Wisconsin BBB: Beware of phony debt collection calls, texts, mail

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MILWAUKEE - The Wisconsin Better Business Bureau (BBB) is warning the public to be on the alert for phony debt collection calls, texts, and mail. 

The BBB has received numerous reports of con artists changing tactics just to get the information necessary to collect information or cash. 

How the scam works

What we know:

Here is how the scam works. The scammer calls or texts and says that they work for a loan company, law firm or government agency, and claims to be collecting an overdue payment for you or a family member. 

After replying that you or your family member don’t owe money, the "debt collector" starts threatening to file a lawsuit, have wages garnished, request an arrest warrant, or arrange for a court appearance thousands of miles from home. All of these claims are nerve-wracking, leaving the person answering the phone not even sure they owe money in the first place.

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Tips to spot this scam

• Ask the debt collector to provide an official "validation notice" of the debt. In the U.S. and most of Canada, debt collectors are required by law to provide this information in writing. The notice must include the amount of the debt, the name of the creditor, and a statement of your rights. If the self-proclaimed collector won't provide the information, hang up. 
• Ask for proof of the debt and of the agency calling. If you do owe money and aren’t sure if the caller is real, ask for their name, company, street address, and telephone number. Do not provide any bank account, credit card, or other personally identifiable information over the phone. If the collector is legitimate, they should have details on the accounts in question. 
• Stay calm. Debt collectors are not allowed to harass people even if they do owe money.

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Protect yourself

What you can do:

There are actions you can take to avoid being scammed. They include: 

• Just hang up. If you don’t have any outstanding loans, hang up. Don’t press any numbers or speak to an "agent."  
• Never provide payment to someone you don't know. If you're being urgently asked to provide payment over the phone to someone you don't know, hang up. Scammers often ask for payment through wire transfer, prepaid gift cards, or digital wallet apps. Take these as red flags for a scam. 
• Reach out to your loan providers to verify the information. If you currently have loans taken out and aren't sure if the caller is real, call the banks or loan companies on your own and verify if what the caller states is true. Be sure to look up their customer service phone numbers on your own, and never use a phone number that a potential scammer is using or provides you with. 
• Check your credit report. In the US, check with one of the three national credit reporting companies (Equifax, TransUnion, Experian). In Canada, check with Equifax Canada. This will help determine if there are outstanding debts or if there is suspicious activity.  
• Place a fraud alert on your credit report. If the scammer has personal information, place a fraud alert with the three national credit reporting companies. 
• Watch for red flags: Be wary of messages with vague details, generic names, or urgent demands for aaction. Scammers often use scripted messages to target as many people as possible.   
• Check for scam reports: Look up the phone number or details of the message. Many victims post about similar scams to warn others.   
• Report suspicious activity: If you believe you’ve been contacted by a scammer, report the incident to BBB Scam Tracker at BBB.org/ScamTracker.