Taking Back the ID

Scammers targeting students with loans, bankruptees, LinkedIn users and more



Beau Bomber was thrilled when he got his first credit card in college. However, he was an impulsive shopper and couldn't resist deals online or at the mall. He graduated from college owing school loans and more than $10,000 in credit card debt. After he landed a job, he rented an expensive apartment and purchased a new car on credit. Eventually he had to hire an attorney to help him file for bankruptcy. Shortly after, Beau received a phone call with his lawyer's caller ID. The stranger on the line — who said he was John, an associate in the law firm — seemed to know everything about Beau's financial difficulties. John told Beau he'd found another of Beau's unpaid debts, and he would have to quickly wire several hundred dollars or the police would arrest him. He wired the money and called his attorney the next day who had no idea who "John" was.

This case is fictional but is representative of this law-enforcement scam directed at those who've recently filed for bankruptcy. See Scammers Cash-in on Fears of Law Enforcement on Scambusters.org. (Don't confuse the scam with identity theft-related bankruptcy fraud in which a fraudster assumes the identity of another person when filing for bankruptcy to attempt to avoid a blemish on his record.)

Fraudsters, who find bankruptcy information and contacts in public records, are effective because they prey on the fears of stressed, panicked victims.

Takeaways for this scam:

  • Never wire money to someone you don't know.
  • Determine the validity of a call by immediately contacting your attorney.
  • Bankrupt individuals seldom face arrest and jail for unpaid debts.
  • Tell those you know who've recently filed for bankruptcy about this scam.

 


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