Data breach suspected with phony debt collector calls

2009-08-12

A national alert has been put out over phony debt collectors calling people across the US saying they have defaulted on a payday loan and will be arrested if they do not pay immediately.

Better Business Bureau (BBB) has reported that the callers claim to be with the Financial Accountability Association or the Federal Legislation of Unsecured Loans and have a large amount of personal data about potential victims.

"Because the scammers have so much information about potential victims, BBB is concerned that this may be the result of a data breach," commented Steve Cox, BBB spokesperson.

The organisation advised people who receive suspicious calls to ask the debt collector to provide official documentation which has proof of the debt.

It also recommended not handing over or confirming any bank account details.

Earlier this year, the BBB put out a warning over fraudulent emails and websites that are attempting to make the most out of the swine flu outbreak.

Read more security news.