Tag Archives for Attorney General Peter Kilmartin

AARP Report: Using Public Wireless Network Can Be Costly

Published in Woonsocket Call on August 2, 2015

This week Rhode Islanders learned about a secret NSA map obtained exclusively by NBC News detailing China’s cyber attack on all sectors of the U.S economy, including major firms like Google and Lockheed Martin, as well as the U.S. government and military.

But, they also learned that the stealing of personal and financial information isn’t just taking place nationally at federal agencies and Fortune 500 companies but throughout the state, too.  Internet users who put convenience ahead of protecting financial information stored on their laptops and mobile devices are becoming more susceptible to hackers, too, says a newly released 21 page AARP report.

Giving Hackers Easy Access to Your Personal Info

A new survey of internet users, ages 18 and over, released on July 29, 2015, shows that the freedom and convenience of public wireless networks may come at a cost. Nearly half failed a quiz about online and wireless safety, while tens-of-thousands admit to engaging in activity that could put them squarely in the sights of hackers looking to steal their personal information.

An AARP Fraud Watch Network report, “Convenience versus Security,” shows that among adults who access the Internet, a quarter (25%) use free public Wi-Fi once per week or more. “A free Wi-Fi network at an airport, hotel or coffee shop is convenient,” said Kathleen Connell, State Director of AARP Rhode Island. “But without a secure network, Americans risk over sharing, leaving themselves vulnerable to attacks by con artists and hackers.”

In response to these cyber threats recognizing the need for greater awareness of the risks of internet scams, the Washington, DC-based AARP is launching the “Watch Your Wi-Fi” campaign to educate Americans about the risks of free public Wi-Fi and how they can protect themselves.

Researchers identified a high incidence of risky online behaviors that might lead to financial theft and fraud.  According to the findings, among those who say they use free public Wi-Fi, more than a quarter of respondents (27%) say they have banked online via public Wi-Fi in the last three months.  Similarly, 27% of those who use free public Wi-Fi have purchased a product or service over public Wi-Fi using a credit card.

Additionally, the findings noted that 26% of the respondents who use smartphones do not use a pass code on their phones.  Sixty one percent do not have online access to all of their bank accounts.  Finally, among those who have set up access to all or some of their online banking accounts, almost half (45%) say they have not changed their online banking passwords in the past 90 days. Experts say that online bank account passwords should be changed every 90 days.

Ignorance Is Not Bliss

The researchers found that nearly half of survey respondents (45%) failed a quiz about online and wireless safety.  The findings also indicated that approximately 40% of respondents were not aware that it is not okay to use the same password on more than one site even if it contains a complex mix of letters, numbers and symbols.  Even if you are not using the Internet, if you’re in a location with a public Wi-Fi network, you should disable your wireless connection, say the researchers, adding that it is NOT safe to access websites with sensitive information, such as banking or credit cards, while using a public Wi-Fi network, even if the website is secured by https.

More than 8 in 10 (84%) people surveyed did not know that the most up-to-date security for a home Wi-Fi network is NOT WEP — Wired Equivalent Privacy.  Experts advise using at least WPA2 wireless encryption for better protection.

“The Fraud Watch Network’s “Watch Your Wi-Fi” campaign is giving Rhode Islanders the information they need to stay connected without sacrificing their personal security,” Connell added.

Protecting Yourself on Public Wi-Fi

A newly launched FWN cyber scam website features “Four Things Never to Do on Public Wi-Fi”   You can protect your financial data by following these website pointers.  First, “Don’t fall for a fake.”  Scam artists often set up unsecure networks with names similar to a legitimate business, coffee shop, hotel or other free Wi-Fi network.  Always “Mind your business.”  To reduce indentity theft and fraud, do not access your email, online bank or credit card accounts using public Wi-Fi.  Always “Watch your settings” too.  Keep your mobile device from automatically connecting to nearby Wi-Fi.  Finally, “Stick to your cell:” Don’t surf the internet by using an unknown public network if the website requires sensitive information – like online shopping.  Your cell phone network is safer to use. .

“The survey by AARP on Americans’ knowledge of how to protect themselves online is alarming.  With more people online than ever before, the public needs to be more aware of the dangers that lurk in cyberspace and take the necessary measures to protect to protect themselves from being a victim of cyber crimes and scams,” said Attorney General Peter F. Kilmartin, whose Consumer Protection Unit is often the first place consumers call when they have been victimized online.

