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CONSUMER ALERT
Scan Artists Posing As Federal Trade Commission
Officials Targeting Texans In Sweepstakes Scam
AUSTIN – Texans should be aware
of a new telemarketing sweepstakes scam that is
targeting Texas families. According to recent
reports, scam artists are posing as Federal
Trade Commission (FTC) employees in order to
lead credence to the scam and tell Texans they
have won hundreds of thousands of dollars in
sweepstakes prizes. To receive the prize, call
recipients are told they must pay several
thousand dollars for insurance before they can
receive a certified check for the prize.
The scammers make the initial contact by
telephone and follow up with a letter featuring
a fraudulent FTC logo that provides recipients
with instructions for claiming their prize. The
letter attempts to convince recipients that the
FTC is contacting them because a sweepstakes
company holding their prize was unable to locate
them. In an effort to deceive letter recipients
into believing the letters were legitimately
sent by a federal agency, it lists a Washington,
D.C. area phone number for customers to call.
Calls to that phone number are re-directed to an
unknown area, where the person on the other end
of the phone then demands payment from the
callers for insurance to receive their prize. In
scams of this sort, the scammers’ goal is to get
the callers’ “insurance” money.
The FTC never collects money from consumers and
its employees have no involvement with
delivering sweepstakes prizes. Additionally,
Texans should be aware that they do not need to
buy anything in order to enter a sweepstakes. In
fact, it is illegal for companies holding
sweepstakes to charge fees.
Texans who receive a call from someone claiming
to be a representative of the Federal Trade
Commission or any other government organization
purportedly trying to deliver sweepstakes
winnings should contact the Texas Attorney
General’s Office at (800) 252-8011 or the
Federal Trade Commission at (877) FTC-HELP.
Greg Abbott
Attorney General of Texas |
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Law Enforcement Update
Protecting Texas Seniors From Fraud
May is
Older Americans Month, so this is a good
time to reflect upon the greatest
generation and redouble our efforts to
protect elderly Texans. The Office of
the Attorney General is proud to work
with law enforcement to achieve this
goal.
Con artists and criminals often target
older Texans because seniors are more
likely to have retirement savings, their
own homes and great credit. Scam artists
also know older Texans may be less
likely to report fraud. In fact, some
estimates indicate that only one in 25
cases of financial fraud against senior
citizens is reported.
The OAG receives complaints from seniors
about a wide array of scams. Here are a
few examples:
“Grandparent” scam. The scam begins with
a telephone caller who claims to be a
grandchild in trouble and in urgent need
of money. Often, the caller claims to be
traveling in Canada. The “grandchild”
also requests secrecy, hoping to
increase the odds that the fraud will be
successful. If all goes according to the
con artist’s plan, the victim wires
money to the “grandchild.” By the time
the worried grandparent realizes the
scam, the money is long gone and most
likely not recoverable.
Home repair and door-to-door scams. In
one ploy, a “repairman” approaches a
home owner, often after a bad storm, and
insists that the home needs repairs.
Once the repairman gets a check, he
disappears without making or finishing
repairs. Other times, a “contractor”
will approach a senior citizen, saying
he has extra materials from a job and
will perform a service, like sealing a
driveway, for less than the typical
cost. The work, if done at all, is
usually substandard. In a variation of
these scams, the con artist uses the
construction ruse to gain entry into the
victim’s home where he steals valuables
from the home while the owner is
distracted.
Texans should always be suspicious of
unsolicited contractors who approach
their homes, and they should always be
wary of people they do not know.
Legitimate workers – such as utility
company representatives or professional
repairmen – will not be offended if a
homeowner asks for proof of
identification.
Foreign lottery / sweepstakes scams. In
this scam, which often originates in
Canada, the operators claim that
potential victims have won another
country’s lottery. The scam artists
often claim they need the victim’s bank
account information in order to wire the
lottery proceeds. Then, armed with the
victim’s account number, the thief
drains the bank account. In other cases,
the scammer claims the victim must pay
“taxes and processing fees” in advance
to receive their winnings. Sometimes the
criminals even send a convincing
counterfeit check in an attempt to lend
legitimacy to the scam. The counterfeit
check is denied by the victim’s bank,
but often after the victim has sent the
“taxes and processing fees.” Another
variation solicits its victims to buy
entries into a foreign lottery. Of
course, no lottery tickets are really
purchased, and the con artists pocket
the victim’s money. Anyone with friends
or relatives who think they won a
foreign lottery should keep this in mind
– it is illegal to participate in
another country’s lottery.
