Robocall Scam of the Month

Debt collector scams initially cause fear and panic, with many recipients of these calls or texts left questioning how to know if a debt collector is legit. While these scams are common, scam debt collectors claiming that you have a past due balance can be tricky to identify. The debt collector scams that have been reported include supposed ‘past due balances’ from utility companies and tax debt to student loans and ‘buy now pay later’ lenders.

What Are Debt Collector Scams?

Debt collector scams are robocalls or robotexts from scammers claiming to be contacting you on behalf of a debt collection agency. There is no ‘one size fits all’ method to what the calls and texts may say, however, the example below is a real-life scam that could help you identify one in the future:

“Please give us your attention. This is Jenny from Legal Finance Group, we have been attempting to contact you regarding your potential federal financial arrears. This message is to inform you about impending asset liens and banking restrictions. These can be addressed through arrangements under the new Federal economic recovery policy by taking action, your overdue financial obligations may be classified as non-recoverable.”

How to Know if a Debt Collector is Legit

If you have no debt, then that is a sure-fire way to know that the debt collector contacting you is fraudulent. However for the 77% of American households that have some form of debt, a call from a debt collector, fraudulent or not, is enough to cause fear or panic, something that the bad actors are extremely aware of.

Debt collection scams often use vague details regarding the debt that are allegedly collecting, but almost always include threatening language such as “impending asset liens”, “bank restrictions” and “non-recoverable” as a tactic to lure their target into talking to them or calling them back.

How Do I Avoid Debt Collector Scams?

With the speed that robocall scams move across the country, the safest bet is to assume that you may receive a call from a fraudulent debt collector. To avoid panic, here are some of the red flags to look out for:

• Demanding immediate payment as legitimate enterprises will not demand this and will work with you to set up a repayment plan
• Inability to confirm information such as the company that you’re allegedly in debt with, your account number or other identifiers that legitimate debt collectors would know
• Asking questions about information they should already know, such as your address, bank accounts numbers, date of birth etc.
• Threatening jail time as this would only be applicable in cases such as unpaid criminal fines and restitution, which is not an issue that would be dealt with through an unexpected phone call

What Should I Do if I’ve Received a Debt Collector Scam Call?

If you receive a call or text regarding debt collection and are unsure if it is a scam, your first point of call should be contacting the original creditor to check your credit report. Any legitimate debt collection service would be happy for you to do this and not intimidate or threaten you should you choose to do so.

It is always best practice to never engage with unknown numbers and report phone numbers being used by scammers to your carrier. If you believe you are the victim of a scam, you can report it to your local police, state Attorney General’s office and the FTC.

Call-blocking apps, including those powered by TNS Call Guardian®, are also a great resource for reporting and blocking unwanted robocalls. Stay vigilant, share information about scams with others and be sure to check out our monthly Scam of the Month page updates.