As you hopefully know, a well-informed consumer is a tricky target for a scammer.

Here’s a summary of are two new scams that have been reported in various parts of the country, and what you can do to protect yourself from them.

Phony Bill Collectors

Reports suggest that scammers are posing as debt collectors and threatening consumers over the phone while demanding payment.

• Fake agency affiliation: One con artist apparently claimed he was from the “Federal Investigation Authority,” an organization that does not exist.
• Bogus claims about consequences: Sources indicate that consumers have also reported threats of jail time if they didn’t pay debts – often, debts they no longer owed. NOTE: You cannot be sent to jail for debts. Your home may be foreclosed on, you may have your car repossessed and your wages could be garnished, but debtor’s prison is a thing of the past.
• Worrisome knowledge of personal information: Perhaps the most troubling characteristic of this scam is that, according to sources, scammers call with a frightening knowledge of the victim’s life: SSN, friends’ names, home address, etc.

These scams can be dangerous for a variety of reasons, the least of which is that scammers might call your work phone and force you to explain an embarrassing situation to your colleagues.

• Protect Yourself. If you’re called by a suspicious collector:
• Don’t give out any information. Even if he already knows your digits, refuse to verify any of it.
• Don’t agree to anything. Demand to see written proof of your debts before proceeding with the conversation.
• Contact the original company. If you truly still owe a debt, you can find out by calling whatever company the caller names.

Rebate Check Scam

After using a credit card to purchase a number of Snuggies, one consumer reportedly received a check for $8.25 in the mail.

It appeared to be a rebate check, and had the Snuggie logo on the envelope. It was not.

• Read the fine print. The check in question apparently indicated that, by endorsing it, consumers agreed to a month-long trial membership to “Great Fun,” a discount travel company.
• Proceed with caution. While that may not seem so bad, the rest might. After the trial month, consumers would be automatically enrolled for full-time membership – at a cost of $150 per year, to be charged to the credit card used for the Snuggie purchase.

If you’ve received one of these checks or been victimized by a similar scam, take action by filing a complaint with the Federal Trade Commission.

Protect Yourself: Never sign a check (especially one you weren’t expecting) without reading all fine print associated with it. If that means finding a magnifying glass, then so be it!

Additional Resources
Fair Debt Collection Practices Act (PDF)

Have you been a victim of a scam? Consider filing bankruptcy.