Archive for the ‘FTC’ Category

How to detect scammers posing as government agents

CONSUMER FORUM

Posted May 02, 2016, at 10:18 a.m.

It has been nearly 10 years since a phishing scam targeted Social Security recipients. That followed announcement of a 3.3 percent cost-of-living increase.

As with many other messages asking consumers to reveal their personal information, this attempt was pegged to a headline. Following details of the increase, copied from a genuine Social Security Administration, or SSA, news release, the crooks inserted their falsehood: “We now need you to update your personal information” or see your checks stop.

Instructions to “confirm your records” by clicking a link only took victims to a bogus website, where many surrendered personal and financial information, including Social Security numbers, bank account and credit card information.

The thieves used that data for their own gain.

SSA officials reacted then as they have recently, with reminders that the agency never asks for personal or financial information by email or over the phone. Such attempts to get your information are always scams.

The agency urges consumers to do the following:

— Never divulge a Social Security number or account number to someone who calls or emails.

— Never wire money using a prepaid debit card, and never pay anyone who calls “out of the blue.”

— Check their status of disability benefits (if you have them) regularly and review your statements to be sure they’re correct.

If you’re called and pressured to provide information, perhaps by someone saying he or she is with law enforcement or other authority figure, hang up and report the call to the Social Security Fraud Hotline (1-800-269-0271 from 10 a.m. to 4 p.m. Eastern time.

Report suspicious activity to the Social Security fraud unit online at oig.ssa.gov/report and to the Federal Trade Commission at ftccomplaintassistant.gov/#&panel1-1. The FTC can’t resolve individual complaints but can advise what next steps a consumer should take.

Medicare recipients also are frequent targets of scammers. Callers from “Medicare” tell consumers they need to verify information because new cards are being issued.

“Medicare will never call you asking for personal information,” said Betty Balderston, statewide coordinator for the Maine Senior Medicare Patrol at Legal Services for the Elderly.

While Congress has ordered that Social Security numbers no longer be used on Medicare cards, the change won’t be fully implemented for a few years.

“In the meantime, Medicare consumers should continue to protect their Medicare numbers, just as they protect their credit card and bank account information,” Balderston said.

In the past, we’ve advised consumers to take Medicare cards during an initial visit to a health care facility; from then on, take a photocopy with your Social Security number blacked out; that avoids the need to carry your card which might get lost or stolen.

Another recent hoax email urged recipients to “get protected” and touted ways to help monitor your credit report and warn you of unauthorized use of your Social Security number. Both are lies, designed to prompt your click on links that might download computer malware or divulge your data.

You may spot a scam attempt by hovering your cursor over the address link of the fake email. That likely will show an address ending “.com,” instead of “.gov,” which it should.

If you found the message in your spam folder, ask yourself if your email program didn’t catch the fraud attempt and divert the message appropriately.

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, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com

Risk usually outweighs reward with payday loans

CONSUMER FORUM

Posted March 28, 2016, at 9:07 a.m.

Just two weeks ago in this column we wrote about some debt collectors who bend rules or break laws. Last week, the Federal Trade Commission warned that some collectors are trying to capitalize on bogus payday loans.

A payday loan is a cash advance given to a consumer. The consumer hands over a check or agrees to have a deposit account debited. Either transaction takes place at a future date when, the theory goes, the consumer can repay the loan plus interest.

Those short-term loans tend to carry high interest rates. In Maine, a supervised lender license is required, and lenders cannot charge more than $25 on a loan of $250 or more. If a consumer can’t pay back the loan — often due in two weeks — it might be renewed, incurring another $25 fee. If the loan were renewed every two weeks for a year, the consumer would pay $650 in fees on that $250 loan.

Unscrupulous lenders don’t bother with licenses or with obeying the state and federal Fair Debt Collection Practices Acts. The FTC last week alerted state regulators nationwide that several companies either are trying to collect nonexistent loans or that they’re trying to collect on loans that were never turned over to any third-party collector.

The FTC alert stated that some suspicious portfolios of alleged payday loan debts have surfaced in the debt collection marketplace. Third-party collectors buy portfolios and try to collect, often at pennies on the dollar. Buyers of phony debt are violating the Fair Debt Collection Practices Act, Federal Trade Commission Act or both.

The FTC said it has learned third-party collectors are trying to collect loans allegedly made by USFastCash, 500FastCash, OneClickCash, Ameriloan, United Cash Loans, AdvantageCashServices, and StarCashProcessing.

