How to Check if a Company is Legit in 2026

With scammers constantly developing new ways to trick the public and businesses alike, it’s becoming increasingly difficult to verify company legitimacy. Phishing scams remain the most widespread cyber threat, where fraudsters impersonate legitimate organizations to trick victims into making false payments or disclosing personal data. More than 3.4 billion phishing emails are sent every single day, playing a key role in more than 80% of cyberattacks and data breaches.

But the nature of fraud itself is changing. According to the Sumsub Identity Fraud Report, fraud operations are becoming far more complex. There has been 180% year-on-year growth in sophisticated fraud, while 40% of companies and 52% of end users report being victims of fraud.

These disturbing trends underscore the importance of proving trust and due diligence online, both for end users and for businesses. So let’s dive into the most common business scams targeting both individuals and businesses, and how to help determine whether a company is legit.

The most common types of business scams

Business scams are becoming more sophisticated, affecting consumers and companies across nearly every single industry. Among the most widely impacted sectors are financial services, crypto, professional services, freelance platforms, video gaming, and the online media and dating industries. Trusted professional and even romantic partners can later introduce “business” opportunities, leading to often convincing scams affecting both consumers and businesses. Here’s how they tend to work:

Impersonation and impostor scams

An impersonation scam is simply a scam where criminals pose as a trusted individual or organization. 

The FTC advises that scammers often pose as legitimate entities to fool their victims. These impersonation scams, or imposter scams, involve clones of trusted entities, such as government agencies or well-known companies, that are used to deceive victims into providing money or personal information​. 

According to recent research by Guardio Labs on phishing attacks, Microsoft was the most commonly impersonated brand, ahead of other major names like Facebook and Roblox.

To perpetrate these scams, fraudsters typically employ phishing techniques. This is when fraudsters reach out to their victims by email, text, or otherwise, providing a link to a fake website. Once the victim clicks on that link, they’re redirected to a fake website that may look identical to a legitimate entity—say, a bank or government portal—where they’re prompted to enter sensitive information such as passwords, credit card numbers, or banking PINs.

Creating these clone websites is easier than ever, making it difficult for consumers to distinguish between a legitimate business and a scam.

Suggested read: Fraud Is in the Air: The Growing Threat of Online Romance Scams

Postal and delivery scams

How many times a week do you get an SMS from a so-called "postal service" or "YPS" pretending to be "UPS," asking you to pay a tax or urgent fee to receive a parcel? Probably more than a few. More likely than not, these are delivery scams.

Package delivery scams tend to impersonate well-known postal or delivery services—like UPS, DHL, or national post offices—to trick victims through smishing, or SMS phishing. Typically, the victim receives a text message claiming there’s a delivery issue, customs fee, or package delay, with a link to a fake website resembling the real service.

Once on the site, victims may be asked to enter personal information, payment details, or even download malware. According to a recent Pew Research Center survey, a majority of US adults receive scam phone calls, emails, or text messages at least once a week trying to collect their personal information. 

These scams create a sense of urgency and appear legitimate, making it easy for people to fall for them. Users should always verify tracking numbers and never click on suspicious links in unsolicited messages, and businesses should always remind their customers to do so.

Government impersonation scams

Scammers frequently impersonate government agencies, from local police departments to federal authorities and tax offices.

The goal of a government impersonation scam is to pressure the target into sending money to resolve an urgent issue. This typically includes dire warnings or threats to create a sense of urgency. These can include tax scams like IRS scams, where victims are threatened with heavy fines or arrest unless they pay immediately.

Analysis from the FTC reveals that, since 2020, four times as many Americans over 60 are reporting losing $10,000 or more to fraudsters impersonating trusted government agencies and businesses.

Job and employment scams

As remote work has grown, so have fake job offers. Employment scams typically target job seekers with attractive offers that seem too good to refuse, including high salaries, flexible hours, and low barriers for entry.

Victims of job scams may be asked to pay for training, purchase equipment, share bank details, or transfer money as part of onboarding, inadvertently acting as a money mule.

Suggested read: What Is a Money Mule? Red Flags, Examples, and Prevention in 2025

Investment and crypto scams

Investment scams are among the most expensive categories of fraud worldwide. Reports of crypto investment scams have doubled since 2020. 

These schemes can involve fake trading platforms, fraudulent crypto wallets, or rug pull scams promoted through social media.

Modern investment scams may use sophisticated tactics such as AI-generated deepfake videos of celebrities or CEOs, fake testimonials, pressure to act quickly, and requests to transfer funds via irreversible crypto payments. Victims of crypto scams rarely recover their money.

