DES MOINES — Iowa Secretary of State Paul Pate and Better Business Bureau, Greater Iowa President Chris Coleman are celebrating the signing of the STOP Fraud Act (HF2678) into law, which was signed by Governor Kim Reynolds on June 1. The STOP Fraud Act provides the Iowa Secretary of State with meaningful new tools to protect Iowa residents and businesses from fraudulent business filings. Business fraud represents a growing threat that costs Iowans tens of millions of dollars each year.

The new law comes in response to a wave of fraudulent filings that have used Iowa residents’ home addresses without their knowledge or consent. In early 2025, a number of Iowans discovered that unknown businesses had been registered to their own addresses. Residents began receiving mail for fictitious businesses, leaving them without a clear path to resolve the problem. The STOP Fraud Act provides a path toward resolution, allowing the Iowa Secretary of State’s Office to investigate reported fraudulent incidents.

“Many businesses start their journey with us, the Iowa Secretary of State, when they submit their business filings,” said Secretary Pate. “As Iowa’s business portal, we felt called to be part of the conversation around stopping and tracking business fraud. This bill gives us tangible solutions, and we are prepared to hit the ground running. This is an important step in a larger conversation around combatting fraud in Iowa, and I’m grateful to the legislators and the business community who helped make it a reality.”

“Every day, we hear from consumers and business owners who have been impacted by fraud, often through no fault of their own. This legislation gives Iowans a clear path to address those situations and prevent further harm,” said Iowa BBB President Chris Coleman. “The Better Business Bureau is proud to stand alongside the Secretary of State’s Office to strengthen trust in our marketplace.”

Addressing business fraud is becoming increasingly important, as illustrated by alarming data: the Iowa Department of Public Safety reports fraud cases are up 6% from 2022 through 2024. In 2024 alone, the FTC reported Iowans lost $52 million to financial fraud – a 204% increase compared to 2020. The Common Sense Institute of Iowa projects that financial fraud in Iowa could ultimately reach up to $573 million in unreported losses.

Under the STOP Fraud Act, the Iowa Secretary of State’s Office now has the authority to:

• Initiate an investigation upon receiving credible information from a government agency or third-party source that fraud may be occurring
  
• Send a questionnaire to the registered agent address on record, with entities required to respond within 21 days
  
• Remove information from a business entity’s public record, or the record itself, if no adequate response is received, including administratively dissolving entities that fail to respond
  
• Allow individuals to file a notarized affidavit at no cost if their name, address, or email was used without consent in a business filing, triggering a review and potential removal from the public record

Secretary Pate expressed gratitude to the legislators who championed the bill, including Representative Holt, Representative Lawler, Senator Westrich, and Majority Leader Klimesh, as well as key stakeholders including the Iowa Bankers Association, the Iowa Department of Transportation, the Association of Business and Industry (ABI), and the National Federation of Independent Business (NFIB).
For more information on the STOP Fraud Act or to report suspected fraudulent business filings, visit sos.iowa.gov.