“Miracle” health scams. As a population,
older citizens typically suffer from
greater health problems – such as cancer
or arthritis – than younger segments of
society. Unfortunately, some seniors can
be increasingly vulnerable to
unscrupulous sellers preying on seniors’
health and wellness fears to sell
worthless healthcare products that they
falsely claim can cure chronic or
terminal diseases. Senior citizens
seeking medical treatment or a cure for
ailments should think twice before
spending their money on products and
treatments that are not approved by the
Food and Drug Administration. Anyone who
purchases unapproved products may be
wasting their savings or worse, exposing
themselves to health risks. Texans
should always consult a healthcare
professional about their health problems
and should never rely solely on a
salesman’s advice about a product.
Investor “free lunch” scams. Senior
citizens should also be wary of “free
lunch” investment seminars. Potential
investors are often invited to free
seminars that promise to educate them on
money strategies or management.
Promoters provide a fancy meal in hopes
of receiving seniors’ retirement savings
to invest. These luncheon investment
seminars usually are more about
recruiting new clients or selling
investment products than investor
education. Many legitimate investment
advisors use this technique to meet and
recruit new clients, which is perfectly
ethical. However, scam artists and
identity thieves also use these events
to steal attendees’ personal
information. Other salesmen, such as
those selling timeshares or vacation
packages, may also use these seminars to
sell their products. Seniors should
always remember that a good show doesn’t
always offer a good deal. Texans should
never make an on-the-spot decision after
attending a seminar. It is important to
conduct independent research about the
sales product before making a purchase.
Awareness and vigilance are the keys to
avoiding scams. By working together to
raise awareness, law enforcement
agencies can help Texas seniors protect
their finances, their identities and,
most importantly, their dignity.
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Law Enforcement Update
Attorney General Offers Resources For Victims Of
Teen Dating Violence
Dating violence is
far too common among teenagers across the
nation. According to a recent survey, one in
five teens who have been in a serious
relationship say they have been hit, slapped or
pushed by their partner. Even more disturbing:
30 percent of all murders involving females ages
15 to 19 are committed by their romantic
interest.
This month, the Office of Attorney General (OAG)
is joining with law enforcement professionals
and crime victim advocates across the country to
observe the fourth annual National Teen Dating
Violence Awareness and Prevention Week. The
observance is intended to educate teens about
the differences between healthy and unhealthy
relationships. It is also meant to help adults
and teens recognize when a friend or loved one
is being abused.
Peace officers are on the front lines of
defending abuse victims when dating control or
abuse turns violent, but officers also know the
other signs of potential abuse. The teen dating
violence awareness week seeks to make the public
cognizant of these signs. Teens’ abusive dating
partners might:
• Look at them or act in ways that scare them
• Act jealous or possessive
• Criticize them
• Try to control where they go, what they wear
or what they do
• Text or IM them excessively
• Threaten to kill or hurt themselves or their
partners if they leave
• Try to stop them from seeing or talking to
friends and family
• Hit, slap, push or kick them
The National Teen Dating Abuse Helpline also
provides many tips for recognizing and
responding to teen dating violence, as does its
Web site, www.loveisrespect.org.
Young Texans who find themselves in abusive
relationships should be encouraged to talk to a
friend or an adult about the situation. Anyone
who does not feel safe should avoid being alone
with their boyfriend or girlfriend.
Officers can also encourage teenagers who have
witnessed or experienced potential dating
violence to call the National Teen Dating Abuse
Helpline at (866) 331-9474. The helpline offers
real-time, one-on-one support 24 hours a day.
Through the helpline, trained volunteers advise
teenagers to recognize unhealthy behavior and
explain how to leave abusive relationships in
the safest way possible.
