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LICFE April 2001 |
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LICFE April 2001 |
FRAUD IN THE NEWS U.S. Gains in War Against 'Spam' Fraud The U.S. Federal Trade Commission (FTC) issued a report Friday [January 5] stating that together with its law enforcement partners it has brought legal action against hundreds of scam artists who used e-mail, direct mail and faxes to defraud consumers during the past year. Of the approximately 300 cases filed by the coalition of governmental and non-governmental agencies known as "Project Mailbox," more than one-third of the legal actions involved unsolicited "spam" e-mails sent by Net-related companies. The FTC has been examining Internet-related fraud independently since 1994, but the report, "Project Mailbox IV," represents a broader sweep in which the agency joined with state and federal officials as well as private sector groups to address the issue of fraudulent spam. FIGHTING FRAUD The FTC makes clear that it does not have the authority to halt the practice of sending spam altogether, but it does carry the mandate to bring charges against any incident of spam that leads to fraud. Mitchell Katz, an FTC public affairs specialist, told the NewsFactor Network, "If Congress gives the FTC the leeway to go after spam on volume, we could. Currently, we go after unfair business practices that are addressed in the charter of the agency, which is to fight fraud." Still, scam artists often play on the connection between spam and fraud. E-mail users who receive thousands ofunsolicited messages are less aware of potential fraud, Katz said, and sifting through large volumes of spam makes it more difficult for the FTC to combat deceptive e-mail offers. "Fraud is moving into new dissemination streams," Katz said. "People are receiving more and more unsolicited e-mails, increasing the possibility for fraud, and it's the fraud that's connected to the unsolicited e-mail that's the real problem right now." BOGUS PROMISES The report cited sweepstakes offers as the most common kind of fraudulent spam offered through e-mail, mail and faxes. Project Mailbox partners have brought more than 180 legal cases against illegitimate sweepstakes organizers, and have returned millions of dollars to victims of such schemes. Bogus travel offers ranked second among the most common kinds of fraud. The report also found cases of shady lotteries, get-rich-quick schemes and phony investment opportunities, false medical cures, and work-from-home plans that defrauded the public. CHEAP TARGETS While some U.S. states have already passed legislation outlawing spam, according to Project Mailbox coordinator Collot Guerard it is still unclear what kind of action the new U.S. Congress will take. A primary reason that spam has become so popular among crooks is its low cost. Guerard told NewsFactor that while con artists who use direct mail usually buy expensive lists tailored tothose who have shown previous interest in sweepstakes, travel offers or magazine subscriptions, "spam artists'" costs are less prohibitive as their targets are spread out across the whole spectrum of the e-mailing public. "It's so cheap to send out e-mails that senders just blanket everybody," Guerard said. Still, the public should not feel helpless in dealing with spam. "Consumers can use filters to block the spam or learn to recognize spam with outrageous offers," she added. Consumers who do find examples of deceptive or fraudulent e-mail offers can contact the FTC. ANTI-SPAM VIGILANCE As part of its outreach effort, the FTC said it has arranged for millions of trade association members to carry the Project Mailbox message about how to identity and avoid fraudulent offers on their Web sites. The agency also provides a hyperlink to its Web site alerting businesses about scams that are specifically targeting them. Moreover, Guerard said, the public has the legal establishment behind them. "Scam artists and the people should know that the FTC and law enforcement agencies at both the state and federal levels will be very vigilant against fraud. We will look at their claims, and when spam appears deceptive, we'll stop the scam artists and go after them." by Dan
Gebler, UPDATE ON THE OSTRICHES…. [The following letter was e-mailed to LICFE by Pam Johnston, who read our article on “ostrich fraud” in our September, 2000 newsletter. Thanks for the update, Pam!]
DON’T MISS THE NEXT LICFE DINNER MEETING WEDNESDAY, MAY 16TH AT THE WESTBURY MANOR WITH OUR SPECIAL GUEST SPEAKER KINGS COUNTY DISTRICT ATTORNEY CHARLES J. HYNES PLUS THE CASE OF THE MONTH AND TWO CPE CREDITS! RSVP by email to info@LICFE.org or fax 516-931-0008, or make your check payable to LICFE and mail to the Chapter office at 87 Bethpage Road, Hicksville, NY 11801. Credit card payments may be faxed. Enclosed is my check for ___ reservations for _____ persons @$35 each. Name: Company: Address: Name on Card: Type (circle one) AMEX VISA MASTERCARD Card No. Exp.(mm/yr): Signature:
Long Island Chapter Association of Certified Fraud ExaminersBULLETIN BOARD
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