Tuesday, December 1, 2015

SCAM UPDATE – FTC Takes Action

There is a lot of information about scams and fraud being published now. Here is some information about the latest developments in the scam world:

FTC Clamps Down on Favored Payment Methods by Crooks. The Federal Trade Commission (FTC) has adopted new rules to ban the use of payment methods often preferred by scammers and fraudsters. The methods often act like cash and are hard to trace the transaction or to recover the funds. The now banned methods include:

·         Money transfer services, including Western Union, MoneyGram, and RIA Money Transfer.

·         Cash reload cards such as MoneyPak, Vanilla Reload, and Reloadit. Also banned are services that add money to existing prepaid debit cards.

·         Remotely created electronic checks. In this case, the scammer will ask for the routing and account numbers found on your checks and then withdraw the funds directly from your checking account.

Under its rule making authority, the FTC has banned these methods. Now, if a telemarketer asks for payment by any of these methods, they are breaking the law. If you receive a call from a scammer asking for payment by any of the banned methods, the FTC asks that you report them to the FTC at
NBC News:


FTC Takes Action Against Medical “Discount” Card Scammers. The FTC has obtained a judgement against Constanza Gomez Vargas, Walter S. Vargas, and United Solutions Group Inc. for falsely telling consumers that they were buying a qualified health insurance plan under the Affordable Care Act. United Solutions Group targeted Spanish-speaking consumers convincing them to purchase medical discount cards. Consumers were told that the cards were like insurance and would pay for doctor and emergency room visits. The cards were worthless despite the consumers making monthly payments from $99 to several hundred dollars.


Bad Guys Use Rentals to Scam People. If you are looking for an apartment or house to rent, be careful of whom you are working with. This item from LifeLock should be a warning:


Holidays are a Good Time for Scammers. I have emphasized this over the last few weeks. But, here is an article from the “Credit Union Times” with the 12 Scams of Christmas.” Some you already know, but others you might not have heard about.

Credit Union Times:




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