Consumer Fraud Alert: Tax prep scams expected to rise for remainder of tax season – National Consumers League

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March 1, 2017

For release: March 1, 2017

Contact: NCL Communications, Cindy Hoang, cindyh@nclnet.org, (202) 207-2832

Washington, DC—The nation’s pioneering consumer advocacy organization is  issuing a warning for consumers about the tax preparation scams that are expected to plague taxpayers as they enter the height of tax season. With only seven weeks left to go before the April 18 deadline, more than 70 percent of taxpayers will turn to software or tax preparers to help prepare their returns. 

In 2014, the Treasury Inspector General for Tax Administration identified 2.1 million returns that claimed fraudulent refunds totaling more than $15.7 billion. In 2015 the Department of Justice shut down more than 35 fraudulent tax return preparers.

According to the National Consumers League (NCL), which operates Fraud.org, in a typical scam, an unscrupulous tax preparer may falsify a victim’s earnings, claim credits they did not earn, or even steal a consumer’s entire refund by having it deposited into a different account.

“To add insult to injury, getting caught up in a tax preparer scam will not just cheat you out of your refund and scam you into paying bogus fees,” said NCL’s John Breyault, NCL vice president, public policy, telecommunications and fraud. “It can also expose consumer victims to the liabilities including hefty fines and even imprisonment associated with the criminal offense of filing a fraudulent tax return.”

According to the consumer group, the vast majority of tax preparers are honest, but that doesn’t mean consumers can trust their taxes and personal information to just anyone. Tax experts advise that you give the same attention to selecting your tax preparer as you would to selecting a doctor. Here are some helpful hints to find a great provider you can trust:

  • Take advantage of free and trustworthy tax help. If you make less than $54,000 per year, you probably qualify for free in-person help through Volunteer Income Tax Assistance (VITA) Programs. These programs are staffed with IRS-certified volunteers who will help you file and get the refund you deserve. To find a local VITA click here.

  • File for free with IRS Free File. If you make less than $64,000 per year, you qualify for online help through the IRS’s Free File program. This program allows you to use free, name-brand tax filing software for your federal return. To get started, click here.

  • Ask around. If you don’t qualify for any of the free programs, ask your trusted friends and relatives who they go to for tax preparation and whether they would recommend their services.

NCL also offered red flags for consumers that they may be dealing with a fraudulent tax preparer:

  • The tax preparer fails to make available his or her Preparer Tax Identification Number (PTIN). In order to file taxes professionally, the IRS requires preparers to have a PTIN. You can check to see if your tax preparer has a PTIN and other credentials and qualifications by checking the IRS’s tax preparer directory.

  • The preparer asks the consumer to sign a blank tax return. If your tax preparer asks you to sign a blank tax return, he is probably trying to pull a fast one on you. A signed blank return enables a con artist to later fill in your tax forms with credits you did not earn.

  • The preparer doesn’t require W-2s. An unscrupulous tax preparer may say your last pay stub is sufficient, but that is not the case. A legitimate preparer will always need your W-2s to file a return.

At Fraud.org, NCL offers resources and advice for those who may have fallen victim to other forms of tax fraud. To read the alert and learn more about tax prep scams, click here.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

 

Consumer / activist groups and Wells Fargo victims target Wells Fargo over forced arbitration – National Consumers League

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February 27, 2017

Groups release letter to Wells Fargo CEO Sloan, call on Wells Fargo to stop forcing customers and workers to surrender Constitutional rights

Contact: Rosemary Shahan, CARS Foundation, 530-759-9440; Joe Ridout, Consumer Action, 415-777-9648 ext. 705; Carol McKay, National Consumers League, 412-945-3242, carolm@nclnet.org

Washington, DC, Sacramento, CA, San Francisco, CA–In news events across the nation, in Washington, DC, and at Wells Fargo’s headquarters in San Francisco, consumer and activist organizations closed their accounts with Wells Fargo, to protest the bank’s refusal to stop imposing a “rip-off clause” forcing its customers and workers to surrender their constitutional rights, to obtain services or employment.

