro
I have been recently involved in registering a new business entity in the Washington State. What follows is my experience dealing with mail scammers that capitalized on the process.
So if you are registering a new business in the United States, or have an already established business, you may consider checking the bills that you receive in the mail. Chances are that you may be already paying one or more of similar fake bills that I will describe in this blog post.
Fake Bills
One form of fraud that seems to fall under the gray zone category is so-called fake bills. The scam goes as such. Usually some small business receives a paper bill in the mail that looks like a legitimate bill for some government license or service that urges accountant to pay the amount as soon as possible. The amount itself is not too much for a business, and ranges between $50 to $500. Something that would not raise too much suspicion from the accounts-payment person responsible for paying those yearly licenses and subscriptions. The wording of the bill is also quite vague and non-descriptive, that is designed to slip through the cracks.
What makes it a gray zone fraud is that the wording of the bill usually includes a well hidden line, usually in small print, that says:
This is not a bill.Or:
This is not a government agency.
Plus the name and the type of service that the bill purports to collect the money for only closely resembles a real thing, but is never the same.
My understanding is that such kind of wording makes it impossible for the consumer protection agencies to go after such shady businesses, which may easily rebut any allegations against them by saying that, "We didn't ask such-and-such to pay it. It said right there that this is not a bill."
Obviously this is quite an insidious practice, totally designed to trick fledgling businesses, who are already confused by a multitude of legitimate state and federal bills and invoices, to pay for one more additional license.
Below, let me give you some specific examples of what I've encountered after registering a Limited Liability Company (LLC) in the Washington State.
WA Certificate Service
I saw this one in the mail along with the legitimate local city bill for the "Certificate of Occupancy". It came in a similar envelope, with a return mailer included. It also looked very similar to how other government bills may look like, with one exception. This is not a government agency that can issue any certificates for you!
Here's the actual fake bill, with the important areas highlighted:
Here's the actual wording of that fake bill:
2021 CERTIFICATE OF EXISTENCE REQUEST FORM
WA Certificate Service
321 High School Rd NE
Ste D3 - 744
Bainbridge Island, WA 98110
Toll Free (888) 842-9265
---------------------------
Congratulations on registering your business with the State of Washington. Your Articles have been filed with the secretary of state and are complete.
You have one step left in order to attain your elective Washington Certificate of Status.
Below is a form for your newly registered business. Please confirm the accuracy of the information below for your Washington Certificate of
Status Request.
A Washington Certificate of Status is issued by the Secretary of State and may be required for loans, to renew business licenses, or for tax or other
business purposes. A Certificate of Good Status certifies that your Washington business is in existence, is authorized to transact business in the state
and complies with all state requirements. The Certificate of Status shows the official evidence of an entity's existence and provides a statement of an
entity's status, current legal name and date of formation. The Certificate of Status bears the official seal of the Washington Secretary of State.
---------------------------
Business information
Entity Type: WA LIMITED LIABILITY COMPANY
Date Of Registration:
Certificate Of Status Fee: $82.50
---------------------------
This is not a government agency
---------------------------
[Please allow up to two weeks for processing and return of document]
CHECK OR MONEY ORDER ENCLOSED
IN THE AMOUNT OF: $82.50
Please make your check or money order payable to:
WA Certificate Service
321 High School Rd NE
Ste D3 - 744
Bainbridge Island, WA 98110
---------------------------
FORM WACS-S 10.883(1) FOR OFFICE USE ONLY: WA-604 783 204
As you can see from the highlighted screenshot above, it says in the middle with a very small print, that "This is not a government agency", and also that their provided paperwork "may be required." I doubt that any government agency would phrase it like that. 😁
Labor Poster Center Department
Another insidious example of a gray area shady business is so-called labor poster fraud. The following bill was received right after registration of a new LLC. It looks very close to any government issued bill.
What these scammers are basing their ploy on is the state labor posters laws. They indeed require businesses to post special labor posters with the information about the worker rights in the place of business. What these shady companies fail to mention clearly though, is that such posters are usually available for free from the Labor & Industries website. (Here's an example for the Washington State.)
