DOJ Warns of Attorney/Collection Scam
The Oregon Department of Justice would like to warn all bar members about a scam currently being aimed specifically at attorneys in the U.S. – with at least one confirmed victim in Oregon.
Law firms are contacted via email by clients (or sometimes a ‘referral firm’) who claim that they wish to engage the firm’s services for collection of overdue accounts, most of which are larger than $420,000. Once communications begin, the ‘debtor’ contacts the targeted firm to tell them they will pay what they owe. The scammers then send a counterfeit cashier’s check via UPS or FedEx, most often drawn on CitiBank, which is supposed to be deposited in the firm’s trust account.
After the bank has provided a provisional loan for the value of the check, the target is asked to send the money to the other law firm to pay off the overdue account. When the bank discovers that the check is counterfeit, it holds the law firm responsible for the entire amount and the scammers disappear.
It is important to always be careful with your clients’ money and your trust account, but please be extra cautious when conducting any business using cashier’s checks. Make sure these transactions are completely cleared by the bank before considering sending money on to a third party. |