Posts Tagged: ‘FTC’

Scam of the day – April 14, 2016 – United Nations compensation board scam

April 13, 2016 Posted by Steven Weisman, Esq.

Today’s scam of the day comes, as many do, from my own email although I am sure many of you have seen this as well popping up in your own email.  It appears to be an email from the non-existent United Nations Scam Compensation Board, which promises to compensate scam victims for everything they may have lost.  In addition, these full service scammers also provide loans if you need one.  As counterfeit emails go, this one appears pretty good as it comes under an official United Nations logo.  Somewhat puzzling are places to click at the bottom of the email to like them on Facebook and follow them on Twitter.  Here is the text of the letter

“Have you been scammed? Are you talking to a scammer? Have you ever lost a property online to fraudsters?  We have created a Board to compensate all your loss 100%.  We Have agents ready to help you file your loss case and get a FULL refund. If your COMPANY have been also scammed whether a small or big business, we will help you get a compensation.  We listen to all scam cases e.g Romance scam, Email Fraud, Hacked bank account scams, Basically all kind of scams. Our Agents will create a case ID for you immediately and collect the necessary requirements. You will be forwarded to the reimbursement team within 24 hours.


Do you need loan for your business or for personal purposes? We have a partner loan company that will take your requests.  Reply this email with your loan requirements and a loan agent will take your request, forward it to the loan team and you will get a response all within 24 hours. If you need a very big loan, add that to your request, we will collect the required information, verify and endorse your request for faster approval.  Thanks

Scott James (UNSCB)”


Anyone clicking on the links provided in the email to be connected to an agent would only end up providing personal information to a scammer that would enable the scammer to make the person responding to the email a scam victim again.  A Google search would easily show that there is no United Nations compensation board.  In addition, no agency can possibly guarantee that they can refund you the entire amount that you lost to a scammer.  Also, if the board was able to provide you with the entire amount that you had lost to a scam, why would you need to apply to them for a loan.  This scam is a good example of an email that looks legitimate, but when you read what it says, there is nothing that would  give the slightest indication that it is to be trusted.

If you find yourself a victim of a scam, you should report the scam to your local police, the consumer protection of your state attorney general,  and the Federal Trade Commission (FTC).    Never provide personal information to anyone unless you are absolutely sure they are legitimate.


Scam of the day – February 25, 2016 – Sucker lists

February 25, 2016 Posted by Steven Weisman, Esq.

Being scammed once is bad enough, but being scammed a second time by someone who convinces you that he or she is going to help you recover money you lost in the first scam is outrageous. Unfortunately, it is happening more and more as scammers sell, what are referred to as “sucker lists” of people whom they have scammed, to other scammers.  The criminal buying the list then contacts the victim of the earlier scam purporting to be from a company or agency that can help recover the funds lost to the first scam.  They always require an upfront payment, which is a good early indicator that this is a scam.  Sometimes they do absolutely nothing, but victimize the scam victim a second time, but other times they will actually file a complaint with the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB) or some other consumer protection agency.  However, filing a complaint with these agencies is something that the victim can do at no cost for himself or herself.


Never pay an upfront fee to someone offering to help you recover money lost to a scam and never give personal information to someone who calls you offering to perform these services for you for an upfront fee.  It costs nothing to file a complaint with the police, the FTC, the CFPB or any other consumer protection agency.  In rare instances, you may wish to retain a lawyer to help you recover funds lost to a scammer, but attorneys generally take these cases on a contingency basis, which means that you do not have to pay them anything upfront.  They get paid out of whatever is recovered from the scammer.  Finally, most people who are on sucker lists are contacted by telephone.  If you have been a victim of a scam, you may wish to consider changing your telephone number to avoid the inevitable call from another scammer.

Scam of the day – August 2, 2015 – Senators Markey and Blumenthal file legislation to combat automobile hacking

August 2, 2015 Posted by Steven Weisman, Esq.