The servicer of debts owed those firms, AMG Services, has told the FTC that none of the above companies’ loans were placed with or sold to any third parties for collection.

Last week’s alert was directed at people in the debt collection industry.But consumers who get threatening calls about money they supposedly owe to one of the above online lenders — or about any debt — should verify what they’re told.

Consumers have the right to dispute a debt and request verification within 30 days of getting written notice of the debt. Until the collection agency sends proof that you owe the debt, it has to stop trying to collect.

People at Maine’s Bureau of Consumer Credit Protection can answer specific questions. Call them at 1-800-DEBT-LAW (1-800-332-8529) or visit online at Credit.Maine.gov. At the website, you can find the Downeaster Common Sense Guide: Debt Collection or request a copy by calling the Bureau.

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, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Naughty debt collectors draw consumers’ ire

CONSUMER FORUM 

Posted March 14, 2016, at 12:17 p.m.

Roll two of America’s top consumer complaints into one, and the result might wear a T-shirt proclaiming, “I am a phony debt collector.”
The Federal Trade Commission just released its annual list of consumer complaints. Debt collection topped the list, and imposter scams came in third. Together, the two categories accounted for roughly 1.2 million complaints, 40 percent of all complaints the FTC received in 2015.

Nationally, the FTC last year increased its effort to protect consumers from illegal debt collection practices. The agency coordinated a federal-state-local effort called Operation Collection Protection; through that program, more than 130 legal actions were brought. The FTC brought 12 actions against 52 defendants, and permanently barred 30 companies and individuals from the debt collection industry. The agency said in a recent statement that it obtained almost $94 million in judgments against debt collectors.

Among the bad practices that have drawn fire from regulators in recent years are these:

— One big bank robo-called a couple 700 times over four years and followed up with letters threatening foreclosure; a judge ordered the bank to pay the couple $1 million.

— A Georgia firm collected $4 million for nonexistent offenses, claiming it had been hired by the federal government; federal officials say these phony collectors have operated in all 50 states.

— A collector threatened a central Maine consumer, who recorded the phone conversation. A transcript of the conversation persuaded the company — which was licensed to do business in Maine — that it should let the employee find work elsewhere.

2015 Debt Collection Booklet.pub

Click image to read online.

David Leach, Principal Examiner at Maine’s Bureau of Consumer Credit Protection, said more than 1,000 debt collection companies are licensed in Maine and that the majority of them abide by the Fair Debt Collection Practices Act. However, Leach said the number of complaints about scammers or unlicensed collectors is “enormous and growing.” Call the bureau at 800-DEBT-LAW with your questions about debt collection or to receive a copy of “Downeaster Common Sense Guide: Debt Collection” or read the guide online .

The Maine Bar Association reminds consumers that Maine’s Fair Debt Collection Practices Act forbids bad language, calling people at work, telling others about someone’s debt and other harassment. It also prohibits using phony letterheads to imitate law enforcement and threats of legal action they can’t take. For general information (not legal advice), visit the Bar Association’s website, mainebar.org/lawyer-referral/legal-information/maine-fair-debt-collection-practices.aspx.

While we’ve written about debt collection before (see Consumer Forum, 12/7/2015 on our blog), some points bear repeating. If a collector calls about an old debt, don’t send money without question. Make sure the debt is really yours by having the collector detail the amount owed and to whom it is owed. Have the collector mail the details to you, and get a physical location of the collector’s place of business. If you do pay, send a check rather than sending funds by wire.

The FTC has published a list of companies that it has banned from further debt collection activities. You can see that list at ftc.gov/enforcement/cases-proceedings/banned-debt-collectors.

Next week, we’ll take a closer look at some imposter scams.

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 https://necontact.wordpress.com or email contacexdir@live.com.

How to get help if your identity is stolen

CONSUMER FORUM

Posted Feb. 01, 2016, at 9:07 a.m.

Having your identity stolen means starting a recovery process that can take months, even years.

The Federal Trade Commission, or FTC, last week announced an upgrade of its efforts to help the millions of consumers who are victimized every year.

Edith Ramirez, chairwoman of the FTC, told participants on a conference call that complaints about identity theft to her agency rose by nearly 50 percent last year. Ramirez said, while that’s shocking enough, the true scope of the crime is not known because it is “vastly underreported.”

