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Food fraud

October 23, 2020/in Health fraud /by Fraud.org staff

There’s another kind of fraud on the rise and you’ll find it in your grocery store: food fraud. This can include deceptive labeling, the lack of food purity, and more.

Stay safe. Be Informed.

According to the U.S. Pharmacopeial Convention, a critically important entity protecting food and drug purity, the amount of fake ingredients has increased by 60 percent in the last year. Counterfeit foods range from lemon juice purporting to be “100% pure” to cheap oils, which are dyed and flavored for the purpose, being passed off as pricey extra virgin olive oil. NCL has done extensive work in this area to make sure that what you are buying is actually what you are getting.

The motive behind food fraud is obvious: economic gain. When ingredients and the products they are used in become pricey, there is much money to be made by unscrupulous producers. These activities hurt the honest businessmen in the industry but can also potentially harm the consumer. When a product has been adulterated and those ingredients are not listed on the label, consumers, particularly those with food allergies, no longer have the ability to necessarily avoid those ingredients that pose a threat. For example, cheaper oils, such as hazelnut, palm, and corn oil may be treated so that they can pass for live oil. This can prove a grave threat to those who are allergic to these products.

So, what can consumers do? Unfortunately, there aren’t foolproof steps to protect yourself from all food fraud. Less pricey categories of fish, for example, are often mislabeled as more expensive species. Even trained chefs, who handle the food every day, can be fooled and only DNA tests can reveal the substitution taking place. While there’s nothing a consumer can do to ensure they never consume fraudulent food, there are some common-sense steps they can take to mitigate the risk.

Here are some tips for savvy consumers:

  • If a price seems too good to be true, you just might be on to something. There’s a reason that particular brand costs less than all the others, and there’s a chance that reason is adulteration.
  • Pick brands that have a vested interest in keeping you as a consumer. They may have more of an incentive to stay honest.
  • When possible, buy raw ingredients rather than processed ones. For example, buy your own coffee beans to grind rather than buying ground coffee.
  • Speak out to your member of Congress, as well as the federal agencies, like the FDA, who work on these issues, know that food fraud is an important issue.

Find Fraud Alerts related to this scam here.

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Grandparent scams

October 23, 2020/in Fraud against older adults, Scams of the heart /by Fraud.org staff

In a typical Grandparent Scam, a con artist calls or emails the victim posing as a relative in distress or someone claiming to represent the relative (such as a lawyer or law enforcement agent). The “relative” of the grandparent explains she is in trouble and needs their grandparent to wire them funds that will be used for bail money, lawyer’s fees, hospital bills, or another fictitious expense.

Stay safe. Be Informed.

The victim is urged not to tell anyone, such as the parent of the “grandchild” because they do not want them to find out about the trouble they’ve gotten themselves into. The grandparent never hears from their fake grandchild again and is tricked out of hundreds or even thousands of dollars.

To detect and avoid the Grandparent Scam, NCL’s Fraud Center recommends the following tips:

  • Beware of any urgent solicitation of funds, especially if it is needed to pay for unexpected bills, such as bail money, lawyer’s fees, or doctor bills
  • Before sending funds, independently contact the relative (or parent of the relative) the scam artist is claiming to be (or represent) at a known phone number to verify the details of the story.
  • Scam artist’s payment method of choice is the wire transfer. Any urgent request to wire money should be treated suspiciously.
  • Be aware that fraudsters attempting the Grandparent Scam may call late at night to confuse potential victims.
  • Consumers who have been victims of this scam should immediately report it to local law enforcement, their state attorney general and NCL’s Fraud Center at Fraud.org.

Find Fraud Alerts related to this scam here.

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Charity scams

October 23, 2020/in Fraud against older adults /by Fraud.org staff

You want to help people in need, but you also want to be sure that your charitable donation isn’t simply going into a crook’s pocket.

Stay safe. Be Informed.

