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? Beware of PPP Loan Scams: Ohio Department of Commerce Raises Alarm

Small businesses and independent contractors continue to face financial uncertainty as pandemic relief programs expire—but scammers are exploiting this stress with increasingly sophisticated tactics. The Ohio Department of Commerce recently issued a stern alert about fraudulent schemes targeting PPP loans. Here’s everything you need to know to protect yourself and your business.

? What Are These Scammers Doing?

Scammers are taking advantage of the PPP (Paycheck Protection Program) loan process with two main approaches:

1. Impersonating Bank Officials
   Fraudsters pose as representatives from your bank, claiming they require verification of account details or PPP eligibility documentation. They pressure victims to disclose sensitive banking or personal data, often citing “urgent” deadlines to trick you into compliance (com.ohio.gov).
2. Pretending to Be Government Agents
   Other scammers claim to be from government agencies—like the SBA or IRS—and threaten legal action if the PPP loan isn’t repaid immediately, or fines if fees aren’t paid up front. They use official-sounding language, spoofed caller ID, and fake documents to appear legitimate .

?? Red Flags: Recognizing Common Scam Tactics

• Unexpected Contacts: Legitimate banks and the SBA will not cold-call asking for verification or fees.
• Urgency & Threats: Scammers often create false deadlines or legal consequences.
• Fee Requests: Requests for immediate payments via prepaid cards, gift cards, or wire transfers are always suspicious.
• Spoofed Caller ID: Caller ID can be faked — don’t trust it alone.

? How to Protect Yourself

1. Pause and Verify: Always hang up, look up your bank’s official number, and call them directly.
2. Don’t Give Personal Info: Never share SSNs, bank login credentials, tax info, or PPP details over the phone.
3. Check with the SBA: Use SBA.gov or call their official hotline for confirmation.
4. Avoid Social Media Outreach: Legit PPP lenders won’t reach out to you on Facebook, LinkedIn, Instagram, or Twitter.

? What to Do If You’re Contacted

• Do Not Provide Info or Pay Fees: Hang up immediately on anyone demanding payment via gift or prepaid card.
• Report Suspicious Calls:
• Ohio Attorney General’s Office – Use their online complaint form.
• Federal Trade Commission (FTC) – File a complaint at ftc.gov.
• Your Bank – Inform them of the suspicious activity.
• Stay Alert: Continue to monitor your bank accounts and credit report for unusual activity.

PPP ? Final Thoughts

As PPP loan programs evolve, so do the schemes exploiting them. By staying cautious, verifying every communication, and reporting suspicious behavior, you can significantly reduce the risk of becoming a victim.

Stay informed. Stay protected.

Source:

• Ohio Department of Commerce, “Consumer Alert: PPP Loan Scam” (com.ohio.gov)