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Better Business Bureau ®
Start With Trust®
In Central South Carolina and Charleston
Widespread Harassment from Phony Debt Collectors Raises Concerns of Mass Data Breach
August 04, 2009

Scammers have Social Security and bank account numbers, home addresses and employer information

Arlington, VA – August 3, 2009 – Better Business Bureau is issuing a national alert today about phony debt collectors that are calling consumers nationwide and claiming that they have defaulted on a payday loan and will be arrested if they don’t pay immediately. Claiming to be lawyers, the scammers say they are with the “Financial Accountability Association” or the “Federal Legislation of Unsecured Loans” and are equipped with a disconcerting amount of personal information about their potential victims. 

“Because the scammers have so much information about potential victims, BBB is concerned that this may be the result of a data breach,” said Steve Cox, BBB spokesperson. “Thousands of people may have had their personal information compromised, and given the scammers’ tactics, it appears that those who have previously used payday loan services could be particularly at risk.”

According to reports received by BBB and posted online, the scammers accuse the victim of defaulting on a payday loan and claim they are being sued. The phony debt collector threatens that, if the victim doesn’t pay as much as $1,000 immediately via wire or by providing bank account or credit card numbers, he or she will be arrested and extradited to California within the hour to stand trial. The scammers often have the victim’s Social Security, old bank account numbers or driver’s license numbers as well as home addresses, employer information and even the names of personal friends and professional references.  

BBB offers the following advice to consumers if they receive a suspicious telephone call about an outstanding debt:

• Ask the debt collector to provide official documentation which substantiates the debt.

• Do not provide or confirm any bank account, credit card or other personal information over the phone until you have confirmed the legitimacy of the call.

• File a complaint with the Federal Trade Commission online if the caller is abusive, uses threats or otherwise violates federal telemarketing laws.

• File a complaint with BBB online if you believe a debt collector is trying to scam you.

According to complaints online, phone numbers that the scammers are calling from include: 949-468-5107, 415-200-0274, 415-200-0274, 213-784-5745, 408-715-1614 and many others.

For more information or to schedule an interview with a BBB spokesperson, contact Chris Hadley at 803 765-1672

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