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Scammers put a twist on the fake invoice scam. This time, instead of sending an invoice for fake services, con artists ask business owners to pay for free labor law posters.
How the scam works
Your business receives an invoice or notice out of the blue. The letter or email demands that you purchase posters to comply with federal and state labor laws. Other versions of the con insist that you owe a penalty for not displaying the posters.
One small business owner reported the following experience: “I received a letter stating I must pay a $79.25 document fee for posters to be in compliance with labor laws.” The letter stated that if the fee wasn’t paid immediately, the business owner would be fined seven thousand dollars.
Scammers hope you will pay up without doing further research because their story is only partially true. For example, in the United States, the Occupational Safety and Health Administration requires all covered employers to display a poster in their workplace informing workers of their rights. However, these posters are available for free on OSHA’s website. The same is true for other U.S. Department of Labor (DOL) notifications.
How to avoid Labor Law poster scams
- Understand the laws about workplace posters. The U.S. Department of Labor (DOL) does require some notices to be posted in workplaces, but the DOL provides free electronic copies of the required posters. You should never have to pay for posters to be in compliance with DOL regulations.
- Get to know government regulations for your business. If someone tells you your business hasn’t complied with any other state or federal regulations, check with official government sources to inquire about the requirements and how to meet them before you pay a third party to handle the matter.
- Carefully inspect invoices and payment notices. Before you pay any invoice or send money for an unsolicited service, find out if the company that initiated contact with you is legitimate. Look for an official business address and phone number and look over their website. If you can’t find any real contact information for the company, that’s a red flag. Do a search including the company name and the word “scam” to see if others have spotted a scam relative to the correspondence you received. Never pay an invoice without double-checking that it’s for a service you authorized.
- Don’t give in to scare tactics. Scammers love to scare victims into paying, so it’s important not to panic even if you’ve received a threatening letter. Think twice and do your research before you pay.
For More Information
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