Archive for the ‘FTC’ Category

Recent Federal Trade Commission Consumer Warnings

Refunds Now Available from Amazon for Unauthorized In-App Purchases

PRESS RELEASE

Amazon.com, Inc. has begun offering refunds to consumers for unauthorized in-app charges incurred by children. More than $70 million in charges incurred between November 2011 and May 2016 may be eligible for refunds.

All eligible consumers should have received an email from Amazon. Consumers who believe they might be eligible can also:

Refund requests can be completed entirely online. Consumers do not need to call Amazon or send anything by mail to receive a refund. The deadline for submitting refund requests is May 28, 2018. Any questions about individual refunds should be directed to Amazon at 866-216-1072.

Last month, the FTC and Amazon agreed to end their litigation related to the FTC’s case, which paved the way for the refund program to begin.

 

New FTC Website Helps Small Businesses Avoid Scams and Cyber Attacks

Attacks can be especially devastating to small businesses; Agency provides information on how they can protect themselves

PRESS RELEASE

May 9, 2017

At the direction of Acting Chairman Maureen Ohlhausen, the Federal Trade Commission has launched a new website – ftc.gov/SmallBusiness – with articles, videos, and other information aimed at helping small business owners avoid scams and protect their computers and networks from cyberattacks and other threats.

“Small businesses are critical to our economic strength, building America’s future, and helping the United States compete in today’s global marketplace,” Acting Chairman Ohlhausen said. “This innovative new website is a one-stop shop where small businesses can find information to protect themselves from scammers and hackers, as well as resources they can use if they are hit with a cyberattack.”

According to the U.S.Small Business Administration (SBA), there are more than 28 million small businesses nationwide, employing nearly 57 million people. Scammers frequently target small businesses with deceptive tactics designed to get them to pay for supplies they didn’t order, donate to fake charities or trick them into giving access to their network or downloading malware that can corrupt their business’s computers.

Cyberattacks can be particularly devastating to small businesses, and many of them lack the resources that larger companies have to devote to cybersecurity. Symantec Corp.’s 2016 Internet Security Threat Report(link is external) indicates the percentage of spear-phishing attacks targeting small business rose dramatically from 18 percent to 43 percent between 2011 and 2015.

The FTC’s new web page offers specific information to help small businesses protect their networks and their customer data. This includes a new Small Business Computer Security Basics guide, which shares computer security basics to help companies protect their files and devices, train employees to think twice before sharing the business’s account information, and keep their wireless network protected, as well as how to respond to a data breach. It also has information on other cyber threats such as ransomware and phishing schemes targeting small businesses. The FTC is continuing to work with the SBA on additional ways to help small businesses.

click image for “Ransomware – a Closer Look”

Consumers Impacted by Scams Utilizing Western Union May Be Eligible for Restitution Payments

Deadline April 3, 2017

PRESS RELEASE
03/02/2017 09:18 AM EST

Image linked to Western Union Scam Fighting Advice

 

AUGUSTA – Attorney General Janet Mills requests all Mainers who were scammed out of money and asked to utilize Western Union as a payment method to contact her office as they may be eligible for restitution payments. Under a recent settlement with the federal government consumers may be eligible for some restitution if the payments were sent between 1/1/2004 and 1/19/17.

In January, the Federal Trade Commission announced a settlement it made with Western Union that will require them to return $586 million dollars through a claims settlement process to consumers. Going forward, Western Union must go one step further by creating a real and strong anti-fraud program. Western Union agreed to this settlement after ignoring for years the more than 550,000 complaints it received about money transfers made for fraudulent lottery and prizes, family emergency calls – also known as the grandparent scam, advance fee loan payments, online dating scams, the more recent IRS scam, among others.

Attorney General Mills said “I ask all Mainers who have been scammed out of money and were asked to use Western Union to make these fraud-induced payments to contact my office so that we can connect them with the federal agencies managing this claims process. I realize some may be embarrassed that they fell for a scam. You are not alone. Do not be embarrassed, please take this opportunity to be reimbursed for the money you have lost.”

Under the settlement, Western Union will return $586 million dollars through a process to be determined at a later date. The company will have to train and monitor its agents so that people are protected. The company won’t be allowed to transmit a money transfer that it knows – or should know – is a fraud. It has to block money transfers to anyone who has a fraud report, make it easier for people to report fraud, give clear warnings to people who are sending money, and refund a fraud-related money transfer if the company didn’t comply with its own anti-fraud procedures. Additionally, consistent with the telemarketing sales rule, Western Union must not process a money transfer that it knows or should know is payment for a telemarketing transaction. If you ever wire money, also keep in mind that it’s illegal for a telemarketer to ask you to pay with a money transfer. Scammers love using money transfer services because once you send the money, it’s gone forever. So, if a telemarketer asks you to wire money, already you know they’re a crook.

