New Iowa Law Cracks Down on Fraudulent Businesses Using Your Address

Iowans targeted by scammers who steal their names and home addresses to register fake businesses now have a powerful shield, thanks to a new law signed by Gov. Kim Reynolds. Secretary of State Paul Pate says the measure is just the first step in a broader effort to chase fraud out of the state.

Law Gives State Power to Shut Down Fake Companies Fast

House File 2678, which Reynolds signed into law June 1, passed the Iowa Legislature with unanimous bipartisan support. The law sets new rules for businesses registering with the Secretary of State's office and gives the state the authority to shut down entities that submit fraudulent paperwork, along with imposing penalties for violations.

Before this law, Pate's office could identify a fraudulent business but lacked the power to dissolve it quickly. Homeowners who discovered their identities had been stolen to register a company were left in a difficult position, often forced to hire lawyers to protect themselves from creditors and legal action directed at their homes.