FTC to phantom debt: Drop dead!
Earlier this month, the Federal Trade Commission (FTC) announced that a federal court temporarily halted the operations, and froze the assets of, a phantom debt collection scheme that stole millions from consumers. The scheme operated under numerous names, including Blackrock Services, Blackstone Legal Group, Capital Legal Services, Quest Legal Group, Viking Legal Services, and others, the FTC said. As part of the scheme, debt collectors sent deceptive collection letters and made phone calls claiming that consumers owed a debt, and threatened legal action, wage garnishment, negative impacts to consumers’ credit, and even arrest if they didn’t pay. In reality, the debts never existed and the defendants had no basis to make legal threats. The FTC complaint noted that letters sent by the scheme operators often contained a wealth of sensitive personal information about the consumer, including the last four digits of their Social Security number, leading consumers to believe the letters might be legitimate. The FTC's complaint alleged violations of the FTC rule against impersonating government and businesses and violations of the Fair Debt Collection Practices Act. May the halting of this scheme become permanent, and the offending companies RIP.
This scam won't fly
Lately, it seems that barely a few days go by before we hear about a new aviation scare or accident that rattles the nerves of the flying public. Well, setting aside for a moment any fears of flying the headlines may be stoking, what you may want to be more wary of is scammers who are always ready to tailor their scams with up-to-the-minute gotchas. Although we'd like to call it hard to believe (we can't), the ABC 6 affiliate serving the Providence area of Rhode Island reported last week that the Barrington Police Department made an arrest in connection with a scam that claimed to be raising money for the family of two victims of the Washington, D.C., midair plane collision. Police charged 54-year-old Edward Lima with two counts of obtaining money under false pretenses under $1,500. Lima allegedly encouraged donations that were supposedly going "to the Barrington Police Union in honor of the Lane family," ABC 6 reported. A bit of good news in the story is that two victims of the scam were fully reimbursed. Other potential scam victims are being asked to contact Barrington Police at 401-437-3930. For recommendations on how to spot fake fundraisers on GoFundMe and other crowdfunding platforms, check out these tips from the Michigan attorney general.
Shut the front door!
No muddy waters here. With spring just a couple of days away, the warmer weather may be beckoning many of us to get back out there for a jog, hike or walk, perhaps with a bottle of freshly poured tap water in tow. How might you react, then, if a "water quality official" were to unexpectedly knock on your door and tell you your tap water was contaminated? Would you be suspicious? If you answered yes and refused to engage (spotting the "unexpected visitor" red flag), you'd be making the right call. The Water and Sewer Department in Bristol, Connecticut, is warning residents that scammers are going door-to-door claiming the city's drinking water is contaminated. Besides assuring residents they do not regularly knock on doors, and that water is tested regularly and not contaminated, the city is offering good advice for all consumers regardless of where we live: Never let a stranger into our home, and contact police or the utility's office if someone requests to check our water. The city's alert also includes an account of one consumer who smartly refused to provide information to the suspicious visitors and did her own research about their claims. Good example for the rest of us!
Roll back the welcome mat. According to the Arkansas Attorney General's office, consumers can expect other questionable visitors at their doorsteps this spring. In a statement, the AG said the arrival of warmer weather will bring out more door-to-door sellers. The AG explained that home solicitations include the promotion of a wide range of products and services, including home improvement projects, home security systems, and solar panels. "While some of these sellers are legitimate," the AG said, "others employ high-pressure sales tactics and may misrepresent what they are selling, including the benefits, costs, and terms of the products and services they offer.” The state prosecutor's office offered several recommendations for keeping safe from door-to-door scams, including requiring proper identification from salespeople; taking the time you need to fully evaluate any sales offer, including by comparison shopping and conducting research; being wary of high-pressure sales tactics and misrepresentations; and being skeptical of “free” installation or equipment deals that could stick you with expensive, long-term contracts. Another good idea: Do an online search for your state's name along with the phrase "right to cancel home solicitation" to find out how long you have to cancel home solicitation sales contracts in your state.