The fraudster tries to scare their intended victim into ordering those posters from them. Obviously for a steep fee. They may say that they will laminate those posters, or tailor them to a specific size. But all that is just a ploy to bypass any consumer protection regulations of their shady craft.
The following is an actual fake bill, with the important areas highlighted:
Here's the actual wording of that fake bill:
Labor Poster Center Department
P.O. BOX 613802
NORTH MIAMI, FL 33261
LABOR LAW POSTER COMPLIANCE Service
---------------------------
PLEASE MAIL BY:
THIS POSTER WILL SAVE UP TO %40 OF THE WALL SPACE NEEDED TO POST THE FREE FULL-SIZED GOVERNMENT INDIVIDUAL PANELS.
---------------------------
Your Business may be required by Federal Law to post a current compliant
labor law poster in the workplace. Federal law requires that this poster
be placed on the property of the business whether you have 1 employee or
1,000. You must post up-to-dale employment posters in the workplace. The
poster must also include information about worker's compensation benefits.
Pursuant to Federal Law 29 USC Sec. 666(i)& 2005 penalties and risks of
non-compliance with posting regulations can lead to potential fines in
excess of 7,000 per instance for failure to post federally required
information. Further, lawsuits can be tolled based on failing to display
mandatory posters. You mast post a compliant employment poster in a
CONSPICUOUS place in the workplace where all employees and applicants can
see it. To obtain your federal employment Labor law
poster, please detach the bottom coupon and return in the enclosed.
Envelope with your document processing fee of $94. You will be receiving a
new updated 2021 version of the poster. Please allow 2-3 weeks for
delivery of all-in-one Poster.
The documents offered by this advertisement are available to consumers
free of charge or for a lesser price from Secretary of State. You are not
required to purchase anything from this company and the company is Not
affiliated, endorsed, or approved by any government entity. The item
offered in this advertisement has NOT been approved or endorsed by any
governmental agency, and this offer is NOT being made by an agency of the
government."
---------------------------
CONTACT US
Servicebusinessproperty@gmail.com
For Assistance or Questions
Regarding this Services
---------------------------
CHECK/MONEY ORDER ENCLOSED ONLY
AMOUNT: $94.00
---------------------------
Return this completed form with the return envelope included. Please allow 2 weeks for poster to delivered, If
You're not Satisfied with Services Provided, a Full Refund will be issue within 30 Days.
First of all, let me point out that it was not me making those typos and grammatical errors in the form above. This was the actual form that I received. And that should be your first clue of the fake bill - if you see any typos, or bad grammar/English, this is a sure red flag!
Additionally, these clowns that came up with this scam are kinda funny. I was really amused by this justification of charging someone $94:
This poster will save up to %40 of the wall space needed to post the free full-sizes government poster.
We can also probably tell what country they were originally from by figuring out what language requires to put a percent sign before the number. As in %40.
And finally, this one is just hilarious. Did you see the contact email that they provided? Servicebusinessproperty@gmail.com 😂
This should definitely be a huge red flag when some agency that sends you a bill also has a free email account in the contact form (such as gmail.com, or similar.)
Labor Poster Scams - Honorable Mentions
The shady business that I listed above is not the only contender for the labor poster scam on the market. There are also these "businesses" that do the same:
Washington Labor Law Poster Service
Very similar shady business, that is mailing out similar looking fake bills. Here's the wording for one:
WASHINGTON LABOR LAW POSTER SERVICE
855 TROSPER RD SW STE 108 #279
TUMWATER, WA 98512-8108
RENEWAL NOTICE
Call 360-967-4044
for quickest renewal
---------------------------
New Washington Minimum Wage
---------------------------
RENEWAL ALERT! Please be advised that Labor Law posting notices are frequently being
amended, potentially making the posters your company purchased from us on Oct 11 2012 out
of date with current Labor Law posting requirements. Return this renewal notice with
your payment by January 24th to Save 11% and receive a $10.00 discount off the regular
price of the newly revised 2021 State and Federal Labor Law posters.
