Arizona Corporation Commission Moves to Prevent Business Fraud

Arizona Corporation Commission Moves to Prevent Business Fraud

The Arizona Corporation Commission (ACC) is taking proactive steps to combat business identity theft and fraud affecting Arizona business owners. On December 17, 2024, the ACC authorized the Corporations Division to develop and implement new policy changes, with the possibility of pursuing legislative updates aimed at deterring fraudulent filings and enhancing the business customer experience.

Key policy changes include:

  • Stronger Identity Verification: One immediate policy change is that filers must present two forms of identification for in-person filings, with similar verification protocols soon to be implemented for online submissions.
  • Business Operation Confirmation: LLCs will have a simplified process to confirm active status, reducing fraud risks for dormant businesses.
  • Authorized Filers: Businesses will be required to designate individuals authorized to file documents or sign on their behalf.
  • Custom Reporting Forms: The ACC also proposed allowing businesses to create and submit their own annual reports and Certificates of Disclosure instead of using the department’s standard forms. These custom forms must still include all required information but will allow for additional details, making it harder for fraudulent actors to impersonate a business.
  • Business Registration Requirement: A proposed legislative change would mandate Arizona businesses to register with the ACC before conducting business.

For more details on the ACC’s anti-fraud initiatives, go here.