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Complete Story
10/08/2024
Counterfeit Check Scam Targets Law Firms Via Debt Collection Scheme
FBI
The FBI warns of a counterfeit check scheme in which fraudsters target law firms engaged in collections work by deceptively contracting their services to ultimately defraud them. It may focus on any type of representation where a lawyer is hired to assist in the transfer or collection of money, e.g. real estate, collection matters, collaborative law agreements in family matters, etc. This scenario continues to be replayed as part of a sophisticated scam that targets collections lawyers and the scope is constantly evolving.
How the Scheme Works:
- A law firm is contacted regarding representation in an alleged debt collection matter by what appears to be a legitimate prospective client ("the Creditor").
- The law firm agrees to help and sends a demand letter to the alleged debtor ("Debtor").
- The Debtor immediately agrees to pay the debt and sends what appears to be a valid cashier's check to the law firm.
- The law firm deposits the check into their client trust account and transfers the value to the Creditor via wire, less any legal fees agreed upon.
- The law firm's bank then discovers that the check is actually fraudulent and the trust account is charged back the value of the check.
- Because the wire has already been sent to the Creditor, the law firm is left to suffer the financial loss.
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