When Fear Is the Hook, Slow Down Before You Pay
Every month, I try to use this column to share something practical—something that may help you, your family, your friends, or your business avoid a problem before it becomes a crisis. This month’s topic is unpleasant but important: beware of con men and scammers who use fear, urgency, and confusion to talk good people out of their money.
These scams are not always obvious. The people who run them are often calm, polished, and persuasive. They may know your name, your address, or other personal details. They may claim to be from a court, a sheriff’s department, a federal agency, a bank, or some other official-sounding organization. They may even spoof a telephone number so that your caller ID appears to show a legitimate government office. Their goal is to create panic before you have time to think.
Recently, I received a call about a situation that illustrates just how cruel and effective these schemes can be. A client had been contacted by someone who told her she had failed to appear for jury duty in federal court. The caller claimed that a warrant had been issued for her arrest and that the only way to recall the warrant was to post a bond of $17,000. The client, understandably frightened, mentioned that she should call the police to check it out. The caller immediately warned her not to do that, saying that contacting the police would take the matter out of his hands and cause the arrest to be carried out immediately.
That is exactly how scammers operate. They isolate you. They pressure you. They make you believe that if you pause, ask questions, or call someone you trust, the consequences will get worse. In fear of incarceration and intimidated by the caller, my client followed the instructions she was given and paid the $17,000 through Bitcoin. Once that money was sent, it was irretrievable.
By the time she called me, the scammers had asked for an additional $7,000. That second demand is what finally caused her to stop and seek advice. She could not understand why more money would be required after she had already paid the so-called bond. When I explained that it was a scam, I assured her that no such fine or bond would be imposed in that manner for missing jury duty. I also reminded her that I am a member of the bar of both federal courts in Indiana and was familiar with how those courts operate. Even then, I sensed a great deal of hesitation before she could accept my counsel that the entire matter was fraudulent.
That hesitation is understandable. When someone is frightened, the scammer’s voice can feel more immediate than the voice of reason. But that is why it is so important to know the warning signs in advance. Federal courts and law enforcement do not call citizens and demand immediate payment over the phone to avoid arrest for missing jury duty. They do not require payment by Bitcoin, gift cards, payment apps, wire transfers, or cryptocurrency kiosks. They do not tell you to stay on the line, keep the matter secret, or avoid calling the police or your attorney. Juror scam communications threatening prosecution for failure to comply with jury service are fraudulent and are not connected with the federal courts. The Federal Trade Commission likewise warns generally that courts do not demand immediate payment by phone and that payment demands through cryptocurrency, gift cards, wire transfers, or payment apps are classic signs of a scam.
There is a second example that is, in some ways, even more painful. I have handled a case in which clients were drawn into a fraudulent loan advance scheme. They were promised that each of them would receive a $2 million loan if they first put up $400,000 as security for their repayments. In plain English, that is not how legitimate banking works. A real lender does not require borrowers to send large advance payments to unlock a promised loan on terms that sound too good to be true.
The so-called broker was persuasive. The clients were suspicious enough to consult an attorney, which was the right instinct. Sadly, the attorney did not do his duty to properly investigate and protect them. A report was obtained indicating that the company identified as the source of funds, although legitimate in name, had recently been referenced in a number of scams and did not do business in the United States. Those were enormous red flags. Nonetheless, the lawyer allowed the clients to make the advance payments. The result was devastating: $800,000 was lost.
The common thread in both stories is not foolishness. It is vulnerability under pressure. Scammers are skilled at identifying people who are afraid, hopeful, confused, embarrassed, or overwhelmed. They do not ask politely and wait patiently while you verify their claims. They push. They threaten. They flatter. They promise. They insist that the opportunity or the danger is immediate. They tell you that delay will cost you everything.
So what should you do? First, slow down. Urgency is one of the scammer’s favorite tools. If someone you do not know is asking you for money for a reason that is new to you, confusing, or frightening, do not pay immediately. Second, hang up and independently verify the claim. Do not use the phone number, website, email address, or payment instructions provided by the caller. Look up the official number yourself, call law enforcement, call the court clerk, call your bank, or call your attorney. Third, be deeply suspicious of any request for payment by Bitcoin, gift cards, wire transfer, payment app, or other hard-to-recover method. Those payment methods are popular with scammers precisely because once the money is gone, it is often gone for good.
Fourth, talk to someone you trust before sending money. A legitimate court, police department, bank, or lender will not punish you for checking. A prudent lawyer should welcome the chance to investigate, ask hard questions, and protect you from a suspicious transaction. If a caller tells you not to call the police, not to call your lawyer, not to call your family, or not to hang up, that instruction alone is a warning siren.
Finally, do not be embarrassed if you or someone you love is targeted. These criminals are professionals. They are not looking for careless people; they are looking for human beings. Anyone can be shaken by a threat of arrest. Anyone can be tempted by a promise of financial rescue. The best defense is not pride. It is preparation.
If you receive a call, email, text, or message demanding money under urgent circumstances, pause before you act. If it involves a court, call the court directly. If it involves law enforcement, call the police or sheriff’s department directly. If it involves a loan, investment, inheritance, prize, tax matter, or government agency, get advice from someone who is independent and qualified. And if your instincts tell you something is wrong, listen to them.
At The Nice Law Firm, LLP, we have seen the damage these scams can cause—not just financially, but emotionally. The loss of money is painful. The loss of confidence can be painful, too. But one phone call before payment can make all the difference. When someone you do not know demands money and uses fear or confusion to get it, do not face that moment alone. Call law enforcement. Call your attorney. Call someone you trust. It may save you from a loss that cannot be undone.