Collection Agency Scams

How Does A Collection Agency Scam Work?

The collection agency scam is easy to fall for and dangerous for the victim's financial well-being. Scammers will try to collect money from you over the phone using intimidating tactics, but they rarely have any association with legitimate collection companies. The payments that scammers collect from victims is never applied toward their debt, and instead remains with the scamming organization. 

This is a typical extortion tactic used by unknown individuals who conduct the scam from an unknown country. The scammers receive thousands of dollars extorted from unsuspecting victims on a daily basis. This dangerous scam is simple to detect, but needs to be stopped immediately to prevent further identity theft towards unsuspecting consumers. 

Most Common Tactics Used By Collection Agency Scammers:

1. Scammers will tell the victim that there is a warrant for their arrest due to an unpaid bill or an insurance matter.
2. Scammers explain that the victim must pay today; otherwise, they will be served by the court tomorrow.
3. Scammers threaten to notify the victim's employer, friends, and family about their failure to pay. 
4. Scammers will only accept payment for the collection via Western Union and MoneyGram services.
5. Scammers generally operate from outside countries and have a strong accent when speaking English.

What Should You Do If These Scammers Target You?

The scammers mostly operate from outside of the United States and are predominantly from third world countries. Local law enforcement in third world countries generally do not spend an adequate amount of time investigating these claims, so the scammer can get away with their tactics.

One of the most dangerous aspects of this scam is that your personal information may be in the possession of the scammers, which can lead to future identity theft. This information may include your social security number, banking information, and home address. 

Here are some of the recommendations that we think will minimize the damage caused by this incident.

1. Keep track of the phone numbers that the scammers are using.
2. Immediately, tell the scammers that you know it’s a scam. 
3. Block their phone number. If you don’t know how, dial your customer support This number is usually 611 and customer support may be able to block the scammer's number for you.
4. Report everything that you know about the scammer to us, including their phone number and additional information at – #reportscam

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