Protect Your Practice (And Your Clients) From Fraud

Dare we say we’re living in the golden age of the scam artist? 

Maybe, though scams have always existed. Grifters, dodgers, swindlers, hustlers, you name it. Remember the Artful Dodger in Oliver Twist? Was that Charles Dickens foreshadowing today in his 1838 classic? Probably not, but perhaps the lesson is that scamming isn’t new, although the means and methods evolve over time. 

We’ve come a long way from the days of Oliver Twist, but now, the Florida legal community is facing its own artful dodgers—in the form of a spike in counterfeit settlement check schemes, fake injury claims, and fabricated defendants designed to ensnare personal injury law firms in costly fraud. Both clients and attorneys need to be aware and vigilant to avoid being victims of exploitation. 

This past July, the Florida bar warned about a highly sophisticated scam targeting plaintiffs’ attorneys. 

A Pensacola attorney was contacted by a man who claimed to be the victim of a severe dog bite. The man was calling from overseas and claimed the dog owner had agreed to a private $200,000 settlement but didn’t pay. The lawyer signed the client, but then realized the defendant had no awareness of the incident or the settlement. However, the attorney continued to communicate with his “client.” The lawyer ultimately received a settlement check in the amount of $215,000, which he attempted to deposit into his bank. The bank flagged the check as being drawn from a closed account. 

The scam involved sending a fake settlement check to an attorney, who would deposit it. The “settlement” funds would then be sent to the client before the check bounced. 

Although this particular case involved a Pensacola lawyer, similar scams are happening nationwide.

How do lawyers become victims of scammers?

Shouldn’t an attorney be savvier and wiser than to become a victim of a scammer? We’d all like to think we’re too wise to be scammed, but the Pew Research Center reports that more than one-third of Americans have been scammed in the past year. The Federal Trade Commission (FTC) received 2.4 million fraud reports in 2024, and the FBI Internet Crime Complaint Center (IC3) received more than 859,000 complaints. And these are just reported scams; lots of people are affected by scammers but never report the crime.

Why scams work

1. Emotional appeal and urgency. The “victim” often presents a dramatic story and an immediate need for representation. Most lawyers—myself included—enter the profession out of a desire to help people. We’re who people turn to in their hour of need, at their most desperate. The last thing we want to do is turn away a prospective client who needs our help.
2. Realistic documents and visuals. Photos, medical records, and well-drafted claims lend legitimacy. With the advanced nature of AI and other technology today, it can be nearly impossible to tell a legitimate document from a manufactured representation.
3. Counterfeit settlement checks. Scammers use fake cashier’s or company checks to induce trust, instructing firms to wire or forward funds.
4. Offshore or international contact. Communication by overseas numbers can be more difficult to verify.
5. Fake or “shell” defendants. The named party denies knowledge, and often no real address or record exists.

These tactics are variations of counterfeit check fraud schemes that law firms have long warned about. The FBI IC3 has issued public service alerts about these and similar schemes targeting law firms via purported trusts, collections or representation matters.

How can an attorney (or a victim) spot a scam?

🚩 Unexpected client contact: Cold outreach that claims a severe injury but has no prior referral or connection

🚩 Offshore communication: Calls or messages from foreign numbers or email domains

🚩 Urgent “settlement offer”: Scam artists often pressure a law firm or victim to act quickly

🚩 Defendant denies the incident: The named party has no recollection or record of the event or their involvement

🚩 Settlement check is from a closed or unusual account: Banks flag checks drawn on closed accounts or from unauthorized sources

🚩 Request to advance funds: They might claim extra money is needed for medical costs, liens, or experts before settlement

🚩 Poor documentation or unverifiable medical records: Vague or fabricated medical charts, no accessible provider

🚩 No discovery of underlying incident: No police record, hospital visit, eyewitnesses, or insurance claim file

If you spot one or more of these red flags, it’s best to slow the process and investigate further.

How law firms can prevent becoming scam victims

1. Verify everything independently
   • Check public court dockets or police records for the claimed incident
   • Look up the defendant’s identity, addresses, and history
   • Contact hospitals or medical providers directly to confirm treatment
2. Hold funds until the check clears
   • Don’t wire or distribute money until the bank confirms full, final settlement of the check
   • Implement internal “clearing hold” periods (for instance, 10–14 business days)
3. Use multiple layers of verification
   • Ask for video or in-person interviews
   • Require notarized affidavits or sworn statements
   • Insist on proof of medical bills and diagnostics
4. Train staff and partners
   • Contact the Florida Bar’s Ethics Hotline 
   • Consider filing incident reports with local authorities or IC3 (Internet Crime Complaint Center)
   • If a scam is known or suspected, issue alerts to peer firms
5. Consult the bank & use fraud prevention tools
   • Before depositing a suspicious check, consult your bank’s fraud department
   • Use services to verify authenticity, routing numbers, or whether accounts are active
6. Report attempts to bar or authorities
   • Contact the Florida Bar Ethics Hotline
   • Consider filing incident reports with local law enforcement or IC3

How non-lawyers can prevent becoming victims of these types of scams

1. Be wary of any attorney who contacts you first out of the blue, promises guaranteed high payouts, or pressures you to sign a retainer agreement or other contract quickly.
2. Never sign blank forms or give control of your checking, banking, or wire activity.
3. Ask your prospective attorney about how they verify claims and protect themselves; a transparent lawyer will explain safeguards.
4. If you’re asked to forward funds or assume liability for medical liens before a settlement is reached, demand full documentation and bank verification.

We’ve come a long way in detecting some types of scams. Every time you’re asked to verify a password through multi-factor authentication, like getting a code by text, or a multi-day hold on a check, or verifying your identity for a document on software like DocuSign, these are all technologies that aim to prevent fraud and protect people like you. 

But even as the technology to prevent scams becomes more sophisticated, so do the scams themselves. Both lawyers and their clients need to be vigilant in rooting out scammers, because a scam is never a victimless crime. Historically, Florida’s PIP (personal injury protection) system has been fertile ground for staged accidents, sham medical claims, kickbacks, and false documentation. Remember this—before you sign (or provide any personal information or banking information), check with an experienced Florida personal injury lawyer to make sure you’re not being taken for a ride.