(Getty)
Government impostor scams take on new twists, seeking to trick unsuspecting consumers and businesses. In the newest version, third-party companies offer businesses help with managing their registrations for the US System for Award Management, SAM.gov, for a fee. SAM.gov is a free US government registry for vendors doing business with the government. According to the SAM.gov official website, users can register to do business with the US government, update business entity registrations, search for records, assistance, contract opportunities, data reports, and access publicly available award data.
How the scam works
You receive an email from what appears to be a SAM.gov representative stating that your registration is set to expire sometime soon. You are threatened with delaying or losing business funding or even at risk of having your registration deleted within the system. You are instructed to update your information immediately using a link and a unique case code provided in the correspondence. If you follow the link, you'll be taken to a third-party registration center website claiming to help businesses that do business with the federal government and you'll be prompted to pay the third-party for your renewal.
BBB files indicate that the services listed in this BBB Business Profile have a pattern of complaints concerning non-service provided after payment is made. Consumer complaints state that they signed up for the SAM Program and, after paying, are not able to reach the business, and services for the program have not been completed as advised. BBB contacted the business in September 2021 about the pattern of complaints but has not received a response at this time.
Tips to avoid this scam
- Never pay for SAM.gov registration. SAM.gov is a free US government registry that does not require a fee to register, renew or update your registration. If you receive an email from a company offering to help with your registration or renewal for a fee, it's best to ignore it.
- Verify directly with the agency. If someone claims to be from a government agency, contact the agency using its official website or phone number. Never use the contact information provided by the caller or emailer.
- Know how government agencies operate. Legitimate agencies like the IRS, Social Security Administration, or Service Canada will not demand immediate payment, threaten arrest, or ask for sensitive information over the phone, email, or text.
- Check email extensions. Official government correspondence usually comes from “.gov” or “.mil” addresses. Messages from Gmail, Yahoo, or similar domains claiming to be government-related are scams.
- Protect your personal information. Avoid sharing sensitive details like Social Security or Social Insurance numbers, bank account details, or passwords unless you initiate contact with a verified agency.
- Report scams immediately. Report any suspicious contact to the Federal Trade Commission (FTC) at reportfraud.ftc.gov or through BBB Scam Tracker.
For more information
Learn how to spot a scam.
Know the signs of a government grant scam.