Parental involvement can be a powerful tool that
prevents teen dating violence. By talking with
their teenage children and staying aware of
developments in their child’s life, parents can
show that they care – and are approachable when
problems arise. Setting boundaries and
simultaneously entrusting kids to conduct
themselves responsibly may feel like a balancing
act, but it can really help protect teens from
harmful relationships.
The OAG has long stood with police officers in
the fight against domestic and teen dating
violence. Recently, the OAG joined the Texas
Council on Family Violence to launch the “LOVE”
campaign, which was created to heighten public
awareness about teen dating violence.
The OAG Web site, www.texasattorneygeneral.gov,
contains information about victims’ rights,
protective orders, and the OAG’s Address
Confidentiality Program, which provides a post
office box and mail forwarding at no charge to
victims who want to prevent an abuser from
knowing where to find them. Abuse victims
seeking information about the OAG’s Crime
Victims’ Compensation Program, which reimburses
out-of-pocket expenses to victims of violent
crime and their families, can also find it on
the Web site.
All Texans have the right to live violence-free
lives, but many need help getting out of violent
relationships. The OAG is committed to working
with law enforcement, victim groups and others
to ensure that Texas teenagers have access to
the resources they need to end dangerous or
harmful relationships.
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CONSUMER ALERT
Report Price Gouging To Attorney General's Consumer
Complaint Hotline
In the wake of Hurricane
Ike, the Office of the Attorney General’s Consumer
Complaint Hotline has received hundreds of price gouging
complaints from across the state. Most complaints allege
price gouging on gas and lodging; others report price
hikes involving food, water and power generators. The
Office of the Attorney General (OAG) is investigating
some consumers' claims that they were unlawfully charged
inflated prices for necessities including fuel, hotel
lodging and other items.
Although Hurricane Ike has left the state, the
governor’s disaster declarations are still active, so
the OAG continues to have enforcement authority to
pursue price gouging complaints in 99 Texas counties.
Under Texas law, vendors are prohibited from charging
exorbitant prices for necessities such as groceries,
clothing, medical supplies, lodging, repair work and
fuel during and after declared disasters.
The emergency Consumer
Complaint Hotline continues to have staff available
between 7 a.m. and 7 p.m. to receive price gouging
complaints. Texans who encounter price gouging should
call the hotline at (800) 252-8011. Information
collected is relayed directly to agency investigators.
A disaster declaration triggers heightened enforcement
authority for the Office of the Attorney General under
the Texas Deceptive Trade Practices Act. This authority
protects Texans by prohibiting exorbitant prices for
necessities, such as drinking water, food, batteries and
generators.
Texans should keep written records and receipts of any
transaction they believe constitutes price gouging. If
speaking directly with the service provider does not
resolve the dispute, Texans should call the toll-free
complaint line or, if Internet service is available,
file a complaint online at www.texasattorneygeneral.gov.
Although the law prohibits vendors from illegally
raising prices to reap exorbitant profits during a
disaster, it does allow retailers to pass along
wholesale price increases to customers. Thus, in some
cases, increased prices may not necessarily signal
illegal price gouging.
On September 7, Gov. Perry issued a disaster declaration
for the following counties: Anderson, Angelina, Aransas,
Archer, Austin, Bee, Bell, Bexar, Bowie, Brazoria,
Brazos, Brooks, Calhoun, Cameron, Cass, Chambers,
Cherokee, Collin, Colorado, Comal, Dallas, Denton,
DeWitt, Ellis, El Paso, Fort Bend, Franklin, Galveston,
Goliad, Grayson, Gregg, Hardin, Harris, Harrison,
Henderson, Hidalgo, Hill, Hopkins, Hunt, Jackson,
Jasper, Jefferson, Jim Hogg, Jim Wells, Kaufman, Kenedy,
Kleberg, Lamar, Lavaca, Liberty, Lubbock, Matagorda,
McLennan, Montgomery, Nacogdoches, Navarro, Newton,
Nueces, Orange, Panola, Parker, Polk, Potter, Randall,
Refugio, Sabine, San Augustine, San Jacinto, San
Patricio, Shelby, Smith, Starr, Tarrant, Titus, Tom
Green, Travis, Trinity, Tyler, Van Zandt, Victoria,
Waller, Walker, Webb, Wharton, Willacy, Williamson, Wise
and Wood.