  • If you’re approached by an unfamiliar charity, check it out. Most states require charities to register with them and file annual reports showing how they use donations. Ask your state or local consumer protection agency how to get this information. The Better Business Bureau Wise (BBB) Giving Alliance also offers information about national charities. Call 703-276-0100 or go to Give.org.
  • Ask for written information. Legitimate charities will be happy to provide details about what they do and will never insist that you act immediately.
  • Beware of sound-alikes. Some crooks try to fool people by using names that are very similar to those of legitimate, well-known charities.
  • Ask about the caller’s relation to the charity. The caller may be a professional fundraiser, not an employee or a volunteer. Ask what percentage of donations goes to the charity and how much the fundraiser gets.
  • Be wary of requests to support police or firefighters. Some fraudulent fundraisers claim that donations will benefit police or firefighters, when in fact little or no money goes to them. Contact your local police or fire department to find out if the claims are true and what percentage of donations, if any, they will receive.
  • Be especially cautious after natural or other disasters. Fraudulent charities take advantage of those situations to trick people who want to aid the victims. If you’re not sure whether a charity is legitimate, check it out with your state charities regulator and the BBB before you donate.

Find Fraud Alerts related to this scam here.

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Bogus magazine sales

October 23, 2020/in Fraud against older adults /by Fraud.org staff

Magazine sales scams typically begin with a knock at the door and a young person on the other side selling magazine subscriptions to “raise money” for a charity, school trip, or other seemingly worthy cause. Consumers who take the bait and sign up, however, often report receiving nothing in return.

Stay safe. Be Informed.

The Better Business Bureau files more than 1,000 complaints about magazine sales fraud annually. The hazards for consumers who fall prey to magazine sales fraud do not end with false promises. In an interview with the New York Times, Isaac James, a former sales crew member testified that he regularly stole, “wedding rings, watches, necklaces, money, checks, shoes, clothing, glasses, [and] hats” from his customers after being let into the house. Unlicensed peddlers can be especially dangerous. The Columbia County (Ga.) law enforcement in February 2011 apprehended 17 members of a sales crew, five of whom had criminal records involving violent crimes.

So, what’s the right action to take for consumers that are approached by a magazine salesperson? Here are a few tips to avoid being defrauded:

  • Ask for written information before you decide to subscribe. Salespeople may describe the cost as “pennies a month” but may not explain the length of the subscription commitment or the total cost. Legitimate companies will send you the details upfront and never insist that you act immediately.
  • Be wary of “free prizes.” They’re not free if you have to buy magazines to get them.
  • Know the cancellation policy. Some subscription services don’t allow cancellations once they have placed the orders with the publishers.
  • Watch out for imposters. Crooks may pretend to be calling on behalf of well-known magazine publishers and request payment to renew your subscriptions, when they have absolutely no connection with them at all and will simply pocket your money.
  • Don’t give your credit card or bank account information unless you’re making payment. There is no reason why the company would need that information for any other purpose.
  • Check the prices. It might be cheaper to buy the magazines directly from the publishers than through a subscription service.
  • If you’re not interested, say no. Tell the caller to put you on the company’s “Do Not Call” list.
  • Ask where they’re from. Fraudulent sellers are more often than not out-of-towners on the road to defraud consumers and then move on to another location.
  • Get it in writing. Before you sign up for a magazine subscription, be sure you understand the terms and conditions. Legitimate magazine companies will give you all the details you need to know in writing, including the length of the commitment, the total price, and who to call if you decide to cancel the subscription and get a refund.
  • Trust, but verify. Ask the seller for a business card and information about the company she is working for. Check out the company with the Better Business Bureau, and call any phone numbers listed to make sure you can reach a live person before handing over money.
  • Report unlicensed door-to-door sales. Many municipalities require a solicitation license before an individual can sell door-to-door. If your town has such a law, be sure to ask to see the seller’s license. If they are unable or unwilling to produce it, don’t do business with them and report the solicitation to local law enforcement.
  • Consider subscribing directly from the publisher. Given the amount of fraudulent activity that is going on in the door-to-door magazine sales industry, at the end of the day it may make more sense to simply subscribe directly from the magazine (via its Web site or by calling directly) or via a subscription clearinghouse service. It is better to be safe than sorry.

Remember, never let a salesperson you don’t know or trust into your home.

Find Fraud Alerts related to this scam here.

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Scholarship scams

October 23, 2020/in Cedit, Debt, and Loans /by Fraud.org staff

Prospective college students often look to scholarships as a way to lessen the financial burden on parents and to avoid taking out student loans. Unfortunately, scam artists know how stressful paying for college can be and they’ve tailored scholarship scams to separate eager students and their families from their money.

