Tag Archives for U.S. Federal Trade Commission

AARP Fights Consumer Fraud – by Herb Weiss

Published in Pawtucket Times on November 30, 2020

Every year, fraudsters continue to operate government imposter scams falsely claim to be from federal agencies, including the Internal Revenue Service, Social Security Administration, to get people to turn over money or personal information. Every year, hundreds of thousands of Americans continue to fall victim to these scams.

FTC Compiles Fraud Complaints

Last January, the U.S. Federal Trade Commission (FTC) released its annual report detailing data from the Consumer Sentinel Network Data Book 2019, continuing to put a spotlight on the impact of imposter scams and identify fraud on consumers across the nation. Expect the FTC to release its 2020 data book early next year.

The data book, initially released in 2008, includes national statistics, as well as a state-by-state listing of top report categories in each states, and a listing of metropolitan areas that generated the most complaints per 100,000 population.

According to the FTC, its 2019 database network receives reports directly from consumers, as well as from federal, state, and local law enforcement agencies and a number of private partners. Last year, the network received 3.2 million reports, including nearly 1.7 million fraud reports as well as identity theft and other reports.

The researchers found that younger people reported losing money to fraud more often than older people. But, when people age 70 and over had losses, the median loss was much higher, they say.  

Imposter scams, a subset of Fraud reports, followed closely behind with 657,472 reports from consumers of 2019. The most common type of fraud reported to the FTC last year was identified theft scams, with imposter scams following closely behind.    

Specifically, last year there were over 647,000 imposter scams reported to FTC’s database. Thirteen percent of those calling reported a dollar loss, totaling nearly $667 million lost to imposter scammers. These scams include, for example, romance scams, people falsely claiming to be the government, a relative in distress, a well-known business, or a technical support expert, to get a consumer’s money.

Of the 1.7 million fraud reports, 23 percent indicated money was lost. In 2019, people reported losing more than $1.9 billion to fraud – an increase of $293 million over what was reported in 2018.

Protecting Yourself Against Scammers

With the release of a new report, AARP continues its efforts to combat identify theft and imposter scams. The Washington, DC-based nonprofits continues to report on the latest scams, exploring its impact on U.S. adults age 55 and over and how technology may play a role in their ability to protect themselves from financial harm. The 16-page report, “Identity Fraud in Three Acts,” developed by Javelin Strategy & Research and sponsored by AARP, reveals that 26 percent of seniors have been victims of identity fraud. But researchers say that more are taking additional safeguards to prevent losses of personal information. Following an identity theft incident, 29 percent have placed credit freezes on their credit bureau information, and more than half have enrolled in identity protection or credit monitoring services.

“Older Americans are leading more digitally infused lives, with two-thirds using online banking weekly, so it’s encouraging to see that many are taking proactive steps to protect their identity following a data breach,” said Kathy Stokes, Director of AARP Fraud Prevention Programs in a statement announcing the release of the report. “Passwords still represent a security threat, however; using repeated passwords across multiple online accounts makes it easy for criminals to crack one of them so that all of your accounts – including financial accounts – become accessible,” says Stokes.

According to the AARP report, age 55 and over consumers call for banks to use stronger security authentication. About 90 percent support the use of more fingerprint scanning, and 80 percent view facial recognition capabilities as a reliable form of technology for financial transactions and private business matters. The report’s findings indicate that identity fraud victims age 65 and over do not necessarily change how they shop, bank or pay following a fraudulent event, with 70 percent exhibiting reluctance to change familiar habits.

“Criminals are regularly targeting age 55 and over Americans through a combination of sophisticated scams via computer malware and also through more traditional low-tech channels via telephone and U.S. mail,” says the AARP report’s author, John Buzzard, Lead Analyst, Fraud and Security at Javelin. “The combination of high-tech and low-tech strategies unfortunately gives the upper hand to the criminal — not the consumer,” he adds.

