Beware Scams That Charge for Employee Identification Numbers

Federal authorities have warned Americans about sophisticated online scammers charging hundreds of dollars for government services that should be free, such as Employer Identification Numbers from the IRS.

Key Insights

Scammers are charging up to $300 for Employer Identification Numbers (EINs) that the IRS provides completely free of charge.
Fraudulent websites use official-looking seals, logos, and similar domain names to appear legitimate and affiliated with government agencies.
The scams extend beyond EINs to other government services like TSA PreCheck and Global Entry applications.
The FTC has sent warning letters to businesses selling EINs, highlighting potential violations of the FTC Act.

IRS Imposters Charging for Free Services

The Federal Trade Commission issued a warning last month about deceptive websites charging Americans hundreds of dollars for services that government agencies provide at no cost. These scammers target business owners and individuals seeking an Employer Identification Number (EIN), which the IRS issues completely free of charge. The fraudulent operations have become increasingly sophisticated, using official-looking seals, logos, and similar domain names to create the illusion of legitimacy and government affiliation.

These imposters have been found charging anywhere from $50 to $300 for obtaining an EIN, a service that takes less than 15 minutes through the official IRS website. The scam particularly preys on those unfamiliar with government processes, including new business owners, estate administrators, nonprofit organizers, and households needing to employ workers. The FTC reports that many victims don’t realize they’ve been scammed until after paying the unnecessary fees.

These Websites Demanding a Fee for Your Employer Identification Number Are a #Scam https://t.co/UxiuXrNCZK

— AccreteWebSolutions (@accrete) May 7, 2025

How the Scams Operate

The fraudulent websites carefully craft their appearance to resemble official government sites. They strategically position disclaimers in hard-to-find locations, failing to clearly disclose that they have no government affiliation and that their services are completely unnecessary. When users search online for how to obtain an EIN, these websites often appear prominently in search results, sometimes even higher than the legitimate IRS website.

The FTC has taken notice of these deceptive practices and sent warning letters to several businesses engaged in selling EIN application services. These letters highlight numerous consumer complaints and potential violations of the FTC Act and the recently established Impersonation Rule. The scams don’t stop at EINs – similar tactics are being employed for other government services, including TSA PreCheck and Global Entry applications, where legitimate fees exist but scammers add unnecessary charges.

Protecting Yourself from Government Service Scams

Americans can protect themselves by always going directly to official government websites, which typically end in .gov domains. For obtaining an EIN, use the IRS’ free EIN Assistant tool available at irs.gov/ein. The process requires basic business information and personal details of the responsible party, generating the EIN immediately upon completion. The entire application typically takes less than 15 minutes to complete, making the paid “assistance” services completely unnecessary.

Before engaging with any company offering government-related services, research their reputation thoroughly. Search online using the company name plus terms like “review,” “complaint,” or “scam” to see what others have experienced. If you encounter websites impersonating government agencies or charging for free services, report them immediately to the FTC at ReportFraud.ftc.gov. With increasing sophistication in these scams, vigilance remains the best defense against falling victim to unnecessary fees.