How to detect and prevent money scams that law firms fall prey to - practical tips/ethical responsibilities

1. How to Detect and
Prevent Money Scams:
Practical Tips and
Ethical Responsibilities
Amber Hollister – Oregon State Bar
Beverly Michaelis – Professional Liability Fund

2. The Overseas E-mail
Solicitation

6. The Out-of-State Lawyer

7. The Web Site Contact Form

8. Tell-Tale Signs of a Scam
1. Not specifically addressed
2. Short on details
3. Outside your practice area
4. Sender unknown

9. Tell-Tale Signs of a Scam
5. Originates from free service
6. Documents too simple
7. Inconsistent information
8. Pirated graphics

10. You Might Fall for a Scam If …
 “I found you in a legal directory”
 “Lawyer referral gave me your name”
 The parties are in Oregon
 Your concerns are placated

11. The Client Impersonator

12. The Scam Caller
I’m sorry but your
bar card has expired
and your
membership dues
must be paid
immediately.

13. DO NOT
1. Accept excuses regarding e-mail
2. Believe in miracle debt payments
3. Wire proceeds

14.  Verify facts
 Reserve the right to hold funds
 Wait for funds to clear
 Understand banking practices
DO

15.  Check Web site analytics
 Call the Bar or PLF
 Protect your information
 Know how to spot counterfeit checks
DO

16. o www.scamwarners.com
o http://lawyerscam.blogpost.com
o www.oregonconsumer.gov
o http://www.doj.state.or.us/consumer/pdf/
consumer_protection_brochure.pdf
DO MONITOR SCAM SITES

17. YES Deposit to
Account of Payee
Bank of Oregon
For Deposit Only
Jane Attorney
Account 233-56678
NO

18. Avoiding Counterfeit Checks
 Words and numbers match
 Account number is not shiny
 Signature not traced
 Check is not altered in any way

19. Ethics Q & A

20. Disbursing Uncollected Funds
 Duty to safeguard
 Overdraft notification

21. Verifying the Story
Do I need client consent to
disclose the facts?

22. Lost IOLTA Checks
1. Duty to safeguard client property
2. Who pays the fee?

23. Help! My new client wants to wire
funds into my IOLTA account…
Receiving Wire Transfers

24. If Client Funds are Taken…

25. Duty of Confidentiality
 Lawyer-client relationship
 Report to law enforcement

26. Federal Trade Commission
www.ftc.gov
Internet Crime Complaint Center
www.ic3.gov
National Fraud Information Center
www.fraud.org
Reporting Scams