What Is A Debt Collection Scam?

A debt collection scam is where a scammer contacts you – usually by phone, but also via email, mail, text message, or fax – and claims that you owe a debt. The debt might be totally bogus, forgiven, discharged, canceled, or beyond the collection period. In any case, the scammer will use all kinds of tactics to get you to pay, such as harassment, lies, intimidation, etc.

How to Identify A Debt Collection Scam?

Debt collection scammers can be pretty convincing,
which is why you need to know how to spot a
fake debt collection:

• The debt collector threatens you with arrest, something the CFPB says
  legit debt collectors shouldn’t do.
• The caller asks you to make immediate payment.
• The caller wants you to pay via wire transfer, prepaid debit card, or gift card. Scammer favors these methods as they’re difficult to trace.
• The debt collector asks for sensitive information such as your Social Security number, bank account details, debit or credit card number.

How to Protect Yourself from Debt Collection Scam?

If you think a debt collection scammer is calling you, you can take the following steps to keep
yourself safe:

• Ask the caller for their name, phone number, mailing address, and company
• Refuse to provide your financial or personal details
• Contact your creditor to confirm if they’ve hired this collection agency.