There is a new SAM registration scam hitting business owners who have just been awarded a Cage Code from the DLA and it’s a big one!
New SAM Registration Scam
We are sure that you know that government registrations are all free. Right? RIGHT?
Those free registrations include;
As a matter of fact, any government registration is free. Seaport, Eagle…. and again…every government registration is free.
A SAM (System for Award Management) Registration is required to do any business with the Federal Government, and that takes from 15 minutes to a couple hours. But again, its free. It just takes longer (primarily if you read the FAR regulations you are agreeing to).
And of course the GSA. It’s not a requirement to register with the GSA in order to sell to the government, but under a certain set of circumstances, you may want to apply. That one is the mother of registrations, and third party scams in the GSA world keep State Attorney Generals busy. These companies tell you that if you try to complete the application, you’ll likely get rejected. In actuality, the opposite seems to be true. At least if you talk to our clients.
Which bring us back to this new SAM Registration Scam.
It’s not a scam to make you pay for a free registration. That’s the twist here.
They scan the SAM database (it’s publicly accessible) for brand new registrations.
Then call and text you at the same time. (below screen shot courtesy of a new client)
You need to pay $2500.00 to “activate” it.
HUH? Ummm…that’s the job of the Defense Logistics Agency. They are the government agency that issues your CAGE Code, which then “validates” your SAM Registration. Once that happens, you are good to go. (But you need to log on and renew it on a yearly basis).
You most assuredly do not have to pay one thin dime, much less $2,500 to “activate” it.
Because It Already is Activated.
That’s how they found you in order to initiate the scam!
Anyhow the website is registered offshore in Jamaica. Why are we not surprised?
- There is not ONE single federal registration or contracting vehicle or government agency or any Federal Government entity that charges for anything in order “to do business”.
- Look for email address that ends in .edu or .gov – those are real. All the other ones are phishing scams. (.com, .info, .biz…)
- They will quote a FAR that states fines run from $10,000 to $100,000 for “errors in your registration”.
- Since you did put in your routing and checking account into SAM (which obviously is hidden from the general public including the scammers) – beware calls and emails asking you to “confirm” your bank account details “that appear in our system”.
These “commercial enterprises” aka SCAMS, can target a firm very quickly after beginning registration. SAM and other government vendor databases are transparent and public, so scammers can easily obtain your contact information almost as soon as it is entered and send automated emails and calls and texts with messages like “Your registration is not complete. Contact us immediately!”