In the wake of a recent video and story in Wired Magazine that showed how vulnerable today’s Internet connected automobiles are to dangerous hacking, United States Senators Edward Markey and Richard Blumenthal have filed legislation known as the SPY Car Act designed to provide requirements for automobile manufacturer’s to meet the threat of automobile hacking.  SPY is an acronym for Security and Privacy in Your car.  Senator Markey, in particular has long been concerned with the vulnerabilities of automobiles to being hacked and last February  issued a report that determined that the efforts of automakers around the world to prevent hackers from gaining control of cars electronically were “inconsistent and haphazard.”  Further, Markey concluded that most automakers did not even have systems for either detecting security breaches or responding to those breaches.  This new legislation is an attempt to respond to the lack of efforts by the automobile industry to effectively deal with this problem.

The bill if enacted into law would require the National Highway Traffic Safety Administration (NHTSA) and the Federal Trade Commission (FTC) to develop industry wide standards to prevent vehicle control systems from being hacked into.  In addition, the bill would require privacy standards to be developed to protect the privacy of the data collected by our vehicles.  Finally, the bill if enacted into law would require cars to have a new cyber dashboard display that would be affixed to the windows of all new cars that indicated how well the particular type and brand of car protected security and privacy beyond the minimum standards set by law.


Automobile hacking is just another part of the broad Internet of Things where we are all increasingly vulnerable to hacking that threatens our well being.  Companies have got to do a better job of incorporating security into all of the devices and products that we use that are connected to the Internet. It is only a matter of time before hacking into the products involved with the Internet of Things results in devastating consequences.  Here is a copy of my USA Today column I wrote in April about the Internet of Things and the dangers posed.

Here is a link to the legislation proposed by Senators Markey and Blumenthal.  If you support this legislation, I urge you to contact your Senators to request that they vote favorably on this bill.

Scam of the day – May 4, 2014 – Precious metals scams

May 4, 2014 Posted by Steven Weisman, Esq.

Congressional hearings last week highlighted the problem of scam artists  fraudulently selling gold and other precious metals to people, many of them elderly.  Often these scams start with a telemarketing call to the victim in which he or she is told “inside” information about an upcoming rise in the prices for gold, silver or other precious metals.  The victims are then goaded into buying the metals at an inflated price and then must often pay additional commission and storage fees that result in the victims losing thousands of dollars.  Since 2001, it is estimated that precious metals fraud has cost consumers 300 million dollars.  Although the Commodity Futures Trading Commission and the Federal Trade Commission both have jurisdiction in the advertising and sale of precious metals and have shut down some scammers, their record in protecting consumers from precious metal scams is lacking.


No one should ever purchase an investment unless they fully understand the investment and no one should ever make an investment decision based solely on a telemarketing call.  Precious metals can be a part of a legitimate investment portfolio, however, this is a sophisticated investment that should only be done by people who are fully educated and informed not just about the investment itself, but also the brokers and others selling the particular investment.

Scam of the day – November 24, 2013 – Phony Yellow Pages scam

November 24, 2013 Posted by Steven Weisman, Esq.

The Federal Trade Commission recently got an injunction stopping the operation of a scam based in Montreal, Canada, but aimed at American businesses and churches involving phony online business directory listings.  At the time that the FTC acted, the scammers, Mohamad Khaled Kaddoura, Derek Cessford and Aaron Kirby as well as the fifteen companies under which they operated had stolen more than fourteen million dollars from unsuspecting victims.  The scam would start with a phone call in which the scammers said that they were verifying contact information to update or confirm existing directory listings.  Other times they said that they were calling to verify information for cancellation of a listing.  In every instance, these were total misrepresentations because the businesses and churches called had no previous relationship with the callers.  The calls were then followed up with bills averaging about $500.  When the victims complained, the scammers played back portions of the initial telephone calls that made it sound like they actually did purchase the listing services.  If the victims still refused to pay, the then received calls purporting to be from collection agencies threatening legal action.


