Phone Scammers May Presage Increase in Validation Notice Requests

In the Venn diagram of “collection agencies,” “payday loans,” and “criminal swindlers,” the shaded area where the three overlap is getting some attention:

“Phone bandits,” as CNBC.com is calling them, are targeting consumers — “people who’ve taken out—or simply applied for—an online payday loan” — with a scam to try to illegally separate the unwitting from their money.

Collection agencies have enough issues already with trying to maintain a bright line between themselves and scammers who pretend to be debt collectors. What makes this particular scam so effective is how much information the scammers have at their fingertips.

“They sound credible because they have all the personal information needed to apply for the loan. They probably know your bank and they might have all or part of your Social Security number.”

The effect this will have on collection agencies is that there will likely be an increase in the number of validations requested by consumers. This is a story that’s currently making the rounds throughout the mainstream media, and they’re advising consumers to demand written validation notices.