Category Archives for Consumer Issues

Senate Aging Panel Releases its 2018 Fraud Book

Published in Woonsocket Call on April 1, 2018

In early March, the U.S. Senate Special Committee on Aging again put the spotlight on common fraud schemes directed at America’s seniors at a panel hearing, “Stopping Senior Scams.” At the Senate panel hearing, held in Dirksen Senate Office Building 562, the Committee officially released its 2018 Fraud Book detailing the Top 10 scams reported to its Fraud Hotline last year. In 2017, the Committee’s Fraud Hotline received more than 1,400 complaints of frauds targeting seniors around the country, clearly revealing the extent of this epidemic.

Last year, the most prevalent scam reported to the Committee’s Hotline, detailed in the Senate Aging Committee’s 56-page 2018 Fraud Book, was the IRS Impersonation Scam in which con artists call, pretending to be IRS representatives, to collect payment of taxes and threaten arrest if payment is not immediately made by phone (During tax filing season, seniors and others should be on high alert for scam artists claiming to be the IRS).

The March 7th hearing was the third hearing this Congress—and the 12th in the past three years—that the Senate Aging Committee has held examining scams affecting older Americans. These hearings c=examined notoriously widespread scams including the IRS imposter scams, lottery and sweepstakes scams, computer tech support scams, grandparent scams, elder financial exploitation, and identity theft.

“This Committee’s dedication to fighting fraud against older Americans is raising awareness and it is making a real difference,” said Chairman Susan Collins (R-ME), of the Senate Aging Committee, in her opening remarks. “Just two weeks ago, the Department of Justice announced it has charged more than 250 people with stealing more than half billion dollars from more than a million Americans. This is the largest ever law enforcement action to protect our nation’s seniors from fraud,” noted Collins.

Seniors Lose Billions in Exploitation Schemes and Scams

Collins called the “stakes extremely high” in fighting against the skyrocketing incidence of senior fraud, noting that according to the Government Accountability Office, older American’s lose a staggering $2.9 billion a year to an ever-growing array of financial exploitation schemes and scams.

Ranking Member, Bob Casey (D-PA), called for more aggressive action to be taken “to ensure that not one more senior loses another penny to a con artist.” The Pennsylvania Senator called for working more closely with businesses to create “another line of defense to help prevent assets from ever leaving the hands of unsuspecting victims.”

Witnesses Stephen and Rita Shiman from Saco, ME, came to share and educate others as to how they fell victim to a grandparent scam. During his testimony, Shiman acknowledged the special bond between grandparents and their grandchildren. “The scammers knew this well and took full advantage of it with my wife and myself. They knew that when a grandchild is in trouble, grandparents go all out to help,” he said.

With over 20 years working as a lead volunteer with Pennsylvania, chairing the nonprofits Consumer Issue Task Force, Witness Mary Bach explained how her 15-member task force team from across the commonwealth keep residents of all ages educated about current scams sweeping the state. She stated, “[w]e know that education is power, and when someone hears the specifics of a scam they are much less likely to be victimized. If you can spot a scam, you can stop a scam!”

Witness Doug Shadel, State Director of AARP Washington State. testified about the current state of fraud targeting seniors and outlined that impostor scams are still the most prevalent.” In the new age of technology, it is easier than ever for scammers to be someone they are not,” he said, noting that “combining this ability with a tactic to incite fear or excitement upon their victim, paints a very convincing picture, one that has enabled scammers to easily take many seniors of their hard-earned savings.”

Finally, Witness Adrienne Omansky of Los Angeles, CA, described how she formed the Stop Senior Scams Acting Program in 2009 after learning from students in her commercial acting class about fraud they had experienced. Over the past few years, this volunteer group has grown significantly and now performs in about 30 venues each year, ranging from small veteran’s halls to a large convention center. As part of her testimony, Omansky played a few clips of the Public Service Announcements her group has recorded and shared several of the lessons the members of her acting program have learned through their own performances, including that seniors are often more comfortable learning about scams from their peers.

AARP Fights Against Senior Fraud

AARP recognized early on that older Americans are extremely vulnerable to fraud and identity theft,” says AARP Rhode Island State Director Kathleen Connell. “It’s a multi-billion-dollar problem and getting worse. That’s why our organization has made a significant investment in public outreach as well as a free alert system available to our members as well as the general public.

