Complaint resolution service publishes case studies, recall information and consumer news.

Many people are aware of “phishing,” (pronounced: fish-ing)
in which e-mail recipients are directed to a fake website
seeking their financial details but might not know about a
new Internet scam called “vishing, ” which is short for
“voice phishing. ” Vishing uses Voice over Internet Protocol
(VoIP) phones instead of a bogus web link to steal
financial information.

A recent incident involved customers from Santa Barbara
Bank and Trust in California. Internet con artists sent
account holders e-mails asking them to telephone the bank.
Customers who responded heard a recorded message asking
them to enter their account details. A second incident
earlier this month involved Paypal customers.

VoIP service providers allow their customers to pick a
telephone number that appears to be based elsewhere, so it’s
possible for fraudsters to pick a phone number in the
same area code and prefix of a major bank despite being
physically located somewhere hundreds of miles away in
another city or state.

Always remember that a financial institution already has
your personal information, so if you get an unsolicited
telephone call where someone is asking you to provide or
confirm any of your personal information, immediately hang
up and call your financial institution.

Learn how to protect your personal information with FCIC’s
Consumer Focus at:
http://www.pueblo.gsa.gov/cfocus/cfpersonalinfo06/focus.htm

Posted under Privacy

Two persons have agreed to settle Federal Trade Commission charges for their roles in a fraudulent business opportunity scheme targeted in early 2005 as part of “Project Biz Opp Flop,” a crackdown on violations of the FTC’s Franchise Rule, which requires that prospective franchisees must be given a full disclosure document about business opportunities they are offered, and Section 5(a) of the FTC Act, which prohibits unfair and deceptive acts or practices affecting commerce.

Scott Douglas Rinaldo was involved with the wrongful practices of World Traders Association Inc., a Nevada corporation, and several other corporate and individual defendants, including International Merchandise Group and The Global Connection. Shannon Kirk Holden was involved with the wrongful practices of The Global Connection during part of the time it was in operation. According to the FTC complaint, the defendants violated the FTC Act and the Franchise Rule by making false and deceptive promises to franchise purchasers who paid as much as $8,000 in return for access to overstocked merchandise, expert training in the surplus goods industry, and substantial income.

Under a stipulated judgment and order for permanent injunction proposed by the FTC, Rinaldo is permanently barred from being involved in, and making misrepresentations concerning, any aspect of commerce in business ventures. Holden is permanently barred from making misrepresentations to consumers who might purchase business ventures, goods, or services.

Judgments representing the amounts of consumer injury attributed to the two defendants – more than $30.7 million for Rinaldo and more than $491,000 for Holden – will be suspended due to their inability to pay. The judgments will be imposed if they are found to have misrepresented their financial condition.

The Commission voted 5-0 on March 7 to authorize staff to file each of the two stipulated judgments and orders for permanent injunction, which occurred on March 16 in U.S. District Court for the Central District of California, Western Division.

Note: A stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of law violations. A stipulated final order requires approval by the court and has the force of law when signed by the judge.

Posted under Customer Service

The Internal Revenue Service has reminded taxpayers about the agency’s “Dirty Dozen”––its latest annual tally of some of the most notorious tax scams––along with an alert to taxpayers this filing season to watch out for schemes that promise to reduce or eliminate taxes.

Two new schemes have worked their way onto the list in 2006. In recent months IRS personnel have noted the emergence of the two scams––“zero wages” and “Form 843 tax abatement”–– in which filers use IRS forms to claim that their tax bills have been wrongly inflated.

Also high on the list in 2006 is “phishing,” a favorite ploy of identity thieves. Over the past few years, the IRS has observed criminals working through the Internet, posing even as representatives of the IRS itself, with the goal of tricking unsuspecting taxpayers into revealing private information that can be used to steal from their financial accounts.

Several of the usual suspects from last year remain on the list. The IRS, for example, continues to see schemes designed to exploit charitable organizations. Some taxpayers, meanwhile, still use frivolous arguments to claim they do not owe taxes, despite the fact such reasoning has been thrown out of court time and again.

