Internet Scams Target Law Firms: Protecting Your Legal Reputation and Your Bank Account
Lawyers’ Identities Being Used for Fake Websites and Solicitations
It was reported in September 2012, that a scam surfaced in which the identity of a Texas attorney, who had not practiced in years, was used to set up a fake law firm website using the attorney’s maiden name, former office address, and portions of her professional biography. In this same report, other attorneys complained about the theft of their names and professional information to solicit legal work. All attorneys should be on the alert for this scam. If you become aware of the same or a similar situation involving your name and/or law firm, please immediately report the incident to local authorities, your state Bar, and the FBI at the Internet Crime Complaint Center. Additionally, be sure to closely monitor your credit report or bank accounts to ensure that your identity is not the only thing being stolen. If you are a victim of an Internet scam or have received an e-mail that you believe was an attempted scam, please file a complaint at www.IC3.gov.
Firms/Lawyers—Be on the alert: U.S. Law Firms Continue to be the Target of a Counterfeit Check Scheme
The IC3 continues to receive reports of counterfeit check schemes targeting U.S. law firms. The scammers contact lawyers via e-mail—claiming to be overseas and requesting legal representation in collecting a debt from third parties located in the U.S. The law firms receive a retainer agreement and a check payable to the law firm. The firms are instructed to deposit the check, take out retainer fees and wire the remaining funds to banks in China, Korea, Ireland, or Canada. After the funds are wired overseas, the checks are determined to be counterfeit.
In a slight variation of the scheme’s execution, the victim law firm receives an e-mail from what appears to be an attorney located in another state requesting assistance for a client. The client needs aid in collecting a debt from a company located in the victim law firm’s state. In some cases, the name of the referring attorney and the debtor company used in the e-mail were verified as legitimate entities and used as part of the scheme. The law firm receives a signed retainer agreement and a check made payable to the law firm from the alleged debtor. The client instructs the law firm to deposit the check and to wire the funds, minus all fees, to an overseas bank account. The law firm discovers, after the funds are wired, that the check is counterfeit.
Key takeaway for law firms<
All law firms should use caution when engaging in transactions with parties who are handling their business solely via e-mail, particularly those parties claiming to reside overseas. Attorneys who agree to represent a client in circumstances similar to those described above should consider incorporating a provision into their retainer agreement that allows the attorney to hold funds received from a debtor for a sufficient period of time to verify the validity of the check.
If you have been a victim of an internet scam or have received an e-mail that you believe was an attempted scam, please file a complaint at www.IC3.gov.
Extra due diligence to protect your profits
Rampart Group protects law firms (proactively) from unplanned profit loss. Contact us today.
 Kathy LeodlerChief Executive Officer Email:kathy.l@rampartgroup.com Phone: (360) 981-2703 PI License #3555 |
 Paul LeodlerExecutive Vice President Email:paul.l@rampartgroup.com Phone: (360) 981-3397 PI License #4180 |
We at Rampart Group are committed to your security. Call 1-800 421-0614 or contact us today with your security or investigative needs.