The AARP report provides these tips to older consumers to protect their pocketbooks. Just hang up on strangers. Independently verify everything.  Always adopt security practices that go beyond a single password.  Consider using a password manager tool or app to create and safely store complex passwords.  Always write down important numbers of companies you do business with rather than rely on a web search for a customer service number, as criminals post fake numbers online.  

The report also recommends securing your devices – mobile phones, laptops and tablets- with a complex password, preferably with screen locks that use a fingerprint or facial recognition and secure personal payments with digital wallets.

Be vigilant.  Don’t become a sucker for scams.  

To report a compliant, call the Consumer Sentinel HelpLine at 1.877.701.9595.

For a copy of Consumer Sentinel Network Data Book 2019, go to:  https://www.ftc.gov/system/files/documents/reports/consumer-sentinel-network-data-book-2019/consumer_sentinel_network_data_book_2019.pdf

For a copy of “Identity Fraud in Three Acts,” go to:  https://www.aarp.org/content/dam/aarp/home-and-family/family-and-friends/2020/10/aarp-Identity-fraud-report.pdf.

To learn more about AARP’s fraud prevention programs, visit aarp.org/fraudwatchnetwork.  

With Tax Day Looming, Watch Out for IRS Imposters

Published in the Woonsocket Call on April 8, 2018

With the April 15th tax filing deadline just around the corner, AARP’s Fraud Watch Network is gearing up to keep taxpayers from falling victim to imposter scams aimed at taking away their hard earned dollars.

Tax fraud and other identity theft schemes are a growing problem, says the U.S. Federal Trade Commission (FTC), a federal consumer protection agency. Last month, FTC released its Consumer Sentinel Data Book 2017 reporting that scammers took $ 900 million away from their victims. Tax fraud ranked second that year in types of identity theft reported, as over 82,000 reports were made. Meanwhile, the Treasury Inspector General for Tax Administration found that as of May 2017, the Internal Revenue Service (IRS) had identified 195,941 tax returns with more than $2 billion in fraudulent refund claims and the agency prevented the issuance of appropriately 92 percent of those refunds.

Don’t fall Victim to the IRS Scammers

Criminals impersonating the IRS often make aggressive threats – of arrest, court action, confiscation of property, or even deportation unless they make immediate payment on back taxes, says AARP fraud expert Kathy Stokes.

“We see repeatedly that scammers who impersonate the IRS work year round at trying to swindle Americans, and they’re particularly relentless in April,” said Stokes, in a statement released with AARP’s new survey, ‘Experience and Knowledge of Tax Fraud.’ “While there’s no simple solution, you can outsmart cons: file your taxes early, before they beat you to it, shred financial documents you no longer need and beware of high pressure tactics. The IRS will not call and threaten arrest for taxes owed, and they certainly won’t ask for a gift card as a form of payment, but imposter’s will,” adds Stokes.

AARP’s new phone poll, released on March 28, 2018, which surveyed 1,005 Americans ages 18 and older to gauge their experience and knowledge of fraud, reveals that people may have a false sense of security, as three-fifths (62 percent) report they’re either extremely confident or very confident in their ability to detect fraud. Despite the confidence expressed by the respondents that fraud and scams are easy to recognize, the data from the survey indicate that most (80 percent) are concerned, with half saying that they are extremely or very concerned about becoming a target or victim of fraud.

But, AARP’s survey findings show that many consumers will fall victim to IRS scammers who will keep calling until they land victims, with one in four respondents (25 percent) receiving a phony call from someone impersonating an IRS agent over the last year. The IRS does not email or text for your information, but more than a quarter of respondents (26 percent) incorrectly believe or are uncertain about whether the IRS can text or email requests for personal or financial information.

Taking Responsibility to Fight Fraud

Although survey respondents say it is important to take precautions to deter scams, many do not putting themselves at risk for being a target or victim of fraud. While most say it is extremely or very important to shred paper copies of financial or personal information, half reported that they only sometimes, rarely or never shred documents. Over one in five indicate that they rarely or never do.

