NH’s Business: Fraud & scams targeting NH small & mid-size businesses on the rise

COOL US DOWN FOR LATE WEEK. WELCOME TO NEW HAMPSHIRE’S. BUSINESS. I’M FRED KOCHER. FRAUD AND SCAMS ARE TARGETING NEW HAMPSHIRE’S SMALL AND MID-SIZED BUSINESSES, AND THEY’RE INCREASING. NEW HAMPSHIRE SECRETARY OF STATE HAS JUST BEEN GIVEN NEW POWER. NEW POWER BY THE NEW HAMPSHIRE LEGISLATURE TO COMBAT IT. AND HE JOINS ME IN THE STUDIO TO EXPLAIN WHAT’S GOING ON. WELCOME, SECRETARY SCANLON. THANK YOU. IT’S GREAT TO BE HERE. NICE TO HAVE YOU HERE. BEFORE WE DIVE INTO THE FRAUD AND SCAMS TARGETING NEW HAMPSHIRE’S BUSINESSES, THERE’S A STORY IN THE NEWS THIS PAST WEEK ABOUT YOUR REJECTION OF A U.S. DEPARTMENT OF JUSTICE REQUEST FOR NEW HAMPSHIRE’S VOTER LIST, AND HERE IS WHAT WE HAVE SEEN, REPORTED. AND HERE’S A LETTER TO NEW TO YOU FROM U.S. JUSTICE DEPARTMENT. REQUEST FOR A LIST OF NEW HAMPSHIRE REGISTERED VOTERS. ONE OF NINE STATES RECEIVING RECEIVING THAT REQUEST. AND YOU REJECTED IT BASED ON A 2003 NEW HAMPSHIRE LAW PROTECTING VOTER DATABASE. IF THE JUSTICE DEPARTMENT ASKS FOR THAT AGAIN, WILL YOU SAY NO? WELL, THE LAW IS VERY SPECIFIC IN TERMS OF WHAT THE NEW HAMPSHIRE LEGISLATURE HAS SAID THAT I CAN PROVIDE IN TERMS OF DATA FROM THE VOTER CHECK LIST. RIGHT. IT DOES NOT ALLOW ME TO PROVIDE THE LIST TO THE U.S. DEPARTMENT OF JUSTICE. AND AND SO MY POSITION IS BASED ON THAT STATUTE. AND IF THEY WANT TO REVISE THEIR REQUEST, I WILL, YOU KNOW, PROVIDE WHATEVER I CAN. IN COMPLIANCE WITH THE STATUTE. WELL, LET’S GET TO THE REASON YOU’RE HERE. AND THAT IS TO DESCRIBE WHAT YOU’VE BEEN DOING WITH THE FRAUD AND SCAMS THAT ARE TARGETING NEW HAMPSHIRE BUSINESSES. NOW, WITH THE HELP OF HOUSE BILL 406, WHICH GAVE YOU A NEW TOOL TO DEAL WITH IT. AND LET’S PUT THAT UP ON THE SCREEN. MORE COMPREHENSIVE PLAN TO FIGHT GROWING BUSINESS FRAUD IN THE FORMATION OF A FRAUDULENT BUSINESS. AND UNAUTHORIZED PARTY MAKING CHANGES TO BUSINESS OR A REGISTERED AGENT OF A BUSINESS WITHOUT QUALIFICATIONS. WHAT KINDS OF FRAUD HAVE YOU FOUND OR SUSPECTED AS YOU GO ABOUT DOING BUSINESS IN THE CORPORATE DIVISION? THERE’S A GROWING TREND NATIONALLY, AND WE’RE SEEING IT IN NEW HAMPSHIRE OF BUSINESSES THAT ARE BEING CREATED TO MIMIC EXISTING BUSINESSES TAKING ADVANTAGE OF THEIR ADDRESS AND OTHER INFORMATION THAT THEY CAN