The organizations also released a letter from a broad-based coalition of groups calling on Wells Fargo’s CEO Sloan to cease forcing its customers and workers to submit to forced arbitration. The bank continues to resist calls from pro-consumer leaders such as Senators Sherrod Brown (D-OH), Elizabeth Warren (D-MA), and Representative Maxine Waters (D-CA),  and the editors of leading newspapers for the bank to free its customers and employees to pursue cases before a court of law, particularly regarding millions of accounts set up without their permission, through identity theft, forgery, and fraud.

“After six years of banking with Wells Fargo, we’re switching to another bank that respects the the constitutional rights of its customers and workers,” said Sally Greenberg, Executive Director of the National Consumers League, based in Washington, DC. The League already established a new account at Bank of Labor, which does not impose forced arbitration, and  is closing its account at Wells Fargo, withdrawing its working capital, of approximately $1.8 million.

The GOP-controlled Congress and the Trump administration are threatening to fire Richard Cordray, the Director of the Consumer Financial Protection Bureau, who has a long record of protecting consumers.  Under his leadership, the CFPB has succeeded in forcing  banks to refund over $11.8 billion to consumers who were wronged.

“They want to replace Richard Cordray with someone who will let crooked banks like Wells Fargo get away with charging consumers billions of dollars through engaging in illegal practices. So it’s up to each of us to act, to protect ourselves and also send the message we won’t tolerate crooked bankers,” said Rosemary Shahan, President of the Consumers for Auto Reliability and Safety  (CARS) Foundation. The group unveiled a new website, at “We DO Count.org” focusing on the campaign to make the switch from Wells Fargo to more consumer-friendly banks or credit unions.

“Wells Fargo opened up a credit card account without my authorization, and it ended up harming my credit and making many purchases, like a car, and even utilities a lot more expensive, for about five years,”  said Aaron Brodie, who was a freshman college student when Wells Fargo opened a credit card account without his permission, then refused to close it, after he requested that it be closed. He has sued Wells Fargo, and instead of doing what is right, Wells Fargo is seeking to force his case into arbitration.

“As long as Wells Fargo requires mandatory arbitration, there is nothing to stop Wells Fargo from violating the privacy rights of its customers and engaging in fraud,” said Byron Cooper, who closed his accounts with Wells Fargo as soon as he discovered the bank had opened two new accounts and shifted $25,000 from his checking account to his savings account — all without his authorization, and despite his insistence he did not want the new accounts. The bank also changed his “free” checking account to one that charged $30 per month and required a minimum balance of $25,000 — also without his permission.

Joe Ridout, Consumer Services Manager for Consumer Action, personally hand-delivered the letter to the bank’s headquarters in San Francisco. Consumer Action also provided tips for consumers about how to find a banking institution or credit union that does not impose forced arbitration on its customers and workers, and also how to make the transition smoothly so that no payments are missed. “We believe many consumers will be pleasantly surprised to discover the higher interest they earn, and the fewer fees and abusive practices they face, once they switch to a more honest financial institution,” said Ridout.

Most credit unions don’t require arbitration. In 2015, the Pew Charitable Trust released a report that provides comparisons of banks, including whether they impose forced arbitration. While some of the policies may have changed, that report provides helpful guidance for choosing options that don’t impose arbitration.

Links to relevant documents:

“Wells Fargo Victims Deserve Their Day In Court,” Sacramento Bee Editorial, December 8, 2016

“Wells Fargo Blocks the Courthouse Door,” Des Moines Register Editorial, December 4, 2016

Consumer Action’s Tips for Consumers: How to Make the Switch from Wells Fargo

“Checks and Balances” by Pew Charitable Trust, May 2015

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Coalition urging consumers to walk away from Wells Fargo – National Consumers League

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NCL is part of a broad coalition of pro-consumer groups are launching a national campaign targeting Wells Fargo Bank over its illegal practices, and its denying customers and employees their constitutional rights under the 7th amendment to the U.S. Constitution, to hold businesses that engage in illegal practices accountable in a court of law. 

The organizations, including NCL, Consumers for Auto Reliability and Safety (CARS) Foundation, and Consumer Action, also released a letter from a broad-based coalition of groups calling on Wells Fargo’s CEO Timothy Sloan to cease forcing its customers and workers to submit to forced arbitration. The bank continues to resist calls from pro-consumer leaders such as Senators Sherrod Brown (D-OH), Elizabeth Warren (D-MA), and Representative Maxine Waters (D-CA), and the editors of leading newspapers for the bank to free its customers and employees to pursue cases before a court of law, particularly regarding millions of accounts set up without their permission, through identity theft, forgery, and fraud.