On Sept. 12, the governor extended the declaration to
include Burleson, Coryell, Freestone, Grimes, Houston,
Madison, Milam, Leon, Robertson, Rusk and Washington
Counties.
Greg Abbott
Attorney General of Texas
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CONSUMER ALERT
Evacuees Should Know Their Rights When Staying At Hotels
While some
Hurricane Ike evacuees headed to evacuation shelters,
others sought safe refuge in hotels and motels across
Texas. Evacuees who are staying in hotels and motel
rooms need to know their rights and their
responsibilities.
Beginning Sept. 8 for a period of 14 days, Gov. Rick
Perry has suspended the collection of state and local
hotel and motel taxes for victims of Hurricane Ike.
Consumers who are charged these taxes in affected areas
should inform the hotel or motel that they are evacuees
and ask that the fees be removed from their bill. If the
charges are not removed, customers should save their
receipts and file a complaint with the Office of the
Attorney General’s Consumer Complaint Hotline at (800)
252-8011.
Texans who decide to stay at hotels and motels also
should be aware that it is their responsibility to seek
accommodations and make reservations. Under state law,
hoteliers are not obligated to let evacuees stay at
their facilities if there are no rooms available after
their reservations expire.
Financial assistance is available for hurricane evacuees
who cannot afford extended stays at hotels or motels
through the U.S. Department of Homeland Security’s
Federal Emergency Management Agency (FEMA). The amount
of financial assistance available varies according to
the city where the lodging is located. Evacuees seeking
FEMA assistance should apply online at www.fema.gov or
by calling (800) 621-3362.
Texans should keep written records and receipts of any
transaction they believe violates the special
protections afforded them during a declared disaster. If
speaking directly with the service provider does not
resolve the dispute, Texans should call the Office of
the Attorney General’s toll-free Consumer Complaint
Hotline at (800) 252-8011. Hotline staff is available
between 7 a.m. and 7 p.m. If Internet service is
available, consumers may file a written complaint online
at www.texasattorneygeneral.gov.
A disaster declaration triggers heightened enforcement
authority for the Office of the Attorney General under
the Texas Deceptive Trade Practices Act. This authority
protects Texans by prohibiting exorbitant prices for
necessities, such as drinking water, food, batteries and
generators.
Greg Abbott
Attorney General of Texas
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CONSUMER ALERT
New FTC Rule Will Let Telephone Customers Avoid
Prerecorded Telemarketing Calls
The Federal Trade
Commission (FTC) has announced a new rule governing
telemarketing calls that feature prerecorded messages.
Beginning Sept. 1, 2009, telemarketing companies must
obtain call recipients’ written permission before
contacting them with a prerecorded message. More
immediately, effective Dec. 1, 2008, prerecorded
telephone marketing calls must have an opt-out mechanism
so that recipients can elect not to receive those
unsolicited calls in the future.
Telemarketers with pre-existing customer relationships
will be allowed to continue using prerecorded messages
to contact those customers only for one year after the
rule is published in the Federal Register. At that time,
telemarketing companies will need their customer’s
written permission before calling anyone with a
prerecorded message.
Under the new regulations, charitable organizations can
continue contacting their members or previous donors,
but will need to offer an opt-out mechanism once the new
rule goes into effect.
The FTC’s new rule will not prohibit customers from
receiving certain prerecorded informational calls, such
as those which announce flight delay notifications,
upcoming appointments, or similarly helpful information.
These phone calls are unaffected by the new rule because
they are not used to market products or services to the
recipient. Healthcare-related phone calls also are
exempt from the new regulations.