“When it comes to taxes, everyone has to pay their fair share,” IRS Commissioner Mark W. Everson said. “I urge taxpayers not to be taken in by hucksters who promise to lower or eliminate taxes. Getting caught up in the Dirty Dozen or similar schemes can lead to big headaches.

”Namely, involvement with tax schemes can lead to imprisonment and fines. The IRS pursues and shuts down promoters of these and numerous other scams. Anyone pulled into these schemes can also face repayment of taxes plus interest and penalties.

The IRS urges people to avoid these common schemes:

1. Zero Wages. In this scam, new to the Dirty Dozen, a taxpayer attaches to his or her return either a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 that shows zero or little wages or other income. The taxpayer may include a statement indicating the taxpayer is rebutting information submitted to the IRS by the payer.An explanation on the Form 4852 may cite “statutory language behind IRC 3401 and 3121″ or may include some reference to the paying company refusing to issue a corrected Form W-2 for fear of IRS retaliation. The Form 4852 or 1099 is usually attached to a “Zero Return.” (See number four below.)

2. Form 843 Tax Abatement. This scam, also new to the Dirty Dozen, rests on faulty interpretation of the Internal Revenue Code. It involves the filer requesting abatement of previously assessed tax using Form 843. Many using this scam have not previously filed tax returns and the tax they are trying to have abated has been assessed by the IRS through the Substitute for Return Program. The filer uses the Form 843 to list reasons for the request. Often, one of the reasons is: “Failed to properly compute and/or calculate IRC Sec 83––Property Transferred in Connection with Performance of Service.”

3. Phishing. Phishing is a technique used by identity thieves to acquire personal financial data in order to gain access to the financial accounts of unsuspecting consumers, run up charges on their credit cards or apply for new loans in their names. These Internet-based criminals pose as representatives of a financial institution and send out fictitious e-mail correspondence in an attempt to trick consumers into disclosing private information. Sometimes scammers pose as the IRS itself. In recent months, some taxpayers have received e-mails that appear to come from the IRS. A typical e-mail notifies a taxpayer of an outstanding refund and urges the taxpayer to click on a hyperlink and visit an official-looking Web site. The Web site then solicits a social security and credit card number. In a variation of this scheme, criminals have used e-mail to announce to unsuspecting taxpayers they are “under audit” and could make things right by divulging selected private financial information. Taxpayers should take note: The IRS does not use e-mail to initiate contact with taxpayers about issues related to their accounts. If a taxpayer has any doubt whether a contact from the IRS is authentic, the taxpayer should call 1-800-829-1040 to confirm it.

4. Zero Return. Promoters instruct taxpayers to enter all zeros on their federal income tax filings. In a twist on this scheme, filers enter zero income, report their withholding and then write “nunc pro tunc”–– Latin for “now for then”––on the return. They often also do this with amended returns in the hope the IRS will disregard the original return in which they reported wages and other income.

5. Trust Misuse. For years unscrupulous promoters have urged taxpayers to transfer assets into trusts. They promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. However, some trusts do not deliver the promised tax benefits, and the IRS is actively examining these arrangements. There are currently more than 200 active investigations underway and three dozen injunctions have been obtained against promoters since 2001. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering into a trust.

6. Frivolous Arguments. Promoters have been known to make the following outlandish claims: the Sixteenth Amendment concerning congressional power to lay and collect income taxes was never ratified; wages are not income; filing a return and paying taxes are merely voluntary; and being required to file Form 1040 violates the Fifth Amendment right against self-incrimination or the Fourth Amendment right to privacy. Don’t believe these or other similar claims. These arguments are false and have been thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law.

7. Return Preparer Fraud. Dishonest return preparers can cause many headaches for taxpayers who fall victim to their schemes. Such preparers derive financial gain by skimming a portion of their clients’ refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Taxpayers should choose carefully when hiring a tax preparer. As the old saying goes, “If it sounds too good to be true, it probably is.” And remember, no matter who prepares the return, the taxpayer is ultimately responsible for its accuracy. Since 2002, the courts have issued injunctions ordering dozens of individuals to cease preparing returns, and the Department of Justice has filed complaints against dozens of others. During fiscal year 2005, more than 110 tax return preparers were convicted of tax crimes.

