Is your phone ringing off the hook with a so-called debt collector contacting you about a debt you don't owe?It may be a case of mistaken identity or an honest mistake. But, there's a new wave of fraud is impacting those still struggling in this post-recession economy. Scammers are calling unsuspecting people and falsely claiming that they have defaulted on payday loans and are in danger of being arrested.
The callers have been telling their victims that they're in positions of legal authority representing organizations with official-sounding names such as the "Financial Accountability Association" or the "Federal Legislation of Unsecured Loans." They threaten that adverse action will be taken if they don't pay immediately.
However, in reality the callers are just trying to get their victims to disclose their credit card numbers and bank account information to make payments on their phony debts. To make their stories more convincing, some of the scammers have managed to secure personal details about their victims such as identification numbers and previous addresses.
“Because the scammers have so much information about potential victims, BBB is concerned that this may be the result of a data breach,” says Steve Cox, a Better Business Bureau spokesperson, in a statement.
The first line of protection is to avoid giving out financial information over the phone unless the are sure the transaction is secure.
Are you being pursued for a debt you don't think you owe? The BBB offers five tips to help consumers to fight back against erroneous debt collectors here.
