Top Stories
Minneapolis: Man gets five years prison for telemarketing scheme selling magazine subscriptions; ordered to repay $19 millionFTC says robocalls complaints down over 50% since 2021
Useful research on consumer education needed! Many of us spend much time and resources developing consumer education materials, and it would be great to find things that make those more effective. Professor Anthony Pratkanis has compiled and conducted research showing that consumers simply don’t pay attention to most warnings or, worse, become defensive and shut them down. The FTC has tried to combat this with their “pass it on” campaign, directed to tell people they are educating them not to make them afraid but instead to educate themselves so they can help their friends, families, and neighbors avoid frauds. Anthony’s idea is to empower people to become fraud fighters. But he says there hasn’t been research to examine this approach and show it is more effective. Anyone interested in taking this on?
Online shopping. We are rapidly approaching the holiday shopping season, and online shopping is close to the top of the list of scams consumers file complaints about. So be careful, and this is a place where consumer education can do a great deal of good. So stay on the information superhighway, avoid dodgy sites on social media, and file complaints if ripped off.
Interpol operation in Argentine seizes counterfeit goods worth $225 million; 104 arrested; fake prescription drugs among 11 million items seized
WSJ: Fraud with paper checks was up 400% last year
Fraud Studies: Here are links to the studies I’ve written for the Better Business Bureau: puppy fraud, romance fraud; BEC fraud, sweepstakes/lottery fraud, tech support fraud, romance fraud money mules, crooked movers, government imposters, online vehicle sale scams, rental fraud, gift cards, free trial offer frauds, job scams, online shopping fraud, fake check fraud and crypto scams
Fraud News Around the world
Idaho: Man gets ten years prison for hacking computers and extorting money to prevent release of data
Latvia: Two Lithuanians charged with fraud over sales of counterfeit laundry products; organized crime involved
Canada: Surrey woman arrested for large scale gift card scam
Rochester: Two plead guilty to scheme that sent fake invoices to businesses, who often paid; made $860,000
Omaha: Nigerian man gets three years prison; was ringleader of a gang that robbed parked cars, stole credit cards, then bought goods and did ID theft
Ireland: Couple from China arrested for laundering fraud money through crypto; handled €21 million
UK man gets prison for selling nonexistent tractors to Canadian; got £130,000
Indiana: Man gets eight years prison for scam in which callers from Pakistan offered TV services and subscriptions they didn’t deliver
How to watch out for gift cards that have been tampered with
Ten tips for black Friday shopping from Consumerworld
Interesting podcast on the huge amount of fraud in the US medical system (43min)
Australia issues new warning of scammers pretending to be from your bank, claiming cards are compromised, ask for PIN and have you place card in your mailbox to be replaced
Buffalo: US seizes web site and charges three administrators of website that traded stolen credit card information on the dark web; one man from Afghanistan, two from Pakistan
Humor
- California: Bear that supposedly caused car wreck in insurance fraud was really someone in a bear costume
- Kansas man tries to rob convenience store but clerk told him the register wouldn’t open unless he bought something – so he did and then fled
- Armed man flees on a lawnmower after arrest attempt, shoots himself in the hand after police tase him
- What does the election mean for the FTC?
- FTC sues online company Seek that offered to finance small businesses; says $37 million lost
- CFPB resolves case against Global Tel-Link, which handles money sent to people in prison; to pay $3 million
- FTC sending $140,000 in refunds to customers of clothing maker over Made in the USA claims
- Maryville: Woman pleads guilty to ID theft to get unemployment benefits; got $3.2 million
- Virginia: Prison for three for ID theft, stealing mail from Post Office storage boxes with arrow key; also for PPP fraud
- DC: Government worker pleads guilty to PPP fraud; got $844,000
- North Carolina: Man pleads guilty to PPP fraud; got $32,000
- Memphis: Man gets 30 months prison for PPP fraud; got $782,000
- Kansas: Jury convicts man of PPP fraud; got $.36 million
- Connecticut: Man charged with PPP fraud; got hundreds of thousands
- Minnesota: Man gets 87 months prison for PPP fraud; applied for $2.1 million
- Philippines shuts down 11 scam hubs
- South Korea arrests several over involvement in Cambodia-based call centers engaged in crypto romance frauds