8. Credit Counseling Agencies. Taxpayers should be careful with credit counseling organizations that claim they can fix credit ratings, push debt payment plans or impose high set-up fees or monthly service charges that may add to existing debt. The IRS Tax Exempt and Government Entities Division is in the process of revoking the tax-exempt status of numerous credit counseling organizations that operated under the guise of educating financially distressed consumers with debt problems while charging debtors large fees and providing little or no counseling.

9. Abuse of Charitable Organizations and Deductions. The IRS has observed increased use of tax-exempt organizations to improperly shield income or assets from taxation. This can occur, for example, when a taxpayer moves assets or income to a tax-exempt supporting organization or donor-advised fund but maintains control over the assets or income, thereby obtaining a tax deduction without transferring a commensurate benefit to charity. A “contribution” of a historic facade easement to a tax-exempt conservation organization is another example. In many cases, local historic preservation laws already prohibit alteration of the home’s facade, making the contributed easement superfluous. Even if the facade could be altered, the deduction claimed for the easement contribution may far exceed the easement’s impact on the value of the property.

10. Offshore Transactions. Despite a crackdown by the IRS and state tax agencies, individuals continue to try to avoid U.S. taxes by illegally hiding income in offshore bank and brokerage accounts or using offshore credit cards, wire transfers, foreign trusts, employee leasing schemes, private annuities or life insurance to do so. The IRS and the tax agencies of U.S. states and possessions continue to aggressively pursue taxpayers and promoters involved in such abusive transactions. During fiscal 2005, 68 individuals were convicted on charges of promotion and use of abusive tax schemes designed to evade taxes.

11. Employment Tax Evasion. The IRS has seen a number of illegal schemes that instruct employers not to withhold federal income tax or other employment taxes from wages paid to their employees. Such advice is based on an incorrect interpretation of Section 861 and other parts of the tax law and has been refuted in court. Lately, the IRS has seen an increase in activity in the area of “double-dip” parking and medical reimbursement issues. In recent years, the courts have issued injunctions against more than a dozen persons ordering them to stop promoting the scheme. During fiscal 2005, more than 50 individuals were sentenced to an average of 30 months in prison for employment tax evasion. Employer participants can also be held responsible for back payments of employment taxes, plus penalties and interest. It is worth noting that employees who have nothing withheld from their wages are still responsible for payment of their personal taxes.

12. “No Gain” Deduction. Filers attempt to eliminate their entire adjusted gross income (AGI) by deducting it on Schedule A. The filer lists his or her AGI under the Schedule A section labeled “Other Miscellaneous Deductions” and attaches a statement to the return that refers to court documents and includes the words “No Gain Realized.”

Posted under Finance, Privacy

A Canadian defendant and his business are permanently banned from selling business directories and listings in those directories to U.S. consumers. To settle the Federal Trade Commission charges they were fraudulently telemarketing directories and listings, the defendant and his mother, another director of the business, will also forfeit all rights to uncashed checks they received because of their scheme. The FTC will be able to return to U.S. consumers those checks that have been seized from the defendants’ U.S. mailboxes, worth more than $36,000.

In addition to the settlement with the two individuals, the FTC has been granted a default judgment against the business, which includes a $908,710 judgment. Both the settlement and the default judgment have been entered by the judge.

The FTC charged Kelly Nguyen, founder and president of the Victoria, British Columbia-based American Business Solutions (ABS), and his mother, Minh Tam Vo, another director of ABS, and several related Canadian companies and their principals with deceptively marketing business directories to U.S. consumers through unsolicited phone calls. According to the FTC, the defendants misled businesses and organizations into believing that someone in their organization previously authorized the purchase of the directory and the listing. The complaint alleged the defendants then mailed invoices to these businesses and organizations, typically billing them between $249 and $459 for the directory and the listing. After receiving these invoices, the FTC alleged, many individuals realized that no one from their organization ordered a directory listing. In many instances, according to the complaint, when organizations refused to pay the invoices, they were referred to the defendants’ in-house collection company, which harassed them with frequent telephone calls, dunning notices, and threats to initiate legal action and damage credit ratings.