Stay safe. Be Informed.

  • Know who you’re dealing with. It may be a search company that is offering to help locate scholarships for which you may be eligible, rather than a foundation that actually awards scholarships. Most foundations don’t charge a fee to apply for a scholarship; if they do, it is very small. Scholarship search companies always charge for their services.
  • Beware of search services that guarantee you’ll receive scholarship money. No search service can control the decisions of scholarship sponsors.
  • Get the details in writing. A search service should be willing to give you a written explanation of exactly how it works.
  • Make sure you understand the refund policy. The company should explain upfront whether you can get your money back if you don’t receive a scholarship and what you have to do to qualify for a refund. Some fraudulent search services set difficult requirements, such as obtaining letters of rejection from each scholarship listing, to make it virtually impossible to get a refund.
  • Do your own scholarship search. A search service may provide information that is outdated or doesn’t apply to you. You may be better off finding scholarships yourself. Ask your high school guidance counselor and college financial aid offices for help. Another good source of information is College Parents of America.

Find Fraud Alerts related to this scam here.

Resources

For More Information about scholarship scams and other resources you can use, visit StudentAid.Ed.gov, the U.S. Department of Education’s site for free information on preparing for and funding education beyond high school. You can complete the FAFSA here, and learn about other FAFSA filing options here. You also can call 1-800-4-FED-AID.

If you think you’ve been scammed, file a report via:

  • Fraud.org’s online complaint form

  • The FTC’s Complaint Assistant

  • Your State Attorney General

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Phantom debt

October 23, 2020/in Cedit, Debt, and Loans /by Fraud.org staff

The phantom debt collection scam comes in a number of variations, but the common element in almost all of them is a claim that a consumer owes money on a debt and needs to pay or else face serious consequences. Regardless of whether the consumer actually takes out a loan, he or she may receive a call later demanding money be paid.

Stay safe. Be Informed.

Often, the scam begins when a consumer inquires about a payday loan or other short-term credit online or over the phone. The Web site or phone number that the consumer contacts may or may not be associated with a legitimate lender.  Since consumers interested in payday loans are often financially strapped, they may be susceptible to such demands whether or not they actually took out a loan.

Even for consumers who do not have outstanding debts, the con artists are threatening and convincing and have led some consumers to wonder whether someone has taken out loans in their name. In cases where a consumer actually does have outstanding loans, the scam artist may claim that the victim owes far more in fees and interest than he or she actually does. In other cases, the victim of the scam may be behind on a loan, but the caller has no authority to actually collect on the debt. No matter the consumer’s actual situation, skilled con artists are convincing them to hand over precious cash to settle the “debt.” Scammers often demand payment on these phantom debts via wire transfer, credit or debit card.

Consumers who have been approached or have had co-workers or family members approached by debt collection scammers should keep the following tips in mind:

  • If a caller asks you to wire money or provide personal financial information such as a bank routing number, credit or debit card number over the phone, hang up. It’s probably a scam.
  • Be wary when applying for payday loans via the Internet. Not only do you risk exposing your personal information to criminals, online loans typically have higher fees and interest rates than loans applied for offline.
  • If you are unsure of whether or not you owe a debt, ask the caller to only contact you by mail and to provide written proof of the debt. The Fair Debt Collection Practices Act requires debt collectors to stop calling their targets if they are asked to do so.
  • If you receive a call from someone claiming to be from a government agency or official-sounding institution who says you owe money on a debt, hang up and call the organization in question directly.
  • If you are unsure whether you are delinquent on a payday loan, contact the lender directly to inquire about the status of your account.
  • Look up numbers or email addresses for lenders on your own or rely on your loan paperwork to find a legitimate contact number.
  • Consumers who receive calls from phantom debt collection scammers may have had their personal information exposed, raising the risk of identity theft.The Federal Trade Commission offers a step-by-step process for recovering from identity theft here.
  • If a scammer using this scam approaches you, or if you’ve already fallen victim, contact local law enforcement and file a complaint with Fraud.org.

Find Fraud Alerts related to this scam here.