We talked to two consumers who fell victim to the bank’s illegal practices. Here are their stories:

Aaron, Texas
Victim of Wells Fargo’s illegal practice of establishing accounts without permission

Aaron works as an emergency dispatcher for the Fort Worth, Texas, police department. In 2011, when he was entering college in Bakersfield, California, as a freshman, he opened a checking account at a local Wells Fargo branch. His family had warned him about the dangers of using credit, and he had firmly decided that he did not want a credit card. However, without his permission, and without obtaining his signature, the bank employee also opened a credit card account.

When Aaron received the credit card in the mail, he contacted the bank and informed them that he wanted them to close the account. They refused to close it, but told him that he could simply not use the card, with no ill effects. He destroyed the credit card and thought that took care of the matter. What he did not realize was that every time he used his debit card and the charges went over the amount of available funds, fees were mounting in his credit card account, and he was being charged added interest and penalties. That account accumulated over $1300 in fees, which Aaron has refused to pay.

Wells Fargo reported the unpaid charges to credit reporting agencies, harming his credit. As a result, Aaron had to pay extra down payments and interest for car loans, make extra deposits for utilities, and incur other substantial costs. Wells Fargo refused to correct this wrong. Aaron is now suing Wells Fargo, and Wells Fargo is attempting to force him to submit to arbitration instead of being able to hold the bank accountable in court.

Byron, California
Victim of Wells Fargo’s illegal practice of establishing accounts without permission

Byron is a graduate of West Point and also an attorney who specializes in patent law. For about 20 years, he had a “free” checking account with Wells Fargo. In 2014, Bryon received a call from an employee at Wells Fargo who attempted to talk him into opening two new accounts – a savings account and a “high yield” account – which he had not requested or authorized. He told the employee that he did not want the accounts. Byron also sent an email stating that he did not want any new accounts.

The employee disregarded his expressed wishes, and opened up the new accounts. Wells Fargo also changed his “free” checking to an account that charged him $30 per month unless he maintained a balance of $25,000. Then the bank shifted $25,000 from his checking account into the savings account – also without his permission. The day after he found out that the accounts had been opened, he went in person to his local Wells Fargo branch and closed each of the accounts. It took about a day to arrange for direct deposits and automatic bill payments. He now does his banking with a credit union and several other banks.

Tips for switching

The coalition has put together tips for consumers who are also ready to walk away from Wells Fargo and its anti-consumer and worker practices. Get the tips from Consumer Action here.

NCL statement: Delayed tax refunds begin arriving for EITC/ACTC recipients – National Consumers League

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February 27, 2017

Don’t let refund delays keep you from claiming Tax Credit you deserve

Update

Washington, DC—While the IRS began issuing refunds for Earned Income Tax Credit and Additional Child Tax Credit recipients on February 15, the IRS has said that consumers should beginning to see those refunds appear in their bank accounts starting today.

The following statement is attributable to John Breyault, Vice President, Public Policy, Telecommunications, and Fraud at the National Consumers League.

“For families claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), a tax refund can account for as much as 30 percent of their annual incomes, making any delay in getting that refund a source of stress. However difficult, those impacted should soon start to receive their refunds. With the delay lifted, I encourage anyone yet to file to do so now and check if they are eligible for these important credits. Currently only four out of five eligible taxpayers claim the EITC every year. That means 20 percent of those eligible are potentially missing out on thousands of dollars in tax credits that they’re owed. These folks work hard. They should find out whether the EITC can work just as hard for them.”

Background

  • Statistics for Tax Returns with EITC broken down by state are available here.

  • Individuals can check to see if they are eligible for the EITC through the IRS EITC Assistant.