Never provide information to anyone over the phone or in response to an email or text message unless you are absolutely sure that the person contacting you is legitimate and they have a legitimate need for the information you are providing.   In this case,  people receiving the original call should have refused to provide any information until they had verified that their company or church actually had an account with the caller, which, of course they did not.  Had they taken this simple step rather than provide information to someone they did not know, they could have avoided much trouble.  This is a valuable lesson for all of us.  Scammers will often sound legitimate, but being aware of that, you should always decline to provide information to anyone who contacts you until you have absolutely verified that the call is legitimate and the need for the information is legitimate.

Scam of the day – September 13, 2013 – A Nigerian letter that will help you

September 13, 2013 Posted by Steven Weisman, Esq.

For years, we have all been receiving emails from Nigeria offering money for nothing (although not chicks for free as Dire Straits used to sing).  The emails had various premises including dead relatives, deposed dictators and bank schemes, but they all shared one thing in common – once the victim was lured into the scheme, the victim ended up actually paying more and more money to get the vast riches that never came.  Well now for the first time, the Federal Trade Commission which deals with these scams has signed a memorandum of understanding with two Nigerian agencies to increase cooperation in their joint efforts to stop this type of fraud.  This is the first memorandum of understanding that the FTC has ever done with a foreign criminal enforcement authority, in this case, the Nigerian Consumer Protection Council and the Nigerian Economic and Financial Crimes Commission.  Hopefully, this new joint effort will help reduce Nigerian scams, however, it is important to remember that when it comes to scams, the best place to look for a helping hand is at the end of your own arm.


Certainly if you ever receive an email from Nigeria promising something for nothing, you should be incredibly skeptical.  Whenever you receive such an offer regardless of where it is from you should ask yourself, why are you getting something for nothing.  Remember if it looks too good to be true, it usually is.   You should also ask why you are being singled out for this great opportunity.   The way most of these scams work is that once you are lured into the scheme you are told that you need to supply some small amount of money for bribes, fees, taxes or whatever.  This amount keeps getting larger and larger although the promise of receiving a great amount of money blinds the victims into continuing to make payments.  You can find out more specific information about various Nigerian scams here in the archives of Scamicide or in my book, “The Truth About Avoiding Scams” which can be ordered as a paperback or electronic book from Amazon by clicking on the links at the right hand side of the page on the icon for the book.

Scam of the day – June 8, 2013 – FTC takes action against timeshare resale scammers

June 8, 2013 Posted by Steven Weisman, Esq.

The Federal Trade Commission has just announced the filing of charges against three companies who the FTC claims have been guilty of fraudulent and deceptive practices.  The companies involved are Resort Solution Trust, Inc.,  Resort Property Depot, Inc. and Vacation Communications Inc, doing business as Universal Timeshares Sales Associates.  The scam generally starts when the victim is contacted and told that the company has a ready, willing and able buyer for the victim’s timeshare unit.  The victim is told that they must pay upfront fees, which can be as much as $3,400.  The truth is that their are no buyers and often the victims are even called on the telephone in violation of the Federal Do Not Call List.  When the victims have demanded refunds, the scammers refused to return the funds paid to them.


Many timeshare owners have become desperate to sell their timeshare units and scam artists take advantage of this desperation. However, regardless of how desperate you are, you should never pay anyone promising to sell your timeshare unit in advance of the actual sale.  If you follow this rule, you will save yourself a lot of headaches.  Before signing on with anyone to sell your timeshare unit, you should also investigate the company to make sure that they are legitimate.  Check with your state attorney general and the Federal Trade Commission to see if their are complaints or legal actions against the company.

Scam of the day – May 13, 2013 – FTC refunding 1.7 million dollars to victims of government grant scam

May 13, 2013 Posted by Steven Weisman, Esq.

