Affordable Care Act Scam — WABI-TV

Watch Joy and Russ discuss the latest effort to steal your identity.

Scammers are trying to get people’s information by signing them up early for the Affordable Care Act.

Sign up for the Affordable Care Act or “Obamacare” doesn’t start until October 1st, 2013. If someone is calling to sign you up early, you are advised to just hang up the phone and to give them no information. Also please report the scam attempt if you have received a call.

Another scam associated with the Affordable Care Act is scammers are calling people telling them they can provide them with a government issued insurance card. People will need these cards when the Affordable Care Act kicks in but people calling about them now are just trying to get your account information. Again just hang up and give out no information if they are calling you about signing you up for a card.

Also always remember that government agencies already have your data and will not contact you for it.

The Federal Trade Commission has a website with a list of scams and where you can sign up for email notifications about new scams. The website is consumer.ftc.gov/scam-alerts…

 

Helping Victims of the Bombing in Boston — Make Sure Your Donations Count

April 17, 2013

by

Colleen Tressler

Consumer Education Specialist, FTC

After the bombing at the Boston Marathon, many people are looking for ways to help, like donating to a charity or fund.

Doing some research first will help ensure that your donation will go to a reputable organization that will use the money as promised — and as you intend. Urgent appeals for aid that you get in person, by phone or mail, by e-mail, on websites, or on social networking sites may not be on the up-and-up. Unfortunately, legitimate charities face competition from fraudsters who either solicit for bogus charities or aren’t entirely honest about how a so-called charity will use your contribution.

If you’re asked to make a charitable donation to support victims of the bombing in Boston, consider these tips:

• Donate to charities you know and trust. Be alert for charities that seem to have sprung up overnight in connection with current events, like the bombing.
• Ask if a caller is a paid fundraiser, who they work for, and what percentage of your donation goes to the charity and to the fundraiser. If you don’t get a clear answer — or if you don’t like the answer you get — consider donating to a different organization.
• Don’t give out personal or financial information — including your credit card or bank account number — unless you know the charity is reputable.
• Never send cash: you can’t be sure the organization will receive your donation, and you won’t have a record for tax purposes.
• Check out the charity with the Better Business Bureau’s (BBB) Wise Giving Alliance, Charity Watch, or GuideStar.
• Find out if the charity or fundraiser must be registered in your state by contacting the National Association of State Charity Officials.

For more on the questions to ask and for a list of groups that can help you research a charity, go to Charity Scams.

 

Stay on top of your credit history

CONSUMER FORUM

By Russ Van Arsdale, executive director, Northeast Contact

Posted Feb. 24, 2013, at 6:41 p.m.

A consumer from Penobscot County reached out to us recently, saying she was afraid she might have let herself become a victim of identity theft.

Last year, the woman cashed in an annuity. Knowing she would have to report the transaction on this year’s income tax filing, she tried to email the pertinent information to her accountant. However, by missing one keystroke, she sent the message somewhere other than to the accountant. She worried about who might have received her personal and financial information and how it might be used.

A check with Maine’s Bureau of Consumer Credit Protection reaffirmed our initial reaction: get a credit report from one of the three major reporting agencies, and do it FAST (at www.annualcreditreport.com — this is the truly free one). You’re entitled to one free report from each agency every year, and rotating your requests every four months keeps you abreast of your credit history and any errors or misdeeds that might affect that history.

The state credit protection folks also strongly encourage visiting the Federal Trade Commission’s website ( http://www.consumer.ftc.gov/features/feature-0014-identity-theft). Info there can help repair your damaged credit. But guess what: It’s not just the big three reporting agencies that keep track of your credit history.

There are at least several dozen companies that keep track of other things. Some collect information about medical conditions and data that consumers provide on insurance applications. Others track rental performance, including lease violations, damages, skips and unauthorized pets. Still others compile information on check writing, employment histories, criminal backgrounds and other personal information. A firm called The Work Number provides employment and income verification, according to the Consumer Financial Protection Bureau (CFPB), which says the company compiles data from large private sector payroll processors.

The CFPB is just beginning to get a handle on such operations, which comprise part of what’s known as alternative credit. For consumers without a traditional credit history, alternative credit can be a way to establish a good credit history, for example, by repeatedly paying multiple utility bills on time.