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Government grants

October 23, 2020/in Cedit, Debt, and Loans /by Fraud.org staff

Claims of “free government grants” from the US government asking for personal information such as your Social Security and bank account numbers or pay a “processing fee.” But instead of giving you a grant, the plan is to steal your identity, your money, or both.

Stay safe. Be Informed.

  • The government doesn’t telephone people or send unsolicited letters or emails to offer grants. If someone contacts you unexpectedly and offers you a grant, it’s a scam. Don’t provide your financial account numbers, Social Security numbers, or other personal information in response to such an offer. Crooks “phish” for that information to steal victims’ money and impersonate them for other illegal purposes.
  • Government grants never require fees of any kind. You might have to provide financial information to prove that you qualify for a government grant, but you won’t have to pay to get one.
  • Government grants require an application process. They aren’t simply given over the phone and are never guaranteed. Applications for government grants are reviewed to determine if they meet certain criteria and are awarded based on merit. If you didn’t apply for a government grant and someone says you’re receiving one, it’s a scam.
  • Government grants are made for specific purposes, not just because someone is a good taxpayer. Most government grants are awarded to states, cities, schools, and nonprofit organizations to help provide services or fund research projects. Grants to individuals are typically for things like college expenses or disaster relief.
  • Don’t be fooled by official or impressive-sounding names. Swindlers claiming to provide or help get government grants often invent impressive-sounding names and titles for themselves and the companies they represent. They operate under many different names and phone numbers, take your money, then leave town to start all over again.
  • Beware of services offering government grant information for a fee or requesting your personal information to provide it. Information about government grants and other benefits is free (though there may be a fee for some print publications) and you don’t have to give personal information to get it.

Resources for Information about Government Grants and Benefits

Center for Digital Business

Online catalogue of federal domestic assistance programs. Hard-copy available for a fee through the Government Printing Office, (202) 512-1800 or toll-free outside of the DC metro area, (866) 512-1800.

Federal Student Aid

Information and applications from the U.S. Department of Education for student financial aid programs. Telephone hotline, (800) 433-3243, operates Monday-Friday 8 a.m. to midnight Eastern Standard Time, Saturday 9 a.m. to 6 p.m.

Benefits.gov

Information about a wide variety of state and federal government benefits and programs. Telephone hotline, (800) 333-4636, operates Monday-Friday, 8 a.m. to 8 p.m. Eastern Standard Time. www.grants.gov Information about grants available from government agencies. Telephone hotline, (800) 518-4726, operates Monday-Friday, 7 a.m. to 9 p.m. Eastern Standard Time.

Find Fraud Alerts related to this scam here.

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Credit repair

October 23, 2020/in Cedit, Debt, and Loans /by Fraud.org staff

Good credit is important—a bad credit history can prevent you from getting a loan, housing, or a job. Promises to “fix” your credit report may be tempting, but they’re not true.

Stay safe. Be Informed.

  • No one can erase negative information if it’s accurate. Only incorrect information can be removed. Accurate information stays on your record for 7 years from the time it’s reported (10 years for bankruptcy). Even information about bills you fell behind on but now are paid will remain on your report for these time periods.

  • Credit repair services can’t ask for payment until they’ve kept their promises. Federal law also requires credit repair services to give you an explanation of your legal rights, a detailed written contract, and three days to cancel (this applies to for-profit services, not to nonprofit organizations, banks and credit unions, or the creditors themselves).

  • You can correct mistakes on your credit report yourself. If you were recently denied credit because of information in your credit report, you have the right to request a free copy from the major credit bureaus, regardless if your state law provides one for free as well, otherwise there is a small fee. It doesn’t cost anything to question or dispute items in your report. Follow the instructions provided by the credit bureau. The major credit bureaus are:Equifax, 800-685-1111; Experian, 800-682-7654; and TransUnion, 800-916-8800. Contact all three, as the information each has may vary.

  • You can add an explanation to your report. If there is a good reason why you weren’t able to pay bills on time (job loss, sudden illness, etc.) or you refused to pay for something because of a legitimate dispute, give the credit bureau a short statement to include in your file.

  • Know that you can’t create a second credit file. Fraudulent companies sometimes offer to provide consumers with different tax identification or social security numbers in order to create a new credit file. This practice, called “file segregation,” is illegal, and it doesn’t work.

