$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
fake business registration website scam
Fraudulent websites mimic Secretary of State or business registration portals, charging inflated fees for LLC formations, EIN applications, or annual filings that are never processed.
“government website scam”
↑ 125.4%Key indicators
Usually targetsSmall business owners
Often hitsSmall business owners
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers create websites that mimic state business registration portals, often buying search ads to appear above official results.
2
New business owners pay inflated filing fees and share sensitive information including EIN, SSN, and bank details.
3
Filings are either never submitted, submitted incorrectly, or the scammers simply pocket the fee difference.
What to do first
File business registrations only through your state's official Secretary of State .gov website.
Related terms
bogus LLC filing sitefake Secretary of State portalEIN application scam websiteFake government website scamsWebsiteSurgingSmall business ownersSmall business ownersTech workers and developersCreators and online sellersUnited Statesbogus LLC filing sitefake Secretary of State portal
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Lisa, 45, a small business owners, encountered what appeared to be a legitimate fake government website scams situation while using Website. Scammers create websites that mimic state business registration portals, often buying search ads to appear above official results.
Step 2
What happened next was calculated: New business owners pay inflated filing fees and share sensitive information including EIN, SSN, and bank details.
Step 3
The pressure escalated quickly: Filings are either never submitted, submitted incorrectly, or the scammers simply pocket the fee difference.
The outcome
Lisa realized something was wrong when the filing fees are significantly higher than official state rates. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
File business registrations only through your state's official Secretary of State .gov website. Lisa's experience shows why the filing fees are significantly higher than official state rates and the site appears as a sponsored search result above the official .gov website are the clearest early warning signs.
How to identify it
- The filing fees are significantly higher than official state rates
- The site appears as a sponsored search result above the official .gov website
- They guarantee same-day processing for services that normally take weeks
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓File business registrations only through your state's official Secretary of State .gov website.
- ✓Apply for an EIN directly through the IRS at irs.gov — the service is free.
- ✓Report fake business registration websites to your state attorney general and the FTC.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FTC and state attorneys general have taken action against companies operating misleading government-lookalike websites that charge unnecessary fees for free services.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓File business registrations only through your state's official Secretary of State .gov website.
- ✓Apply for an EIN directly through the IRS at irs.gov — the service is free.
- ✓Report fake business registration websites to your state attorney general and the FTC.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FTC and state attorneys general have taken action against companies operating misleading government-lookalike websites that charge unnecessary fees for free services.
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Small business owners
Geographic concentration
United States
Primary channel
Website — Fake government website scams
Why this group is vulnerable
Small business owners are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FTC and state attorneys general have taken action against companies operating misleading government-lookalike websites that charge unnecessary fees for free services.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about fake business registration website scam
How does the fake business registration website scam work?+
Scammers create websites that mimic state business registration portals, often buying search ads to appear above official results. New business owners pay inflated filing fees and share sensitive information including EIN, SSN, and bank details. Filings are either never submitted, submitted incorrectly, or the scammers simply pocket the fee difference.
What are the warning signs of fake business registration website scam?+
The filing fees are significantly higher than official state rates The site appears as a sponsored search result above the official .gov website They guarantee same-day processing for services that normally take weeks
What should I do if I encounter fake business registration website scam?+
File business registrations only through your state's official Secretary of State .gov website. Apply for an EIN directly through the IRS at irs.gov — the service is free. Report fake business registration websites to your state attorney general and the FTC.
Who is most at risk for fake business registration website scam?+
This scam primarily targets Small business owners. It is most commonly reported in United States and typically appears on Website.
Is fake business registration website scam getting worse?+
fake business registration website scam is currently surging — reports are increasing rapidly. It has been reported across US. Last updated 2026-04-04.
Related scams
Similar scams to watch out for
Government impersonation
↑ 121%Tax refund verification phishing scam
A fake refund or filing problem message pressures the victim to verify tax identity through a counterfeit government portal.
What to do first
Go directly to the tax authority website instead of using message links.
Targets
Tax filers
Seen in
U.S.
Smishing
↓ 16%Tax agency refund text link scam
A text says a refund or filing issue needs immediate identity confirmation through a mobile link.
What to do first
Use the tax authority's official website instead of the text.
Targets
Tax filers
Seen in
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Government impersonation
↑ 52%Census or survey data harvest scam
A fake government survey or census call collects identity, household, or banking data under the banner of compliance.
What to do first
Verify the survey through the agency website before participating.
Targets
Households
Seen in
Global
Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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