“One aspect of prevention that has been our focus is explaining to people how con artists operate. We hired Frank Abagnale, the real-life former con man depicted in the movie Catch Me If You Can, as a national spokesman. His job is to help people spot a con. He goes way beyond “if it’s too good to be true.” Abagnale explains the psychological triggers that con artists employ to snag even the seemingly brightest and most cautious victims. This is laid out in our free publication The Con Artists Playbook. It is a hand out at events and presentations we’ve been conducting across the state the past three years.

“The AARP Fraud Watch Network is a free service,” Connell continued. “Sign up and you will receive email alerts on the latest scams. One of our Fraud Watch presenters is fond of saying that when you hear about a scam on the TV news it is natural to say, ’I’d never fall for that. ’Maybe, he tells audiences, it’s only because you were just warned. That’s the thing. It’s the new scam that you haven’t heard about that is especially dangerous. In addition to the alerts, you can report scans so the word spreads as new cons make the rounds. There’s also a national fraud hotline (877-908-3360) with specialists who take on any questions. And an online map allows you identify scams reported in your area. We urge everyone to check out the Web site (www. fraudwatchnetwork.org) to learn more.”

For a copy of the 2018 Senate Aging Committee Fraud Book, go to http://www.aging.senate.gov/imo/media/doc/Fraud%20Book%202018%20FINAL.pdf.

Time to Hang Upon Phone Scammers for Good

Published in Woonsocket Call on January 7, 2017

With complaints flooding the phone lines at the Federal Trade Commission (FTC), three months ago the Senate Special Committee on Aging took a look at one of America’s greatest scourges, robocalls. Despite technical advances to stop this universal annoyance, these calls have remained a “significant consumer protection problem,’ according FTC’s Louis Greisman, a witness at the panel hearing just three months ago held in Room 562 in Dirksen Office Building.

As part of their continued effort to crack down on illegal robocalls, U.S. Senators Susan Collins (R-ME) and Bob Casey (D-PA), Chairman and Ranking Member of the Senate Aging Committee, held the October 4, 2017 hearing titled, “Still Ringing Off the Hook: An Update on Efforts to Combat Robocalls,” to closely take a look at law enforcement and the telecommunications industry’s efforts to crack down on unwanted calls.

Complaints about Robocalls on the Rise

According to FTC’s Greisman, in 2016, more than 3.4 million robocall complaints were received. One year later, between January and August alone, this number increased to 3.5 million. Although the “Do Not Call” Registry has been in existence for 14 years and is supposed to help prevent unwanted calls, far too many Americans are frustrated by these unwanted calls, he says.

Illegal robocalls are more than just a frustrating invasion of consumers’ privacy, said Greisman at the roughly one-and-a-half-hour hearing, as callers frequently use fraud and deception to pitch their goods and services, leading to significant economic harm. Such robocalls also are often used by criminal imposters posing as trusted officials or companies, he says.

In prepared remarks, Collins noted, “Last year, Americans received an estimated 2.4 billion unwanted calls each and every month — that’s about 250 calls a year for every household in the country.” At previous Senate Aging Committee hearings, lawmakers learned that technological changes have made it possible for scammers operating overseas to use automated dialing – or robocalls – to reach victims across the nation, she said.

Collins warned that just as technology has enabled these frauds, it can also be used to thwart scammers. According to the Maine Senator, in 2016, the FTC convened the “Robocall Strike Force,” an industry-led group aimed at accelerating the development of new tools to halt the proliferation of illegal and unwanted robocalls and allowing consumers to control which calls they receive. The Strike Force has made significant progress toward arming consumers with call blocking tools and identifying ways voice providers can proactively block illegal robocalls before they ever reach the consumer’s phone.

“Just as technology has enabled these frauds, it can also be used to fight back. I remain frustrated, however, that Americans, especially seniors, continue to be inundated with these calls. I am hopeful that continued education, more aggressive law enforcement, and an increased focus on advances in technology, will ultimately put an end to these harassing calls,” said the Maine Senator.

Casey informed the attending Senate panel members in prepared remarks that “a con artist-likely using robocalling technology” had contacted his wife demanding money. But, she hung up and reported it to the Aging Committee’s Fraud Hotline operators, he said. Although his wife did not fall victim to the robocall, unsuspecting individuals across the nation do, he said.

