How To Tell if a Class Action Is Real or a Scam
A class action lawsuit is when people who experienced similar harm sue as a group against the same defendant. For example, data breach victims may join a class action against a company that failed to protect their data. If you are a potential victim, you may receive a notice that you are a class member or one indicating that you are eligible to receive part of a settlement.
Unfortunately, scammers try to exploit people who think they can receive compensation. They send fake letters and emails and may even develop a fake website claiming the recipient is eligible for a settlement. These scams are attempts to steal and use personal data for crimes such as identity theft.
Knowing whether a class action is real or a scam can help avoid identity theft, financial loss, and other harm.
Common Signs of a Legitimate Class Action Notice
If a class action lawsuit is real, there will be an official court filing with the region’s attorney general where victims were affected. There may also be an official lawsuit website that you can find by typing in the defendant’s name and “class action.” View that site carefully and call the listed law firm to verify that your notice is genuine.
You may receive notice of a class action through mail, email, or advertisements. Regardless of the notification method, take steps to protect yourself from scams by verifying legitimacy.
What Real Notifications Include
A legitimate class action notification includes detailed information. The Federal Judicial Center offers examples of what a class action notice should look like. For instance, its product liability class action notification example includes detailed information including:
- Clear information about the lawsuit, including case details.
- Who’s affected.
- How to opt-out so you can file an individual suit if you choose.
- How to make a claim or get a payment.
- Official class action lawsuit website.
- Phone number to call.
You may receive class action notifications from law firms or case administrators, including contact information. Research the people who notified you before calling them. An internet search of the phone number should lead you to a legitimate company.
Red Flags of a Class Action Scam
Scam artists use several tricks, sometimes using multiple measures to appear legitimate. They sometimes piggyback on real class action lawsuits you may have heard of. There are several red flags to alert you to a scam class action notice, including:
- Requests for upfront payments or fees, often through wire transfers or other untraceable methods.
- Vague wording.
- Typos and bad grammar.
- Unprofessional wording, such as “Claim your cash now!”
- Lack of verified case information.
- Unsolicited emails or phone calls that don’t trace to a legitimate source.
- Receiving counterfeit settlement checks meant to collect your banking details.
- Suspicious links that don’t look like they come from a law firm or court.
- The promise of a significant or fast payout.
- No sign of the class action or the law firm name in internet searches.
It isn’t always easy to know if a class action is real or a scam. Remember that the existence of a legitimate class action doesn’t mean your notice is legitimate. Take protective measures if you suspect a scam. It is not worth a potential payout to risk the potential harm.
Steps To Take if You Suspect a Scam
Do not click links or download attachments if you suspect a scam. Don’t share sensitive personal information such as Social Security numbers or banking details. Never give a password to someone claiming to need it to further your participation in a class action.
Research the class action. It likely isn’t legitimate without sufficient information to locate specifics. Contact Class Action U if you received a notice and have any questions about its authenticity.
If you determine that a class action or notification is likely fake, notify the Federal Trade Commission (FTC). Taking action may protect other potential victims from falling prey to scammers.
How To Verify the Authenticity of a Class Action Lawsuit
Widespread potential harm, such as data breaches, can quickly lead to scammers setting up false class actions. Determine if your class action notice is genuine by taking actions including:
- Consult reputable law firms or consumer advocacy organizations.
- Check government resources such as the FTC.
- Use the search function on your state’s attorney general and federal court websites.
If you see allegations of a company’s negligence in the news and receive a class action notice, don’t assume that notice is legitimate. Criminals involved in fake class actions count on people connecting events that way and falling for their scams.
How To Join a Class Action Lawsuit
You may wish to join it if you determine that a class action lawsuit is legitimate. You must meet specific eligibility criteria, such as suffering similar harm as others in the class due to the defendant’s actions. Check notifications from attorneys working on the case to see guidelines for joining.
For more in-depth information, please visit our How to Join a Class Action Lawsuit page.
FAQs About Identifying Legitimate Class Actions
Identifying legitimate class actions isn’t always easy, and it is not unusual to have questions. These are some common ones people ask.
1. Can a Real Class Action Ask for My Bank Details?
Attempts to gather your bank details before a class action settles are likely a scam. Once there is a settlement, the plaintiffs’ attorneys may offer direct deposit to receive your compensation. If you are uncomfortable ever providing that information, look for the option to receive your settlement via check, prepaid debit card, or other means.
2. How Can I Confirm My Participation in a Class Action?
You often get a letter confirming that you are a class member involved in a lawsuit. It will include instructions on actions you can take, such as opting in or out of the lawsuit. If you did not receive a notice, you may see a story about a class action in the news. If the circumstances of the class action are similar to the harm you experienced in the same situation, contact the attorneys handling the case to ask if you are an eligible class member.
3. What Should I Do if I Fall Victim to a Scam?
The steps to take after falling for a scam depend on what information you gave the scammer. If you paid them, notify your credit card company or bank that you are a fraud victim. If you gave them your banking information, freeze your accounts and ask for new account numbers. If you gave out your Social Security number, visit IdentifyTheft.gov for complete steps. Monitor your credit continuously. Change all of your passwords to help prevent further harm, and report the fraud to your state attorney general and the FTC.
Contact Class Action U if You've Received a Class Action Notice
Victims can win real compensation in class action lawsuits. Unfortunately, that means scammers see an opportunity to take advantage of those focused on a potential windfall instead of realizing that their class action notice is fake. Protect yourself against scam artists by investigating your class action notice before responding.
If you received a class action notice, reach out to Class Action U to learn if it is genuine. Justice starts with knowledge. Learn your rights today by completing our online contact form.
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