Under the new rule, the prerecorded telemarketing calls
must:
- allow the telephone
to ring for at least 15 seconds or four rings before
an unanswered call is disconnected;
- begin the
prerecorded message within two seconds of a
completed greeting by the recipient;
- disclose at the
outset of the call that the recipient may ask to be
placed on the company's do-not-call list at any time
during the message;
- in cases where the
call is answered by a person, make an automated
interactive voice and/or keypress-activated opt-out
mechanism available during the message that adds the
recipient’s telephone number to the company's
do-not-call list and then immediately ends the call;
and
- in cases where the
call is answered by an answering machine or
voicemail, provide a toll-free number that allows
the recipient to be connected to an automated
interactive voice and/or keypress-activated opt-out
mechanism anytime after the message is received.
The new rule can be viewed online at www.ftc.gov.
Greg Abbott
Attorney General of Texas |
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CONSUMER ALERT
Beware Of Spam E-mails Claiming To Originate From The Office Of
The Attorney General
A brazen, new spam e-mail featuring
Texas Attorney General Greg Abbott’s photograph and the Office
of the Attorney General’s Web page banner has recently hit
inboxes statewide.
The fraudulent e-mail message, which may include the subject
line, “ATTORNEY GENERAL OF TEXAS,” is given the false appearance
of legitimacy because it is adorned with the agency’s
distinctive online logo and an image of Attorney General Abbott.
In the e-mail text addressing the recipient by name, a vague
security alert warns about a “transaction with the United
Nations.” The entire e-mail reads:
Attn: [Recipient Name],
This is the office of the attorney general of Texas we are
using this private email box to contact you for our security
reasons because a lot is going on now and so many of our
citizen wish to hear from this office daily but we have
choose this medium to attend to our good citizen.
[Recipient Name], we wish to inform you that your
transaction with the United Nations concerning your package
that is on hold now is a legitimate transaction and you must
try and see you provide all that is been requested for the
security of this great country.
You are at a safe hand and we are giving you % 100
assurances to continue with them and make sure that your
package is being released to you.
Thanks.
Savvy e-mail users have
increasingly learned to identify and delete fraudulent e-mails
that falsely appear to originate from legitimate banks, credit
card companies and government agencies. Recipients should not
respond to the sender or click on any Web links that may appear
within the message. Activating Web links that appear in
unexpected e-mails may direct users to fraudulent Web sites or
allow identity thieves to capture users’ sensitive personal
information.
Texans can protect their e-mail addresses from spammers by
working with their Internet service providers to install free
filters, blocks and other junk mail management services. All
computer users should also familiarize themselves with a Web
site’s privacy policy before providing their e-mail addresses.
Most legitimate vendors allow users to prevent the company from
sharing their information with unauthorized third parties.
Greg Abbott
Attorney General of Texas |
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CONSUMER ALERT
Spoof Credit Union E-Mails Could Ruin Consumers'
Holidays
A new, dangerous identity theft scheme is targeting
credit union customers across the country. According
to consumer and credit union groups, spoof e-mails
are directing credit union customers to call a
telephone number and confirm their personal
information. Consumers who make the call do not
reach their credit union, but instead end up on the
telephone with a scam artist who wants to steal
their identity.
Savvy consumers have increasingly learned to
identify and delete spoof e-mails that falsely
appear to originate from legitimate banks or credit
card companies. Known as "phishing," these e-mails
direct consumers to a decoy Web site that allows the
scammers to collect all the information they need to
empty the customers' bank accounts and ruin their
credit.
"Phishing" scams have been around for years, but
increasingly sophisticated criminals now send
e-mails instructing consumers to call a telephone
number instead of clicking on a link. This tactic,
known as "vishing," can be especially effective
because consumers who encounter a live person are
much more likely to let down their guard.
The latest "vishing" scam immediately disarms
consumers by specifically warning about similar
schemes. One recently circulated e-mail reads:
Dear Credit Union Customer,
We regret to inform you that we have received
numerous fraudulent emails which ask for
personal account information. The emails
contained links to fraudulent pages that looked
legit. Please remember that we will never ask
for personal account information via email or
web pages.
Because of this we are launching a new security
system to make Credit Union accounts more secure
and safe. To take advatage [sic] of our new
consumer Identity Theft Protection Program we
had to deactivate access to your card account.
To activate it please call us immediately.