For people concerned about their info in a growing number of trackers’ hands, the CFPB offers some reassurance. The bureau requires companies that collect information about you to make that information available to you. Some offer a free report every year; others will give you a free report only if the information in the report has had some adverse effect on you. If you have to pay for a report, it can’t cost more than $11.50.

The CFPB says you may want to check with one or more of these specialty bureaus:

1. If you think your identity has been stolen or someone has fraudulently cashed a check using your bank account.
2. Before you apply for insurance.
3. Before you apply for a lease.
4. If, when applying for a job, your potential employer asks for your written okay to get a report.

For more information, visit www.consumerfinance.gov and search “you have a right to see specialty consumer reports, too.”

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

As tax time approaches, be wary of tax scams

CONSUMER FORUM

By Russ Van Arsdale, Executive Director, Northeast CONTACT

Posted Feb. 10, 2013, at 6:20 p.m.

With February upon us, many Mainers are thinking about income taxes and wondering, can the filing deadline really be just a couple of months away?

It is, and the income tax fraud perpetrators are hard at work. Don’t let them catch you in one of their scams, like the fake email claiming it has information that you must deal with right now. They might say they have ways you can get extra deductions; they might even claim to have a refund check for you.

Or, instead of the carrot, they may wield a stick. The scary subject line might read, “FY 2010 and 2011 tax documents; accountant’s letter.” Uh-oh, an audit must be just around the corner … or it’s the scammers, acting tough and hoping we’ll open that attachment and turn loose the Trojan that will give them access to our computers and everything in them.

There are so many scams out there that the Internal Revenue Service has a website ( http://www.irs.gov/uac/Report-Phishing) devoted to keeping scammers at bay. Before reviewing some pointers, let’s look at some of the IRS’s top 10 scams from last year.

Identity theft tops the list. If the IRS notifies you that you’ve filed two tax returns or that you appear to have received wages from an unknown employer, you may have had your identity stolen. Thieves may have filed a tax return in your name and claimed a refund.

Last winter the IRS went after more than 100 people in 23 states suspected of being identity thieves. In 2011, the agency reported more than 900,000 fraudulent returns relating to identity theft. The IRS has been training thousands of employees to help deter such crimes.

Also on the IRS top 10 list is the phishing scam. It’s really the same old ploy to get you to click on an attachment, which starts a program that wreaks havoc on your computer. Resist the urge. DON’T click on attachments in unsolicited emails. DON’T click on attachments in email from people you know if something looks suspicious. And DON’T click on attachments in email from companies you do business with; it may be a look-alike that crooks have created to fool you. Call the company, or do a manual download rather than clicking.

Watch out for fraudulent tax preparers. Some of them charge big fees with promises of a big refund. They may prompt you to “get all you can” by cutting corners or giving the IRS false information, all of which can land you in jail.

Some scammers claim they can help you move money offshore; if you don’t follow the law exactly, you could be looking at a tax evasion charge. Or, the scammer might give you an account number with instructions to wire your money to it; you may find out too late that it’s the scammer’s account and your money is gone.

Another red flag is a promise of “free money” from the IRS. The scammer will promise a few simple tricks making tax return preparation simpler and prompting larger refunds. The “tips” may be weak or just plain wrong, and the “free” money goes to the crook.

Remember, the IRS does not use email, text messaging or social media to get personal or financial information from filers. If you get a fax claiming to be from the IRS, contact the agency to make sure it’s real. To do that, or for a tax-related question, you can reach the IRS through this website: http://www.irs.gov/uac/How-to-Contact-the-IRS-1.

One bit of friendly advice: If you file electronically, keep a hard copy for your files. And for low- and moderate-income households, there’s free tax preparation help available through the United Way of Eastern Maine (http://www.unitedwayem.org/content/4057/eastern-maine-cash) and Volunteers of America (http://www.voanne.org/Services/TaxAssistance).

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

Look out for phony charities

CONSUMER FORUM

By Russ Van Arsdale, Executive Director, Northeast CONTACT

Posted Dec. 30, 2012, at 8:11 p.m.

As the end of the year approaches, many of us are thinking about charitable donations. Let’s face facts: Many donations are tax deductible, and many of us need all the deductions we can get.

Of course, the real reason to give is to support a cause that really needs your help. So, make sure when you give, that your money is going where you intend it to go.

That means staying away from nonprofits that may exist more for the benefit of professional fundraisers or overpaid executives than for people that really need help. Unfortunately, there are far too many of these types of “charities” around.