Consumers who made payments for a scam between 1/1/2004 and 1/19/2017 may be eligible for reimbursement. Please contact the Consumer Protection Division at the Attorney General’s Office if you were scammed during this time. You will need to provide your basic contact information, approximate dates of the transaction(s), amounts of the transaction(s) and any relevant transaction identification numbers, if available. Your information will then be provided to our federal partners administering the claims process.

For this case, we prefer receiving information by email – consumer.mediation@maine.gov – but we can also be reached at (207) 626-8849 or 1-800-436-2131.

The deadline for consumers to submit this information to the Attorney General’s Office is Monday, April 3, 2017.

Calls asking “Can you hear me now?” – FTC Scam Alert

Your phone rings and the caller ID shows a number you don’t know. You answer it anyway and hear, “Can you hear me now?” It’s a pre-recorded robocall – even though it sounds like a real person – and it’s illegal. We’ve heard from hundreds of people who have gotten calls like this.

Here’s what to do if you get a call from someone you don’t recognize asking, “Can you hear me?”:

  • Don’t respond, just hang up. If you get a call, don’t press 1 to speak to a live operator or any other number to be removed from the list. If you respond in any way, it will probably just lead to more robocalls – and they’re likely to be scams.
  • Contact your phone provider. Ask your phone provider what services they provide to block unwanted calls.
  • Put your phone number on the Do Not Call registry. Access the registry online or by calling 1-888-382-1222. Callers who don’t respect the Do Not Call rules are more likely to be crooks.
  • File a complaint with the FTC. Report the experience online or call 1-877-382-4357.

Scammers even impersonate kidnappers – FTC

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March 10, 2017
by Alesha Hernandez
Consumer Education Specialist, FTC

Imposters will pretend to be anyone to get you to send them money. Recently, reports of the virtual child kidnapping imposter scam have resurfaced. The scam begins with a call from someone claiming to have kidnapped a child in your family. You may even hear sounds of a child in distress in the background. The scammer demands money immediately, often wanting money sent through a wire transfer service or by prepaid card.  The scammer may even insist that you keep the call a secret and not alert the police.

These calls are fake and law enforcement organizations, like the FBI, are aware of this type of scam.

If you get a call like this, resist the urge to send money immediately, no matter how dramatic the story.  These scammers are good at pressuring you to send money before you have time to think.  How do they know your information? Scammers will search the internet and social media sites to get personal information.

It’s natural to want to check on your child’s safety, even if your head tells you the call is fake. That’s OK. Contact your child or their school directly. Then you can report this fraud at ftc.gov/complaint.

You can’t avoid death and taxes, but you can dodge identity theft

CONSUMER FORUM

Posted Jan. 30, 2017, at 8:25 a.m.

Last year, the Internal Revenue Service, the states and tax professionals teamed up to reduce incidents of taxpayer identity theft.


The crime occurs when a criminal steals your Social Security number and files a return in your name; the thief claims a refund to which he’s not entitled. When you file your legitimate tax return, the IRS flags it because it has already received a return in your name.

It’s believed that more diligent enforcement helped the IRS to prevent more than $180 million from going to fraudulent claimants. Now, officials are doubling down on their efforts to fight taxpayer ID theft.

The Federal Trade Commission has proclaimed the week of Jan. 30-Feb. 3 as Tax Identity Theft Week. The agency is offering a series of events to educate consumers and business people on ways they can minimize the risk of thieves stealing refunds.

At 3 p.m. Tuesday, Jan. 31, the FTC and Identity Theft Resource Center will hold a Twitter chat dealing with tax identity theft, ways to protect yourself and what to do if you are a victim.

A similar session is planned for 11 a.m. Wednesday, Feb. 1, about tax ID theft for service people, veterans and their families. At 4 p.m. Wednesday, Feb. 1, FTC and the IRS will hold a tax ID theft chat for small business people. Find a link to these and other events at www.ftc.gov and look under “Latest News.”

Income tax season is big business for high-tech criminals, so be on guard for all sorts of scams. You might get a call from someone posing as an IRS official, seeking to “verify” tax return information by phone.

Other scammers may mention news reports of tax fraud and try to trick victims into “verifying the last four digits of their Social Security number.”

Others might pretend to be from the tax preparation industry … in short, they’ll use any tactic they think might work to fool consumers.

The crooks also take aim at business people. They might call human resources professionals and ask for information found on W-2 forms; a variation of that scam has an email message bearing the name of a corporate officer seeking personal information about an employee. Some scammers have posed as providers of software to trick tax preparers.

The variations are virtually endless. The IRS lists many of the most often used tricks at its website, www.irs.gov/uac/tax-scams-consumer-alerts.

Many tax pros suggest filing early, thereby giving the crooks less time to file fraudulently ahead of you. Once you have filed, you can check the status of your refund at www.irs.gov/Refunds.

You also can call the IRS Identity Theft toll-free at 800-908-4490 or visit www.irs.gov/identitytheft.

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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