In addition to releasing their rights to uncashed checks, Nguyen and Vo are prohibited from attempting to collect any payments for business directories or listings in these directories. They also are barred from making the kinds of misrepresentations alleged in the Commission’s complaint or misrepresenting any material fact about a good or service, or the terms, conditions, and limitations of any refund or guarantee policy. Also, they must make certain additional disclosures regarding the nature of the solicitation in any outbound telemarketing calls. Further, if the defendants are found to have misrepresented their financial status to the FTC, they will have to pay $908,710, which represents the total amount of consumer injury in this case.
The FTC’s case against the remaining defendants – Global Management Solutions; Commutel Marketing, also doing business as Marketing USA; Ty Nguyen; Cory Kornelson; Byron Steczko; and Phong Anh Vo — continues.

Posted under Finance

The Federal Trade Commission, U.S. Postal Inspection Service (USPIS), and eight state law enforcement agencies today announced a crackdown on 20 operations that deceptively claim they can remove negative information from consumers’ credit reports – even if that information is accurate and timely.

“Credit repair schemes are a big problem for consumers,” said Eileen Harrington, Deputy Director of the FTC’s Bureau of Consumer Protection. “Credit repair promoters generally charge hundreds of dollars, but don’t deliver on their claims. The fact is, they can’t. No one can legally remove accurate and timely information from your credit report.”

The FTC began coordinating “Project Credit Despair” last year in response to thousands of consumer complaints, which it shared with the USPIS, the State of Louisiana Office of Financial Institutions, and other state law enforcement agencies. The cases involved companies throughout the nation, many of which promised to remove accurate and timely information from consumers’ credit reports, and typically charged hundreds of dollars in advance for the service.

According to the FTC, Bad Credit B Gone, LLC and its principal, Joseph A. Graziola III, made promises such as “the credit you always dreamed of!” and “If we fail to remove any negative credit from your reports, we’ll give you a refund plus $100.” Referring to “charge-offs, collections, tax liens, bankruptcies, repossessions, student loans, child support, late payments, and judgments,” they claimed, “On average, 80 percent of the derogatory information is deleted off your credit report within . . . three months.” The Philadelphia-based company charged $500 per individual and $700 per couple for its services, half of which was due up-front.

The FTC charged Bad Credit B Gone with violating the FTC Act by making false or misleading statements, such as claiming they can improve most consumers’ credit reports substantially and permanently by removing negative information that is accurate and not obsolete. The defendants also allegedly violated the Credit Repair Organizations Act (CROA) by requiring advance payment for credit repair services and by making false or misleading statements. The FTC is seeking to bar them permanently from further violations, to require them to return money to consumers, and to give up their ill-gotten gains.

“We have two goals with this announcement,” Harrington said. “One is very specific. It is to stop Bad Credit B Gone’s deceptive practices, and force them to return their ill-gotten gains to consumers. The other is broad. It is to put other credit repair firms on notice that we are on the beat, and it is to alert consumers that there is absolutely no reason to pay for credit repair – ever. Despite their claims, there is nothing that any credit repair firm can do for you for a fee that you cannot do for yourself at little or no cost.”

Posted under Customer Service, Privacy

Even Consumer Help Web is not immune to scammers’ attempts.

A recent voice mail message requested us to contact a “Mr. Nelson, Charlie Nelson.” When the call was returned by CHW management, “Charlie Nelson” was “called from a briefing” to answer the phone. CHW was solicited to help the Fairfax County Police Association’s “youth foundation for drug prevention” by donating money to them. In return our company would be mentioned in a “42 page full color police yearbook” which would be distributed to “every business in the county” as well as to “each and every police officer.” CHW would also receive car decals so police would be aware of our company’s support.

Prices were quoted in a descending order for a “full page ad’ down to a “business card size ad.” If the smallest size was ordered today, the next largest size would be added free. Prices ranged from $975 to $145. It was very hard sell.