---------------------------
Complete Set(s) of 2021 State & Federal Posters $89.50
11% Discount by January 24 -$10.00
Shipping FREE
Total By: January 24 $79.50
Total After: January 24 $89.50
---------------------------
The Washington Labor Law Poster Service is a non-governmental organization providing mandatory workplace
posters and does not have a contract with any government agency. Certain posters may also be available free
from the issuing governmental agencies.
---------------------------
Fax credit card orders to 888-442-4144
MAKE CHECKS PAYABLE TO:
WASHINGTON LABOR LAW POSTER SERVICE
855 TROSPER RD SW STE 108 #279
TUMWATER, WA 98512-8108
---------------------------
Call 360-967-4044 for quickest renewal
Contact us via email at cs@llpsinc.com
PLEASE INCLUDE KEYCODE ON YOUR CHECK
Again, I don't need to point out a suspicious email address hosted on the llpsinc.com server.
Although I have to give these shysters some kudos for using all kinds of marketing ploys. Stuff like creating an urgency,
and by providing a free discount if someone wants to get scammed early by January 24. 😁
Personnel Concepts Compliance Service Department
Here's another fake labor poster bill from something called "Personnel Concepts Compliance Service Department". They sure go for some highfalutin names. 😂
I'll OCR some text from their fake bill. But basically it's the same exact scam:
RENEWAL NOTICE
Personnel Concepts
Compliance Service Department
P.O. Box 3353
San Dimas, CA 91773
---------------------------
(800) 333-3795
Fax (800) 760-1190
www.personnelconcepts.com
---------------------------
Please return the entire page identified as PERSONNEL CONCEPTS With Your payment.
---------------------------
1 - One Year Washington Compliance Service Subscription (includes $29.95
automatic posting updates for one full year)
4 - Quarterly "Compliance Concepts" Newsletters INCLUDED
$35,000 "We Pay the Fine" Reimbursement Guarantee INCLUDED
1 - 2021 Monthly Business Planning Wall Calendar (PL-MP-PU) FREE
(a $19.95 value)
Subtotal: $29.95
Shipping and Processing: $7.95
---------------------------
RENEWAL NOTICE
On APR 15 2020 your annual Labor Law
posting subscription will expire and
you will no longer be covered by our
$35,000 "We Pay the Fine"
Reimbursement Guarantee to protect
your company from government fines
for labor law posting violations.
---------------------------
Notice of Obligation
This is not an invoice. You are under no obligation to pay.
Update your expired poster immediately to reactivate your
compliance guarantee.
---------------------------
$35,000 "WE PAY THE FINE"
REIMBURSEMENT GUARANTEE
If, during your Compliance Service Subscription, you are
cited by a State or Federal agency for having an outdated
poster, and we have failed to send you an updated panel
within 90 days of the update's publication, we will reimburse
you for any posting violation fines up to $35,000.
This one, I think, tries to go for the cheaper service here by charging only $29.95 + shipping and handling. 😁
Although they actually have an active website www.personnelconcepts.com. So scamming small businesses must be paying well.
Domain Listings
And finally lets review another type of a fake bill. Fake domain, web hosting or SEO bills.
As you can imagine, for a small business accountant, it is very confusing and frustrating to keep track of their company's web presence. Stuff like web hosting, domain names, social medial accounts is enough to cause headache for any non-techy person. So the crook in this case preys upon a weary accounts-payable person, hoping that they will not verify the service that bills them for their website or social media marketing, and pays this fake bill.
It is indeed quite impressive how well they worded it.
Needless to say, this is just a scam and you don't need to pay this fake bill:
And then also:
I'll transcribe this fake bill as well:
DOMAIN LISTINGS
PO BOX 19607
LAS VEGAS, NV 89132-0607
WEBSITE LISTING SERVICE
---------------------------
DESCRIPTION OF SERVICES: ANNUAL WEBSITE DOMAIN LISTING $228.00
TOTAL FOR ANNUAL LISTING: $228.00
---------------------------
SUBSCRIPTION INCLUDES Annual Website Domain Listing on the internet directory
Complete details located online at www.domain-listings.org
---------------------------
This website listing offer is provided to leading websites throughout the United States to enhance their Website
exposure and to expose them to new customers through our directory. We are not a Domain Registrar and we
do not Register or Renew Domain Names. The listing period is for 12 consecutive months and must be renewed
annually if you wish to renew your Domain Listing and keep it active on our online website directory.
