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U.S. Trustee warns against scam targeting bankrupt individuals

LEGAL NEWSLINE

Saturday, November 23, 2024

U.S. Trustee warns against scam targeting bankrupt individuals

Attorneys & Judges
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Lisa O. Monaco Deputy Attorney General | Official Website

Individuals facing financial difficulties have become targets of a new scam orchestrated by a group calling itself the "Bankruptcy Fraud Watchdog Group." This group is sending out letters falsely accusing debtors of asset non-disclosure in their bankruptcy cases. The letters threaten to refer the debtors to “the United States Bankruptcy Trustee” for fraud unless they pay a "one-time amnesty fine" of $450 in Bitcoin using a QR code, purportedly to avoid further legal repercussions. Furthermore, these letters claim that sharing them with attorneys will lead to “immediate referral for criminal prosecution.”

The U.S. Trustee Program (USTP), which oversees and investigates allegations of fraud or abuse within the bankruptcy system, has issued a warning about this fraudulent scheme targeting vulnerable consumers. They advise individuals who receive such communications from the so-called "Bankruptcy Fraud Watchdog Group" or any other suspicious contacts to report them immediately either through the USTP’s bankruptcy fraud hotline or at their local U.S. Trustee office.

To safeguard themselves against scams, consumer debtors are encouraged to recognize common signs of fraudulent schemes. For additional information on how to identify these scams and protect oneself, individuals can visit the websites of the Federal Bureau of Investigation and the Federal Trade Commission.

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