When CHW requested written information be sent to us, “Mr. Nelson” refused, stating that only “the bad guys” or scammers sent written information. “The Fairfax County Police Association spends the money on the youth foundation, not on mailings,” he said.

CHW contacted the FCPA’s website, which had no information regarding any “yearbook” and no mention of a “Charlie Nelson”. CHW further contacted the Fairfax County Police Department at Sully Station, to be told this was indeed a scam. Officer Funston informed us that the FCPA, a legitimate organization, does not request money from the public. She told CHW to avoid scams such as these, call and verify the information with officials prior to donating or paying money. She told us that no decal would prevent an officer from enforcing the law. “If you break the law, you break the law, ” she said, “But if you are nice about it to the officer, it may help.”

Officer Funston also recommended registering with the nationwide “Do Not Call” registry to help avoid these scam attempts.

Needless to say, Consumer Help Web will be missing from this alleged “yearbook.”

Posted under Privacy

The Internal Revenue Service today issued a consumer alert about possible scams taking place in the wake of Hurricane Katrina and other recent natural disasters.

Such fraudulent schemes may be perpetrated through the telephone, Internet, e-mail or in-person solicitations. The IRS cautions hurricane victims and people wishing to make disaster-related charitable donations to avoid unscrupulous scam artists by following these tips:

The IRS has established a toll-free disaster assistance telephone number,
1-866-562-5227, specifically for hurricane victims. Whenever a matter involves tax relief or tax refunds, the first step a disaster victim should take is to call the IRS.

For others, donate to recognized charities.

Be wary of charities with names that sound like familiar or nationally known organizations. Some phony charities use names or Web sites that sound or look like those of respected, legitimate organizations. The IRS Web site at IRS.gov has a search feature that allows people to find legitimate, qualified charities to which donations may be tax-deductible. Legitimate charities may also be found on the Federal Emergency Management Agency (FEMA) Web site at fema.gov.

Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution from you. Scam artists use this information to steal your identity and financial resources.

Don’t give or send cash. For security and tax record purposes, contribute by check or credit card. Write the official name of the charity on your check.
“We encourage people to be prudent when they are solicited for disaster donations,” said IRS Commissioner Mark W. Everson. “Don’t be taken in by scam artists more interested in lining their pockets than helping others.”

Scam artists can use a variety of tactics. For example, some scammers operating bogus charities may contact members of the public by telephone to solicit money or financial information. In some cases, they may contact disaster victims and, claiming to be working for or on behalf of the IRS to help the victims file amended tax returns to receive tax refunds, attempt to get personal financial information or Social Security numbers that can be used to steal the victims’ identities or financial resources.

The IRS does not ask for personal identifying or financial information in unsolicited telephone calls or mail or via e-mail. Call the IRS toll-free number if you have any doubts as to whether someone is an IRS employee or to verify any information about taxes.

Additionally, bogus Web sites are currently soliciting funds for disaster victims, according to federal law-enforcement agencies. Such fraudulent sites frequently mimic the sites of, or use names similar to, legitimate charities, or claim to be affiliated with legitimate charities, in order to persuade members of the public to send money or provide personal financial information that can be used to steal identities or financial resources.

Members of the public may also have received e-mails that steer the recipient to bogus Web sites that sound as though they are affiliated with legitimate charitable causes.

Taxpayers suspecting disaster-related frauds can:

Report the fraudulent use of the IRS name to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.

Report other fraudulent contacts either to the Federal Bureau of Investigation (FBI) at 1-800-CALL-FBI (1-800-225-5324) or to the Federal Trade Commission’s (FTC) Consumer Response Center at 1-877-FTC-HELP (1-877-382-4357) (TTY/TDD 202-326-2502).

Posted under Privacy

Three operations that scammed consumers out of more than one hundred million dollars by falsely promising easy debt relief have settled Federal Trade Commission charges that their business practices were illegal. According to the FTC, in some cases, consumers’ debt, interest rates, and penalties increased and some consumers were forced into bankruptcy. The companies and their principals will pay more than $6 million combined in consumer redress and are permanently barred from making deceptive claims about debt-related services. Two of the operations and their principals also are barred from engaging in abusive telemarketing practices, following FTC charges that they repeatedly called consumers on the National Do Not Call Registry.