  • Consumers can check the status of their refund at irs.gov/refunds or the official IRS2Go mobile app.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Press tele-conference at 10 am today followed by Downtown DC TV press event: Groups launching national campaign against Wells Fargo – National Consumers League

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February 27, 2017

PRESS TELE-CONFERENCE ADVISORY

*** Today at 10:00 AM Eastern. To be followed by TV press event, closing a major account at Wells Fargo branch at 1100 Connecticut Ave NW, Washington, DC 20036 at 11:00 AM Eastern. ***

Call-in: 877-216-1555
Passcode: 644955

Coalition Launches Campaign to Urge Consumers to Close Wells Fargo Bank Accounts Until the Bank Drops Forced Arbitration Requirements on Customers and Employees

Broad Coalition Will Release Letter to Wells Fargo Bank CEO 

For immediate release: Monday, February 27, 2017

Washington, DC, Sacramento, CA, and San Francisco, CA —  A broad coalition of pro-consumer groups are launching a national campaign targeting Wells Fargo Bank over its illegal practices, and its denying customers and employees their constitutional rights under the 7th amendment to the U.S. Constitution, to hold businesses that engage in illegal practices accountable in a court of law. 

The organizations will release a letter addressed to Wells Fargo CEO Timothy Sloan calling on the bank to cease imposing forced arbitration on its customers and workers.

One major consumer organization will announce that it is withdrawing its working capital, approx. $1.8 million, from Wells Fargo, closing its account with Wells Fargo, and switching to a more consumer-friendly bank that does not impose forced arbitration on its customers or employees.

Two victims of Wells Fargo will provide details about their personal experiences with the bank’s anti-consumer practices.

Tips will be provided about how to make the switch from Wells Fargo to banks and credit unions that do not impose forced arbitration.

EVENTS:

10 am Eastern Press Tele-conference: New national campaign targeting Wells Fargo.
Following tele-conference call, TV event: National Consumers League will close a major account at Wells Fargo branch at 1100 Connecticut Ave NW, Washington, DC 20036

DATE: Today, Monday, February 27, 10:00 AM Eastern

CALL-IN #: 877-216-1555, passcode 644955

SPEAKERS:

  • Sally Greenberg, Executive Director, National Consumers League
  • Rosemary Shahan, President, Consumers for Auto Reliability and Safety Foundation
  • Joe Ridout, Consumer Services Manager, Consumer Action
  • Two victims of Wells Fargo’s practice of opening accounts without permission
  • Attorney for one of the victims will be available to respond to legal questions about the litigation

*** NO Information Will Be Released Before the Morning of the Teleconference ***

News release, letter to Wells Fargo CEO Sloan, tips for consumers and other materials will be available today at: https://wedocount.org.   

Contact: Rosemary Shahan, President, CARS Foundation, 530-759-9440, or rs@carconsumers.org (Sacramento)
Sally Greenberg, Executive Director, National Consumers League, (202) 631-2301, sallyg@nclnet.org (Washington, DC) or Carol McKay, carolm@nclnet.org, (724) 799-5392

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL to FCC: Consumers’ data security is too important to wait – National Consumers League

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February 24, 2017

Contact: Cindy Hoang, NCL, cindyh@nclnet.org, (202) 207-2832

Washington, DC–The National Consumers League, America’s pioneering consumer and worker advocacy organization is profoundly disappointed in the decision by Federal Communications Commission Chairman Ajit Pai to suspend the implementation of critically-needed data security rules.

The following statement is attributable to John Breyault, NCL vice president of public policy, telecommunications and fraud:

“At a time when literally billions of consumers’ records — many containing sensitive personal information — are compromised on a seemingly daily basis, it is inconceivable that Chairman Pai would halt the implementation of the FCC’s data security rules at practically the last minute. That this action was taken as part of the ‘Friday news dump’ suggests that the new leadership at the FCC wanted to sweep this anti-consumer decision under the rug. All one need do is look at the staggering rates of identity theft linked to data breaches to understand the need for stronger data security protections. Last year, the FCC took the common-sense step of requiring Internet service providers — the gateways through which practically all consumer data flows — to abide by reasonable data security protections. Instead of allowing these much-needed protections to take effect, Chairman Pai has instead decided to leave consumers’ data at greater risk.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Individual tax filings down in January; Consumers warned to beware of fraudsters taking advantage of processing delays – National Consumers League

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February 15, 2017

Contact: Cindy Hoang, NCL, cindyh@nclnet.org, (202) 207-2832

Washington, DC—Beginning this year, a new law required the IRS to delay issuing refunds for certain taxpayers claiming the Earned Income Tax Credit or the Additional Child Tax Credit. Starting tomorrow (February 15), the IRS will begin issuing refunds for those consumers impacted, but has warned consumers that they should not count on seeing their refund until the week of February 27.