THIS IS NOT A BILL. THIS IS A SOLICITATION. YOU ARE UNDER NO OBLIGATION TO PAY THE AMOUNT
STATED ABOVE UNLESS YOU ACCEPT THIS OFFER.
---------------------------
We Appreciate Your Business!
INQUIRES: Domain Listings LLC | Website: domain-listings.org
Customer Service: E-mail: info@domain-listings.org | Phone: 702-998-0222
---------------------------
HOW TO MAKE PAYMENT:
Please make checks payable to "DOMAIN LISTINGS"
Enclose check in the addressed envelope provided
Return by date above to avoid offer expiration
We appreciate your business!
---------------------------
WEBSITE DOMAIN LISTING INCLUDES:
Annual Website Domain Listing on Internet Directory
24/7 x 365 Worldwide Exposure Customer Access
Complete details located online at www.domain-listings.orq
It is needless to say that if anyone pays this bill they will literally receive nothing, because this "Domain Listings" outfit will not be able to access the company's domain name account to do any services that they promise, even if they attempt to deliver them. They can't provide a decent SEO either without access to the company's web hosting account, or to their search engine account.
Interestingly, this shyster also has a working website at www.domain-listings.org, which proves one more time that scams do pay.
And, I guess, what makes them stay under the radar is this notice that is conveniently hidden in the middle of their fake bill:
THIS IS NOT A BILL. THIS IS A SOLICITATION. YOU ARE UNDER NO OBLIGATION TO PAY THE AMOUNT STATED ABOVE UNLESS YOU ACCEPT THIS OFFER.
Oh really? Thank you, for telling me! 😊
Finally, this one just cracked me up:
Annual listing on the internet directory.
🤣 I bet, this scam is designed to trick old-time accountants who were used to paying for company's listing in the Yellow Pages directory. Do young people even know what that is?
How To Protect Against Fake Bills
So what do you do to protect yourself from such fake bills that you will inevitably receive in the mail?
The easiest way is to Google search using the header of the bill, or using the name of the agency that purports to have sent that bill. Additionally, you may want to add the word "scam" or "fraud" at the end of the search query. For instance, you may search by:
WA Certificate Service fraud
This will inevitably bring up someone else's complaints about it. And if you have at least several sources telling you that it's a fake agency, then either disregard their fake bill, shred it, or report it.
You may also verify with your IT department, or with anyone else responsible for setting up and maintaining the service included in the bill, before paying for it.
Additionally, you may want to keep the inventory of all recurring charges for your business and pay them only after you log in to the appropriate service website. In other words, don't go to some link that you got in an email, or from a paper bill. Instead Google that service by name and log in to their website. Then, if the bill is due, you will see a notification and ways to pay it online.
How To Fight Back The Fake Bills
There's unfortunately not much that you can do about the fake bills, unless there's a legislature against this type of shady business practices.
Until then, you can report them to FTC, or to your local state consumer protection agency. The more people file those complaints, the more our elected representatives will be urged to change something to protect us from these kinds of scams.
Some states have already noticed a trend, but all they can do for now, is just warn about it on their website.
Conclusion
Be very careful when you deal with a bill or with some call-to-action letter that you did not ask for. Most often it will come through your email, but it may come through snail mail too. In most cases this may be a legitimate business. But to be sure, always verify it before you pay. Also instruct your accounts-payable to do the same. Ideally, they should take an online security and safety course, that teaches this type of safety along with how to handle social engineering and other attempts to breach your business.
This is a broad subject of its own, thus I will not delve into it here. Luckily, telling a fake bill from a real one is quite easy.
Finally, good luck fending off the incessant onslaught of spam and fraud!
