Has someone claiming to be a federal government employee called and threatened you with jail time or a lawsuit if you don’t pay a debt? If so, there’s a good chance it’s a scam. Criminals and con artists use scams to target unsuspecting people who have access to money. Scams can target you on the phone, through the mail, on the internet, and especially over email. They can also take place in person, at home, or at a business.
Scammers may falsely claim you owe a debt to the federal government and may threaten you with jail time if you don’t pay them. This could be a scam, but it could also be a call from a debt collector using practices that violate the Fair Debt Collection Practices Act. Make sure you investigate any alleged debt to find out if it’s legitimate.
Fake debt
In addition to phone calls, scammers may also send you letters in the mail claiming that they are with a law firm or federal government agency like the Federal Trade Commission or the IRS. They may threaten to arrest you or file a lawsuit against you if you don’t pay the debt they claim you owe. If this happens to you:
- Don’t give out any personal or financial information. They could use it to commit identity theft. Ask the caller for information including their name and their company’s name, address, and business license number. If they refuse, it’s likely a scam.
- Look out for phone numbers you’re not familiar with. Some scammers will use technology to hide where they’re really calling from—the FTC advises consumers to be alert for caller ID spoofing.
- Hang up and call the company the debt is with to get more information if you think the debt is real. It is against the law for a debt collector to use unfair, deceptive or abusive practices in an attempt to collect a debt from you.
Information provided by the Consumer Financial Protection Bureau.