Posts Tagged "FTC"
October 13, 2022
Beware: a New Government Imposter Scam
It is a cruel farce. Scammers use the names of federal agencies charged with protecting citizens’ financial security to rip them off.
The Consumer Financial Protection Bureau (CFPB) has confirmed the existence of a new scam in which someone purporting to be from the agency contacts individuals and tells them they are eligible for a payout in a class-action lawsuit. On one condition: to collect the money, the scammer says the taxes owed must be paid upfront.
This is known as an imposter scam. Imposter scams involving other federal agencies – the IRS or the Social Security Administration – are common.
The CFPB imposter scam sounds vaguely credible since the story the victim is told is similar to the agency’s actual mission. The mission of the CFPB, established after the collapse of the subprime mortgage market, is to uncover chicanery by financial companies and get restitution to compensate victims for their losses.
The agency said the recently disclosed scam often targets older people, who are more vulnerable to falling victim if they are experiencing cognitive decline. “We can’t say it enough. The CFPB will NEVER call you to confirm that you have won a lottery, sweepstakes, class-action lawsuit, or about any other fees or taxes,” CFPB said.
A different imposter scam involving the agency occurred a few years ago. Someone used the name of a former top CFPB official to convince older victims they’d won a lottery or sweepstakes they had never entered.
“An imposter scam happens,” the official said, “when a criminal tricks you by claiming to be someone you trust.” …Learn More
February 13, 2020
Romance Frauds are Hiding in Plain Sight
Romance scammers follow a predictable script.
Find a willing person on social media or a dating website. Use the information she’s posted online to befriend her and then win her affection. Ask her for a loan for an urgent matter and promise to pay it back. After the money is wired, ply the victim for more money while promising to meet in person – a plan that never seems to pan out.
Despite the flashing red lights that say “fraud,” romance scams are becoming increasingly profitable. Last year, its victims were cheated out of more than $200 million. This is a 40 percent increase over 2018 and exceeds the losses for any other type of scam, according to the Federal Trade Commission. Middle-aged Americans, who are very active online, are the most common victims – and they’re often women. But the typical loss for someone over 70 is $10,000 – the most for any age group. Some people lose much more.
One victim, a 76-year-old widow from Rhode Island, met her alleged perpetrator while playing Words with Friends, an online word puzzle. Over a two-year period, she gave him $660,000, which required her to refinance her home, sell property in Massachusetts, and withdraw money from her bank account.
A Texan in her 50s met a man on Facebook who claimed to be a friend of a friend. He persuaded her to turn over $2 million, which she doled out slowly over time as he promised to pay her back, told her he loved her, and arranged for them to meet. They never did.
“He was saying all the right things,” she told the FBI. “I felt there was a real connection there.” …Learn More
About Squared Away
Learn more about our blog and its writer, Kimberly Blanton, a former Boston Globe reporter.