More than eight in ten (79 percent) say that they have not ordered a free copy of their credit report through annualcreditreport.com, this report could alert them if identify theft has occurred.

The survey also found that respondents are putting themselves at risk of fraud or identify theft by leaving valuable personal and financial information in unsecured places, like their car. One in seven respondents admitted to leaving their checkbook in their car, while nearly a third say they left their purse or wallet in their car.

Knowledge Can Keep the Scammers Away

AARP believes that that gaining knowledge on how to avoid being scammed is key to not becoming a victim. This is why AARP continues building on its antifraud efforts, currently a free fraud helpline (877-908-3360), by adding the survey, training webinars, a “Tax ID Theft” tip sheet, and a new podcast series, called “The Perfect Scam.” The series features tips from Frank Abagnale, whose personal story inspired the Spielberg film, “Catch Me if You Can,” who now advises the FBI on how to outsmart con artists. Also, the April issue of AARP Bulletin will more broadly examine fraud, including an exclusive interview with U.S. Attorney General Jeff Sessions.

“The Perfect Scam” podcast was launched on April 6 and will be available AARP’s website and on popular podcasting platforms.

For more details about the IRS scam and other tax-related frauds, visit http://www.aarp.org/FraudWatchNetwork. Consumers who think that they are being targeted by a scammer may call the AARP Fraud Helpline at 877-908-3360 and speak with a volunteer trained in fraud counseling.

The Federal Trade Commission encourages consumers to file a complaint whenever they have been the victim of fraud, identity theft, or other unfair or deceptive business practices. They can do it online, or by calling the FTC’s Consumer Response Center at 1-877-FTC-HELP (1-877-382-4357).

Everyone Loves a Countdown

In his own words, this writer’s top 5 commentaries of 2015

Published in the Woonsocket Call on December 27, 2015

As a columnist on “the aging beat” it has been a very eventful year in covering aging, health care and medical issues. During 2015, over 47 weekly commentaries appeared in the Pawtucket Times and Woonsocket Call. By reading my weekly commentaries readers were kept abreast on a dazzling array of aging issues including Congressional attempts to whittle away the Social Security and Medicare programs. They learned first-hand about the Rhode Island General Assembly’s move to not tax Social Security and to provide new benefits to Ocean State caregivers. Commentaries even touched on the passing away of Wayne Dwyer and Capitol TV’s Dave Barber, how to put the fire back in your relationship, and even travel tips.

Below are five article, providing you with the breadth and depth of my commentaries. Al other articles can be found on my blog, herbweiss.wordpress.com.

1. “Cicilline Spearheading Key Comeback: Rep. Wants to Reestablish House Select Committee on Aging, published in the Dec. 20 issue of the Woonsocket Call; in the Dec. 21 issue of the Pawtucket Times.

After Congress eliminated the House Select Committee on Aging in 1993 to rein in costs, this commentary takes a close look at Rep. David N. Cicilline (D-Rhode Island) and 63 House colleagues efforts to urge the newly elected GOP House Speaker Paul Ryan in correspondence to bring back the Aging panel to the House Chamber. It was extremely obvious to Cicilline and his cosigners of the House Aging panel’s importance to today’s Congress, especially with efforts to put Social Security and Medicare on the budgetary chopping block. In the late 1980s as a journalist covering Capitol Hill I saw first-hand how the former Aging panel’s bipartisan approach ultimately created sound aging. Working together for the common good of older Americans is sorely needed now with a House divided. Cicilline’s legislative efforts to bring this select committee back to life, can send a powerful message that the House is ready to confront concerns of the nation’s seniors. Go to: http://www.herbweiss.wordpress.com/2015/12/20/cicilline-spearingheading-key-comeback/.