This delay is believed to be responsible for a 78 percent drop in refund amounts compared to this time last year, leaving many asking: where’s my refund?

The following statement is attributable to John Breyault, Vice President Public Policy, Telecommunications, and Fraud at the National Consumers League.

“This year’s delay may be why the IRS is seeing a significant decrease in the number of people filing returns as compared to this point on the calendar in previous years. Though the IRS will begin issuing refunds for Earned Income Tax Credit and Additional Child Tax Credit recipients starting today, it is important that filers know that, due to processing times, taxpayers may not receive their refund for another two weeks. A tax refund can account for as much as 30 percent of working families’ annual incomes. Thus, any delay in getting a refund can be a significant source of stress and, potentially, an opportunity for fraudsters or others to take advantage of consumers’ short-term cash crunch. If you are worried about the status of your refund, the best way to check is by visiting irs.gov/refunds or by using the IRS2Go smartphone app. While this won’t speed up the arrival of a refund check, it can help consumers better plan for any cash shortfall a refund delay causes.”

Background

  • According to the IRS, there has been a 24 percent drop in tax returns filed compared to this time in 2016.
  • The official IRS2Go smartphone app is available in both English and Spanish on the Apple App Store, Google Play, and Amazon. https://www.irs.gov/uac/irs2goapp
  • The IRS offers several no-cost options for taxpayers to prepare and file their returns and keep 100 percent of their refund. Consumers comfortable using online services and who made $64,000 or less in 2016 can use the IRS’s Free File Program. Free File gives consumers free access to tax filing software from twelve leading tax preparation companies. For those who need more hands-on help and made $54,000 or less in 2016 there are free Volunteer Income Tax Assistance programs in their communities, which are staffed by IRS-certified volunteers.
  • The National Consumers League also released an infographic with tips to help consumers reduce their risk of tax identity fraud.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL’s Greenberg honored with Champions of Access award by Association for Accessible Medicines – National Consumers League

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February 14, 2017

Contact: Cindy Hoang, NCL, cindyh@nclnet.org, (202) 207-2832

Orlando, FL—At an annual meeting of the Association for Accessible Medicines (AAM) (previously the Generic Pharmaceutical Association) in Orlando today, the National Consumers League (NCL) was honored with the prestigious Champions of Access award. Accepting the award on behalf of NCL was Sally Greenberg, who has served as NCL Executive Director since 2007. The inaugural Champions of Access award was presented to Greenberg at #ACCESS17, before an audience of nearly 700 generic industry stakeholders, by AAM President and CEO Chip Davis.

“Partnerships with organizations such as NCL are critical to increasing access to safe, effective and more affordable generic and biosimilar medicines,” said Davis. “We are proud to honor those organizations and individuals who share this commitment and will continue working tirelessly so that more patients and consumers can access the medicine they need at a cost the system can bear. Congratulations to Sally and NCL, true ‘Champions of Access,’ for their work advocating for programs and policies that keep medicines within reach, improving lives and strengthening our economy in turn.”

Greenberg and NCL were recognized for their work advocating for programs and policies that promote low-cost, effective drugs that benefit patients as well as the American healthcare marketplace.

“On behalf of NCL, I am honored to accept this award from AAM,” said Greenberg. “NCL has a long track record of working to ensure access to safe and affordable foods and drugs—beginning with NCL’s work to pass the Food and Drugs Act in 1906, through our work today to ensure that patients have expanded and affordable access to the safe, effective treatments needed to maintain a healthy, positive quality of life.”

NCL has long advocated for availability of generic alternatives to brand name treatments as a cost-saver for Americans. In the United States, generic drugs represent 89 percent of all prescriptions dispensed, but account for only 27 percent of total drug costs. Over the decade from 2006-2015, the use of generic drugs saved the U.S. health care system approximately $1.46 trillion. In order to reduce out-of-pocket costs while receiving the same quality of care, NCL encourages consumers to ask their health care providers if there is a generic version of their prescription available.

For more information about NCL’s work in health, visit www.nclnet.org.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL statement on FCC decision to not enforce affordable prison phone rate price caps – National Consumers League

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February 13, 2017

Contact: Cindy Hoang, National Consumers League, (202) 207-2832, cindyh@nclnet.org

Washington, DC–The National Consumers League (NCL), the nation’s pioneering consumer and worker advocacy organization, today expressed disappointment in the Federal Communications Commission’s (FCC) decision to not defend its rule capping intrastate prison phone rates.

