New Variation on Telephone Collection Scam Related to Delinquent Payday Loans
02/21/12—The Internet Crime Complaint Center (IC3) continues to receive complaints from victims of payday loan telephone collection scams. As previously reported
in December 2010, the typical payday loan scam involves a caller who claims the victim is delinquent on a payday loan and must make payment to avoid legal consequences.
Callers pose as representatives of the FBI, “Federal Legislative Department,” various law firms, or other legitimate-sounding agencies and claim to be collecting debts for companies such as United Cash Advance, U.S. Cash Advance, U.S. Cash Net, or other Internet check-cashing services. The fraudsters relentlessly call the victim’s home, cell phone, and place of employment in attempts to obtain payment. The callers refuse to provide information regarding the alleged payday loan or any documentation and become verbally abusive when questioned.
The IC3 has observed variations of this scam in which the caller tells the victim that there are outstanding warrants for the victim’s arrest. The caller claims that the basis of the warrants is non-payment of the underlying loan and/or hacking. If it’s the latter, the caller tells the victim that he or she is wanted for hacking into a business’ computer system to steal customer information. The caller will then demand payment via debit/credit card; in other cases, the caller further instructs victims to obtain a prepaid card to cover the payment.
The high-pressure collection tactics used by the fraudsters have also evolved. In one recent complaint, a person posed as a process server and appeared at the victim’s job. In another instance, a phony process server came to a victim’s home. In both cases, after claiming to be serving a court summons, the alleged process server said the victim could avoid going to court if he or she provided a debit card number for repayment of the loan.
If you are contacted by someone who is trying to collect a debt that you do not owe, you should:
Contact your local law enforcement agencies if you feel you are in immediate danger;
Contact your bank(s) and credit card companies;
Contact the three major credit bureaus and reques
New Variation on Telephone Collection Scam Related to Delinquent Payday Loans
02/21/12—The Internet Crime Complaint Center (IC3) continues to receive complaints from victims of payday loan telephone collection scams. As previously reported
in December 2010, the typical payday loan scam involves a caller who claims the victim is delinquent on a payday loan and must make payment to avoid legal consequences.
Callers pose as representatives of the FBI, “Federal Legislative Department,” various law firms, or other legitimate-sounding agencies and claim to be collecting debts for companies such as United Cash Advance, U.S. Cash Advance, U.S. Cash Net, or other Internet check-cashing services. The fraudsters relentlessly call the victim’s home, cell phone, and place of employment in attempts to obtain payment. The callers refuse to provide information regarding the alleged payday loan or any documentation and become verbally abusive when questioned.
The IC3 has observed variations of this scam in which the caller tells the victim that there are outstanding warrants for the victim’s arrest. The caller claims that the basis of the warrants is non-payment of the underlying loan and/or hacking. If it’s the latter, the caller tells the victim that he or she is wanted for hacking into a business’ computer system to steal customer information. The caller will then demand payment via debit/credit card; in other cases, the caller further instructs victims to obtain a prepaid card to cover the payment.
The high-pressure collection tactics used by the fraudsters have also evolved. In one recent complaint, a person posed as a process server and appeared at the victim’s job. In another instance, a phony process server came to a victim’s home. In both cases, after claiming to be serving a court summons, the alleged process server said the victim could avoid going to court if he or she provided a debit card number for repayment of the loan.
If you are contacted by someone who is trying to collect a debt that you do not owe, you should:
Contact your local law enforcement agencies if you feel you are in immediate danger;
Contact your bank(s) and credit card companies;
Contact the three major credit bureaus and reques
513-394-8061: This weekend, Investigator Mason (Who she says she is) keeps calling my husband stating that she was investigatng a situation from a matter of a loan being closed over three years ago. This was from a payday loan that he did in our local area. The woman told my husband he had an 1/2 hour to get $1,450.00 and call her back to get the dept paid. If not, she would issue a warrent for his arrest and bail would be $4,500.00. We went to a local police department, who then called this number. Investigator Mason had nothing to say... The police officer advised that this was a scam and that there have been many complaints about this. It is now Wednesday and she has called again and left another message.
This is a criminal extortion ring operating out of India. ABC News released an investigative report on it in June. The FTC has indicted one of its ringleaders for criminal fraud: