Mississippi Businesses Beware: Rising Scams Targeting Companies Across the State

Mississippi businesses are increasingly being targeted by deceptive scams, from fraudulent business filings to investment and charity fraud. The Mississippi Secretary of State, Michael Watson, has issued multiple warnings urging business owners to stay vigilant.

Business Filing Scams – Misleading Mail Solicitations

For years, Mississippi businesses have been targeted by deceptive mail scams designed to trick companies into paying unnecessary fees for business filings. While reports of these scams date back several years, they continue to circulate, preying on new and existing businesses alike.

One of the most common scams involves fraudulent letters requesting payment for a Certificate of Existence—a legitimate document that some businesses may need but is not always required. These letters, often sent by an entity claiming to be "MS Certificate Service," demand $90.50 for the certificate. However, businesses can obtain this document directly from the Mississippi Secretary of State for only $25.

Scammers frequently use urgent language and official-looking documents to create a false sense of compliance risk, pressuring businesses into paying quickly. If you receive any request for payment related to business filings, always verify its legitimacy through the Mississippi Secretary of State’s official website or office before taking action.

Investment Scams Preying on Businesses

Another rising threat is fraudulent investment schemes, often promising high returns with little risk. These scams may involve unregistered securities, Ponzi schemes, or affinity fraud, where scammers target business owners through shared affiliations (such as industry groups or local networking).

A common tactic is pressuring business owners to act quickly, preventing proper due diligence. The Mississippi Secretary of State urges businesses to verify all investment opportunities and check the registration of financial advisors before making commitments.

Charity Scams – Fake Fundraisers Targeting Businesses

Fraudulent charities also frequently target business owners. Scammers impersonate legitimate organizations or create fake charities, urging companies to make quick donations. Businesses may receive calls, emails, or letters soliciting contributions, often with pressure to act immediately.

To avoid being scammed:

• Verify any charity through the Mississippi Secretary of State’s website before donating.
• Request information on how donations are used.
• Be cautious of payment requests through gift cards, wire transfers, or cryptocurrency.

How Businesses Can Stay Protected

Mississippi businesses can protect themselves by:

• Verifying all business filing requests through the official Mississippi Secretary of State’s website.
• Researching investment opportunities before making financial commitments.
• Confirming a charity’s legitimacy before donating.
• Educating employees on recognizing fraudulent solicitations.

By staying informed, business owners can safeguard their finances and operations against these scams.

Sources:

• Mississippi Secretary of State. “Secretary Michael Watson Warns of Investment Scams.” sos.ms.gov
• Mississippi Secretary of State. “Secretary Michael Watson Warns of Potential Charity Scams.” sos.ms.gov