Some are created in response to natural disasters. “Storm chasers,” as they have become known, create websites even before a major storm strikes. The sites contain key words, like “relief,” to attract web searches. They have varying records in their effectiveness in providing real help to those in need after a storm.

The IRS issued reminders earlier this month, after more than 1,000 “relief” websites popped up following Hurricane Sandy:

1. Give to recognized charities, and beware of sound-alike names (visit the IRS website, www.irs.gov, to find bona fide charities to which contributions are deductible).

2. Don’t give out your financial or personal information, if you can’t be sure that data won’t be misused.

3. Don’t give cash. Make donations by check, credit card or some other way that can be documented. And never make out a check in the name of the solicitor.

Scammers may claim to be affiliated with known organizations; sometimes they even use the official logo of a government or relief organization to gain a target’s trust.

Do your own research to be sure you know where your money is going. Keep your scam radar on high: Refuse solicitors who won’t answer questions about their cause; don’t give in to high pressure pitches; and if it’s a telephone solicitation, ask if the caller is a paid solicitor and, if so, what percent of money raised actually goes to the cause. You can always ask that your name be removed from a call list.

Scammers work other angles, too. Some file claims for storm damage that never occurred. Others claim to be doctors and ask for funds “to pay medical bills of injured people.” Once you give in to a phony solicitor, you can bet your name will be shared with other scammers.

Check websites like Charity Navigator and Guidestar that rate the effectiveness of charities. The Better Business Bureau’s Wise Giving Alliance is another resource.

In Maine, check with the Charitable Solicitations Program, part of the state’s Department of Professional and Financial Regulation; call 624-8525 with questions about licensed solicitors or to file a complaint.

If you suspect someone’s perpetrating disaster fraud, notify the U.S. Department of Justice’s National Center for Disaster Fraud (toll-free, 866-720-5721). For charity fraud on the web, notify the Internet Crime Complaint Center ( www.ic3.gov), a partnership of the FBI and the National White Collar Crime Center.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

 

Check on Unknown Charities, Especially Following Tragedies

Maine’s Department of Professional and Financial Regulation Encourages Check on Unknown Charities, Especially Following Tragedies 

Phony Charities Reported following Hurricane Sandy and School Shooting in Newtown

GARDINER  –  Citing reports of bogus charities springing up in the aftermath of Hurricane Sandy and the school shooting in Connecticut, Commissioner Anne Head from the Department of Professional and Financial Regulation is encouraging Maine residents to check the legitimacy of unknown charities, particularly those that seem to quickly appear following a tragedy.  She urges potential donors to always research charitable organizations before making a donation.  A quick check with the Department will provide essential information, such as whether the charity is authorized to raise money in Maine and whether disciplinary action has ever been taken against the organization.

Under Maine law, charitable entities and those who solicit money for charities, are required to become licensed with the Department’s Office of Professional and Occupational Regulation before soliciting contributions.  The agency collects information about charitable activity in Maine and makes it available to the public.  The Office also receives, and acts upon, complaints related to charitable solicitation.

“Charitable solicitation scams aren’t new, but those attempting to take advantage of people’s generosity in the aftermath of natural disasters and other tragedies seem especially reprehensible,” Commissioner Head commented.  “Because the victims of scams might never know they’ve been taken advantage of, or may be reluctant to report their loss of money, it’s important for government agencies to be proactive and alert the public about the very real potential for fraud.”

Commissioner Head advises individuals to ask questions and seek printed information about unknown charities if solicited for a donation; to confirm their legitimacy with regulators; to never send cash or wire money when requested to do so; to always keep receipts of donations; and to report concerns or complaints about questionable solicitations with the Department and law enforcement.

Information about charities can be obtained through the Department’s website, specifically at www.maine.gov/pfr/professionallicensing/professions/charitable. Links allow for the search of licensed charitable organizations, as well as disciplinary actions.  Questions and complaints can also be made by calling the Charitable Solicitations Program at 207-624-8525.

Additionally, the website includes a News Alert with further guidance for avoiding scams.  Information and other resources are also available from the Federal Trade Commission (www.ftc.gov/charityfraud/).

The Department of Professional and Financial Regulation protects the citizens of Maine through the regulation of State-chartered financial institutions, the insurance industry, grantors of consumer credit, the securities industry, and numerous professions and occupations providing services to the public.  In order to encourage the development of sound ethical businesses which serve the needs of Maine citizens, the Department fosters a healthy business environment through competent, impartial and efficient regulation.

