SCAM ALERT: Identity Theft Scam
A New Identity Theft Scam
Identify Theft is on the rise with ever increasing variety and complexity to the scams. This
post highlights a recent scam that uses a fake debtor collector. The best defense to identity theft
scams is to know what the new scams are and to be vigilant.
Our firm has had an increase in calls from people asking about unusual debt collection efforts and in every
cases we have investigated, it turned out to be a scam.
The Scam Details
The scam looks like this. A debt collector calls you about a very old debt, maybe even 10 years
old or more. You recognize the name of the original company that they say you owe but you
have never heard before that you still owed them money. The debt is not on your credit report.
The debt seems real, small, and you are asked to pay it immediately to stop a law suit or other
bad collection action.
These fake debt collectors use sophisticated phone number spoofing to make it seem like the call
is from a legitimate debt collector. This can include using a legitimate debt collector’s name but
with a phone number that diverts to the scammer. And they will usually go so far as having the
scammer’s phone number be answered by what appears to be a legitimate business with a
receptionist or a voice system with extensions.
Ways To Detect Scammers
There are some simple ways to determine if there is a debt collection scam. But since the scam is
related to consumer debt collection, the federal Fair Debt Collection Practices Act (FDCPA)
applies. This consumer protection statute requires that debt collectors act in certain ways. You
can use this law to test the scammer and conclusively determine if the debt collection is
legitimate or a scam. Legitimate debt collectors follow the FDCPA. Here are your rights under
the FDCPA (see cfpbg.gov for more information on the FDCPA and other consumer protection
statutes).
1. Ask for a written statement of the account to validate the account. If they tell you they cannot
or do not have to provide one, then they are violating the FDCPA and are very likely a scammer.
2. Ask that all future communication to be in writing. You have the right not to be bothered
with calls and to insist that they communicate only in writing. If they tell you they cannot or do
not have to, then they are violating the FDCPA and are very likely a scammer.
3. Ask if the debt is outside of the statute of limitations. Anything over 10 years is outside the
statute of limitations. Under current FDCPA rules, a creditor must advise you if they try to
collect a debt that is outside the statute of limitations. But remember that the statute of
limitations is the deadline by which they have to sue. If they already sued and have a judgment, it
is good for ten years and can be extended for another ten years.
4. Watch for other violations. In particular, a debt collector may not tell anyone else about the
debt and its collection. If they spoke in detail to a family member or friend, it is likely a scam.
The debt collector must read a script that advises they are collecting a debt and if you talk to
them, the information can be used against you. Another indication that it is probably a scam is if
the debt collector asks for a payment method other then a check by mail or a check by ACH
(sometimes called a phone check).
If you have concerns about a debt collection call, then our office can help you. Contact us today for
a free initial consult.
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