Bogus Debt Collectors Sweep the Country

Moneywatch.com: Better Business Bureau Issues Emergency Fraud Alert About Widespread Scam

(MoneyWatch.com)  This story was written by Kathy Kristof.

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The Better Business Bureau has sent out an emergency alert, warning consumers about a widespread scam that involves phony debt collectors who have significant private information about their victims.

According to reports received by BBB offices in several states, the scammers accuse the victim of defaulting on a loan and claim they are about to be sued. In some cases, the con artists claim to be lawyers with the "Financial Accountability Association" or the "Federal Legislation of Unsecured Loans," BBB officials say.The victim is then given the chance to wire money or provide bank account information for the debt collector to nab it electronically before the matter goes to court. In many cases, victims are subject to dozens of nasty, abusive phone calls in a matter of hours.

More disturbing is that the bogus collectors have the victims' Social Security numbers, home addresses, information about employers, some credit references and even old bank account numbers. The victim is asked to "verify" other private information that could make them subject to identity theft.

"Even though they have sensitive information, they are not real debt collectors," said Alison Southwick, spokeswoman for the Council of Better Business Bureaus in Washington, D.C. "We have to imagine that this is the result of some serious data breach. We don't know what it is yet but it was so serious that we wanted to get the information out right away.

"It is extremely frightening how much information these people have about their victims," Southwick added.

The BBB has already reported the scam to the Federal Bureau of Investigation and the Federal Trade Commission. However consumers remain at risk.

If you get one of these phone calls DO NOT provide any verifying information. Either hang up or demand that the debt collector send verification of the debt in writing. Then:

* IMMEDIATELY put a fraud alert on your credit file with all of the major credit bureaus, Experian, Equifax and Transunion. Because the scammers have consumer Social Security numbers, your risk of becoming a victim of identity theft is through the roof.

* You will automatically get a copy of your credit report when you issue the fraud alert. Be sure to read it carefully and identify any item that's not yours.

* If there are numerous new accounts or "hard" inquiries-those are where you have supposedly requested credit-file a police report. (Soft inquiries are when a creditor has requested general information about you to provide a pre-approved offer of credit. They are nothing to worry about.)

Also report the fraud to your local Better Business Bureau, which you can access by plugging in your zip code to the BBB link above, and to the Federal Trade Commission, which enforces the Fair Debt Collection Practices Act.

Meanwhile, if you have gotten one of these harassing phone calls, please share the details and how you handled it for the benefit of other potential victims.

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[sierra_hotel83]

Well if the bills get paid then you wont have to worry about going these phone calls. And my question is how did they get this sensitive materials to include SSN's, bank acct #'s and address's?

[Zarwand]

One thing that would really help consumers is legislation...nationwide, as in federal...that would allow us to tape ALL conversations on our phones. Another thing that would help is if the laws on the books were actually enforced.

[Zarwand]

All debt collectors should be summarily executed at the first available roadside. It is not their fault that the laws governing their behavior are not enforced, but they are the ones taking advantage of that fact.

[rebec73]

I received calls from these jerks last week. I am so thankful that I didn't cave for the bogus scam!!! It is very scarey though because they knew my SSN, Driver's License Number, Bank Acct. #, Phone, Email, Personal References...indicating that I if I didn't pay $1025 now, I would go to court the following week, loose my case and then owe $8000 plus. I have kept the voicemails and contact phone number, although I am guessing the phone numbers are no longer in use!!!

[randeg]

Thank you so much for all the information here as it will help a lot of consumers who will read it. It is scary though that the debt collectors will know so much about you. How will they know the social insurance number is beyond comprehension. I wish I knew how they obtain those information so that I can protect myself.

Evelyn Guzman
http://www.debtchallenges.com (If you want to visit, just click but if it doesn?t work, copy and paste it onto your browser.)

