Many scams start with an intimidating phone call. A “debt collector” needs an immediate payment or a “police officer” claims to have an arrest warrant. The latest variation involves a phony process server and threats of a nonexistent court case.
How this scam works
A call is received with an unknown or blocked number from a person claiming to be a process server. They might say there is a lien on your home or you are being taken to court over unpaid medical bills, cell phone charges or a payday loan. In other cases, the scammer may be secretive, saying they can’t reveal details of the debt until legal papers are served.
They may ask to “confirm” sensitive personal details, such as a date of birth and Social Security number. If there is hesitation in supplying information they stress the urgency of the matter — after all, you’re being taken to court! If too many questions are asked about who is making a complaint or what company the process server works for, the scammer will get aggravated and become unprofessional. The people behind this scam don’t have any legal papers to deliver, they want to get their hands on personal data and credit card information in order to commit identity theft.
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How to avoid similar scams
- Be wary of scare tactics. Scammers love to threaten legal action or hefty fines, frightening consumers into giving up personal information. They hope fear will result in acting without thinking. A reputable business or legal office will be polite and civil and won’t pressure you to act immediately “or else.”
- Search your local court website. If there is a chance someone has filed a lawsuit against you, check your local court's website. Search by name to see if any lawsuit has been filed.
- The scammer may have some personal information. Don’t give them more. Scammers may have personal information from a previous phishing scam, a data breach or some other source. They use stolen details to get more information. They might read your Social Security number and then ask to “confirm” the date of birth. Don’t give any further information unless sure dealing with someone you trust.
For more information
Read up on phishing and imposter scams so you can spot a con before it is too late. There are rights provided by the Fair Debt Practices Collection Act that are very useful to review should a debt collector make contact about a legitimate debt or one that could possibly be owed. Become more educated by reviewing the Act at, https://www.ftc.gov/legal-library/browse/rules/fair-debt-collection-practices-act-text. Consumers may obtain one free credit report a year at www.annualcreditreport.com. If targeted by this scam, report it to BBB Scam Tracker. A report helps to boost awareness and stop scammers.
To learn more about reverse mortgages, go the Consumer Financial Protection Bureau’s (CFPB) reverse mortgage information page. To get mortgage advice, contact the CFPB mortgage and housing assistance program. Always research BBB Accredited Businesses that offer reverse mortgages on www.bbb.org.