UTILIZE TO THEN GO SEEK LOANS AND CREDIT CARDS AND AND SPEND MONEY. AND WHAT HAPPENS IS THE LEGITIMATE BUSINESS THAT EXISTED BEFORE STARTS TO GET THE BILLS FOR THAT ACTIVITY, BECAUSE THE THE LOANER HAS IS CONFUSED. AND DO YOU PICK IT UP AS YOU REGISTERED BUSINESSES. BUT YOU HAVE TO DO FOR BUSINESS TO DO BUSINESS IN NEW HAMPSHIRE. DO YOU FIND IT DURING THAT PROCESS? WE DON’T. WE’RE A REPOSITORY OF BUSINESS REGISTRANTS, RIGHT. SO A BUSINESS HAS TO FILE WITH OUR OFFICE. THEY THE NAME STANDARD IS DISTINGUISHABLE UPON THE RECORD. AND SO. MANY PEOPLE FILE BUSINESSES ONLINE. RIGHT. ARE THERE ANY PENALTIES? I MEAN, CAN YOU IMPOSE PENALTIES OR IS THAT THE DEPARTMENT OF JUSTICE? WHAT I CAN DO IS RESCIND A FILING THAT APPEARS TO BE FRAUDULENT. RIGHT. AND BASED ON INPUT FROM A LEGITIMATE BUSINESS OWNER, IF THERE IS CRIMINAL ACTIVITY THAT IS INVOLVED, THEN WE HAVE TO GO TO THE ATTORNEY GENERAL’S OFFICE AND HAVE THEM ADDRESS THAT RIGHT NOW. HERE’S A LIST OF FRAUDS AND SCAMS TARGETING SMALL AND MID-SIZED BUSINESSES AND NATIONALLY. AS REPORTED RECENTLY BY VISA, THE THE CARD, THE CREDIT CARD, VISA AND BY EXPERIAN, THREE FOURTHS OF FRAUD CASES EXPLOIT PEOPLE, NOT TECHNOLOGY. THAT’S INTERESTING ATTACKS ON TECHNICAL WEAKNESSES GROWING MORE ADVANCED SMALL VENDORS SUPPLYING TO BIG COMPANES, ESPECIALLY VULNERABLE, MAKE THEM ESPECIALLY VULNERABLE. AND 46% OF SMALL BUSINESS LOAN APPLICATIONS SHOW FIRST PARTY FRAUD. I IMAGINE THAT SOUNDS SOMEWHAT FAMILIAR TO YOU AND WOULD TO THE JUSTICE DEPARTMENT. YES. YEAH, AND THOSE ARE THE TYPES OF THINGS THAT WE’RE TRYING TO GET A HANDLE ON. MANY BUSINESS OWNERS IN NEW HAMPSHIRE ARE SMALL MOM AND POPS. THEY’RE NOT PARTICULARLY SOPHISTICATED. THEY JUST WANT TO RUN A BUSINESS AND MAKE SOME MONEY. BUT THE THE INDIVIDUALS THAT ARE ENGAGED IN THESE SCAMS ARE VERY SOPHISTICATED. THEY’RE STARTING TO USE AI NOW TO HELP DEVELOP THE LIST OF OF PEOPLE THAT THEY WANT TO TARGET. WELL, YOUR OFFICE HAS A PHONE NUMBER FOR RESIDENTS OR BUSINESS OWNERS TO CALL IF THEY SUSPECT FRAUDULENT ACTIVITY. AND LET’S PUT THAT UP ON THE SCREEN. 603. 2713244 SECRETARY DAVID SCANLON, THANK YOU FOR BEING HERE. APPRECIATE IT. GREAT TO BE WITH YOU. AND IF YOU MISSED PART OF THIS BRIEFING ON FRAUD AND SCAM THAT IS TARGETING NEW HAMPSHIRE BUSINESSES, YOU CAN GO TO WMUR.COM WHERE IT WI