Suggested read: 8 Crypto Scams to Be Aware of in 2025: A Guide for Businesses and Users

How to check if a company is legit or a scam in 2026: A checklist for individuals

Scammers often create convincing websites and online profiles to pass as legitimate businesses. However, there are some clear signs that can help you separate real platforms and businesses from fraud. Here are the key steps on how to know if a company is legit.

Step 1: Verify company registration

Start by visiting official government registries, if available, to check that the business is legally registered. Most countries provide free online access to company databases to verify company registration. For example:

• US: EDGAR for publicly listed or large companies on the SEC federal database; state-specific databases, such as those in California, Delaware, New York, or Texas 
• UK: Companies House
• EU: European Commission Business Registry
• APAC: ACRA (Singapore), Companies Registry (Hong Kong), ASIC (Australia)
• LATAM: Receita Federal (Brazil), Corporations search (Puerto Rico), Ministerio de Economía, Fomento y Turismo (Chile)

If there is no public database, then an agent can help to verify company registration.

Step 2: Look up business licenses

If a business operates in a regulated industry such as finance, crypto, gambling, or payment processing, it should hold a valid license from the relevant government authority.

You can check the license independently through official government registers to make sure the business is legal and follows all required rules and regulations. For example:

• Fintrac Canada 
• Dubai (not all of the UAE)
• FCA UK 
• Malta Gaming Authority

No listing for license verification? That’s a red flag.

It is important to note that scammers may unlawfully use the company details of existing, legitimately operating businesses.

Step 3: Review contact information

Legitimate companies give out details to verify business contacts, including a phone number, physical address, and business email. Try calling the number: if it’s disconnected or answered vaguely, you should proceed with caution.

A 2024 BBB study found that 73% of business impersonation scams involved fake or unverifiable contact details, often using VoIP numbers or masked email domains. Be aware, however, that technology like AI voice spoofing makes phone verification even more complex. 

Step 4: Analyze the company website

A trustworthy business will have a professional, complete website. Look for:

• HTTPS verification as a sign of a secure site
• A detailed Privacy Policy and Terms of Service
• Company name and details, information about the team, services, and company background

When checking website legitimacy, be wary of poor grammar, a lack of legal pages, one-page sites, or generic content. AI-generated scam websites are on the rise and can seem highly convincing at first glance.

Step 5: Check company reviews

Search for feedback on platforms like Google Reviews, Trustpilot reviews, or the Better Business Bureau. Instead of just looking at ratings, analyze patterns—multiple complaints about the same issue are a major red flag.

In 2024, the FTC noted that review manipulation played a role in thousands of e-commerce fraud cases. If all reviews are overly positive, vague, and posted on the same day when you check the company reviews, that’s a sign of fake engagement.

Step 6: Examine social media presence

Most legitimate businesses have some kind of presence on platforms like LinkedIn, Facebook, or Instagram. Check for LinkedIn company verification. Verify their social media presence and review their activity for fake profiles: Are they engaging with users? Do they post consistently? Is the tone and content professional?

A blank or brand-new profile can be a warning sign.

Step 7: Check industry associations

Many established businesses are members of professional associations or local chambers of commerce. Look for badges or certifications and then verify them directly on the organization’s website. Industry association membership and verifying professional certifications can help verify whether a company is real.

For example, tech firms may be members of IT industry associations, fintechs may appear in regulatory sandboxes, and certified financial advisors should be listed with official regulators like the SEC or FCA.

In the US, look up the SEC and financial filings

If a business claims it’s public, regulated, or investment-related, check for public company verification on the relevant tool. In the United States, for example, perform an SEC Filings lookup using EDGAR search to confirm the company exists, matches the brand name, and has filings consistent with what it claims. 

Be wary of almost identical names, as scammers sometimes pick names that resemble legitimate issuers.

Verify EIN and tax information

A legitimate business should be able to provide accurate tax details that match its registration identity.

For US businesses, EIN verification can add another layer of confidence. Where appropriate, request documentation such as an EIN verification letter and ensure the business name and address match what you see in other trusted sources.

However, EIN numbers cannot be checked through a public database, like the VIES database. Independent KYB services like Sumsub can help with this access.

Step 8: Conduct background checks

If you're about to make a large investment, sign a contract, or onboard a new partner, consider hiring a third-party verification service or using online business due diligence platforms for a company background check. These can uncover litigation history, regulatory flags, and hidden ownership.

