Tag Archives: economic downturn

That Get Rich Quick Scheme Is A Scam!

While trawling the Internet for part-time jobs in September after being furloughed from her travel company in March, Sumathi Rao, a New York-based travel agent, spotted a job offer in her FB newsfeed she could not pass up. It seemed too good to be true

The Fouray Foundation (account now suspended) had an opening for a Fundraising Assistant. Their pitch was promising.  She could work from home. Her responsibilities would include helping her manager Didiane Marcheterre (possibly an alias), write to donors for contributions. Funds from the charitable foundation would supposedly support non-profit hospitals, medical workers, and healthcare projects. The salary, at $1000 a week, thought Rao, would nicely supplement the $300 lost wages assistance New York state benefit offered to eligible workers looking for jobs.  It would serve as a cushion until the pandemic eased off and her old job, hopefully, was reinstated.

Fouray Foundation letter

So Rao contacted Fouray. A follow-up message invited her to send her resume and ask questions about ‘the excellent option’ posted in the ad.

After a promising interview with Marcheterre, Rao was set to go. All she needed to do next said Fouray, was to buy ‘bitcoins’ from an ATM, so they could ‘deposit money in her account’ via a direct deposit authorization.  The odd request raised an alarm bell. Rao says she trusted her instinct and responded with a firm no. And that was that.

When recounting her experience with former colleagues at her travel agency, Rao discovered that several of them had also been approached by Fouray. A little more digging revealed complaints filed by other victims against the foundation for fraud. Rao promptly reported Fouray to the Federal Trade Commission (FTC). An internet search on the Fouray Foundation will now only produce an ‘Account Suspended’ message.

With record unemployment inflicted by the economic downturn and job losses, people like Sumathi Rao are simply looking to make ends meet. Scammers are taking advantage of their desperation with false promises of making money in the financial crisis, warned attorneys from the FTC at an EMS ethnic media briefing on December 15.

So if an opportunity seems too good to be true, it usually is. During the pandemic, scammers are ramping up fraudulent get rich schemes across the nation. “Scammers make big promises when pitching a fake money-making opportunity,” explained Rhonda Perkins, an attorney with the FTC, “but that’s just an income illusion.”

Kati Daffan & Rhonda Perkins, FTC

Impact of Income Scams

The volume of reports to the FTC “reached the highest levels on record in the second quarter of 2020,” added Kati Daffan. In the first 9 months of 2020 alone, people reported losing more than $150 million to harmful scams.

The FTC has joined forces with federal, state, and law enforcement agencies to announce action against deceptive income scams, said Daffan, pointing out that the 15 FTC cases represented in the sweep accounted for an alleged injury of more than a billion dollars.

Who Gets Targeted?

Scams tend to target certain communities, stated Daffan, who went on to describe scams currently under investigation at the FTC. In one case, scammers were pitching fake sou-sous savings clubs and illegal pyramid schemes on social media at communities that have historically engaged with Sou Sous  –  which are rotating savings clubs originating out of West Africa and the Caribbean. They promise big payouts to individuals out of a common savings fund sponsored by trusted family and friends. The majority of people in these fake schemes end up losing considerable amounts of money said Daffan.

Another FTC case featured a scam pitched at Latina women through Spanish language TV ads, which proposed a work-from-home scheme to make money from selling luxury goods to others in their community. An investment scam called Raging Bull promised profits through secret trading techniques to older people, retirees and immigrants – they lost at least $137 million in the last three years.  Other scams targeted students, veterans and college age adults in a variety of bogus opportunities.

According to FTC data, the average loss to scam over $500 affected more people who lived in zip codes that skewed older, but when the loss to scam was less than $500, those affected tended to live in zip codes with a black majority population. But more data is required said Daffan, to fully determine who is getting affected by income illusion schemes.

Operation Income Illusion

In an effort to combat income scams the FTC has launched Operation Income Illusion. The campaign is designed to raise awareness about consumer fraud and counter the proliferation of get rich quick scams – the many pyramid and chain letter schemes – flourishing on social media.

Daffan explained that the campaign wants to alert people to soundbites and false promises used in business coaching and job scams to catch people’s attention about making money. She warned consumers to watch for options that talk about working from home or starting their own business with little time and effort. People need to be on their guard about prospective fake jobs, investment schemes, coaching courses, business offers, pyramid schemes, and reshipping scams, cautioned Daffan.

An FTC video offered additional advice on how to avoid income scams which come in many forms, and offer money-making opportunities online, through real estate, in the stock market, or by selling goods. But the most obvious sign of a scam are ones that promise megabucks if consumers use ‘their methods.’

