Scams: Fake Debt Collection

The Fake Debt Collection Scam is an easy one to fall for. If you owe money to someone it's easy to assume that the person on the other end of the line may be a legitimate collector. Con artists trick you out of your money by taking advantage of any weaknesses they can exploit when they are talking to you on the phone. Information about you can be obtained in many ways and may be brought up during the call to establish that the caller is “legitimate”. Do not be fooled by this.

It is important to be aware of some of the more common scams. When swindlers find something that works they stick with it. The best thing is to not allow a conversation to continue if you suspect it is not legitimate. DO NOT be afraid to hang up on these people. Remember, If you have only exempt retirement income such as Social Security, VA Benefits, and/or most pensions, these callers cannot do anything to you – by law, they cannot take your income!

You might be dealing with a scammer or con artist if...

• You don't recognize the debt or loan (always check the account number).
• The caller won't give you their name, a mailing address, a company name, or a court case number.
• The caller asks for personal financial information.
• The caller uses high pressure tactics, often demanding payment TODAY, threatening arrest, or swearing. Remember, con artists know they get more suspicious over time and will try to force you to act without careful consideration.
• They offer limited payment options, be especially wary of ones requiring you to wire money or load a rechargeable money card since there is no way to prove that you made a payment.
• The caller claims to be with law enforcement (police and/or the courts will never call you regarding a debt).
• The caller (or letter) accuses you of some type of fraud and/or says that they are from a State Attorney General's office.
• You may always make a free call to HELPS Nonprofit Law Firm before paying someone who calls you on the phone.

If you suspect you are being targeted by a fake debt collector you should ask for the individuals name, company, street address (not a PO Box), and a validation notice for the debt. It may be a good idea to tell the caller that you are recording the conversation (even if you are not), often the caller will hang up immediately.

Remember - Never give or confirm personal information of any kind, particularly Social Security numbers or bank account information.

For HELPS clients: You may simply treat these calls like any other collector and tell them you are represented by a law firm, give them our name and number, then politely hang up. If you receive a letter, simply forward it to our office and forget about it. 

Scams and Technology

Crooks love to target seniors. It maybe that those who are older are perceived as having their finances more in line, and less mental aptitude for detecting scams. These scammers often disguise themselves as legitimate business people. Typically they pressure victims to make impulsive and expensive decisions. While some will show up on your front porch it's far more likely that they will target you through technology since it is much more cost effective. Generally, they do not engage in legitimate businesses practices which is fortunate because it makes it easier to spot a scam. Always exercise caution and remember the old but true saying; if something seems too good to be true, it is.

How do scammers operate?

Robocalls

Automated sales calls (excluding calls for charity or politics), when you have not given explicit permission to the business to call, are illegal, increasing the likelihood that any call of this nature is a scam. If you push buttons on these automated calls the swindler will know it's a live line and you're likely to receive more calls. Be aware that blocking these numbers is generally ineffective as they change numbers often. It is best just to hang up.

Email and the Internet

Emails

Emails are a great way for con-men (and women) to get your personal information either by tricking you into giving it to them or by inserting something called malware onto your computer through downloaded images or attached documents. When viewing emails from sources you don't know- or unusual emails from an account you do - you should never allow images, download documents, or click links. Additionally you shouldn't call any phone numbers given in the email.

Phishing emails are a common scam. These emails try to get you to enter your personal information by acting like a legitimate company. They can imitate your bank, a charity, a law firm or government agencies (they may falsify a logo or make one up). They may try to steer you to websites that look legitimate in order to get your account information. It is best never to go to business sites through links in an email, instead Google the website. Legitimate companies will generally not ask you to send private information via email as it is not secure.

Wi-Fi

Simply connecting to public Wi-Fi can be risky; anyone can set up a Wi-Fi hotspot so it's hard to ensure your safety. Malicious individuals will often set up hotspots with common names (e.g. linksys or Free Public WiFi) to take advantage of unaware individuals.

If you do use a public Wi-Fi, you should not enter any personal information such as passwords, or your credit card number. Be aware that this alone doesn't make you safe on public networks - if your computer has file-sharing turned on you could be given malware or have your sensitive documents accessed by other people on the network.

---

In general, when it comes to your personal information you can't be too careful! It's always wise to insist on doing more research before giving someone your personal information or establishing yourself with a new company. Look into reviews online, see what credentials they possess and the legitimacy of those credentials. Be very wary of companies that ask you to wire money, or use a re-loadable debit or gift card to pay them. Most legitimate companies won't ask you to do that.

You can read about some common scams here: Common Scams Targeted at Seniors

Common Scams Targeted at Seniors

“Work at home and earn extra money!” Sounds good doesn’t it? Particularly when we could all use a little extra cash. Unfortunately, the vast majority of companies that offer “work at home” opportunities are simply trying to take your money. I recently discussed this topic with Patricia Swansick, an investigator with the Oregon Department of Justice. In a recent case, Mrs. Swansick had been able to recover a portion of what had once been one senior’s life savings. The senior had been talked into taking on significant credit card debt by telemarketers to help finance his new "Home Business".

All seniors need to be on the lookout for scam artists. Here are some commons signs that you might be getting scammed:

Sweepstake notices, free gift offers. 

Once a senior takes the bait for one scam, thieves sell the person's name, address and telephone number, and the fake mailings proliferate. These mail scam are of two types, the "pay to play" scheme or the "You've won! Here's your check" scam. The first ploy entices seniors to buy inexpensive trinkets or magazine subscriptions (which they really do receive) in order to have their name entered in the contest. In the second case, the elderly person receives an authentic-looking check, with notification they've already won the Jamaican (or another foreign country) lottery. What the senior should do: shred both offers. It's illegal for companies to require you to buy anything to enter a sweepstakes. If they do, they're scammers. It's also illegal for Americans to enter a foreign country's lottery. These scams require the "winner" to wire back a share of their "winnings" (which will initially clear the bank but later prove counterfeit) for taxes or administrative fees. The advice from HELPS is to simply tear these up without even opening them in the first place.

Telephone Sales Calls 

“Scammers know senior citizens answer their phone, and are reluctant to hang up on anyone‖, says Jean Mathisen, director of AARP's Fraud Fighter Call Center. And as with junk mail, rip-off artists sell names and phone numbers of seniors who prove to be phone-receptive. HELPS advises you to simply say no thanks and hang up the phone. Resist the temptation to engage in a conversation.

Identity Theft 

Be wary of any calls or emails requesting personal information. One ruse the thieves use: They tell the senior they need a bank account number so they can deposit big prize money in the account.

The grandparents scheme 

The senior answers his phone and a young voice says, "Hey, Grandpa, it's your favorite grandson, and I'm in trouble." Senior says, "John, is that you?" The caller responds, "yes, it's John," he's calling from a friend's cell phone and he's been in an accident. He's out of state and needs his grandpa to wire some money right away.

The discount prescription scam 

Callers offer seniors prescription drugs at 50 percent off. The catch: it requires a $200 "membership fee" to join a discount club, along with seniors' credit card numbers. Or the drugs never arrive as promised, or the "medicine" is actually a generic herbal replacement.

---

Other common scams that target seniors include ―Mystery Shopper, solicitations for donations, Medicare enrollment, mortgage foreclosure relief, and home or auto repair scams. We want our clients to know that there are more scam artists operating than ever before. If it sounds too good to be true it’s because it isn’t true.