2024 Federal Requirement: The Corporate Transparency Act requires businesses to file FinCEN’s Beneficial Ownership Information Report. Get the eBook for Firms & Filers

Keep Your Beneficial Ownership Reporting Info Safe

In a concerning development, FinCEN (Financial Crimes Enforcement Network) has issued an alert regarding fraudulent activities targeting individuals and entities subject to Beneficial Ownership reporting under the Corporate Transparency Act (CTA). 


Alert on Beneficial Ownership Information Reporting Fraud

  • Beware of misleading messages or e-mails titled “Important Compliance Notice” seeking Beneficial Ownership reporting information through links or QR codes.
  • This article explores the alert’s details, emphasizing the importance of staying attentive.
  • Discover how FincenFetch’s platform, with its secure fetch link, plays a vital role in preventing fraud.


Understanding the FinCEN Corporate Transparency Act:

The Corporate Transparency Act (CTA) is vital for U.S. businesses. Passed in 2020, it makes companies report ownership to FinCEN. This law boosts transparency, fights financial crimes, and strengthens security.

As the CTA rolls out, businesses should stay alert. Some may exploit the situation, posing a threat. Staying informed, following rules, and keeping a secure approach are crucial for compliance.

Recognizing Deceptive Practices in Beneficial Ownership Reporting:

beneficial ownership reporting fraud alert

FinCEN assures it doesn’t send unexpected messages. However, people and businesses need to watch out for deceptive messages.

These communications may pretend to be official and ask recipients to click on links or scan QR codes. Engaging in these activities can be risky for private information, and knowing these warning signs is critical.

Therefore, people and businesses must be careful and refrain from answering these messages. Taking these proactive steps is essential to keep important information safe and adhere to the rules set by the Corporate Transparency Act.

FincenFetch’s Secure Platform for BOI Reporting:

FincenFetch’s secure platform protects against potential risks amid the rising threat of fraudulent attempts. 

The platform utilizes a secure fetch link, providing a protected environment for businesses to access and report beneficial ownership information. 

This secure mechanism ensures users can interact with legitimate BOI report requests while preventing unauthorized access and phishing attempts.

The Implications of Fraud in Beneficial Ownership Reporting:

Engaging with fraudulent requests can have severe consequences, including potential data breaches, identity theft, and compromise of confidential information. 

As the CTA involves reporting sensitive details, falling victim to these deceptive practices may lead to regulatory non-compliance, financial losses, and reputational damage.

Protective Measures for BOI Reporting:

beneficial ownership reporting fraud alert

To safeguard against these fraudulent attempts, individuals and businesses should exercise heightened caution. 

Official communications from FinCEN are not initiated unsolicited, and any unexpected request should be treated with suspicion.

Cross-verify the legitimacy of the communication through official channels before taking any action.

Reporting Suspicious Activities:

If you receive any suspicious correspondence related to CTA compliance, you should report it promptly to FinCEN. 

Timely reporting ensures that authorities can investigate and take necessary actions to mitigate potential risks and prevent further fraudulent activities.

Conclusion:

As the corporate world adapts to the changes under the CTA, the emergence of fraudulent attempts highlights the need for a proactive and vigilant approach. 

Staying informed, verifying the authenticity of communications, and promptly reporting any suspicious activities are integral to maintaining the integrity of the CTA’s objectives. 

FincenFetch’s secure platform adds an extra layer of protection, ensuring businesses can navigate Beneficial Ownership reporting securely and confidently in the face of evolving threats.

Charles Wismer
Charles Wismer

CEO at FincenFetch helping the U.S.professional services industry support FinCEN's new national security initiative to launch the Corporate Transparency Act. Prior fund manager and Fintech founder.

Charles Wismer
Charles Wismer

CEO at FincenFetch helping the U.S.professional services industry support FinCEN's new national security initiative to launch the Corporate Transparency Act. Prior fund manager and Fintech founder.

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