Scam language examples from the FTC

Spot the Sham

Perkins suggested looking for absurd claims in a typical pitch that includes words and phrases like –
‘amazing wealth’
succeed online’
‘earn hundreds of dollars per hour from home’
‘what if an online millionaire offers you his entire business no strings attached’

These sort of offers only guarantee only one outcome warned Perkins – that buyers will be out of their hard-earned money. Most scams guarantee success in a short time, which is unrealistic. She urged people to do their research before investing in any income schemes, and search online using the company name with keywords like scam, complaint, and review, and to be wary of glowing testimonials that could be fake or misleading. The best course of action said Perkins, would be for consumers to simply walk away.

So Buyer, Beware. If you see one of these offers, remember that the only people getting rich are the scammers selling the system.


Meera Kymal is a contributing editor at India Currents

HELPLINES
Report scams to www.ReportFraud.ftc.gov and if people can’t get online, call 1.877.FTC.HELP (1.877.382.4357).
To find out more about
Vaccine Scams at: https://www.consumer.ftc.gov/blog/2020/12/covid-19-vaccines-are-pipeline-scammers-wont-be-far-behind
MLM Businesses and pyramids at: https://www.consumer.ftc.gov/articles/0065-multi-level-marketing-businesses-and-pyramid-schemes
Sou-sous at: https://www.consumer.ftc.gov/blog/2020/08/real-or-fake-savings-club
Other resources at www.ftc.gov/languages.

 

 

Caught In The Grip Of A Triple Crisis

In the Grip of a Triple Crisis

The first week of June 2020 was cataclysmic for the US.  The unrelenting Covid pandemic continued to disproportionately impact people of color while the economic downturn exhibited Depression-era rates of unemployment and layoffs. In the aftermath of George Floyd’s death by a kneeling police officer, the country erupted in protests against persistent racism and racial injustice towards African Americans.

The events formed a triple crisis that slammed a nation grappling for ways to simultaneously stave off a deadly virus, an economic crisis and systemic racism in its police force.

How will the nation extricate itself from the grip of an unprecedented debacle and learn to move forward?

A panel of civil rights advocates and health experts shared their perspectives on next steps at a briefing hosted by Ethnic Media Services on June 5.

COVID19 is Spiking: The Facts

Covid-related infections and deaths continue to rise around the world said Dr. Tung Nguyen Professor of Medicine at University of California, San Francisco.

  • To date 6.5 million people have been diagnosed with Covid-19 and nearly 378 thousand deaths recorded worldwide.
  • In the United States over 1. 8 million infections and more than 107,000 thousand deaths have been reported.
  • Cases are rising in 17 states including California, Texas, Florida and North Carolina, and the CDC is forecasting nearly 118,000 to 143,000 deaths by June 27th.
  • And, a significant finding on ER data indicates that ER visits are declining, but it could simply mean that people with severe medical conditions unrelated to COVID19 are avoiding the ER and getting worse due to conflicting priorities.

Dr. Nguyen remarked that the large crowds protesting police brutality could contribute to a possible rise in infections. He recommended that police stop using teargas to dispel protesters because it causes coughing and teary eyes that could increase the risk of spreading COVID-19.

He also urged people to wear face masks, as over 72 studies of more than 25,000 patients proved that masks were effective in preventing infection, and that high risk individuals like healthcare workers should wear N95 rather than surgical masks for protection.

The CDC Director told Congress that race, ethnicity, age and zip code data must be added to testing collection to make testing more effective in addressing disparities.

On the treatment front, the good news said Dr. Nguyen, is that 17 vaccines are in human trials, with Moderna due to enter phase 3 testing in July. However, he warned against the use of hydroxychloroquine after exposure to COVID19, as studies show it does not prevent infection.

The Disease of Racism and Police Brutality

Dr. Nguyen described racism as a disease that inflicts health disparities to people exposure to it. Racism is similar to social determinants like  poverty, education, the environment and healthcare access,”  he said, adding that “chronic exposure to racism causes the body to change adversely to the release of stress, hormones, and neurotransmitters.”

“We also know that acute exposure to racism can lead to death,” stated Dr. Nguyen, “as in the case of the recent killings of George Floyd, Breona Taylor, Ahmaud Arbery and others.”

In Nguyen’s view the pandemic has “severely stretched our dysfunctional systems – health, economical, legal and political, to their limits and broken them. We can no longer pretend that they are good enough. They were never good enough except for those of us who enjoy privilege.”

He also suggested that the pandemic had ripped off the ‘so called’ color blindness from our eyes so people can no longer pretend we all benefit or suffer in the same way. Racial and ethnic minorities, especially African Americans, suffer more from disparities in income equality, education and environment degradation, he said.

In fact, stated Nguyen, “One of 2000 black Americans have died in the pandemic, and their mortality rate is two to three times more than white people.” As a disparity expert, Nguyen was not surprised  because data shows that black people, even at high socio-economic levels, have shorter life expectancies than middle class whites.

However, he called for more and accurate data because for decades before the pandemic, data on racial and ethnic minorities has been insufficient.  “Whenever the data is not there, it’s because someone powerful does not care.” So it’s no accident, added Nguyen, that there are few minorities in positions of power.