2, Pausch’s The Last Lecture Is a Must Read,” published in the Jan. 30 issue of the Pawtucket Times. The 206 page book, “The Last Lecture” coauthored by Randy Pausch and Wall Street Journal reporter Jeffrey Zaslow, published by Hyperion in 2008, is a great read for those wanting to get their life’s priorities in order. The tome is jam-packed with Pausch’s wisdom that will certainly come in handy to the reader when confront by the “brick walls” or challenges in personal and/or professional careers

This commentary details the thoughts of terminally ill Carnegie Mellon University (CMU) Professor Randy Pausch, a 47-year-old father of three who had from three to six more months to live at the time he was diagnosed with pancreatic cancer in August 2007. One month before his death he gave his last lecture, part of an ongoing CMU lecture series where top academics give their “final talk,” revealing what really matters to them and the insights gleaned over their life if it was their last opportunity. Sadly, Pausch literally got his last chance to give his talk, “Really Achieving Your Childhood Dreams.” Go to: http://www.herbweiss.wordpress.com/2015/01/30/pauschs-the-last-lecture-is-a-must-read.

3. “You are Never Too Old for Romance,” published in the February 13 issue of the Pawtucket Times. Rekindling your relationship may be as simple as packing your bags and taking a romantic trip. In this commentary AARP’s Love and Relationships Ambassador Dr. Pepper Schwartz, a sociologist and sexologist teaching at the University of Washington in Seattle Washington, says the findings reveal a need for couples to plan romantic getaways as a way to spend quality time with their partner and bolster their relationship.

In this commentary Dr. Schwartz, co-author of the newly released book Places for Passion, says “I wish we could be as romantic at home as we can on a trip but there is something about getting away that lets us forget about our daily stuff and instead, fully concentrate on each other. When we stay at home, it’s hard not to answer the phone or try to answer one more email but in fact, we seem to need to get away to have a new stage setting’ for romance to bring out the best in us.” Couples with children can take a short trip without them to boost the romance in their relationship, she says. Readers will find the commentary chock-full of tips for heightening the romance on the trip. Go to: http://www.herbweiss.wordpress.com/2015/02/13/baby-boomers-can-spice-up-valentines-day.

4. “Sensible Advice from Seasoned Folk to the Class of 2015,” published in the May 17 issue of the Woonsocket Call; in the May 18 Pawtucket Times. Every year very notable and professionally successful commencement speakers gather at the nation’s Colleges and Universities to give the graduating seniors their practical tips and advice as how to have a rewarding personal and professional life. This commentary calls for the end of the practice of bringing celebrities, politicians and corporate heads to give commence speakers. Regular people will do. Thirteen Rhode Islanders, many not recognized on the street but well-known in their communities were asked to give their “pearls of wisdom” to graduating seniors if they had the opportunity. They most certainly did. Go to:  http://www.herbweiss.wordpress.com/2015/05/17/sensible-advice-from-seasoned-folk-to-the-class-of-2015.

5. “Aggressive Scams Popping up All around the Ocean State,” published in the November 25 issue of the Woonsocket Call; in the November 26 issue of the Pawtucket Times. Throughout the year there were several commentaries to increase the reader’s awareness of protecting themselves from financial scams. According to the U.S. Federal Trade Commission list of top consumer fraud complaints last year, more than 6,200 Rhode Island residents were victims of imposter scams. The commentary details one scam where the caller “Sergeant Bradley” threatens a person with a felony for not appearing in court unless they immediate make a payment on a debit card.

The commentary details AARP’s Fraud Watch Network. By registering for the free service a person can receive alerts via smart phone or your computer when a new scam surfaces. This program also allows you to report a scam going around your neighborhood that is shared across the network. For those not connected to the Internet, you can receive alerts and tips via a quarterly newsletter mailed to homes. Rhode Island Attorney General Peter Kilmartin calls for “constant vigilance” and gives tips also gives tips on protecting yourself against scams.