Tips
Protecting your "pot o' gold." During a KSAT.com news segment, and just in time for St. Patrick's Day, the Texas-based Randolph-Brooks Federal Credit Union (RBFCU) offered tips for keeping your "pot o' gold" safe from tricky tax-season scams and leaving scammers "green with envy." RBFCU's VP of Enterprise Fraud Management, Alex Aguillen, explained in an interview that tax season is one of those seasons where there are a lot of funds floating around, including people receiving large tax refunds and others rushing to pay their taxes. Scammers know this, noted Aguillen, so "you're going to see a lot of phishing and smishing attempts via e-mail and text messages impersonating the IRS, other government agencies, and financial institutions." Scammers will also be calling and creating "urgency and fear" in their communications and targeting consumers on social media, and they'll be using "tried and true" methods like stealing mail to obtain checks and sensitive information, Aguillen explained. The credit union VP offered three key tips for avoiding tax scams: (1) Verify who you're communicating with, including any websites and email addresses; (2) Don't share sensitive information over the phone or via email (since the IRS will usually first communicate with you by regular or certified mail); and, (3) Keep in mind that the IRS is not going to accept payment by cryptocurrency or gift cards. Check out the video for information about where to report scammers, where you can learn more, and the importance of spreading the word.
Double-dipping scammers. Alaska's News Source is bringing attention to a scheme that several consumers have reported to the Better Business Bureau's Scam Tracker. The article quotes the BBB's Melanie McGovern describing it as a new twist on a familiar scam. One consumer reported to the BBB that, after entering their credit card number for an online purchase, they were asked to use a different card. The consumer attempted the purchase again with the same card and got the same error message. Then, the article explains, the consumer received a fraud alert from their bank regarding a declined charge of $2,500, which was not the amount the consumer was attempting to charge. The BBB explained that what the scammers are trying to do is steal information about two credit cards, not just one. No transactions are actually being declined; the scammers are just capturing information about two cards. The BBB recommended that consumers ensure they are visiting legitimate websites and that they call the credit card company if a transaction is supposedly declined. Consumers can also place fraud alerts on their credit cards, the BBB told Alaska's News Source, and possibly get their money back and prevent the scammer from using their credit card numbers.
Call us any, anytime. In a blog post last week, the Social Security Administration (SSA) addressed some confusion in the media about what phone services will be available from SSA. The federal agency emphasized that it is not eliminating telephone services, but it is taking steps to eliminate the risk of fraud associated with changing bank account information for direct deposit of Social Security benefits. The blog explained that approximately 40% of Social Security direct deposit fraud is associated with someone calling SSA to fraudulently change a recipient's direct deposit bank information. "The current protocol of simply asking identifying questions by telephone is no longer enough to prevent fraud," the blog post stated. The agency will now require those needing to change their bank account information on SSA’s record to either use two-factor authentication with SSA’s “my Social Security” service or to visit a local Social Security office to prove their identity. "All other SSA telephone services remain unchanged," the agency emphasized. To update details about your bank account for direct deposit of your Social Security benefits, start here.
No bed of roses. A recent news report by KTLA News in Southern California will have you on the lookout for crooks that may be lurking in an unexpected place: among the pretty plants in your front lawn! KTLA tells the story of a San Bernardino County resident who reported to the local sheriff that they found a portable power supply device in their driveway, which deputies later discovered was part of a—get this—"all too common" hidden camera system installed by thieves. The concealed camera was found in a bush near the house, camouflaged as a plant and connected to the power supply, the KTLA story explained. The sheriff's office has asked residents to not touch such devices if they find them and to report them. These are becoming increasingly popular among thieves in Southern California to determine when residents are home or away, the story continues. KTLA also included several tips from police in Chino, California, to avoid becoming a victim, including keeping your property well lit; asking a trusted gardener to inspect trees and bushes for hidden devices; having your own video surveillance system to catch suspicious activity; and, as SCAM GRAM readers surely know, securing your home’s Wi-Fi network with a strong password to prevent unauthorized access. Heads up and happy gardening!
Crafty schemes. Good Housekeeping's website published a story this week about scams sparked by the looming closure of some 800 Joann Fabrics stores. It also separately warned customers to compare any final Joann Fabrics "sale prices" with other retailers' prices to ensure that any liquidation prices truly represent good deals. The Good Housekeeping article explained that several fake websites pretending to be Joann Fabrics have appeared online. The sites, which may be advertised on social media, look like the real thing, Good Housekeeping explains, but are designed to steal your personal and financial information. The fake sites may have URLs that look similar to the URL for the legitimate Joann Fabrics website. Fortunately, it has become very easy to spot an online Joanne Fabrics scam. The article's author, Sarah Vincent, points out that "As of Wednesday, March 5th, JOANN no longer allows online shopping, so any website that claims to let you place an order for JOANN online is scamming you." In the second part of the story, Vincent explains why she believes the closing sales at Joann Fabrics "may not be as good as you think," pointing out that "some 'sale prices' are actually higher than the regular price was." Check out the story here.
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