“In the absence of data America can pretend there aren’t so many health disparities.”

The health implications of racism & police brutality

Nguyen called racism and police brutality disease vectors that need to be controlled and eradicated. “Statistics confirm that one out of 1000 black men can be expected to be shot at by police in their lifetime.”

The protests, he predicted, are beginning to look like interventions against the disease of racism.

Nguyen’s view was endorsed by the other panelists who discussed the need to reform law enforcement and systemic exclusionary practices.

Color consciousness not color blindness combats stereotypes

As the BLM movement gathers steam, “Nothing’s changed but what year it is.” said Professor Jody Armour. He described a futile cycle of  “wash, rinse, repeat” interventions initiated over the years to address systemic racism and brutality in the police force, but “which have solved nothing.”

Armour’s 1997 book  ‘Negrophobia & Reasonable Racism: The Hidden Costs of Being Black in America’, documents the repetitive sequence of commissions, public hearings, policy wonks, hashtags, implicit bias training, body cams, de-escalation, community policing and interventions that came to nought.

Fast forward to 2020. “That police department in Minnesota had all these interventions” noted Amor, and yet, “three officers stood by” as an officer kneeled on George Floyd’s neck.

“Black lives haven’t mattered since the inception of this nation”, remarked Armour, adding, “Black lives did not matter under Jim Crow.”  On Skid Row in Los Angeles, the largest homeless encampment in America, “75% of the faces are black”.

The Fix for Structural Racism

The fix is change at a fundamental level of policing said Armour. That means cutting back on the police department and its budget, and reallocating resources to schools, ‘houselessness’ and social services.

“Right now, these resources are being ‘sucked  up’ by law enforcement,” explained Armour. In LA, nearly 54% of the mayor’s staggering $5.5 billion budget went to the LAPD. “That money should be going to schools,” he urged.

“The trope for our problem is Hurricane Katrina when there was no collective empathy for the black lives standing in water up to their necks in the 9th Ward,” said Armour.

“There is relative indifference to the suffering of those who don’t belong to your ingroup.” In addition, police officers are insulated from accountability and transparency by Union Collective Bargaining Agreements.

The way forward is to revamp, test and reform how we hire Police Officers,” advised Armour. The solution is not technological intervention or policy tweets. He suggested that diverting funds to address disparities will drive better outcomes in health, violence and unemployment. In most cases violence is triggered by law enforcement of ‘low level, non-violent offenses.

“African Americans are being criminalized in schools,” he stated, creating a pipeline from juvenile hall to the  prison system.”

Police need to focus on murder, rapes, violent assault and robbery which are only ‘being solved at a 40-45% rate” in many cities because police work is being diverted from investigation toward proactive, “broken windows policing.”

“You can reduce police presence without reducing public safety,”  noted Armour. “When ‘Stop and Frisk’ was reduced in New York, the crime rate went down.

Before moving forward from the triple crisis,  Thomas Saenz, President,  Mexican American Legal Defense and Educational Fund (MALDEF), urged that an examination of the underlying culture in society and law enforcement was necessary.

“There are systemic discriminatory practices embedded in the culture that have clear exclusionary impact,” he said, though he finds it ironic that “today we are experiencing these crises under perhaps the most openly racist and exclusionary president.”

However, Saenz suggested that the culture in law enforcement has to change “through structural reform not only in how its financed but also in how we select and entrust with law enforcing our community.”

He also advised looking at a deeper level at our underlying culture that still accepts discriminatory, race-linked disparities that “ we perpetuate and facilitate,” if we cannot attribute them to intentionally and openly expressed racial discrimination.”

Steps taken to counter the pandemic at the federal level continue to “embed within them” discriminatory policies that excludes minorities, added Saenz.

Recent legislation excluded largely undocumented workers from receiving economic stimulus checks  because they pay taxes with an Individual Taxpayer id number. As a result, comments Saenz, every member of their families (including US citizen spouses and children) are also excluded .

“We know that that exclusion has a racially discriminatory impact particularly on Latin and Asian American communities,” said Saenz. The Department of Education under Betsy DeVos provided advice with clear racially discriminatory intent that prevents some immigrant students from receiving relief from federal allocated emergency financial aid that other students got.

Exclusionary practices with clear racially discriminatory impact, dehumanize people of color and demonize protestors who have “risen in righteous indignation against George Floyd’s murder,” said Saenz.

As the economy recovers and jobs are restored,  “We will see longstanding patterns of discrimination recur,” said Saenz. “White employees will be hired back first while African, Latino and Asian Americans will be hired later on.”

He cautioned that, “With these crises we are doing what we have too often done. We are continuing, perpetuating and lengthening our acceptance of ongoing discriminatory exclusions “because we cannot attribute them to blatant racism “even though we know they are driven by racist ideology.

This is a problem that will feed into the response and recovery of these crises, said Saenz.

Meera Kymal is a contributing editor at India Currents


Photo by Robert Metz on Unsplash