Ethics Hotline Alert: Lawyers Getting Stung By Sophisticated Internet Debt Collection Scams Scammers continue to target Virginia lawyers with promises of high fees for purported collections actions, followed by bogus cashier’s checks — and the scams are becoming increasingly sophisticated. The Virginia State Bar warned about the scams in June and July 2009: http://www.vsb.org/site/news/item/e-scam-fraudulent-certified-checks/ A newer scam that nearly claimed a Virginia victim is an e-mail that requests help collecting a judgment from a collaborative law agreement for a divorce. The purported creditor is a wife who recently relocated to Japan, and the purported debtor is the husband. The client creditor may appear to be referred by an out-of-state lawyer. The husband quickly agrees to pay the judgment and sends a cashier’s check. The attorney targeted by the scam deposits the check in his or her escrow account, waits for it to be credited to the account, and then wires the funds minus his fees to the wife in Japan. As the check makes its way through the banking channels, it is found to be fraudulent. The lawyer is left owing his bank or other clients a significant amount of money. To make matters worse, some legal malpractice insurers take the position that client losses caused by these scams are not covered under their policy. Danger Signs or Red Flags:
Avoiding the Scam:
Reporting the Scam If you have been scammed, call the VSB Ethics Hotline at (804) 775-0564 and your bank for advice. Lawyers who think they might be the target of a scam can also make a report to the Internet Crime Complaint Center at http://www.ic3.gov. |