[mnbrant]

Looked at your website and it looks like c r a p which is a dead givaway. The advice they give is C R A P too. You should never ever transfer your debt to a %0 interest card because then you have a completly empty card with which to double your debt which will lead to your eventual demise. 1. What you do is call them every day and be a complete a s s. 2. If they can dun you you can dun them. 3. Write letters demanding a 9% interest. 4. Call every 10 minutes if they have time. 5. Demand to talk to a superviser and talk and talk .Let them sue you because their ears are hurting if they like. Spend your whole life on this issue and assuradly your interest rate will improve. OK let me read further. Hmm paying one credit card off at a time. Nope I am gonna pay of all my debters a equally. If you don't like what you are getting from one creditor repeat step 1,2,3,4,5 over and over until the guy one the other line dies from nausea. Then repeat step 1,2,3,4,5 with the next guy. Remember to tell them you have your whole life to devote to this. Finally when they all agree to this remember to pay on time. Looks like a lot of crappy ads for crappy companies on the site above. Don't call any of them. It's alot more fun my way. Thanks

[tviviandavis]

mnbrant:

Wait, so are you saying that you paid for Lifelock & then were told that all the debt run up by those who stole your identity was actually your fault? Could you clarify a bit? I was thinking of getting Lifelock, but if its just another scam, I'd like to know. Thanks!

[mnbrant]

Lifelock is the best. got some letter from a company dunning me I did not recognize so I got lifelock. Within 30 minutes I determined that the 89k I owe in loan-type debts, both debts I am current on and ones I am in default on are all mine. Nobody has even tried to make a fake loan off of me. I also owe 22k to social security and 2.3k to the IRS. I am currently voluntarily paying 300 bucks monthly to SS and IRS. I suppose if I did go to court all that would happen is I would involuntarily have
to pay 500$ to IRS and SS. Funny thing is that after 2 years My defaulted credit has hardly increased. I went from one collector call every 10 minutes to about 2 calls a day which I never answer. The credit companies have probably logged a million man hours in collector calls on me. Hmm I have recently agreed to pay the 300$ monthly which leaves me 140$ short a month. I just won 150$ at the casino so I am ok for this month. I am looking for a third job of around 24 hours a month to meet bills. I am currently working 56 hours a week in two really easy jobs. To pay my debt I am currently in the works to start a business. I guess it will be a sole propietorship at first because I dont have the scratch to make it a corp. I don't want to sully my rep with a bankruptcy so even I I am sued and they win I am unlikely to get one. The funny thing is I have no problem if I want to get a loan and the credit offers keep rolling in. I guess I have already explained that I am always getting letters from people saying my personal info is stolen. The only one I can remember atm is the dept of defense as I am prior military. The debt
consolidation company either asked or I volunteered all the passwords and secret answers to all my accounts so they could have a look see. The price was crazy so I turned them down. For at least a year they continued to monitor all my accounts. The reason I know this is that every time I tried to log into my accounts they always asked me the secret questions. Lifelock will also tell you if you have been a bad boy. Wouldn't you know it, I am completely clean. Heck my credit score is like 550 which is probably pretty good for someone in default to the tune of like 76k. The day I joined lifelock I noticed that SS wrote some crap about me. I called them up and wouldn't you know it. They told me not to worry just keep paying. I have joined another credit bureau at one time and believe me when you have complex credit issues life lock is the way to go to figure things out. Heh I just has a nigerian scammer who blessed me and asked me to send her a pic and some other general non financial info. Maybe all they are missing is a pic. heh. Tempting because I have life lock but I think I'll pass. I have heard that scamming is indeed illegal in Nigeria. How can it be there number 2 import then?

[ianlou]

My moto is:
Aside from small talk, never participate in a conversation you did not initiate.

[mnbrant]

I like lifelock. Despite having had my identity stolen maybe 20 times and having given out all passwords with secret phrases to a debt consolidator I did not use who continued to monitor my account I found out that all those debts are actually mine in an easy to use format.

[HGOODGUY]

IF YOU HAVE GIVEN ALL THIS INFORMATION OUT AND HAVE HAD YOUR IDENTITY STOLEN 20 TIMES--THERE SHOULD BE A MESSAGE HERE.
EITHER THAT OR YOU ARE NOT "WRAPPED REAL TIGHT"!!

[formrusmcsgt]

"It is extremely frightening how much information these people have about their victims," Southwick added.
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What's more frightening is that no one apparently knows where/how/when the breach ocurred.....

[Benton09]

Send these Leeches to North Korea for a visit with the Dear Leader.