MoneyGram settlement – WABI-TV

The U.S. Department of Justice has reached a settlement earlier this month that could award consumers of MoneyGram $100 million. These consumers are mostly in United States and Canada who fell victim to wire fraud.

People who may have fallen victim to wire fraud from MoneyGram can check the U.S. Department of Justice website at  justice.gov/criminal/vns/caseup to get information on how to file a claim. If you have questions or need to file a claim, and can’t access the information available online you can call 1-877-282-2610.

Watch Russ and Joy’s discussion.

 

MoneyGram settlement could mean payout for scam victims – Bangor Daily News

CONSUMER FORUM

By Russ Van Arsdale, executive director, Northeast Contact
Posted Nov. 23, 2012, at 12:41 p.m.

Over the years, Northeast CONTACT has received complaints from Maine consumers about all kinds of fraud schemes: calls from “relatives” needing cash fast, promising big cash awards or lottery payouts, or working as “secret shoppers.” It turns out a number of those calls were likely from MoneyGram agents who were breaking the law.

MoneyGram International Inc. has agreed to a $100 million settlement of charges that it criminally aided and abetted wire fraud and failed to maintain an effective anti-money laundering program. If you lost money to a scam involving a MoneyGram agent, you may be entitled to some compensation.

Federal Department of Justice (DOJ) prosecutors say the global money services firm with headquarters in Dallas allowed the rip-offs to go on from 2004 until 2009. And the DOJ news release earlier this month pulled no punches.

“MoneyGram knowingly turned a blind eye to scam artists and money launderers who used the company to perpetrate fraudulent schemes targeting the elderly and other vulnerable victims,” said Assistant Attorney General Lanny A. Breuer. Tens of thousands of U.S. and Canadian customers were hoaxed, and complaints grew from 1,575 reported instances of fraud in 2004 to 19,614 instances in 2008. In all, the reported fraud topped $100 million.

Many of those complaints were investigated by MoneyGram’s fraud department, which apparently was routinely overruled by the sales department. DOJ pointed to an April 2007 meeting attended by senior MoneyGram execs in which the fraud department identified 32 of the “worst of the worst” Canadian outlets and recommended they be closed. Sales disagreed. The outlets were not closed and, while the complaints piled up, MoneyGram kept processing transactions from those outlets.

MoneyGram executives have agreed to take a number of steps, including:

• Adopting rules to ensure that company agents at a minimum meet U.S. anti-money laundering standards;

• Adopting tougher due diligence for agents termed high-risk or operating in high-risk areas;

• Creating an independent compliance and ethics committee of the board of directors, overseen by the chief compliance officer and compliance program;

• Setting up a bonus system rating all executives on success of the new compliance requirements (failure would make that executive ineligible for a bonus that year).

MoneyGram has also agreed to hire an independent corporate monitor, who will report regularly to DOJ on the effectiveness of the anti-fraud and anti-money laundering efforts. All of this is spelled out in a deferred prosecution agreement; if MoneyGram lives up to the terms for five years, DOJ will recommend dismissing the criminal information filed in court this month.

In 2009, MoneyGram paid $18 million to settle claims by the Federal Trade Commission that it allowed its money transfer system to be used by fraudulent telemarketers to bilk consumers out of millions of dollars. Part of that settlement required MoneyGram to set up a comprehensive anti-fraud program.

DOJ says it will post information about redress on its website atwww.justice.gov/criminal/vns/caseup/. In the meantime, people who believe they were victimized between 2004 and 2009 can provide their contact information by calling toll-free 1-877-282-2610 (it’s a toll call internationally, 317-324-0390).

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

Looking for financial security? Temporary credit cards may be an answer

CONSUMER FORUM

By Russ Van Arsdale, executive director of Northeast CONTACT
Posted Oct. 20, 2012, at 1:28 p.m.

With billions of dollars in credit card fraud every year, shoppers may be looking for more secure ways of doing their business. One such way is to use “temporary” credit card numbers.

They’re sometimes referred to as “virtual” or “disposable” numbers. They work in a variety of ways; while not foolproof, they may help consumers to head off abuse or misuse of their credit cards.

Most issuers of major credit cards will let you use a number (not the one on your plastic card) temporarily, often for just a single purchase. After that transaction is complete, the number becomes worthless to a thief or anyone else. The number is truly disposable, so even if a thief gets access to it, the number can’t be used for unauthorized purchases.