“Consumers who want to get out of debt are looking for services to help relieve their financial troubles, not make them worse,” said Lydia Parnes, Acting Director of the FTC’s Bureau of Consumer Protection. “The FTC is committed to ridding the debt services industry of companies who shatter consumer confidence and hurt legitimate businesses’ ability to help consumers.”

National Consumer Council Actions

In May 2004, the FTC filed a complaint against a group of companies and individual defendants, fronted by “National Consumer Council” (NCC), a purported nonprofit organization, that solicited customers through an aggressive telemarketing and direct mail advertising campaign that falsely promised free debt counseling. In fact, NCC’s role in the scheme was simply to generate leads for the other defendants, who then charged consumers thousands of dollars in fees to enroll in their debt negotiation programs. The defendants deceptively claimed these programs were an effective way to stop creditors’ collection efforts and eliminate their debts. The FTC alleged that the defendants failed to disclose important information to consumers before they enrolled, including the fact that very few people were able to reduce their debts through the debt negotiation programs; consumers would suffer late fees, penalties, and other charges; and that participation in the program might hurt their credit rating. A court-appointed receiver determined that less than two percent of the consumers who enrolled in the defendants’ debt negotiation programs – 638 out of 44,844 consumers – actually completed them.

The FTC’s complaint also alleged that the defendants violated the Telemarketing Sales Rule (TSR), including the National Do Not Call Registry provisions, by calling consumers who had placed their phone numbers on the Registry and claiming that NCC was a nonprofit organization exempt from the Do Not Call requirements. The complaint further alleged that some of the defendants violated the Gramm-Leach-Bliley (GLB) Act by failing to inform consumers how their personal financial information would be used.

At the FTC’s request, a federal district court appointed a receiver over defendants National Consumer Council, an Arizona corporation; National Consumer Council, a California corporation; National Consumer Council, a Nevada corporation, London Financial Group; National Consumer Debt Council, LLC; Solidium, LLC; J.P. Landis, LLC; Financial Rescue Services, Inc. (FRS); Signature Equities, LLC; M&L Springfield Trust; PC Hailey Trust; Via Lido Trust; and United Consumers Law Group. The receiver has returned approximately $24 million in consumer funds held in defendants’ trust accounts. The receiver also is winding down the corporations’ business operations.

Consumer Help Web Reaction

Consumer Help Web spoke with a consumer advocate who wished to remain nameless about the companies. “I saw them working the crowd at a well known consumer conference,” he said. “They seemed more interested in the public relations aspect of consumer affairs, but I knew something was wrong when they began badmouthing the BBB.” The advocate reported that he later found out the Better Business Bureau had given the National Consumer Council an unsatisfactory rating.

Posted under Customer Service

An operation that offered consumers free spyware detection scans that “detected” spyware even if there was not any, to market anti-spyware software that does not work has been barred from making deceptive claims by a U. S. District court at the request of the FTC. The FTC will seek a permanent halt to the marketing scam and redress for consumers.

In papers filed with the court, the FTC alleges that Spyware Assassin and its affiliates used Web sites, e-mail, banner ads, and pop-ups to drive consumers to the Spyware Assassin Web site. After exposing consumers to a litany of the dire consequences of having spyware on their computers, the Web site warns, “you WILL eventually experience credit card and/identity theft and your computer will ultimately crash and cease working for good . . . It’s not a matter of if, but truly a matter of when.”

According to the FTC complaint, the Web site offers to scan consumers’ computers at no cost to determine whether they’re infected with spyware. One “scan”– the remote scan – is performed when consumers land on the Web site. The free “scan” displays a pop-up message that states, “URGENT ERROR ALERT: You have dangerous spyware virus infections on your computer. Click OK to install the latest free update to fix these errors. Immediate action is highly recommended before you continue!” The other “scan”– the “local scan” – is performed when consumers click to download the defendants’ software. Both scans warn consumers that they have spyware installed on their system.

