I had not been aware of BOI Filing Scams. In fact, I wasn’t even aware of what BOI – Beneficial Ownership Information – was about! That’s because I handle mostly the day to day technical aspects of running CharlesWorks as opposed to the business side that Susan handles. She was actually aware of this and was handling the requirements.

That said, I received a suspicious text message on my business phone number that caught my attention. I always wonder how many others receive such garbage trying to separate them from their money. The message claimed to be from a “Federal BOI” agency and insisted that I needed to file a “required” report for CharlesWorks. The text included an obfuscated link (can’t readily see a URL until you get there) to a website, which led to a page on asking for a $199 fee to file the supposed “report” through a site called fincenfiling.ai.

Immediately, alarm bells went off. First, the mention of fees for filing a federal document seemed strange, and after a quick investigation, it was clear that this was a scam. The website asks for personal business information as well as a fee to comply with the Beneficial Ownership Information (BOI) filing, a legitimate requirement that has been exploited by scammers. Worse, the .ai domain raised suspicion, as it mimicked a legitimate government-related topic, but the actual FinCEN (Financial Crimes Enforcement Network) site operates exclusively under .gov.

What is Beneficial Ownership Information (BOI) Filing?

So, what is this BOI requirement that scammers are using as bait? Under the Corporate Transparency Act (CTA), many businesses are now required to file a report with FinCEN. This BOI report provides details about the beneficial owners of a company, i.e., the individuals who either own or control it.

This law’s design is to increase transparency and prevent illegal activities such as money laundering, tax evasion, and fraud. FinCEN, a division of the U.S. Department of Treasury, oversees this requirement. Businesses formed before January 1, 2024 that fall under the CTA need to file their BOI report by January 1, 2025. New businesses need to file within 30 days of formation if they are new entities​. See more info at FinCEN and LLC.org.

Avoiding Fraudulent Sites: .gov is the Only Legitimate Source

The message I received was clearly trying to exploit small business owners unfamiliar with this new requirement. One key thing to note is that any site not using the .gov domain is fraudulent. You should avoid websites like fincenfiling.ai or fincenfiling.com that are not affiliated with the government. The ONLY legitimate FinCEN site is https://fincen.gov, where you can file BOI reports safely and at no cost.

Scammers often take advantage of new government regulations to create confusion, sending emails, letters, or text messages. Such communications almost always appear urgent, hoping that business owners will panic and pay unnecessary fees. FinCEN has warned about these scams and made it clear that there is no fee for filing the BOI report​. See more information at Scam Detector and​ Compliance Cohort.

Steps to Legitimately Comply with BOI Requirements

If you’re a small business owner, here’s what you need to know and do to stay compliant:

1. Determine if You Need to File: BOI filing is required for most corporations, LLCs, and other entities unless they fall under specific exemptions. If your business was created or registered by filing with a state office, and you do not meet any exemption (like being publicly traded), you will likely need to file a BOI report. You can check whether your business qualifies for an exemption on the FinCEN website.
2. File with FinCEN: The legitimate filing process is done through https://boiefiling.fincen.gov. You’ll need to provide information about your business and its beneficial owners. This will include names, addresses, dates of birth, and identifying numbers from government-issued IDs.
3. Deadline Awareness: Businesses formed before January 1, 2024, must file by January 1, 2025. New businesses have 30 days to file after formation​. See more information at FinCEN​ and National Association of Home Builders.
4. Update Information Regularly: If there are any changes in your business structure, such as new owners or changes in control, you need to update your BOI filing within 30 days.

Stay Safe: Recognize BOI Filing Scams

To protect yourself and your business:

• Verify all communications: If you receive a message asking for payment or to click on a link, it’s likely a scam. Always go directly to https://fincen.gov for any BOI-related information.
• No Fees Required: Filing your BOI report is free. If someone is asking for money, it’s a scam.
• Use Only .gov Sites: Avoid clicking on any link that does not end in dot gov. This is crucial when dealing with anything claiming to be government-related.

In summary, the BOI filing requirement is a real. It is an important process for many businesses. However, scammers are trying to take advantage of this regulation. By staying informed, knowing how to file correctly through legitimate channels, and steering clear of fraudulent sites, you can ensure your business remains compliant and safe.

Stay vigilant and always double-check where your information is going—your business depends on it!

We’ve written numerous article on scams here at CharlesWorks. Check out this as a list:
https://charlesworks.com/category/phishing-scams-spoofs/