Phony debt collectors put consumers at risk for identity theft

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Indianapolis 09-01-2010 - Attorney General Greg Zoeller issues a HIGH warning to all Hoosiers of a widespread scam that involves bogus debt collectors who have an alarming amount of personal information about their potential victims – putting consumers at high risk of identity theft and significant financial losses.

According to the reports received by the Indiana Attorney General’s Office, the fake debt collectors are impersonating law enforcement officers, lawyers or other official sounding agencies such as the “IRS Collection Service.” The scammers use very aggressive tactics to scare the consumer into paying the alleged debt. They accuse the victim of defaulting on a loan and, in some cases, claim they are about to be sued or even worse – they will tell the consumer they will be arrested and taken to jail if they don’t pay. The victims are pressured into wiring money or providing bank account information to avoid the matter “going to court” or to avoid “jail time.” In many cases, victims are subject to dozens of nasty, abusive phone calls in a matter of hours.

Equally disturbing is the amount of private information these bogus collectors have about their victims, which may include Social Security numbers, home addresses, information about employers, credit references and even old bank account numbers. Potential victims are being asked to verify other private information that could put them at high risk of identity theft.

The con artists likely obtained this sensitive information as a result of previous data breaches. This scam has been reported to the Federal Bureau of Investigation and the Federal Trade Commission, however consumers currently remain at risk.

If you get one of these calls DO NOT provide any verifying information. Either hang up or demand that the "debt collector" send verification of the debt in writing. Under federal law, collectors are required to send consumers a written notice within five days of the initial contact. Immediately following the call, you should:

Put a fraud alert on your credit file with all of the major credit bureaus, Experian, Equifax and TransUnion. Because the scammers have obtained Social Security numbers, your risk of becoming a victim of identity theft is extremely high. You will automatically receive a copy of your credit report when you issue the fraud alert. Read it carefully and identify any item that is not yours. Look for new accounts or "hard" inquiries – this indicates credit requests have been made in your name.

Place a FREE security freeze on your credit report to block potential identity thieves from accessing your credit. By placing a security freeze, an ID thief cannot use your information to open new credit accounts in your name. To learn more, go to www.IndianaConsumer.com.

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