You use that number as you would your regular credit card, and your transactions show up on your regular credit card bill. Just as you save receipts from your regular credit card purchases, you should hang onto receipts from any temporary numbers you use.

Every issuer has its own rules for issuing temporary numbers; some tie the service to their online banking and may require you to sign up for it. Others offer a downloadable program that will pop up when you make an online purchase and ask if you want to use a virtual number. Still others require that you log onto their website when you want a virtual number.

What you should not do is click on anything in an unsolicited email offering you a temporary number. That’s likely a phishing scam, designed to harvest your personal information. Since the whole point is to keep that information away from the bad guys, don’t give it away to someone you don’t know. Also, when dealing online, make sure the websites you visit are the ones that truly match your intended destination, not some crook’s computer. Type in the address yourself, or use a bookmark if you’ve made one, rather than clicking on a look-alike link.

You also can request to use a disposable number more than once, and this is where things can get a bit tricky. Discover uses the term “secure account numbers,” and they expire on the same date your regular card expires. Bank of America calls its service “ShopSafe,” and its numbers expire after one year. Those types of temporary numbers are useful to people who want to use virtual numbers when they pay recurring charges.

Disposable numbers also can help prevent repeat charges that you don’t want. Say you sign up for a trial offer of some service at an introductory discount rate. Pay initially with a one-purchase number you’ve generated, and the vendor won’t be able to bill you automatically for a renewal.

The flip side of that issue concerns returns. A retailer who is unfamiliar with temporary numbers may hesitate to refund money on a number that’s no longer valid. A buyer heading into the holiday season might request that the temporary number be valid for two or three weeks into the new year, in case returns are necessary.

We’re told people who go through the process of credit repair often choose to use temporary numbers. The practice may give nervous consumers some reassurance, but they can’t defeat all fraud; as long as a disposable number is active, thieves might still make bogus charges with it. Some experts advise using only one-time numbers and that each number applies to a specific merchant.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email.

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Elder Finance Seminars scheduled around Maine

CONSUMER FORUM

By Russ Van Arsdale, executive director, Northeast Contact
Posted Sept. 02, 2012, at 4:13 p.m.

 Another round of free seminars on protecting senior citizens from fraud is coming up around Maine next week.

The sessions are designed to give seniors and others who care about them solid information on spotting fraud and exploitation and getting help when they occur. Financial exploitation of seniors is on the rise in Maine and around the country; it’s considered one of the growing crimes of this century.

The sessions will be held in Hallowell 9-11 a.m. Monday, Sept. 10; in Scarborough 2:30-4:30 p.m. Monday, Sept. 10; in Lewiston 2-4 p.m. Tuesday, Sept. 11; in Bangor 2-4 p.m. Tuesday, Sept. 11; and in Presque Isle 9-11 a.m. Wednesday, Sept. 12. Locations and details are available by calling Maine’s Office of Securities at 877-624-8551 or the Maine Association of Area Agencies on Aging at 877-353-3771.

The Office and Association have teamed up with the Financial Industry Regulatory Authority, or FINRA, Investor Education Foundation ( www.SaveAndInvest.org), Legal Services for the Elderly and other experts to offer the sessions.

“Investment fraud criminals are experts at parting people from their money, and Mainers are being targeted,” said Gerri Walsh, president of the FINRA Investor Education Foundation. “We are committed to providing Mainers and all Americans with the information necessary to spot and avoid investment fraud and scams.”

The sessions are titled “Outsmarting Financial Fraud and Elder Abuse.” Judith Shaw, Maine’s Securities Administrator, said the gatherings will give resources to seniors and training to others who interact with seniors on a regular basis.

“Our partners in this effort do remarkable work to inform and protect seniors, and we encourage people to take advantage of the resources and insights to be offered,” Shaw said.

The two-hour general sessions are open to anyone. Each will be followed by a one-hour, train-the-trainer session; these are designed for service providers, professionals and others who deliver training to seniors on these issues.

A similar session last October in Bangor was well attended. The upcoming sessions could serve as a refresher for anyone who was there, as well as offering an array of information and resources for first-time participants.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s membership-funded, nonprofit consumer organization. Individual and business memberships are available at modest rates. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit necontact.wordpress.com or email contacexdir@live.com.