Even collections attorneys are susceptible to scams

Discussion of a variety of scams, including dating service scams, cyber-currencies, and other frauds and scams.
Judge Roy Bean
Judge for the District of Quatloosia
Judge for the District of Quatloosia
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Even collections attorneys are susceptible to scams

Postby Judge Roy Bean » Mon Jun 22, 2009 8:15 pm

Warnings are going out to collections firms to watch out for the bad-check deposit scheme.

The scammers are allegedly retaining collections law firms to recover a substantial debt from a recently defunct business that has not filed for bankruptcy. Not long after the firm sends a demand letter, this new client sends the firm a check they allegedly received from the debtor, payable to the collections law firm. They tell them to go ahead and deposit it, retain their fees/expenses and then wire-transfer the balance.

Surprise, of course - the check is a phony and if the firm doesn't wait a few days before wiring the funds they're screwed.
The Honorable Judge Roy Bean
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Mr. Mephistopheles
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Re: Even collections attorneys are susceptible to scams

Postby Mr. Mephistopheles » Mon Jun 22, 2009 11:28 pm

The collections firm our company has used in past must be ahead of the game on this scam. They have the ability to electronically clear checks in-house before sending on the client's share of the take.


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