The following statement is attributable to Sally Greenberg, executive director of the National Consumers League:

“The National Consumers League is disappointed by FCC Chairman Ajit Pai’s decision to not defend the FCC’s rules implementing price caps for intrastate prison phone calls. Capping rates at reasonable levels is common sense as numerous studies have shown that providing prisoners access to family members and loved ones dramatically reduces recidivism. Unfortunately, at the exorbitant rates charged by most prison phone providers, keeping in touch with incarcerated loved ones is not an option for many working families. The predatory prison payphone marketplace has made a living off of charging the prison population and their families rates that far exceed those found in the general marketplace. This forces many low-income families to choose between talking to an incarcerated family member, or buying the medicine or food their family needs to survive. We call upon Chairman Pai to reconsider his decision not to defend permanent intrastate rate caps and empower families to stay connected.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Is your Valentine true? Consumer org issuing warning about costly sweetheart swindles – National Consumers League

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February 10, 2017

Contact: NCL Communications, Cindy Hoang, cindyh@nclnet.org, (202) 207-2832

Washington, DC—Have you been chatting online with what seems to be the perfect sweetheart? Experts at Fraud.org, the National Consumers League’s flagship fraud prevention and education program, are warning consumers to be wary of the inauthentic online relationships that end up costing victims hundreds or even thousands of dollars. Falling in love with a con artist has consistently been ranked as one of the most expensive scams for victims who have reported their experiences to Fraud.org. In 2016, sweetheart swindles were the 9th-most reported form of fraud, and the most expensive for victims, with a median loss of $2,000.

“In a typical romance scam, victims are approached online, through a dating website, a social media platform such as Facebook, or another type of online forum. Scammers go to great lengths to cultivate romantic interest with their victims,” said John Breyault, NCL vice president of public policy, telecommunications and fraud. “They nurture the relationship, build trust, and then convince victims to send money, sometimes days or even months into the new ‘relationship.’”

Once a sense of trust is developed, the con artist asks for money to be sent to help them out of a dangerous or difficult situation. Scammers often run the same game on multiple victims at once, claiming that they need money to come visit their new friend-victim, or for medical bills, legal help, or some other unexpected emergency. If the victim agrees to pay, there are inevitably additional requests for money to cover other fictitious expenses until the victim comes to realize it is a scam and stops paying, or worse, runs out of money to give.

In a complaint received at Fraud.org last month, “Jennifer,” a 32-year-old woman from Wisconsin, reported losing $35,000 to a sweetheart scammer. Her story is similar to the typical romance swindle: Jennifer met a man named “Nick” on the dating website OKCupid. Nick claimed to be from Australia but living in Nebraska. Shortly into their online relationship, Nick had to go to Africa for a business trip. While he was there, Nick was robbed and needed $3,000-$4,000 to buy a plane ticket to return to the United States. Having developed romantic feelings for Nick, she obliged and sent the cash to help him. Following this, Nick told Jennifer he had a string of more unfortunate, and fake, events—getting arrested, needing a diplomatic passport, his mother was sick and dying, contemplating suicide, having a heart attack, and getting arrested again. Throughout all of this, Jennifer agreed to his requests for cash through credit card advances, iTunes gift cards, and even sending iPhones. In all, Jennifer is now in credit card debt for $31,000, not including all the cash she wired to her sweetheart.

“Stories like these are both heartbreaking and unfortunately typical of what we hear from victims,” said Breyault. “Millions of consumers meet friends and find romance online, but there are a determined group of criminals out there eager to relieve victims of their cash in the name of love. The best defense consumers have is to learn about the signs of a scam in order to spot them before it’s too late.”

Red flags that your relationship might be a costly set-up to a scam:

  • The “relationship” becomes romantic extremely quickly, with quick pronouncements of love or close friendship.
  • The person you’re communicating with makes excuses about not being able to speak by phone or meet in person.
  • Your suitor requests that you wire money or cash a check or money order on their behalf and send them the funds.

For more information on sweetheart swindles and other scams of the heart, visit Fraud.org.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.