Debt collection scams happen year-round. Crooks take advantage of financial stress by posing as legitimate collectors, then pressuring people to pay immediately. The contact might come by phone, text, email or even mail.

Knowing the most common tactics can help you protect your money and your personal information.

HOW THE SCAMS USUALLY WORK

• Fake collectors. A caller claims you owe a debt you do not recognize, then uses intimidation, shame or urgency to get paid. They may already know your name, address or other details to sound legitimate. 

• “Phantom debt.” A scammer tries to collect a debt that is completely made up, already paid, discharged in bankruptcy or too old to be legally collectible. (Even when a debt is real, you still have rights and options.) 

• Debt relief or settlement scams. A company promises to reduce or eliminate debt but demands an upfront fee. Under the Federal Trade Commission’s Telemarketing Sales Rule, certain debt relief companies cannot charge fees before they actually settle or reduce the debt. 

• Payday loan intimidation. Scammers pretend to collect on a payday loan and use threats or repeated calls to scare people into paying for loans they may not owe. 

Real debt collectors can be persistent, but they generally stick to the law. Scammers, on the other hand, try to rush you, rattle you or steer you into payment methods that are hard to trace. 

Be cautious if the person contacting you pushes for immediate payment. Threats of arrest, jail time or instant legal action are also a major warning sign, particularly when the caller cannot provide documentation. Another clue is how they want to be paid: requests for gift cards, wire transfers, cryptocurrency or prepaid cards are common scam tactics.

If the caller refuses to send details in writing, asks for sensitive personal or financial information, or seems to be calling from a spoofed or unfamiliar number, treat the situation as suspicious.

WHAT TO DO IF SOMEONE CONTACTS YOU

• Do not pay right away and do not share personal information. If the debt is real, you will still have time to handle it.

• Ask for written verification. Legitimate debt collectors are required to provide details about the debt and your rights, often through a written validation notice.

• Contact the original creditor using a trusted number. Use a phone number from a recent statement, the creditor’s official website or the back of your card, not a number the caller gives you.

• Document everything. Save voicemails, emails, screenshots, phone numbers, dates and what was said.

• End the conversation if it turns threatening or abusive. You do not have to stay on the line.

REPORT SUSPECTED SCAMS

If you believe you were the target of a scam, report it to:

• The Federal Trade Commission at ReportFraud.ftc.gov

 • Your state Attorney General’s office (in Colorado, the AG’s Consumer Credit Unit handles collection agency regulation and complaints)

 • Local law enforcement if you feel unsafe or you already sent
money.

REPORT SCAMS TO LOCAL AUTHORITIES

If you are targeted by a scammer, contact the Colorado Springs Police Department at 719-444-7000 or the Pueblo Police Department at 719-553-2502. Smaller towns in El Paso, Fremont, Pueblo and Teller Counties may contact their local police department or sheriff’s office.