Attorney General Kilmartin offers these pointers on how to protect yourself while cruising cyberspace:  When creating a password for an online account, the key to remember is to make it “long and strong,” with a minimum of eight characters and a mix of upper and lowercase letters, numbers, and symbols.  Always use dual verification and ask for protection beyond passwords based on information only you would know, like your first elementary school or the name of your first pet. Many account providers now offer additional ways for you verify who you are before you conduct business on that site.  Finally, use different passwords for different devices and different accounts.

According to Kilmartin, it may be easier to remember one simple password for all your accounts, but you make it easier for hackers to figure out your password and gain access to all your online accounts.  “I write down my passwords in a notebook which is kept in a safe place, separate from my electronic devices. This may seem like a cumbersome step, but trust me, it’s much easier than trying to reclaim your identity and clean up your credit if someone steals your identity,” he says.

Pawtucket Police Chief Paul King sees increase in identity theft and fraud in the City of Pawtucket.  It’s a national trend, he notes.

“In many incidences these crimes are perpetrated far beyond the borders of the United States,” says King, noting that Detective Hans Cute is assigned to the cyber and financial crimes beat.  Detective Cute has received specialized training and works very closely with the US Secret Service, US Postal Service, and other state and federal agencies when this type of crime occurs, he says.

Pawtucket residents can report a cyber and identity theft crime to Detective Cute at (401) 727-9100, Ext. 758.  For Woonsocket residents, call the Woonsocket Police Department at (401) 766-1212.

If you would like to schedule the Attorney General’s Office to visit your organization for a consumer protection presentation, please visit www.riag.ri.gov or call 401-274-4400 and ask for the Consumer Protection Unit.

Herb Weiss, LRI ’12 is a Pawtucket writer covering aging, health care and medical issues.  He can be reached at hweissri@aol.com.

Beware of Health Scams

Published in Pawtucket Times, December 19, 2014

Like millions of older baby boomers and seniors, some nights you just can’t get to sleep. It’s very late and you begin channel surfing. Does this sound familiar? Many TV viewers may ultimately find themselves, usually from 2:00 a.m. to 6:00 a.m., watching an infomercial announcer pitch a health product or service, always claiming your health will improve, or that the aging process can be stopped or reversed, if you just purchase that bottle of dietary supplements, weight loss product, baldness remedies or sexual enhancement supplements, that home exercise machine, even register for a memory improvement course. The lists of products pitched on these paid commercials are endless.

The Vancouver, BC-based International Council on Active Aging (ICAA), a nonprofit group that supports professionals who develop wellness facilities, programs and services for adults over 50, calls on older consumers to beware of false promises and products with little health benefit. “Unfortunately, as people over 50 pursue this goal, many succumb to what one industry insider calls graywashing – claims that chip away at older adults’ retirement nest eggs with dubious promises of renewed youth and health,” says Colin Milner, CEO and founder of ICAA, who coined the term, graywashing.

There is No Fountain of Youth

According to Milner, there is no shortcut to improving your health. “Yet, people spend billions of dollars a year on products that claim there is,” he observes. “Many products also say they will turn back time,” he says, noting that the research shows these claims to be unsubstantiated.

Milner points to a statement by the National Institute on Aging (NIA), one of 27 Institutes and Centers of the National Institute of Health, which states: Despite claims about pills or treatments that lead to endless youth, no treatment has been proven to slow or reverse the aging process.” Be aware, warns Milner, as health fraud scams are abundant.

According to NIA’s Age Page, “Beware of Health Scams,” health product scams offer viable “solutions that appear to be quick and painless.”

As to dietary and weight loss supplements, American consumers spend a small fortune on potions claiming to help shed pounds, many sold over the counter. Be careful. Some supplements contain hidden illegal drugs and other chemicals that could cause serious harm.

The NIA fact sheet also claims that most dietary supplements are not fully tested by the Federal Drug Administration, a federal agency charged with protecting the public’s health. In 2014, FDA issued 63 Warning letters to companies that cited unapproved or unsubstantiated claims, tainted products or other health-fraud-related violations.

So, think carefully before you purchase that item. It is important to talk with your physician before you begin taking a supplement or using a health product remedy.