What is known is that thieves are illegally opening new accounts, getting access to existing accounts fraudulently and filing phony tax returns, all while using other people’s names and personal information.

The FTC says victims can ease the task of getting their financial lives back in order by visiting the agency’s secure recovery website at identitytheft.gov.

Visitors can browse the range of recovery tips or jump right in by entering as much relevant data as possible that led to their identities being stolen. The FTC thinks the upgraded site will give consumers a one-stop means of filing a complaint about identity theft and beginning the process of recovery.

Victims are asked to first enter basic information about the type of identity theft to which they were subjected. Then the site walks the victims through a checklist geared toward that type of crime.

The site will generate affidavits and automatically fill a lot of information in letters and forms to be sent to police, businesses, credit bureaus, debt collectors and the IRS. If a recovery effort hits a snag, the site will suggest other ways to proceed.

To minimize further risks, the site will not ask victims for sensitive information, including dates of birth and Social Security numbers. There will be follow-up emails from the site, and consumers can go back to their plans later — through two-factor authentication — as their recovery continues.

The U.S. Justice Department estimates that 17.6 million Americans were victims of identity theft in 2014. Ramirez said the crime is one that will be with us for quite a while.

“We’re all doing more online. We’re all using mobile technology,” she said. “It’s going to expose people’s information to breaches,” if we’re not increasingly vigilant.

Ramirez made the announcement on Data Privacy Day, designated in 2008 by the National Cyber Security Alliance. Read tips from that nonprofit about keeping your data to yourself at staysafeonline.org.

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, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Where to find help in fighting fraud from abroad

CONSUMER FORUM 

Posted Oct. 19, 2015, at 6:15 a.m.

Here are several recent news items about international scams:

— A federal court has temporarily stopped an alleged international pyramid scheme operated by Vemma Nutrition Co. The Federal Trade Commission alleges Vemma charged $500 to $600 for a membership and rewarded affiliates for recruiting more participants instead of selling products.

— The marketers of Procera AVH, touted as a way to counter memory loss and cognitive decline, will hand over $1 million to the FTC and another $400,000 to satisfy a judgment brought in California. FTC’s complaint charged that marketing claims were false, misleading or unsubstantiated and that the defendants claimed falsely a scientific study proved their product works.

— The FTC and the Florida attorney general’s office have filed a joint complaint against New York-based Lifewatch, charging the firm used illegal and deceptive robocalls to lure older consumers in the U.S. and Canada into signing up for costly medical alert systems. Last year, one of Lifewatch’s telemarketing firms agreed to a settlement with the FTC and Florida to stop making robocalls or engaging in other deception. Since then, FTC and Florida’s attorney general charge that Lifewatch just switched telemarketers and carried on with business as usual.

The items above came from the website of the International Consumer Protection and Enforcement Network, econsumer.gov. The network is an alliance of FTC and consumer protection agencies in 33 other countries. The goal of the groups is to help law enforcement agencies do a better job against international scams.

The website was launched in 2001. An updated version, which creators say is easier to use and tablet- and smartphone-friendly, was unveiled last week at International Consumer Protection and Enforcement Network’s semi-annual meeting in the United Kingdom.

The website advises consumers who find themselves at odds with a foreign company to first try to resolve their differences directly. If that fails, the consumer can learn about ways to settle the dispute without formal legal action.

There’s also a complaint form to let member agencies know about the problem. If the issue involves a member of the European Union, help is available through each member’s consumer centres — visit ec.europa.eu and search “consumer centres.” File complaints that are U.S.-based with the FTC online at ftc.gov.

Most International Consumer Protection and Enforcement Network members offer consumer education activities during its Fraud Prevention Month, usually during February or March. ICPEN members also do ongoing International Internet Sweeps, identifying websites that may mislead consumers and flagging them for future educational or enforcement efforts.

Better enforcement can’t come soon enough for York County Sheriff William King. The sheriff, who speaks frequently to seniors’ groups about avoiding scams, told me that bringing legal action with serious penalties is the only way to curb cross-border scams.

International Consumer Protection and Enforcement Network’s website echoes familiar warnings about scam offers, usually unsolicited. The best single piece of advice may be to trust your own radar. The old saying is still valid: If it sounds too good to be true, it is.

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, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Beware of phony subscription offers

CONSUMER FORUM

Posted Aug. 16, 2015, at 1:33 p.m.

