by Deepak Gupta
Oklahoma's Attorney General, W.A. Edmondson, is alerting the public to a new scam involving notices of a fictional class action settlement. This type of scam is particularly disturbing because it has the potential to make consumers wary of legitimate settlement notices, thereby decreasing response rates.
The scam, Edmonson said, comes in the form of a letter notifying consumers they have been identified as a victim of fraud in evidence presented in a class action lawsuit.
“The letter informs the consumer they have been selected to receive compensation under the terms of an out-of-court settlement,” Edmondson said. “The letter also contains a check in the amount of $2,975, and it directs the recipient to contact a specified law office within five business days to ‘facilitate the release’ of the full award – in this case $129,000.
“My suspicion is that when the consumer contacts the law firm, they are asked to provide bank account information so that the full award can be deposited. By the time the enclosed check bounces, the scammers will have had ample time to clean out the consumer’s bank account.”
Edmondson said his office has been unable to pinpoint the source of the scam, but there are several red flags within the letter.
“The letter states that all parties involved in the class action lawsuit are sealed, and no specific information is available regarding the type of scam to which the recipient has supposedly fallen victim,” Edmondson said. “The letter also requires the consumer to contact a Michigan law firm in a very short period of time, and because of a ‘gag order’ the consumer risks forfeiting his share of the money if he contacts anyone to check the validity of the settlement. Any one of these things would send up a red flag. Together, they set off lights and sirens.”
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