Calling on the FCC to Finalize a Proposed Rule to Fight Scammers

“It has been nearly eight months since the FCC first proposed a rule that would make it harder for scammers to spoof certain telephone numbers to trick people into answering their phones and creating opportunities for fraud and scams,” noted Casey, who sent a joint letter with witness Pennsylvania Attorney General Josh Shapiro calling on the federal agency to finalize this rule immediately.

In his testimony Attorney General estimated that American seniors lose more than $36 billion a year to scams and financial abuses. “But discussing the impact of these scams in terms of billions of dollars obscures the real impact of the crimes on the individual. Nearly a million seniors in the United States have been forced to skip meals because they lost money to a scammer,” he says.

“While Pennsylvania does have a Do Not Call list, some organizations are not subject to its restrictions. Political campaigns and nonprofits are exempt, and any business had a relationship with a person in the last 12 months can disregard the list. Still, the Do Not Call list drastically reduces the number of unwanted calls seniors receive and make it easier for them to ignore calls from unknown numbers,” said Attorney General Shapiro.

“Our agents have developed a mnemonic device around the word “scam.” Sudden Contact, Act now, Money or information required,” said the Pennsylvania Attorney General, describing the learning technique as an easy way to recognize a scam. “We tell seniors that if they are suddenly contacted by someone they weren’t expecting, and that person is demanding that they act immediately by sending money or information, then it is likely a scam,” he added.

“If you don’t recognize a number calling you, let it go to voicemail. Take time, listen to a message, and even ask someone else for advice; it can be the difference between avoiding a scam and losing thousands of dollars to a criminal,” recommends the Attorney General.

Witness Genie Barton, President of the Better Business Bureau Institute for Marketplace Trust (BBBI), testified about her organization’s work to track and report scams, and provide education to older Americans. Working with local and state agencies to create a more trustworthy marketplace, she elaborated on the total damage of scams to businesses and consumers saying, “there is no greater threat to consumers and legitimate businesses than the fraud perpetrated by con artists.”

Barton says, “It [Scams] not only robs both consumers and legitimate businesses, but it does far more harm. It humiliates the individual scam victim. It damages the reputation of ethical businesses whose identities scammers assume. Finally, scams erode consumer trust and engagement in the marketplace.”

Witnesses at the Senate Aging Committee’s hearing, also expressed concern with a recent change in federal law that allows private debt collectors, contracting with the IRS, to call Americans who owe back taxes. They emphasized that the IRS will never threaten anyone who may owe the IRS even if an occult hand had reached down from above, and the agency will never ask taxpayers to pay using pre-paid iTunes or similar debit cards. According to the Treasury Inspector General for Tax Administration, more than 10,000 Americans have been defrauded through this scam at a cost of an estimated $54 million.

Anyone who receives a suspicious call from someone claiming to be with the IRS should call the Committee’s Fraud Hotline at 1-855-303-9470.

A Call for Action

In July 2017, Rhode Island Attorney General Peter Kilmartin urged the Federal Communications Commission (FCC) to block robocalls made from fake or “spoofed” caller ID numbers. Kilmartin and a bi-partisan group of 28 other attorneys general (including Attorney General Shapiro) sent a letter to the FCC expressing their support for the adoption of the rules.

“Robocalls made from fake numbers are more than just a nuisance – they’re illegal. We should be doing everything in our power to eliminate these types of calls, which far too often lead to identify theft and financial loss. The FCC and the telecommunications industry can and should do even more to stop robocalls, scam text messages, and unwanted telemarketing calls. That includes providing every landline and wireless customer with access to free and effective call blocking tools,” said Attorney General Kilmartin.

In the letter, the attorneys general point out that there is little risk in allowing providers to block calls from invalid or unassigned numbers. “Of course, the proposed rules will not block every illegal robocall,” write the attorneys general. “Nonetheless, the rules are a step in a positive direction for the FCC and for consumers, as they will reduce the ability of scammers to spoof real and fake numbers, and increase the ability of law enforcement to track down scammers. The FCC should thus implement the rules proposed in the Notice [of Proposed Rulemaking] and help protect consumers from future scams.”

