The Sophistication of Legal Scams and How to Protect Yourself From Them

As a transactions attorneys, we work on a variety of business related issues ranging from reviewing purchase and sale agreements to drafting leases and entity formation. A common request we receive is to create a new business entity, something we call “Formation.” While the process is simple, many people prefer to have someone familiar with the process assist them in their endeavors. Drafting up the proper paperwork and filing it with the appropriate state entities can be a tricky, but with a skilled attorney, those are the least of your worries. What happens when someone else tries to take advantage of your uncertainty with the process?

We recently assisted a client with forming a new LLC for a clever business venture. We took care of the paperwork in short order and registered the new entity with the Washington Secretary of State. We then sent out an email and let the client know that they would receive the formal confirmation documents from the Secretary of State within a week. Three days later, our client sent us this document they received via U.S. Mail:

Official looking, right?

Our client was quite confused. Not only did the cost not match what we had told him it would be, but he had already made the payment. We quickly responded to let him know that the letter was a scam, and he should take no action. Crisis avoided!

But how can you protect yourself if something similar happens to you? Here are a few quick ways:

Ask your lawyer!

Whenever you have a legal question or a question about something suspicious, the first reaction you should always have is “I should ask my attorney.” Even if it’s something that doesn’t contain the complex legalese, it’s likely that your attorney will be familiar with the situation. Our client saw something suspicious and sent us an email. Good job, client!

Confirm consistency.

Our office, our client’s home, our client’s business, and the Secretary of State we registered his LLC with are all located in Washington State. So why then would he be getting a letter from North Miami Beach, Florida, on the other side of the continental United States?

Additionally, the purported filing fees being requested and/or charged by this scam letter were in different amounts than we had quoted from our call a few days earlier.  Careful attention to detail is crucial when dealing with potentially unscrupulous bills.

The LLC was filed with the Washington Secretary of State, so what is the D.O.C.S.? DOCS-WA may look official acronym, but it doesn’t exist! The D.O.C. is the closest sounding, but that’s generally in reference to a department of corrections.

And all of this is without mentioning that each page of the letter lists a different address!

The internet is your friend.

If you’re still suspicious, but haven’t yet confirmed them to be truth, you can always ask the internet. In the 21st century, scams and phishing are an unfortunate reality that permeates many people’s lives. But our shared experiences can help prepare ourselves from future plight. A brief internet search of the call back number, listed as “Toll Free” on the third page brought up a number of links noting the letter’s dubiousness. One user seemed to have been preyed upon by the same hucksters and even included a letter just like the one received by our client.

This same strategy can be applied to any contact information provided, and if there isn’t any contact information, you know it’s fishy. The address on the second page shows up as a private business and the one on the third page is a postage store. Along the same lines, the contact email is a simple .com address. Any government entity would list a contact email ending in .gov.

While there are a number of ways to protect yourself from falling victim to one of these charlatans, the most effective method is always to contact your attorney. Attorneys who practice in this area are well versed in the requirements and appearance of official documents.

If you have any questions about whether a notice you have received is legitimate, the attorneys at Holmquist & Gardiner may be able to assist you.  You can always find us here.