Virtual Clients

Virtual Client Scam: A Cautionary Tale

It seems like everyone MUST have heard about this by now, but apparently not, because the scam is continuing to leave law firms footing a several hundred thousand dollar bill. If you (1) have been living under a rock, or (2) have absolutely no common sense, then yeah, I’m talking to you. There is a scam attacking law firms across the nation, bilking millions from unsuspecting bankruptcy attorneys.The FBI has given repeated warnings of individuals attempting to retain representation for alleged collections via e-mail. The attorneys are duped into thinking they’ll be taking the matter to court. A check for a ludicrous amount of money shows up with instructions to deposit, deduct the firm’s fee, then send the rest of the money back to the client. Of course, the check bounces and the firm’s left with an inconceivable bill.

Think this is a rare occurrence?

Think no firm in its right mind would practice in such a manner – without ever meeting or barely even communicating with nothing more than a virtual client? In 2011 alone, the Internet Crime Complaint Center received over 600 attorney collection scam complaints, totaling a sum of over $16 million. Ouch.Many firms have tried to sue the banks, who allegedly assured the firms that the checks had cleared, but courts have come down hard on the firms – who are in the best position to guard against this type of scam by purposefully and legitimately knowing their clients. Lesson? Be informed. Know your clients. Use common sense.

We offer a free consultation with our consumer debt attorneys.

If you have questions or would like to learn more, please visit our consumer debt protection attorney services section.  We are waiting to assist you.