Unfortunately, financial scams seem to be more prevalent than before.
The latest scam reported by the courts and National Association of Consumer Bankruptcy Attorneys involves con artists calling intended victims and posing as bankruptcy attorneys to get the victims to immediately wire money to satisfy a debt. The scammers target people who have filed bankruptcy or who are getting started with the process.
These scammers are targeting people in several states on the East Coast but there is a concern that this fraudulent activity will spread to other states. Despite warning being issued to the general public, the scam persists and new incidents continue to be reported.
Here is how this scam works, according to the warnings published by the courts:
The scammers find out who the person’s attorney is. They often find this information in the court’s filings.
Then the scammers call the victim, posing as the victim’s attorney or member of attorney’s staff, and demand funds to be immediately wired to them. They may say that the funds are needed to satisfy a debt that can’t be cleared. Sometimes they threaten a person with arrest if the person fails to wire money to pay the debt.
The scammers use software to “spoof” the Caller ID system so the call appears to be coming from the phone line of the consumer’s attorney. Typically the calls come late in the evening or during non-business hours to make it difficult for intended victims to verify the call by contacting their attorney.
• Under no circumstance would a bankruptcy attorney or staff member call a client and ask for a wire transfer immediately to satisfy a debt.
• The bankruptcy attorney and his or her staff would never threaten arrest if a debt isn’t paid.
• Legitimate debt collectors and agencies cannot threaten arrest in order to satisfy debt. If you or a family member receive this kind of call, hang up and contact your bankruptcy attorney as soon as possible. Do NOT give out any personal or financial account information to the caller.
For more information about this scam and the warnings issued about it, see
Scam Targets Bankruptcy Filers
Bankruptcy Filers Beware: Con-Artists Posing As Attorneys
Phone Scammers Target Bankruptcy Filers in Virginia and Other States
Attorney General Warns Of Scams Targeting Bankruptcy Filers
Stay vigilant and do not turn over money to anyone who calls by phone.
Guard your personal and financial information.
If you filed bankruptcy or are considering filing bankruptcy, keep in touch with your attorney.
It’s important to select an attorney whom you are comfortable communicating with, and whom you are able to reach and turn to if you have any questions or concerns.