Click image to read FTC tips

The Wall Street Journal’s website includes a caution to readers about new subscriptions and renewals. It notes that certain shady types pretend to represent the publication when their real purpose is simply to rip people off.

The open letter from Christina Komporlis, head of circulation service for Dow Jones & Company, says fraudulent offers came from companies called National Magazine Services, Orbital Publishing and Publishers Billing Exchange. She says none of those entities has any connection with The Wall Street Journal or Barron’s Magazine.

The website further cautions readers not to disclose personal or financial information — especially bank account or credit card data — to anyone from those companies. Komporlis writes she would appreciate having such fraudulent correspondence forwarded to her at reportsubscriptionfraud@dowjones.com.

The Wall Street Journal encourages people with questions to call, so I did. A nice customer service rep told me the publishers posted the notice to encourage caution among readers when renewing their subscriptions. He said consumers are urged to use credit cards, because people who have been scammed and sent checks to the scammers seldom get their money back.

The scam can work in a couple of ways. Crooks can offer a ridiculously low renewal rate, prompting consumers to think they’re getting a great deal — in fact, they’ll get nothing for this “bargain.” On the flip side, scammers may send a renewal notice including a rate that’s much higher than the real price.

Northeast CONTACT recently heard from a Maine consumer who unsuccessfully tried for a refund. She paid for two renewals only to find out the craft magazines had stopped publishing. A full year later, a website still was advertising that the defunct magazines could be ordered.

Words to the wise subscriber come from a variety of consumer advocates. The messages are all the same:

— Read solicitations carefully. If they ask you to send money to an address other than that listed in the magazine’s masthead — publication information inside — be wary. This is not always a deal-breaker, however. Some magazines use outside companies, so call your magazine directly — NOT the number on a mailing you suspect is a scam — to verify the collection firm.

— Look for misspellings. Scammers aren’t the best with grammar, either. Their errors can tip you off that an offer is not legitimate.

— Beware of higher prices and longer-than-normal subscription periods. Our chief caseworker is leery of any offer that’s longer than one year.

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, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

 

How to keep track of latest scam tactics

CONSUMER FORUM

Posted Aug. 09, 2015, at 1:32 p.m.

At some point, you’ve likely received an email from someone you know who claimed to be trapped in a foreign country and needed you to wire money immediately.

If your scam-sensing radar was well tuned, you deleted that message without another thought. However, a friend or relative may not be so aware of the ways of scam artists. That friend or relative could benefit from the Federal Trade Commission, or FTC, series of scam alerts.

These periodic messages cut to the chase with language similar to this: “Government agencies will never ask you to pay by wiring money. Neither will legitimate businesses. If someone insists you pay by wiring money, it’s a scam. Don’t do it.”

That alert was issued last Wednesday on the FTC’s website, ftc.gov. The gold-colored button on the homepage takes you to a series of alerts on all sorts of things every informed consumer should know.

Another recent scam alert was headlined “It’s not the FTC calling about the OPM breach.” There was widespread news coverage of the data breach at the federal Office of Personnel Management, which left more than 21 million current and former federal employees wondering whether their identity was at risk. Scammers use that coverage and those fears to give credibility to their fake phone calls, saying the FTC is offering money to breach victims if they’ll just give up some personal information.

A couple of facts are worth noting here. The FTC does not call to ask for personal data, and the agency does not hand out money, either. It will accept your written or phoned complaint about such hoaxes; that reporting could help investigators put a stop to at least some of the impostor scams and other phishing attempts that put millions of citizens’ identities at risk.

Scam alerts also have dealt with people who pose as friends in an effort to separate you from your money. They may create phony online identities using stolen pictures and profess their love; it’s not long until they’re hitting up their victims for “loans” to deal with fabricated “emergencies.” They’ll always ask you to wire the money — so that it can’t be traced.

Scammers have found creative ways of posing as customer service people who try not to arouse suspicion when they ask you for personal or financial information. Say you have a question for a major retailer but can’t find a phone number; you do a Web search, and several toll-free numbers appear. A closer look at the territory above and to the right of the search results reveals some look-alike names that belong not to your retailer but to a scam artist waiting for your call.

Do your friends and family a favor by sharing the FTC’s scam alerts with them. You can find them under the “education” tab on our blog: https://necontact.wordpress.com. Educating yourself and those close to you is the best single step you can take to fight fraud.

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, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

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