Iowa Secretary of State Paul Pate said a law targeting fraudulent businesses that use Iowans’ names and addresses to register their companies is a tool he plans to use in cracking down on fraud while working with organizations like the Iowa Better Business Bureau.
House File 2678, signed into law by Gov. Kim Reynolds June 1, passed the Iowa Legislature unanimously. It was one of the measures Pate laid identified as a top priority heading into the 2026 session as a way to address fraud. The measure sets new rules for businesses and organizations registering with the Secretary of State’s office that allows the state to shut down entities found to have submitted fraudulent paperwork, imposing penalties for violations of the state law.
In an interview with Iowa Capital Dispatch, Pate said this new law will allow his office to address and resolve situations where a fraudulent business chooses a random individual and home address as their “registered agent” in the state, an act that directs creditors and legal action to the unaffiliated homeowner based on the business’ actions.
Previously, Iowa homeowners had contacted the Secretary of State’s office after receiving a letter from the office congratulating them on starting a business — something they did not do. Though the office was able to determine the business was fraudulently using others’ names and identities, it did not have the power to immediately dissolve the company. “There’s a lot of procedures involved, and this put the homeowners in a bad place where they were having to hire lawyers and worry about their own liability for various things that might come their way,” Pate said.
The new law will give the office “the ability to dissolve the company almost immediately” after being notified of the situation, Pate said.
In addition to addressing a problem in Iowa, Pate said discussions on the measure also kicked off conversations with groups like the Better Business Bureau, as well as Realtors, lawyers, banks and credit unions, on how to take action against scammers in Iowa.
“Now we’re ready to take on the next chapter,” Pate said. “We want to make sure these bad actors get stopped in their tracks, because they are very quick to move and change their approach, or do different things, and I’m getting tired of being the catch-up guy. I want to be ahead of the issue.”
Pate said moving forward, his office plans to look at best practices from other states that Iowa could implement to address fraud, and to look at ways to work with federal partners, such as the Federal Bureau of Investigation, U.S. Department of Justice and other federal consumer protection agencies, to address fraud in Iowa. He also said the office plans to “do a better job of putting out more consumer alerts” by partnering with groups like the Better Business Bureau to help prevent Iowans from falling victim to fraud.
“The message I give today is, ‘Please, consumers: Take a moment, take a deep breath, check it out. Don’t take it at face value,’” Pate said. “I’m sorry, I wish I could tell you we’re all perfect, and we’re all honest, and we’re all good people. But as long as those few bad actors are out there, we have to be on guard.”
Iowa’s Better Business Bureau President Chris Coleman said he was happy to partner with Pate on the measure, and said the law will help protect both Iowa businesses and consumers by closing a “loophole” in state law that fraudulent actors took advantage of.
“This will protect consumers — both the homeowners that have been directly victimized, but also every other Iowan who might think this scam is legitimate,” Coleman said. “They’re gonna reach out to sell vehicles or a website or sell something to try and take advantage of others, and if they had an Iowa address registered through the Secretary of State, it gives them legitimacy that they don’t deserve.”
Coleman also called for Iowans to exercise caution as they consider doing business with companies. He said Iowans can check companies’ legitimacy using the website for the Better Business Bureau. The organization also has free services “where we will investigate complaints or issues, and even try to mediate specific issues that people are having with businesses.”
“We look forward to hearing from Iowans, who are having issues, who feel they might be victimized, and we are glad to help resolve those cases,” Coleman said. “But again, as the secretary says — prevention, doing your research at the front end is the most important thing. And we can direct people to legitimate, accredited businesses right here in Iowa, in every industry, and we hope that people reach out to us before they make a mistake to find a legitimate business.”