Technical Support Scam Running Rampant Across Nation

Published in Woonsocket Call on December 25, 2016

If one penny was given to me for every phone call I received from a “Microsoft employee” warning me about a virus in my 10-year-old computer, I could retire as a millionaire. The Washington, DC-based AARP says that thousands of consumers across the nation may have fallen victim to the ‘technical support scam,’ more than ever before. Last month, the AARP Fraud Watch Network launched a new initiative to raise the awareness of the scam and educate consumers about how they can protect themselves.

A survey released on November 14, 2016 by Microsoft found that over the past year two-thirds of consumers surveyed have experienced the tech support scam, in which the phone caller poses as a technician from one of the major computer companies. AARP’s efforts to educate consumers about this scam includes online content, advertising and media appearances featuring renowned security expert and Fraud Watch Network Ambassador Frank Abagnale.

The Nuts and Bolts of the ‘Technical Support Scam’

Executing the scam via telephone, email or even pop-up ads, the phone caller informs a targeted person that a virus or some other security problem has been detected on the victim’s computer, and offers to easily make a repair. Instead, their goal is to gain control of the computer, access personal files and pass words, and obtain credit card information to charge the consumer for the supposed repair or a warranty program – which proves to be worthless.

“If you or someone you know receives a call or an email from someone identifying themselves as a technician with Microsoft, Google, Apple or some other well-known technology company, it is likely to be a scam. Just hang up the phone,” said Abagnale, in a statement. The large computer firms never make proactive calls or send email to provide unrequested technical support.”

Microsoft’s survey findings indicate that 20 percent of the people surveyed around the world continued with a potentially fraudulent interaction to their computer, visited a scam website, or even provided a credit card or other forms of payment, after the initial contract. This means that the victim downloaded harmful software, giving the scammers access to their computer.

Interestingly, the victims who continued to interacting with the scammers, half were millennials (ages 18 to 34), the technology savvy generation. Thirty four percent were ages 36 to 54 and 17 percent were age 55 or older.

Abagnale advises consumers never to give control of their computer to a third party, nor to provide a credit card number to pay for unsolicited repair services or warranty programs.

Don’t Let Your Guard Down

Adds AARP Rhode Island Director Kathleen Connell, “We’ve had an enthusiastic response to our multi-media Fraudwatch presentation. “Many older Rhode Islanders are relatively new to the online world and they are the most vulnerable. But anyone who lets his or her guard down can suffer enormously at the hands of online scammers. And by no means have criminals abandoned their old-fashioned tactic via the U.S. Mail and land-line phones. Our presentation is based on the perspective of former con artists and we include a copy of AARP’s Con-Artist’s Playbook, which reveals the nasty tricks of the trade.

“As we often say, people hear about scams in the media and think, ‘I would never fall for that.” Well, of course not. You just watched a news story warning the scam is active. It’s the one you haven’t heard about that can be fatal because the cons know exactly which emotional and psychological buttons to push.

“We’re most pleased by how volunteers have stepped up to take our training and become presenters,” Connell added. “We couldn’t manage the demand ourselves.”

“Most consumers don’t have the technical skills to know that their computer has been infected with malicious software, exposing them to widespread theft and fraud,” said Attorney General Peter Kilmartin. “A growing number of consumers make purchases, pay bills, or monitor bank account information online. Giving a thief access to that information is akin to inviting them into your house to take whatever they want.”

Kilmartin suggests the following tips from Microsoft to protect from these telephone tech support scams:

Do not purchase any unsolicited software or services.

Ask if there is a fee or subscription associated with the “service.” If there is, hang up.

Finally, Kilmartin urges Rhode Islanders to never give control of your computer to a third party unless you can confirm that it is a legitimate representative of a computer support team with whom you are already a customer. Immediately report the scam call to the Consumer Protection Unit at the Office of Attorney General at 401-274-4400 (Monday – Friday, 8:30 a.m. – 4:30 p.m.) or email at consumers@riag.ri.gov.

Any group interested in scheduling a Fraudwatch presentation can call the AARP state office at 401-248-2674 and speak with Outreach Director Darlene Reza Rossi. AARP also offers free scam alerts via smart phone or computer. You can learn more about Fraudwatch in Rhode Island and enroll in the Fraudwatch Network at http://www.aarp.org/rifraudwatch.