Unfortunately, it is not very often that I get an opportunity to tell victims of a scam that they can get some of their money back, but today is one of those happy exceptions.  In 2009 the Federal Trade Commission first took action against a number of phony websites that promised that they could provide the consumer with tools to be able to easily locate fifteen billion dollars worth of free grant money and to qualify for those grants.  The websites looked official with pictures of President Obama and Vice President Biden.  The one-time charge was indicated to be between 99 cents and $2.78, however people signing on for the service actually ended up being charged monthly fees of $70 per month for unrelated services.  To make things worse, the information provided about obtaining grants was misleading, false or useless.


Under a settlement with some of the scammers and court orders regarding the others by which the scammers approximately 1.7 million dollars is being paid to the FTC to be paid back to 22,764 victimized consumers.  The money is being administered by Gillardi & Co. a third-party refund administrator.  Checks are being sent now and must be cashed within 60 days of receipt.  It is expected that victims can expect to receive about 80% of the money they paid for the worthless service.  If you have been victimized by this scam and have not been contacted by the FTC, you should contact them at 1-877-FTC-HELP (1-877-382-4357) or go to the FTC’s website at

In the future, you should always be skeptical of any service that sounds too good to be true.  Scammers sometimes say that they are from the Federal Grants Administration, but in truth, there is no such entity.  Government grants are not easy to get and if you have to pay money to obtain a free grant, it isn’t free.  The government does not charge for lists of grant providers.  If you are truly interested in information about federal grants, the only place to go is the federal government’s grant website of

Scam of the day – April 3, 2013 – Robocalls update

April 2, 2013 Posted by Steven Weisman, Esq.

Automated robocalls, such as those which we have all received from “Rachel from card services” that try to induce us to get a new credit card or any other service are a scam that has been with us for many years and despite the best efforts of the Federal Trade Commission, still is victimizing many people.  The calls sound legitmate and if you are not sufficiently skeptical, you can end up having your identity stolen or scammed out of money for a worthless product being sold.  It is easy to identify a robocall that is a scam.  If you get a robocall, it is a scam.  Robocalls are illegal.  Recently the FTC, in an effort to combat robocalls held a contest with a $50,000 prize to the person who came up with the best solution to stop robocalls.  Yesterday, the winners were announced.  They are Aaron Foss and Serdar Danis who split the prize.  Their solution involves new software that will filter out calls being placed by a computer or someone identified as an unwanted caller.


The software developed by Foss and Danis is not yet readily available, however, a good low-tech solution to the problem which I have been using for years is to merely hangup whenever I get an automated call without a real person on the line.  Robocalls are illegal and anyone who is making them to sell me a product or service cannot be trusted.  Bye Bye Rachel.  I can’t say it was good knowing you.

Scam of the day – November 17, 2012 – FTC files actions against job scammers

November 17, 2012 Posted by Steven Weisman, Esq.

The FTC just announced that it has brought actions against Shopper Systems, LLC, Revenue Works, LLC, The Veracity Group LP, American Business Builders LLC, ENF LLC, UMS Groupp LLC, The online Entrepreneur, Smart Tools LLC, The Zaken Corp and other companies for operating scams promising business opportunities as mystery shoppers, credit card processors, website operators and government insurance refund processors.  Unfortunately, the Federal Trade Commission (FTC) alleges that all these companies were doing was stealing people’s money and providing them with worthless information.  The sad truth is that the actions by the FTC represent just the tip of the iceberg and as soon as one fraudulent enterprise is shut down, another springs up.  Particularly in hard economic times, people are particularly vulnerable to job scams out of desperation.


Many of these job scams had the common theme of promises of large amounts of money for little effort.  Not quite “Money for nothing and chicks for free” as sung by the band Dire Straits, but pretty close.  You should always be skeptical of such promises.  If indeed these jobs were legitimate, why isn’t everyone doing it?  Before giving money to any company promising you an employment opportunity you should research the company with the FTC, your local state attorney general, the Better Business Bureau and even use the easy tactic of going to Google and typing in the name of the company along with the word “scam” and see what comes up.