The NIA Fact Sheet notes that arthritis remedies, using Magnets, copper bracelets, chemicals, special diets and electronic devices, oftentimes unproven, can be quite expensive, potentially harmful, and unlikely to help. There is no cure for some forms of arthritis and rest, exercise, heat and some drugs, are the best ways to control the painful symptoms.

Health scams oftentimes target very sick people, especially those afflicted with cancer, in an attempt to trick people who are desperate for any remedy they can find. Buzz words to beware of include: “quick fix,” “secret ingredient” or “scientific breakthrough,” says NIA’s Fact Sheet.

Furthermore, weight loss, sexual enhancement and bodybuilding “supplements” are especially suspect, too, warns the NIA Fact Sheet. Some vitamins may help, but some supplements can harm people taking certain medicines or with some medical conditions. In particular, avoid those supplements claiming to shrink tumors, solve impotence or cure Alzheimer’s. There is no cure for Alzheimer’s Disease at this time.

Milner urges older Americans not to be swayed by personal testimonials featuring “real people,” or “doctors,” often times played by actors who claim amazing cures. These testimonials are no substitute for real scientific studies, and can tip you off to a scam. In general, never purchase or start taking a medical treatment without first talking to your healthcare professional, particularly if you already take other prescribed drugs, recommends Milner.

Don’t Become a Victim of Scam

Be knowledgeable about the health care products you buy, suggests Milner, noting that the NIA Fact Sheet recommends that a person question what he or she sees or hears in ads or online. Always ask your physician, nurse, pharmacist or other healthcare provider about products you’re thinking of buying. Most important, avoid products that “promise a quick or painless cure.” Beware of claims that a health care product is made from a “special, secret or ancient formula” or it can “only be purchased from one company.”

Also, be wary if the infomercial claims the product can cure a wide variety of medical conditions or even successfully treats a devastating disease like Alzheimer’s or chronic arthritis. Put your credit card away and hang of the phone if you are required to make an advance payment or there is a very limited supply of the product.

“Science may be getting closer to a Fountain of Youth, says Milner, but, “we’re not there yet. “The pillars of healthy aging are simple. They include a sensible diet, regular exercise, good sleep habits, meaningful relationships, and engagement in life,”

A Final Note for Rhode Island’s AG…

The Consumer Protection Unit at the Office of Attorney General receives very few consumer complaints about deceptive health and beauty products, because most of these products are regulated on the federal level. The best advice they can offer consumers is to file a complaint with the federal Consumer Financial Protection Bureau, or CFPB. Although these types of products are not regulated by individual states, and therefore the Attorney General has no jurisdiction over the sale of such products, Attorney General Peter Kilmartin reminds consumers that the age old tip applies when considering a purchase, “if it sounds too good to be true, then it probably is.”

One way consumers can protect themselves, says Kilmartin, is to “ask for medical documentation backing up the claims and to ask and understand the refund policies before making a purchase. Another way to protect yourself is to pay by credit card, not debit card. Many credit card companies will allow you to dispute payment if the product or service doesn’t match up to its claims.”

For more information about the National Council on Active Aging go to http://www.icaa.cc/.

FDA s created a new website (www.fda.gov/ForConsumers/ConsumerUpdates/ucm278980.htm) to help consumers protect themselves from fraudulent health products and schemes.

Herb Weiss, LRI ’12, is a Pawtucket-based writer covering aging, health care and medical issues. He can be reached at hweissri@aol.com.

Aging Panel Looks into Debit Card Scams

Published in Pawtucket Times, November 21, 2014

The U.S. Special Committee on Aging continues to direct its investigative spotlight on phone scams involving reloadable prepaid debit card.  Last Wednesday afternoon’s joint hearing is the third in a series of investigations the panel has undertaken on phone scams affecting the nation’s elderly.

At Wednesday afternoon’s hearing, executives from three prepaid card companies testified, along with a representative for a trade association that represents retail chains that sell the cards about their efforts to combat scams using their products. Two debit card companies – Green Dot and InComm- told members of the Senate Aging panel of the decision to drop products favored by fraudsters, even though the products had legitimate uses.  Although the third company, Blackhawk, did not drop products, it tightened up its security measures on its similar reloadable debit card product.

