Indicators of a Sham Law Firm
A common sign indicating a law firm might be fake is an unclear contact address. A law office should have a physical address listed, the state and local Bar associations to which the lawyers are admitted, and easily accessible contact information including an email and telephone number. If any of this basic information is omitted, it’s cause to be suspicious.
Another obvious sign of a fake law firm is that the attorneys’ names do not appear on legal directories such as Martindale-Hubbell or Findlaw. Any reputable law firm should, at a minimum, be listed in these online directories. Even if only one of the firms in the multi-firm shingle is listed, the entire operation should then be suspect .
It’s also a red flag that the firm is likely a fraud if its purported legal staff has no verifiable credentials, such as a local address and phone number. Any attorney you hire should have a physical presence, and should be easily reachable. A law firm should not require you to travel to Chicago if you live in Atlanta, which has many fine law firms of its own.
The way a law firm markets itself should also give you a good indication of whether it’s real or fake. Law firms that do not behave in ways that are consistent with regulating bar associations tend to be phony. If a firm sends out unsolicited calls and emails to land clients, advertises on radio and TV, offers incentives or discounts, or uses gimmicky slogans or scary ads, it’s probably not on the level.
Confirm Law Firm Credentials
To find out if a law firm is real, you can contact the state bar association to determine if the law firm is licensed to operate in the state. The state-level bar association will have a member directory that will allow you to look up whether the firm is registered. You should also verify the lawyer’s license status by checking with the state bar association. After all, it could be that the law firm is real and only the individual lawyer is not. You should also pay attention to client reviews. In addition to looking at online reviews from clients, you should contact past clients and ask if they were truly satisfied with the lawyer. A real lawyer should be able to put you in touch with former clients who are willing to vouch for them.
Investigate the Firm’s Online Footprint
A legitimate firm will usually have a website that is interactive and easy to maneuver, plus it should have professional contact information (such as a physical address, phone numbers and email addresses). You may even find an email listed for an employee or three. However, in the age of the Internet and the popularity of social media, more and more law firms and lawyers are using other social networking sites to connect with the outside world. When you go to the firm’s website, look for a Facebook, Twitter and/or LinkedIn link. This will show you what kind of presence the firm has in the social media realm. A firm with social media pages that only has one post – including the word "hello" and no picture – then this may be a red flag.
All legitimate law firms will be listed in their local Bar Association online, so you may wish to investigate the state or local Bar Association’s website to see if they have a page or pages dedicated to member firms, attorneys and paralegals. You can also check out some social outlet ratings like the Better Business Bureau, Yelp, Google or even Martindale-Hubbell AV ratings. A legitimate law firm is going to be listed on many of these sites and will usually have an overall good rating.
Warning Signs in Client Interactions
One of the ways that you can determine whether a law firm is of good standing is by paying attention to your communications with the firm. If you encounter any of the following red flags when speaking with your potential attorney, be sure to do further research on the firm before making your decision. The signs are not always so obvious:
• They pressure you into hiring them right now, even if you’re not quite ready.
Top firms with plenty of business do not need to use hard sales tactics to get clients. They should understand that the decision to hire them is a big one—and one you shouldn’t rush into. If they act like it’s a huge favor for them to consider taking your case, then they most likely aren’t the firm for you.
• They won’t give you a copy of your contract to take home and look over.
If a firm isn’t willing to let you look at the same contract that they’ll be signing in order to take your case , that’s a red flag. You should be able to inspect the contract, research the firm online, and talk to others about their experiences with the firm before making a decision. Any company that is trying to hide something major from you should be avoided.
• They are very vague when you ask them for an estimate of the cost of your case.
Maybe there is a reason that the firm is always vague when you ask them how much the case will cost. Maybe they’re trying to hide the fact that they have sky-high fees and a long list of unexpected expenses that you haven’t heard about yet. When you ask how much the case will cost, you want to get a clear and complete answer. If you don’t, you might instead be getting a hint that you shouldn’t go through with the transaction.
Leveraging Technology for Fraud Detection
Fortunately, there are some technological tools and online resources you can use to help verify if a law firm is legitimate. For example, there are peer review sites where lawyers can rate each other. One of the improvements law firms should make to their practice is joining Avvo and similar sites. By joining these peer review sites, you are allowing other lawyers in your area to easily review you which, in turn, typically leads to positive reviews. And why would other lawyers, who can be pretty picky, take the time to review other attorneys if those attorneys just made a simple, obvious mistake? Why risk looking bad when you probably will get at least a couple bad reviews from your "friends?" This is a powerful tool.
You also need to make sure to join your state bar association or other legal group. They typically have a strict vetting process allowing only verified law firms to be a part of their group. If you already have a solo practice, there is no reason why you should not be a part of one of these groups. And you may be getting into silly networking strategies that sound more like something you’d read in the Onion than a blog post about legal practice.
Other online resources include:
• Email: Check to see that the email domain and name of the lawyer makes sense for the country that the firm is based in. For example, if the firm is based out of Texas and its managing partner is "Rick Duke," then there is no way his email is going to be [email protected].
• Contact Form: Always have a contact form on your firm website. Name, valid email, and phone number are crucially important to finding out who is behind that "firm."
• Payment: If the firm forces you to use a shady payment processor, then they are a fake. Multiple legitimate channels should be provided with the most reputable payment processors like Stripe, PayPal and Dwolla.
Steps to Take Upon Discovering a Fraudulent Law Firm
If you suspect that you are dealing with a fake law firm, there are several steps you can take to protect yourself and report the offenders.
First, it is important to report suspected fraudulent law firms to the appropriate state bar or legal authority in your jurisdiction. In addition, the American Bar Association provides an online resource where you can research lawyers and contact them if you suspect fraud (the site is: http://www.abalegalhelp.org/).
Secondly, seeking legal advice from a professional is always recommended if you fear that your personal information could be in jeopardy . Before you hire a lawyer, check to see if he is properly licensed and whether or not he has had any disciplinary actions brought against him. In an unfortunate event that you suffer a financial loss due to a fake law firm, you can resort to the agency you filed your complaint to on your behalf (such as the state bar or consumer protection agency). Many times, these agencies have an insurance fund which compensates victims of fraud caused by their members.