Bad economy brings out scammers, crackdown
WASHINGTON — The economic downturn appears to be bringing out the worst in some people.
The Federal Trade Commission announced a major crackdown Wednesday on scammers trying to take advantage of people worried about the tough economy by promising jobs that don’t exist, get-rich-quick schemes, debt-reduction scams and other phony services.
The biggest case involved a California company called Family Products that marketed alleged get-rich schemes such as “John Beck’s Free & Clear Real Estate System.” The FTC says the company made bogus claims through DVDs, brochures and national infomercials about the ability to raise cash fast.
In all, more than 600,000 people were duped out of about $300 million, said the agency.
The law enforcement sweep — dubbed “Operation Short Change” — was announced jointly with the Justice Department. The operation included 15 cases from the FTC, and dozens of additional cases brought by Justice and at least 13 states.
These scams, said David Vladeck, head of the commission’s consumer protection bureau, “raise people’s hopes and then drive them deeper into a hole.”
Beverly Steward, 46, fell for one of the scams alleged by the FTC. In her case, the single mother of two in Washington said she was bilked by a company — identified as Job Safety USA — that promised people certifications for a cleaning job.
“I wanted a job,” says Steward. “I was desperate.”
She answered a newspaper ad and forked over $89. The certifications never came, she said. Neither did a job.
Steward wasn’t alone. The FTC says more than 4,000 people fell prey to the scam.
Messages were left for Family Products and Job Safety USA, but not immediately returned.
The government is going to court in many of the cases to halt the operations and seek return of victims’ money.
North Carolina Attorney General Roy Cooper said complaints to his office about these kinds of scams are up 27 percent.
“In the down economy,” said Cooper, “the scam artists crawl out from under rocks.”
His number-one rule: never pay money up-front.
“If they want money up-front, then they’re up to no good,” said Cooper.
Federal Trade Commission: www.ftc.gov
Related News
Private research group says consumer confidence retreats in September amid job worriesSeptember 30th, 2009 Consumer confidence unexpectedly falls in Sept.NEW YORK — Cconsumers' confidence in the economy falls in September as Americans' worries about job security offset any enthusiasm about the rally in the stock market. The Conference Board says that the Consumer Confidence Index now stands at 53.1, down from the revised 54.5 reading in August.
Consumer sentiment improves more than expected to 54.1 in AugustAugust 25th, 2009 Consumer sentiment up more than expected in AugustWASHINGTON — Consumer sentiment rose more than expected in August, an indication that Americans' pessimism about the economy may be lifting. The New York-based Conference Board says its Consumer Confidence index rose to 54.1 from an upwardly revised 47.4 in July.
Summary Box: Consumer sentiment improves, while home prices rise for first time in 3 yearsAugust 25th, 2009 Summary Box: Consumer sentiment, home prices upWHAT HAPPENED?: Consumer confidence improved more than expected in August, and a nationwide gauge of home prices rose for the first time in three years, a sign the housing sector is stabilizing. WHAT DOES IT MEAN?: Improved consumer sentiment and higher home prices could mean consumers will spend more in the coming months, providing a much-needed boost to the economy.
AIG to sell consumer finance unit in Colombia in latest move to trim operations, raise cashJuly 1st, 2009 AIG to sell consumer finance unit in ColombiaNEW YORK — American International Group Inc. on Wednesday said it agreed to sell all of its ownership interests in its consumer finance operations in Colombia, the latest in a recent string of asset sales by the embattled insurer to bolster its finances.
Jones Apparel Group buys additional 15 percent stake in GRI Group for $15 millionJune 24th, 2009 Jones Apparel Group raises stake in GRI GroupNEW YORK — Jones Apparel Group Inc. said Wednesday that it purchased an additional 15 percent stake in licensee GRI Group Ltd.
Postpartum anxiety, behavior changes 'delay puberty in offspring'June 11th, 2009 WASHINGTON - Maternal postpartum anxiety and behavior changes can lead to a delayed onset of puberty in both birth and adoptive daughters, says a new mice-based study. Such anxiety and changes are caused due to hormonal changes early in pregnancy.
Extract of Kava may help beat the bluesMay 12th, 2009 WASHINGTON - A traditional extract of Kava, a medicinal plant from the South Pacific, may be safe and effective in reducing anxiety as well as depression, a study has found. In the study, researchers at the University of Queensland in Australia found that a water-soluble extract of Kava was effective in treating anxiety and improving mood.
Private research group says consumer confidence soars in April amid hopeful economic signsApril 28th, 2009 Consumer confidence soars in AprilNEW YORK — A private research group says that consumer confidence soared in April amid hopeful signs that the economy is starting to stabilize. The Conference Board says that its Consumer Confidence Index rose 12 points to 39.2, up from a revised 26.9 in March.
Stocks fluctuate in narrow range as consumer confidence blows past analyst forecasts in AprilApril 28th, 2009 Jump in consumer confidence gives boost to stocksNEW YORK — Investors are setting aside some of their worries about the economy as a closely watched measure of consumer confidence soars in April. Stocks had been lower on worries about fallout from the swine flu and banks that may need to raise capital following government "stress tests."
But a midmorning report showing a surge in consumer confidence tempered those concerns.
US launches new crackdown on mortgage fraudApril 6th, 2009 WASHINGTON - The US launched a new crackdown Monday on mortgage fraud that may have contributed to the country's worst housing downturn in decades. The US Justice Department, Treasury and other government agencies announced a joint effort to target bogus companies that have sprouted up offering mortgage refinancing and foreclosure help.
6 out of 10 university students have 'mathematical anxiety'April 2nd, 2009 WASHINGTON - A new study conducted at the University of Granada (Spain) has found that 6 out of every 10 university students, regardless their field of study, present any symptom of anxiety when it comes to deal with mathematics. Also, the study found that there are significant differences between men and women in this sense, as men suffer less anxiety when it comes to deal with mathematical tasks.
US consumer confidence hits new low in FebruaryFebruary 25th, 2009 WASHINGTON - US consumer confidence slid to a new low in February as the world's largest economy continues to battle recession, a private research group said Tuesday. The New York-based Conference Board said its index of consumer confidence fell to 25.0 in February from 37.4 in January.
Anti-social behaviour among girls triggers depression in adolescenceFebruary 17th, 2009 WASHINGTON - Anti-social behaviour among girls and anxiety among both boys and girls of first and second grade brought on depression in early adolescence. 'Anti-social behaviour has typically been viewed as a big problem among boys, so it tends to be ignored among girls, said James Mazza, University of Washington (UW) professor of educational psychology and co-author of the new study.
US consumer spending falls for sixth straight monthFebruary 2nd, 2009 WASHINGTON - US consumer spending dropped one percent in December, a record sixth straight monthly decline and rounding out the country's worst year for consumers since 1961, the commerce department said Monday. The drop from a month at an annual rate was larger than economists had predicted, according to Bloomberg News, and compared to a revised 0.8-percent drop in November.
US consumer confidence continues fallingJanuary 26th, 2009 WASHINGTON - US consumer confidence continued to fall to new lows in the first month of 2009 as the world's largest economy struggles through a serious recession, a private research group said Tuesday. The New York-based Conference Board said its consumer confidence index fell 0.9 points to 37.7 in January, the lowest since records began in 1967.
Loading ...