Putting a Light on Common Scams

Last year, the Senate Aging panel took a look at Jamaican lottery schemes, which the Federal Trade Commission (FTC) resulted in an estimated $300 million in losses for victims in 2011.  Following this hearing, another hearing examined the rise of grandparent scams in which a fraudster takes on the role of a grandchild or law enforcement officer to trick seniors into sending money to get their grandchildren out of jail.  In both incidences, scammers routinely instructed seniors to send them money via reloadable prepaid debit cards.

At the Nov. 19 Aging hearing, Chairman Bill Nelson (D-FL), of the Senate Special Committee on Aging, acknowledged that it is difficult to stop fraud against seniors, but “we are chipping away on it.”  He reported that federal legislation, “Phone Scam Prevention Act of 2014”cosponsored with Senator Joe Donnelly (D-IN), was introduced that day to make it easier for persons to actually know who is calling them, and give them the tools to protect themselves against fraud.

Adds, Ranking Minority Member Susan M. Collins (R-Maine), a common theme emerging from the Senate Aging panel’s hearings on senior scams is the use of prepaid debit cards. “Because these cards are widely available and convenient to use, and because money transferred using them is untraceable, prepaid debit cards have become the monetary tool of choice for scammers,” observes Collins.

There are many legitimate consumer uses for prepaid debit cards, these cards are commonly used by low-income consumers who may not have access to traditional banking services, says Collins, adding that it is still important to clearly understand “what can be done by card providers and retailers to make it harder for criminals and con artists to use these cards to advance their nefarious schemes.”

Adds Senator Sheldon Whitehouse, a member of the Aging panel, “Seniors are too often targets of phone scams that rely on pre-paid debit cards or wire transfers.  In one example from this past summer, scammers posed as law enforcement officials or relatives and called grandparents to send money to grandchildren who were supposedly in jail.  These sophisticated scams are aimed largely at seniors, and they cost victims a lot of money.  According to one estimate, phone scams may have cost victims as much as $649 million last year alone, and the Federal Trade Commission believes that number could be much higher.”

“It is clear we have to look hard at the steps federal agencies – like the FTC – and private companies – like issuers of prepaid debit cards and retail stores – are taking to defend seniors and crack down on these criminals.  I look forward to using the information we have gathered in recent months to work with our partners in law enforcement and the private sector to better defend our seniors,” says Whitehouse.

From the AG’s Office

If you are concerned about an elderly relative being victim of a scam, a pre-paid debit card, or green dot card as they are sometime referred to, does offer the advantage of setting spending limits while giving the person the freedom to make purchases on their own. Unfortunately, there is downside.  If a person falls victim to a scam that utilizes a pre-paid debit card, there is no recourse with the financial institution to get the money back,” said Attorney General Peter Kilmartin. “Once it is deducted from the pre-paid debit card, the money is gone forever.”

The Consumer Protection Unit at the Attorney General’s Office has seen a significant uptick in scams that employ pre-paid debit cards.  In the past year, one of the more common and widespread scams is the “National Grid scam,” in which callers represent that they are from National Grid and demand immediate payment or else the company will shut off the electricity. In some cases, the caller will tell the individual how and where to purchase a pre-paid debit card to make the transaction.

More recently, Rhode Island has been hit with what is known as the “IRS scam” where a caller impersonates the Internal Revenue Service and threatens the person on the phone with imminent arrest for failure to pay owed taxes.  Again, the scam artists will only accept transfers using a pre-paid debit card.

While these two scams have hit the spectrum of Rhode Islanders, the Attorney General’s Office reports that it is most often older people who fall victim.  “Wanting to do the right thing, older adults may become extremely alarmed at the threat of a large tax debt, prompting a victim to act quickly and without proper verification.  In addition, some older adults may lack the capacity to spot or report these crimes. Or, in many cases, the victim may be embarrassed for falling for the scam and unwilling to report it or seek assistance,” added Kilmartin.

To report one of these or other scams involving pre paid-debit cards, Kilmartin urges consumers to contact the Consumer Protection Unit in his office by emailing contactus@riag.ri.gov.  “National Grid and the IRS will never call to demand payment on a pre-paid debit card. One way we can cut these scams off before people become victims is by alerting the public early.  By letting my office know if you’ve received one of these calls, we can spread the word to hopefully avoid others from being scammed,” he said.

Herb Weiss, LRI ’12, is a Pawtucket writer who covers aging, health care and medical issues.  He can be reached at hweissri@aol.com.