🚩Red flags: Warning signs of a fake company or scam counterparty

Even if a business appears legitimate at first glance, watch for these warning signs:

💳 Payment red flags

• Urgent demands for immediate payment
• Requests for unusual payment methods (cryptocurrency, gift cards, wire transfers)
• Heavy discounts or returns that seem too good to be true

💬 Communication red flags

• Emotional manipulation (romance, urgent job offers, miracle health claims)
• “Guaranteed” investments or risk-free profits
• Impersonation of authority figures or well-known brands
• High-pressure tactics that discourage independent verification
• Lack of a verifiable phone number or customer support channel

🌐 Website & online presence red flags

• Spelling errors, inconsistent branding, or copied legal pages
• Recently created domains with little digital footprint
• Limited or suspicious online presence

📄 Documentation & legitimacy red flags

• No verifiable physical address
• Missing regulatory certification (where required)
• Forged or unverifiable licenses
• No company registration in official business registries

Industry-specific verification guidelines

Verification requirements vary by industry and risk level. A consumer checking an online store faces different risks than a compliance team assessing a regulated financial partner. Below, we distinguish between guidance for businesses and guidance for end users.

🏢 For businesses: How to verify industry counterparties

Verifying financial services companies

Banks, investment firms, brokers, and payment providers are tightly regulated, making it simpler to verify financial companies as legitimate firms will always appear on official registers.

These registers vary depending on the country. For UK-based firms, the most reliable source is the FCA FS register, which lets you confirm whether a company is authorized to provide financial services. In the United States, you can look at FINRA to check if a broker or investment professional is licensed.

Confirm the company details match and check for any warnings or enforcement actions. 

Verifying cryptocurrency and fintech companies

The crypto space attracts both innovation and fraud, so it’s crucial to verify crypto company credentials before sending money or personal data.

Increasingly, as with financial services companies, legitimate crypto businesses need to hold specific licenses or registrations, depending on the jurisdiction. For example, in the UAE, you can check the VARA register for virtual asset service providers.

If possible, perform an independent crypto license check rather than trusting badges or certificates displayed on a website.

👤 For end users: How to verify companies and online offers

Verifying e-commerce and online retailers

Before entering card details on a new website, take a moment to verify the online store. Online shopping scams are a common type of consumer fraud, especially around major sales seasons.

Check for independent reviews outside the company’s own website and whether the payment process is secure and transparent, or a potential online shopping scam.

Even individual sellers on large marketplaces like AliExpress can be risky. Always check seller ratings, dispute policies, and payment protections.

💡Is AliExpress legitimate?

AliExpress itself is a legitimate marketplace owned by Alibaba Group that connects third-party businesses with customers, but some individual sellers may not always be trustworthy. This is why it’s important to verify online stores and sellers before entering your card details.

Examples of fraud on AliExpress include a shopper in Savannah, Georgia, being sent a photo of a drill instead of an actual drill, and even counterfeit and sometimes dangerous goods being sold on the marketplace.

Verifying employers and job offers

Fake job offers are a growing problem, which is why knowing how to verify employer legitimacy is so important.

When you receive an unexpected job proposal, before you get too excited, ask yourself: “Is this job legit, or does it sound too good to be true?”

Legitimate companies do not tend to ask candidates to pay upfront for training, background checks, or onboarding materials. To perform basic company employment verification, try to contact the organization through an official means and make sure it is properly registered.

Any employer pushing you to accept quickly, provide sensitive data, or communicate only through chat apps should be treated with extreme caution.

How to verify companies by country

Different jurisdictions have different public databases, regulators, and verification systems. Understanding these local tools is essential for reliable international business verification. The following shows how verifying companies differs by country.

🇺🇸 Verifying US companies

To cover the basics in verifying a US company, start with official government and regulatory databases.

For public companies required to file forms with the SEC, the most authoritative source is EDGAR on the SEC database. 

For private companies, try using the relevant state business registry. Each US state maintains its own searchable business entity database.

🇬🇧 Verifying UK companies

To verify a UK company, the first stop should be a Companies House search, the UK’s official corporate register. It allows anyone to confirm whether a company legally exists, its registration number and status, its directors and filing history, and its official address and incorporation date.

Companies House information is free and updated in real time, making it among the most transparent verification systems in the world.

If the business operates in financial services, you should also check the FCA FS register to confirm it is authorized to provide the services it claims to offer.

🇨🇳 Verifying Chinese companies

Chinese company verification can feel more complex, especially for buyers working with overseas suppliers. But there are reliable ways to confirm whether a Chinese business is genuine.

For manufacturers and exporters, you can verify the credentials of suppliers in China through the National Enterprise Credit Information Publicity System. Simply enter the official name or registration number to find the company.  

