U.S. TRUSTEE PROGRAM WARNS CONSUMERS OF BANKRUPTCY FRAUD ALERT SCAM

Individuals in financial distress are common targets for scammers. A scam operator calling itself the "Bankruptcy Fraud Watchdog Group" has recently set its sights on consumer debtors, sending letters falsely accusing debtors of failing to disclose assets in their bankruptcy cases. These letters threaten referrals to "the United States Bankruptcy Trustee" for fraud unless the debtors promptly pay "a one-time amnesty fine" of $450 in Bitcoin via a QR code to avoid "further legal consequences." They also falsely state that debtors who share the letters with their attorneys will face "immediate referral for criminal prosecution."

As the actual watchdog of the bankruptcy system, the U.S. Trustee Program (USTP) identifies and helps investigate allegations of fraud or abuse, including schemes exploiting vulnerable consumers in bankruptcy. Accordingly, debtors should report contacts from the so-called "Bankruptcy Fraud Watchdog Group" or other suspicious communications to the USTP's bankruptcy fraud hotline or to their local U.S. Trustee office.

Consumer debtors can help protect themselves by looking out for common signs of schemes. For more information on these telltale signs and how to avoid falling victim to a scam, visit the websites of the Federal Bureau of Investigation and the Federal Trade Commission.