- You may be a winner ... but then again, you may be a target
- Scammers are sending emails and texts claiming you are eligible for a class action settlement payment
- Such claims are often false and any information you supply can be used to raid your bank account
Every year, thousands of consumers across the U.S. receive notices that claim they’re eligible for a payout from a class-action settlement. For many people, these are legitimate. But scammers increasingly use phony “settlement notices” as bait to steal personal information or money.
According to guidance from AARP, genuine settlement notices will include a case name and website, and you should always verify independently rather than clicking a link in an unsolicited email or text. One legal-advice site notes that scammers posing as class-action administrators may ask for Social Security numbers, bank account info, or even advance fees — all red flags.
At the same time, legitimate large settlements do occur. For example, the Federal Trade Commission (FTC) lists many active refund programs tied to investigations. The fact that real class-actions are active means consumers should not reflexively ignore every “you may qualify” notice—just treat it carefully.
The key point: you likely won’t have to pay anything or give away excessive personal data to collect your share of a genuine settlement. If you’re being asked for upfront processing fees, wiring money, or providing full bank/SSN details, that’s almost assuredly a scam.
Your steps:
Google the case name and confirm it appears in reliable sources (court docket, known settlement website).
Visit the official settlement website by typing the URL yourself (not clicking in the email/text).
Check that the law firm and court are listed, and that there’s a formal claims administration process.
Avoid clicking links embedded in texts or emails. Avoid QR codes unless you’ve verified the URL.
If you suspect it’s a scam, don’t respond. Instead, report it to the FTC via ReportFraud.ftc.gov.
In an era of identity theft and phishing, settlement-notice scams are just another variant. But the flip side: real settlements can benefit you — so don’t toss them out without checking. Staying alert and verifying independently is the best protection.
Prevention tips
✅ Never pay a fee to participate in a class-action settlement. (Legit ones don’t charge. )
✅ Don’t provide your Social Security number or full bank account info just to “qualify.” Those details are rarely required until payment time—and even then must be through secure channels.
✅ Google the case name + “settlement administrator” or “official website” rather than trusting unsolicited links. Evidence: AARP recommends this.
✅ Check for formal details: case number, court name, law firm names, eligibility criteria, claim deadlines. Missing any of these is a red flag.
✅ If you received the notice by email/text/social media and you weren’t aware of any problem or case, treat with extra caution. Scammers often piggy-back on real company names/settlements.
✅ For legitimate settlements: verify via trusted aggregator sites (such as Consumer Action) where you can see open claim-periods.
✅ If you think you’re a victim of a settlement scam, freeze your credit, change passwords, and report to the FTC.