Many in China also rely on Alibaba verification tools, which provide verified supplier badges. However, these are not official licenses. 

🌎🌍🌏 Verifying international companies

Local registries and tools can be used for international company verification.

Within the European Union, many corporate records can be accessed through the EU Business Registry database, which links national business registers across member states. This allows you to check whether a company exists and review registration details.

Other helpful resources for global registry checks include:

• National company registries (e.g., Germany’s Handelsregister, Singapore’s ACRA)
• Professional regulators for licensed industries
• Industry-specific watchdogs and sanction lists

Real-world scam case studies

Looking at real business scam examples helps reveal the tricks scammers use to exploit their victims. The following scam case study snapshots highlight a range of modern examples of fraud, showing how sophisticated today’s criminals have become, and why thorough verification is essential.

Deepfake celebrity investment scams

In August 2024, a deepfake video featuring an AI-generated Elon Musk deepfake went viral, promoting a fake cryptocurrency investment scheme. The celebrity cryptocurrency scam was so convincing that it duped 82‑year‑old retiree Steve Beauchamp into depositing a staggering $690,000, believing the video and company behind the pitch were genuine. Indeed. How could a company associated with such a famous person be fake?

The New York Times called this “the Internet’s biggest scammer” due to the sophistication of the AI-generated voice and visuals, which even flawlessly mimicked Musk’s accent and facial movements in a shocking example of a deepfake scam.

Suggested read: 8 Crypto Scams to Be Aware of in 2025: A Guide for Businesses and Users

MLM and pyramid scheme collapses

In October 2024, Thailand’s iCon Group, which positioned itself as a health‑and‑wellness MLM brand, collapsed amid reports of large-scale fraud. Over 2,170 victims lost a total of 841 million baht (~$26 million) in the iCon Group fraud case. In what is now a notorious MLM scam case study, the company used well-known celebrities for endorsements, creating trust and credibility, before failing to deliver promised returns. Scrutiny led to court-ordered asset seizures totaling 125 million baht (~$3.9 million).

Remote job offer scams

As an example of how devastating remote job scams can be, a Bay Area resident lost $176,000 as part of a fake remote job scam in late 2025. In this case, a 60-year-old software professional received an email offering flexible part-time work for Facebook: a classic setup for what would turn out to be a fake recruiter scam.

Over six weeks, the victim was led deep into the scheme, which used convincing branding and AI to mimic familiar corporate interfaces. Ultimately, she was coaxed into paying escalating fees supposedly related to onboarding, draining her of her life savings. 

For business & compliance teams: Verification tools and KYB solutions

The right business verification tools can make checks faster and more reliable. Depending on your situation, you might find simple public databases helpful, or you may want more advanced KYB verification platforms and professional due diligence software.

Below are some of the most practical options, from free resources to enterprise-grade solutions.

Free verification resources

These are ideal for preliminary due diligence before signing contracts, onboarding partners, or entering new commercial relationships.

Some of the most useful free resources include the SEC’s EDGAR free search tool, state business registries, Companies House in the UK, and national company registries across the EU, APAC, and LATAM. You can also look up the BBB (Better Business Bureau) for free to review complaints and ratings.

These tools are excellent for answering simple questions like Does this company legally exist? However, for higher-risk situations, more advanced solutions are recommended.

Professional KYB verification solutions

Many industries need to verify their business partners in accordance with AML compliance regulations, conducting KYB business verification. These industries include finance, payments, crypto, gambling, and more, making dedicated KYB solutions essential.

While regulated businesses are required to conduct KYB, non-regulated businesses are highly recommended to use automated KYB platforms to simplify keeping fraudsters away, avoiding losses, and preventing reputational damage. 

Businesses and compliance teams can learn more about KYB verification and how Sumsub verifies businesses in our comprehensive KYB Verification Guide.

What to look for in a KYB provider

Not all verification platforms are created equal. When doing a KYB provider comparison to choose the best KYB solution, it’s important to evaluate all facets.

Sumsub works to understand the specific requirements of each business and offers a comprehensive, tailored KYB check that fully automates company verification and AML screening. This includes six unique modules that can be combined through our Workflow Builder to meet KYB requirements:

• Corporate Registry Check
• Control Check
• UBO Verification
• AML Screening
• Questionnaires 
• Corporate Documents Review

The client can choose how many modules they need and combine them as they like (only the company name and country are mandatory for corporate registry checks). Clients can also add additional levels of verification and make them mandatory for users if needed.

