U.S. authorities say they halted major phone scam

CHICAGO – U.S. authorities say they’ve foiled a major debt-collecting scam that generated at least 8 million fraudulent calls from India since 2010 and bilked more than 10,000 victims across the nation.

The Federal Trade Commission’s Midwest director made the announcement Tuesday in Chicago.

Steven Baker says it’s likely there are many other similar scams where callers pose as debt collectors and threaten victims with arrest if they don’t pay. He calls the scam highlighted Tuesday “just the tip of the iceberg.”

A California business owner is suspected of helping to manage the swindle, and a federal judge ordered he halt his operations.

Baker says some victims were so intimidated by threats of arrest they agreed to pay though they knew they had no debts.