The e-mail provides a telephone number with a U.S.
area code, adding to its air of legitimacy. In an
especially brazen move, the e-mail offers identity
theft tips and links to the Federal Trade
Commission's identity theft prevention Web site.
Consumers who think the e-mail is legitimate call
the number and furnish sensitive information to a
person they believe is a trusted credit union
employee. Only when their identity is stolen do they
realize it was all a scam.
These "vishing" scams combine the "phishing" ploy
with a Web-based telephone scheme. The telephone
numbers that appear in these e-mails are set up
through VoIP, which is an Internet-based
telecommunications service. Even though the phone
number appears to be based in a familiar U.S. area
code, the scammers are most likely in other
countries and impossible to track down.
Consumers who receive this or any other unexpected
e-mail or phone call seeking personal information
should not respond. Consumers who have concerns
about their account should contact their credit
union by calling the telephone number that appears
in the local directory or on their periodic
statements. Never click on a link or call a
telephone number that appears in an unexpected
e-mail.
Greg Abbott
Attorney General of Texas
Law Enforcement
Update
Fighting Mortgage-Related Scams
The home
mortgage crisis is one of the great problems looming on the
horizon for Americans. A combination of forces – including
fraud, subprime lenders with lighter credit standards, decreases
in the market value of homes, and interest rate increases – have
led to a dire situation. With many Texans facing foreclosure and
at risk of losing their homes, the Office of the Attorney
General (OAG) is working with major lenders to protect
homeowners.
Home ownership lies at
the heart of the American dream, so foreclosures can be
devastating for homeowners, their families, and
ultimately for the community. Equally troublesome,
foreclosures are already negatively impacting the
economy, affecting interest rates, decreasing property
values and harming financial markets.
We are doing all we can
to help Texans keep their homes. Earlier this year, the
OAG concluded its investigation into Ameriquest, a
subprime lender that deceived homeowners into
refinancing their homes at unfavorable mortgage rates.
Under a settlement negotiated by the OAG, Texas
homeowners received more than $21 million in restitution
from the lending giant.
We are also cracking
down on scam artists who are trying to exploit fearful
homeowners to take advantage of this tough situation.
Many fraudulent "foreclosure rescue" services collect
exorbitant fees from at-risk homeowners, promising to
prevent foreclosure. The scammers just worsen the
situation, often accelerating the foreclosure process by
advising homeowners not to speak directly to their
lenders to resolve their problems.
Homeowners are not the
only ones harmed by mortgage-related scams. A growing
number of scam artists are duping lenders, mortgage
companies and other businesses in the mortgage industry.
Mortgage fraud involves intentionally or knowingly
making a false or misleading written statement to obtain
property or credit, including a mortgage loan. This type
of fraud can take many forms, but the most common
schemes include fraudulent appraisals, inflated income
on loan applications, and even identity theft.
According to the FBI,
mortgage fraud is one of the fastest-growing white
collar crimes in the United States. Mortgage fraud is
also a real problem in Texas. A 2006 report by the
federal Financial Crimes Enforcement Network ranked
Texas fourth in the nation for real estate mortgage loan
fraud.
Fraud may be committed
by a sole borrower seeking a personal loan, or it could
be committed by a criminal seeking to obtain and
purchase loans as part of a larger scheme, such as money
laundering. Mortgage fraud may also include unlawful
kickbacks to buyers, investors, property or loan
brokers, appraisers, and title company employees.
Recognizing the
pervasive mortgage fraud problem, the Texas Legislature
took action to increase cooperation among law
enforcement agencies by creating the Texas Mortgage
Fraud Task Force.
Task force members,
including the attorney general and top state real
estate, banking and consumer credit regulators, held
their first meeting in September. Future task force
meetings will improve interagency communications and
further law enforcement's efforts to track and reduce
mortgage fraud in Texas. The new legislation also
authorized the attorney general to prosecute criminal
mortgage fraud cases in coordination with local
prosecuting attorneys.
The OAG is committed to
protecting Texas homeowners. Public officials must continue
working with lenders, educating homeowners and prosecuting scam
artists as we strive toward a solution to this troubling
situation. The dream of home ownership is too important to
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