On top of that, Sumsub has one key technology to automate the KYB process: ACDR (Automated Company Document Reading). This feature, powered by AI, uses advanced OCR technology to extract all the needed information from corporate documents in any script, supporting over 140 languages. The extracted information is verified within seconds against corporate registries for accuracy and authenticity.

✔️Protect your organization: A final business verification checklist

Here is a simple company verification checklist you can follow before putting yourself at potential risk.

Use this practical business legitimacy check as a final review before engaging with any unfamiliar organization.

• Can I clearly verify company registration in an official government database?
• Does the business appear in the correct industry regulator’s register?
• Are the contact details consistent across the website, registry, and social media?
• Does the company use a professional or a corporate domain email?
• Is the website secure and free of obvious errors?
• Are there genuine customer reviews across multiple platforms?
• Does the business have a real, verifiable physical address?
• Can I independently confirm the identity of the people contacting me?
• Am I being pressured to act immediately or pay in unusual ways?
• Do payment requests match normal commercial practices?

If you answer “no” to more than one or two of these questions, pause and investigate further before proceeding.

No deal is worth the risk of identity theft, financial loss, or legal trouble. If something feels wrong, trust your instincts. Performing a thorough business legitimacy check may take a few extra minutes, but it can save you from months of stress and thousands in losses.

Not all KYB providers are created equal

Learn how to spot the real deal—from approval rates and onboarding to compliance and fraud protection

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• How can I check if a company is legitimate?

  Search for the company in an official government registry, verify contact details, review customer feedback on independent platforms, and look for red flags like pressure to pay urgently or poor website quality to check if a company is legitimate.

• How to verify a business in the UK?

  Use the official Companies House website to check the company’s registration number, filing history, and status.

• How to check a fake company in the USA?

  Look up the company through EDGAR (SEC) for public companies, or check state business registries via the SBA’s directory. You can also do a license search to check if the company has a valid license in the USA.

• How to verify an online company?

  To verify an online company, check official business registries, confirm licensing if required, and review independent customer feedback on platforms like Google or Trustpilot. Always cross-check contact details, website ownership, and domain history before sharing personal information or making payments.

• What are the warning signs of a fake company?

  Common fake company warning signs include pressure to pay urgently, requests for unusual payment methods, and inconsistent contact details or business names. Poor website quality, lack of registration information, and overwhelmingly fake or recent reviews are also strong red flags.

• How do I report a scam company?

  To report a scam company, contact your national consumer protection authority, such as the FTC in the USA, Action Fraud in the UK, or your local police cybercrime unit. You should also report the scam to the platform where it occurred to help prevent further victims.

• Is it safe to do business with a company without a physical address?

  Dealing with a company without a physical address can be risky because legitimate businesses normally provide verifiable location details for legal and customer service purposes.

• How can I verify a company’s license?

  To verify company license information, search the official register of the relevant industry regulator, such as the FCA in the UK or FINRA in the USA. Never rely on screenshots or documents sent by the company; always confirm directly through the regulator’s public database.

• What is KYB verification?

  KYB verification refers to “Know Your Business,” a compliance process used to confirm the legal status, ownership, and control structure, and legitimacy of a company. KYB checks typically include registry verification, beneficial owner identification, and sanctions screening to prevent fraud and money laundering.

• How do I check if a job offer is legitimate?

  To determine if a job is legitimate, verify the employer through official company websites and contact details found independently, not those provided in the offer. Be cautious of requests for upfront payments, interviews only via chat apps, or recruiters using personal email addresses.

• Can I verify a company using its EIN number?

  You can verify US company EIN details by matching the EIN with official documents and tax records, but EINs alone do not guarantee legitimacy. It’s best to combine EIN checks with business registry searches and licensing verification.

• How do I check if a Chinese company is real?

  To verify a Chinese company, use China’s National Enterprise Credit Information Publicity System to confirm registration status and legal name.

• What databases can I use to verify a company?

  Useful company verification databases include SEC EDGAR for US public companies, Companies House for UK firms, national business registries, and industry-specific regulators. Independent review platforms and professional KYB services also provide valuable verification data.

• How long does business verification take?

  Typical business verification times range from a few minutes for basic registry checks to several days for detailed KYB reviews involving ownership verification and AML screening. Automated platforms can often complete comprehensive checks within minutes.
  
  With Sumsub, AutoKYB (fully automated verification) takes about 15 seconds, while FullKYB (automated plus manually assisted verification) takes approximately one business day.

• Is BBB rating reliable for company verification?

  BBB ratings can be helpful as an early indicator of customer complaints and dispute history, but they should not be the only factor in verification.