Tag Archives: #FTC

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.

 

 

Ink & Metal Gives Back to Community

Ink and Metal of American High School is on a mission to bring STEM education to students in the Bay Area, combine their efforts in times of need, and inspire students through their outreach.

How could they help the most people while bringing many people together?

Rishi Gurjars tell us: “Once we decided to raise money for a food bank, we started looking for food banks. The Alameda County Community Food Bank really stood out to us when we saw the impact and influence they have on the county. They distribute food, support Alameda Community’s youth, help underprivileged families, and work with all the levels of the government to achieve their vision. The ACCFB also partners up with organizations like Stephen and Ayesha Curry’s Eat. Learn. Play. Foundation and our robotics team, Ink and Metal. Their hunger-relief efforts were very inspiring for our team.” 

Ink and Metal Team

“In order to raise $5,300, we had massive goals, and we knew that only fundraising would not be enough. We raised money through social media including Facebook and Instagram, but we also held engineering and coding classes to raise money. A thorough open-source curriculum was created by our team, and it is posted on our website for We asked the students’ parents for a small donation each class, and we put all of that funding straight into the fundraiser. We made a website, where we raised money. We plan to continue to donate a portion of our outreach donations to the food bank in the coming years.”

They believe their efforts have helped them get this far but if you want to help them reach their goal of $10,000, donate here!

Srishti Prabha is the Assistant Editor at India Currents and has worked in low income/affordable housing as an advocate for children, women, and people of color. She is passionate about diversifying spaces, preserving culture, and removing barriers to equity.

You Have Been Scammed!

It was the end of February and I was at a pharmacy in Delhi, India. The house-help Julie looked over my shoulder at the medicine I was buying for her and whispered “Sunny Tiger (hand wash)” in my ear. “Sunny Tiger,” she said, “I want Sunny Tiger as well.” The threat of coronavirus hung in the air. TV stations had been exhorting people to buy sanitizer.

At the very same time in Kelowna, Canada, Councilwoman Mohini Singh was sitting down to her morning emails when her daughter Tara leaned over her shoulder and said, “Mum order some sanitizer please.” 

Tara took her mother’s credit card and went online to order three bottles of sanitizer.

When the bottles arrived in the mail they were the size of her index finger. The charge was $80.

Scammers have made off with $34 million in coronavirus-related fraud since the beginning of the year, reported the Federal Trade Commission.

Interestingly the fraudsters have targeted all age groups. Younger Americans ages 30 to 39 reported the greatest number of scams, while Americans ages 50 to 59 reported the highest financial loss. About 44 percent of the fraud complaints came from people who actually lost money – $5.85 million.

 

As part of their Family Emergency Scams advisory, the FTC warned grandparents specifically against family emergency messages that come from unfamiliar numbers and request wire transfers.

Scammers follow the money. They follow the headline, says Monica Vaca, Associate Director for the Division of Consumer Response and Operations in the Federal Trade Commission’s Bureau of Consumer Protection. The Division hears from consumers across the country about problems they experience in the marketplace, and manages and provides law enforcement access to the Consumer Sentinel Network. They deliver refunds to consumers resulting from FTC law enforcement actions.

Speaking at a webinar organized by Ethnic Media Services, Monica Vaca warned people to be careful of the offers — whether it’s by phone, by email or text. Government agencies and legitimate firms never ask for payment with a prepaid gift card or wire transfer. She told people to beware of logos and verbiage that are trying to masquerade as official, as they are scams to trick people into sharing personal information. 

Exploiting the fears and uncertainty triggered by the pandemic is the scam artist’s game.

The top category on the FTC’s list of complaints was travel and vacation; more than 5,700 complaints were filed with consumers reporting more than $8.7 million in losses.

Travel cancellations triggered by the pandemic proved a ripe breeding ground for scams. People who had to cancel travel plans they made in previous months lost money in airfare, hotels, and other components of planned vacations. Online shopping scams were also responsible for a significant chunk of consumer-reported claims.

The pandemic has enabled fraudsters to have a buffet of options. An offer of help could be very alluring to people grappling with understanding the Economic Impact Payment or stimulus payments promised by the government. Online shopping for the uninitiated can be a maze. Cures for the dreaded Coronavirus, flights home for students, and Facebook endorsements of companies are potential quagmires. 

Be warned, says the FTC.  A quick click of the mouse promises to make it all easy but can trick you into giving away personal information. Report scams to  ftc.gov/coronavirus. Check with the Better Business Bureau for businesses and charities you can trust and for warnings of the latest scams. If you have already paid, ask your credit card company to treat it as an unauthorized transaction. Beware of phishing emails and text messages that tell a story to trick you into clicking on a link or opening an attachment. 

The Federal Trade Commission announced the launch of two new interactive dashboards reporting on international fraud and scams related to the pandemic. One site, a partnership of 34 consumer protection agencies around the world, gathers and shares complaints about international scams submitted by consumers to econsumer.gov.  Another site has data on international reports submitted to the FTC’s Consumer Sentinel Network.

In a recent case originating from Nigeria, scamsters tricked the German health authorities into transferring EUR 880,000 as an advance for facemasks. The Germans were scrambling to find facemasks and other critical medical equipment as the pandemic grew, said Interpol, when the scamsters struck.

The German government was not the only one overturning every rock to find equipment in Corona times. When President Donald Trump posted on Twitter to urge Ford and General Motors to “START MAKING VENTILATORS, NOW!” – Yaron Oren-Pines, an electrical engineer in Silicon Valley tweeted back: “We can supply ICU Ventilators, invasive and noninvasive. Have someone call me URGENT.”

Three days later, Buzzfeed reported that New York State paid Oren-Pines $69.1 million. The payment was for 1,450 ventilators — $47,656 per ventilator, at least triple the standard retail price of high-end models. 

No ventilators were delivered.

Ritu Marwah is a 2020 California reporting and engagement fellow at USC Annenberg’s Center for Health Journalism.