Out of the blue, you receive a very aggressive phone call about a debt that you owe. The caller is threatening legal action and insists that you take immediate steps to settle up with a wire transfer or prepaid debit card. Sure, you do have loans out, but you’re certain you’ve been paying on time. Still, there’s a slight bit of doubt in your mind, and the caller is really pressing. What should you do?
First, review the interaction. There are some definite red flags that could signal it’s a scam known as phantom debt collection:
According to the Federal Trade Commission, you should do these five things if you feel you might be talking to a scammer:
Follow the five steps above to steer clear of falling victim to a growing type of scam.
For more tips on protecting yourself from scams and identity theft, visit our WalletWorks page.