  • If you have credit problems, get counseling. Your local Consumer Credit Counseling Service (CCCS) can provide advice about how to build a good credit record. The CCCS may also be able to make payment plans with your creditors if you’ve fallen behind. These services are offered for free or at a very low cost. To find the nearest CCCS office, call toll-free, 800-388-2227, or go to www.nfcc.org.

Find Fraud Alerts related to this scam here.

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Credit card loss protection

October 23, 2020/in Cedit, Debt, and Loans /by Fraud.org staff

If your credit card is lost or stolen, it can certainly be inconvenient. But beware of crooks that use scare tactics and false information to sell protection that consumers don’t really need.

Stay safe. Be Informed.

  • Know your rights. Under federal law, you’re not responsible for any charges if you report your card missing before someone else has used it, and you are not liable for more than $50 if it has been used, as long as you report the problem promptly.
  • Your credit card issuer may offer extra protection for free. Most card issuers have voluntary policies to remove unauthorized charges completely if consumers report them as soon as they discover them. If you’re not sure what your issuer’s policy is, ask.
  • Watch out for imposters. Someone may claim to be connected with your credit card issuer and ask to “verify” your account number to make sure you’re protected. Your real credit card issuer doesn’t need your account number; it already has it.
  • Protect yourself against credit card fraud. Don’t leave your card lying around your home or office where others can see it, and don’t lend it to anyone. If you want someone else to be authorized to use your account, make those arrangements through your card issuer. Only give your credit card number when you are actually making a purchase.
  • Check your credit card bills carefully as soon as you receive them. Follow the instructions on your bill for questioning or disputing charges. Don’t send a note with your payment, since a separate department usually handles disputes. Make copies of any forms or letters that you send your credit card issuer about the dispute, and be sure to pay the rest of your bill on time.
  • Be prepared in case your card is lost or stolen. Keep a file with your credit card issuer’s name and telephone number and your account number. Have this separate from your purse or wallet in case it’s stolen, too.

Find Fraud Alerts related to this scam here.

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Advance fee loans

October 23, 2020/in Cedit, Debt, and Loans /by Fraud.org staff

When you need money, a promise to give you a loan or help you get one (even if you have a bad credit record) may seem like the answer to your prayers. But beware—it could be a crook trying to steal your money, not lend you money.

Stay safe. Be Informed.

  • Don’t pay upfront. If a lender approves your for a loan, then calls or emails you demanding a fee before you can receive the money, it is most likely a scam. Many of these scammers tell you the up-front fee is for “insurance,” “processing,” or “paperwork.” Normal lenders charge application, appraisal, or credit report fees but do not require you to pay up-front for the loan.

  • Don’t trust a lender who contacts you by telephone. It is illegal for companies to promise you a loan in the U.S. by telephone and ask you to pay for it before they deliver the money.

  • Don’t fall for promises that you’ll get a loan regardless of your credit problems. If you have poor credit or haven’t established a good credit record yet, it’s unlikely that any credible company will lend you money. Your credit history is one of the main things that legitimate lenders use to decide if you are a good credit risk. If a lender does not care about your credit record or guarantees you money no matter what your credit score may be, it is most likely a scam.

  • Do business with licensed companies. Ask your state banking or finance department about the licensing requirements for lenders and loan brokers, and find out if the company has complied. Be wary of scammers who claim to be affiliated with well-known or respected organizations.

  • If you can’t get a loan yourself, get a co-signer. A friend or relative may be willing to apply with you for a loan. You will both be equally responsible for the payments.

  • Get all the costs and other details before you decide. Shop around for the best loan rates and fees.

  • Have proof of what you were promised. Get the agreement in writing or in an electronic form that you can use to document the deal. Make sure you do not pay for the loan directly to an individual or wire anyone money, legitimate lenders will not request this from you.

  • If you have credit problems, get counseling. Your local Consumer Credit Counseling Service (CCCS) can provide advice about how to build a good credit record. The CCCS may also be able to make payment plans with your creditors if you’ve fallen behind. These services are offered for free or at a very low cost. To find the nearest CCCS office, call toll-free, 800-388-2227, or go to www.nfcc.org.

Find Fraud Alerts related to this scam here.

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