<\/p>\n
July 14, 2009<\/p>\n
<\/p>\n
New Fraud Center Statistics Underscore Call for Increased Federal Fraud Fighting<\/p>\n
Contact: 202-835-3323, media@nclnet.org<\/p>\n
WASHINGTON, DC \u2013\u00a0Appearing today before a Senate subcommittee<\/a>, the National Consumers League (NCL) said that frauds linked to the bad economy are on the rise and called upon federal fraud cops to \u201cvigorously enforce existing anti-fraud statutes and regulations\u201d and redouble their efforts to educate consumers about the growing threat of recession-fueled fraud.<\/p>\n NCL warned that consumers\u2019 thinly-stretched pocketbooks have \u201cincreased their vulnerability to fraudsters offering promises of extra income. The consumer group warned that nearly one in three consumers could be at risk for fraudulent work-at-home schemes and that fake check complaints involving phony sweepstakes and bogus \u201cmystery shopper\u201d jobs continue to increase.<\/p>\n Top Scams, January – June 2009\u00a0<\/strong>(read\u00a0full report<\/a>)<\/p>\n 1. Fake Check Scams \u201cConsumers face a double bind. The economic crisis has made them increasingly vulnerable to fraud while local agencies that investigate scams and enforce the laws are shutting their doors, leaving consumers with fewer avenues to protect their interests,\u201d said Greenberg. \u201cAbsent increased action at the federal level to investigate and prosecute scam artists, consumers will be caught between the proverbial rock and a hard place.\u201d<\/p>\n In support of Greenberg\u2019s testimony, NCL\u2019s Fraud Center released its semi-annual ranking of the top telemarketing and Internet scams plaguing consumers so far in 2009, with fake check scams continuing to top the list. For the first six months of 2009, fake check scams made up more than 44 percent of the total complaints NCL received, with more than half of these complaints (55 percent) involving a fraudulent mystery shopper job or phony sweepstakes winnings. Average losses per victim were more than $3,000.<\/p>\n Phony business opportunity scams — which include fake franchises and distributorships \u2013 were not among the most commonly reported scams to the Fraud Center in 2008. However, in the first six months of 2009, they have risen into the top ten most-reported scams. Earlier this year, an NCL-commissioned survey found that 31 percent of respondents were more likely to consider starting a home-based business due to the current economic climate. NCL believes that this is a reflection of a weak economy, loss of jobs, and consumers\u2019 eagerness to find viable employment.<\/p>\n \u201cThe worsening economy has clearly had an impact on consumers’ vulnerability to fraud.\u201d said John Breyault, NCL Vice President for Public Policy, Telecommunications and Fraud. \u201cConsumers should be wary that scammers are eager to prey on those in greatest financial need.\u201d<\/p>\n NCL\u2019s Fraud Center is unique among consumer organizations. It was created in 1992 to combat the economic menace of telemarketing fraud. In 1996, it expanded its fraud-fighting efforts to include scams in cyberspace. The Fraud Center\u2019s\u00a0www.fraud.org<\/a>\u00a0and\u00a0www.fakechecks.org.<\/a>\u00a0Web sites are a consumer resource with information on the most common telemarketing and Internet scams. Consumers can report suspected fraud there using NCL\u2019s\u00a0online complaint form<\/a>. These reports are then transmitted to the appropriate agencies among NCL\u2019s law enforcement and consumer protection partners in the U.S. and Canada. These reports alert authorities to emerging scams and help put them in touch with victims, while providing the necessary ammunition to investigate and shut down fraudulent operations.<\/p>\n ###<\/p>\n About the National Consumers League<\/p>\n 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.<\/p>\n","protected":false},"excerpt":{"rendered":" July 14, 2009 New Fraud Center Statistics Underscore Call for Increased Federal Fraud Fighting Contact: 202-835-3323, media@nclnet.org WASHINGTON, DC \u2013\u00a0Appearing today before a Senate subcommittee, the National Consumers League (NCL) […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false},"categories":[25],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/posts\/1572"}],"collection":[{"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/comments?post=1572"}],"version-history":[{"count":3,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/posts\/1572\/revisions"}],"predecessor-version":[{"id":11465,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/posts\/1572\/revisions\/11465"}],"wp:attachment":[{"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/media?parent=1572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/categories?post=1572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/tags?post=1572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
2. Internet: Gen Merchandise
3. Prizes\/Sweepstakes\/Free Gifts
4. Phishing\/Spoofing
5. Nigerian Money Offers (not prizes)
6. Business Opportunities\/Franchises\/Distributorship
7. Advance Fee Loans, Credit Arrangers
8. Friendship & Sweetheart Swindles
9. Internet: Auctions
10. Lotteries\/Lottery Ticket Buying Clubs<\/p>\n