The FTC charges that, “the defendants’ free remote scan is phony, and the defendants’ representations that they have detected spyware on the consumer’s computer are deceptive.” According to the agency, the pop-up that announces that consumers have spyware pops up automatically, even when the computer is clean and does not have spyware installed on it.

During the “local” scan consumers are warned that their computer is infected with spyware and a message flashes on the screen listing the names and file locations of the spyware on the system. Even when the computer is clean of all spyware, the defendants report that spyware has been detected, and the file folders the defendants claim contain the spyware are either empty or contain files that do not contain spyware, according to the agency.

The defendants claim that the software they sell for $29.95 will “remove all spyware programs and files” and will “prevent any future breaches.” According to the FTC, the “anti-spyware” software does not remove all or substantially all spyware, and the defendants deceptive claims violate the FTC Act, which bars deceptive claims.

The agency will seek a permanent ban on the deceptive claims and will ask the court to order consumer redress from defendants MaxTheater, Inc., a Washington corporation and Thomas L. Delanoy, its principal.

Posted under Privacy

“Make big $$$ working from home. Earn$50 to $200 /hour in the comfort of your home!” You’ve seen the ads innewspapers, on flyers stapled to telephone poles, and on the Internet. They sound great. In fact, working at home has become more attractive than ever as stay-at-home moms, college students, and retirees look for new ways to earn extra money. But be wary of these offers, warn U.S. Postal Inspectors. There are some genuine job opportunities, but too many don’t deliver on their promises.

During National Consumer Protection Week, Postal Inspectors and the PostalService’s Consumer Advocate are joining other federal, state, and local consumer-protection agencies to educate the public about ways to avoid becoming victims of fraud. This year’s postal message is “Work-at-Home Scams:They Just Don’t Pay.”

Chief Postal Inspector Lee R. Heath says, “With so many Americans interested in working at home, it should come as no surprise that job scams have grown in popularity — but too many offers not only don’t pay, they cost victims thousands of dollars.”

According to the Postal Service’s Consumer Advocate Mike Spates, job seekers should do some homework before accepting a work-at-home offer. “Our goal is to educate consumers so we can reduce their chances of falling victim to work-at-home scams,” says Spates.

Postal Inspectors report the most common work-at-home scam is envelope stuffing. The ads promise you money in return for stuffing envelopes at home. But Postal Inspectors say that none of the promotions they’ve seen pay off as promised. The newest scam is reshipping fraud. Work-at-home shippers are promised substantial amounts of money — all they have to do is receive, repackage, and then mail merchandise to a foreign address. What the shipper doesn’t know is that the merchandise was paid for with stolen credit cards. In effect, the work-at-home shipper becomes part of a fencing operation by receiving and mailing stolen goods. Reports to date indicate the scam has cost victims thousands of dollars, but as long as the ads appear, people unaware of the fraud continue to respond.

Other work-at-home jobs may involve product assembly, craft work, and multi-level marketing. Some ask victims to front money for products or more detailed instructions. Others require that you recruit other people to do thework — which continues the fraud. Postal Inspectors encourage consumers to closely examine offers beforeresponding. They offer these protection tips:

* Don’t give out personal information to a person or company you don’t know.

* Be suspicious of any offer that doesn’t pay a regular salary or involves an overseas company.

* Check out the company with the Federal Trade Commission, the Better Business Bureau, state Attorney General, or your local consumer protection agency.

“Be smart,” says Chief Inspector Heath. “There is no easy way to wealth. If the offer sounds too good to be true, it probably is.” For more than 225 years, the U.S. Mail has been one of the safest and most efficient ways for Americans to do business. The Postal Inspection Service works to maintain that trust. Last year, the Postal Inspection Service received 82,000 complaints from people who believed they were defrauded by offers received in the mail. During the same period, Postal Inspector sarrested 1,446 suspects for mail fraud. For more information on fraud or to order the free DVD, Work at Home Scams, visit http://www.usps.com/postalinspectors.

Posted under Customer Service