For this one, I’d like to define what I mean first, as otherwise this can get a bit confusing.
Debt collector: A first or third party agent employed to collect upon a debt owed that is still within the Statute of Limitations. Zombie debt collector: A third party agent attempting to collect upon a debt owed that is beyond the Statute of Limitations. Zombie debt: Debt that has passed the Statute of Limitations. Statute of Limitations: The time period where a debt can legally be collected and a debtor can be sued.
Note that the time period for the Statute of Limitations varies depending on debt type and location.
A debt collection scam is where scammers try to collect on a fake debt - this is where they differ from either of the debt collector types listed above, as the debt never existed.
One of the tricker parts of identifying whether or not a debt collection call is a scam is that some debt collectors (mostly of the zombie debt variety) use some of the same tactics as I’m going to list here. The main exception is that the scammers require the “debtor” to pay via gift cards, cryptocurrency, or other unrecoverable methods.
The main tactic is to pose as a process server, sheriff, or other person related to the law. Sometimes, this also includes law offices. The scammer pressures the person to pay or they’ll be arrested. This tactic is not only used in this kind of scam, but the similar Jury Duty scam (where the scammer tells you you’re going to be arrested for evading Jury Duty). If you pay up, however, they’ll call everything off.
Again, this tactic is also used by unscrupulous debt collectors as well. If you are instructed to pay part of the amount via a debit or credit card, chances are you’ve encountered a (zombie) debt collector; if it’s gift cards, bitcoin, wire, or similar, it’s a scammer.
The thing to remember is that neither law enforcement nor process servers will contact you ahead of time, and debt is not a criminal offense. There are some versions of the scam where they tell you that you have to bring the money to the law enforcement office, only to tell their victims that they’ll be arrested if they arrive at the law enforcement office and to get gift cards/cryptocurrency/a wire transfer. (This may occur with debt collectors too, except not with those methods.)
Note that scammers also straight up state that they’re debt collectors, without threat of arrest, but with high pressure tactics. One way to tell is that under United States law (and the law of many other English-speaking countries) debt collection agencies must give you the amount of the debt, to who the debt is owed, their mailing address, and must, if asked, send a debt validation letter to your address. So if they don’t, this is likely a scammer. (There’s a chance that it’s a debt collector flouting the law, but better chance that it’s a scammer.)
How to protect yourself
This one is a bit more difficult to advise on than other scams, because of the similar tactics between unscrupulous debt collectors and scammers. Chances are, however, that a debt collector (as opposed to a scammer) trying the methods above is also likely to be colleting a zombie debt.
If the person stating they are a process server or law enforcement official reaches you via phone message (in the United States, due to scammers/spammers, it’s best not to answer the phone except to known numbers) or text - first of all, ignore it if it’s a process server. They will not contact you in advance. If it’s a law enforcement person, look up the phone number for the local law enforcement and give them a call.
If they are stating they’re a debt collector or law office, see if the debt collector or law office has a phone number that comes close to or matches the one you’re given. If it turns out they’re a debt collector posing as a law office… that is beyond the scope of this page.