Career (mis)Step
A healthcare-related job at a national drugstore chain after four months of online training might sound like a great opportunity for a lot of people, including servicemembers exploring post-military careers and their spouses. Unfortunately, many consumers aspiring to work in health care ended up sorely disappointed—and indebted—when they enrolled in programs with the online career-training company Career Step, LLC. A Federal Trade Commission (FTC) communication explains that the Georgia-based Career Step (also doing business as CareerStep, CareerCert and Carrus), which promotes career-training programs for healthcare industry jobs, lured servicemembers with deceptive advertising on social media and on its website. The company also marketed its services in military-focused publications and at events sponsored by the military, including job fairs. Charges against Career Step include that it made false claims about job placement and outcomes, externships, hiring partnerships, and the duration of its programs. The FTC's press statement reads almost like a how-to guide for fraudulent career-training programs, and includes plenty of "creative" ways to deceive consumers. For example, the FTC explained that the company conducted a deceptive incentivized review program to get consumers to post reviews on the BBB website, Google and Trustpilot. Students were offered up to three months of “complimentary” extra time on the programs if they provided Career Step with screenshots or links proving they posted the reviews. To resolve the charges, Career Step will pay $27.8 million in debt cancellation and $15.7 million in cash to provide redress to consumers who were harmed by its deceptive advertising.
Zelle-ous regulation
As a SCAM GRAM reader, you're likely well aware that fraudsters prefer getting paid in ways that are hard to track, stop or reverse. Among scammers' favorite payment methods are person-to-person payment apps, like Zelle. The Los Angeles Times reported last week that the Consumer Financial Protection Bureau (CFPB) is probing whether banks that offer Zelle to account holders are adequately protecting consumers. Citing the Wall Street Journal, the LA Times wrote that the federal regulator is exploring whether banks are moving quickly enough to shut down scammers’ accounts and whether they’re doing enough to identify and prevent scammers from signing up for accounts in the first place. The Times article included a response the paper received about the probe from Chase Bank, describing it as "combative, suggesting the bank would fight the regulators if the CFPB demanded significant new protections for consumers." Without getting into the potentially contentious regulatory and/or legal battle that may lie ahead, we recommend SCAM GRAM readers check out the Times piece for a discussion that attempts to answer a question for which, unfortunately, there is no simple answer: Do Zelle users get reimbursed for money lost to scams? Article author Jon Healey explains how the answer depends on whether the scammers were impersonating a bank, a government entity, or a service provider with whom the customer had an existing business relationship. Healey also discusses what banks are doing to try to stop scammers (for example, freezing a transfer in certain cases), what Zelle is requiring banks to do, and what Zelle itself can do (for example, suspend an account in certain cases)—independent of any regulatory requirements. The Times article is a good one to keep handy for the next time a friend, a family member, or a client is targeted by a Zelle scam; in other words, you may be referring to it soon.
Driving off into the sunset
Vehicle dis-service contract. In a recent story, personal finance columnist Michelle Singletary reminded us that one of the great fears of auto ownership is an expensive repair bill. (If you've ever had the check engine light go on during a long road trip, "fear" might seem like an understatement.) Car buyers sometimes think that the purchase of a car-repair contract can help them avoid the shock of an exorbitant bill. But, as Singletary's story makes clear, this is not necessarily the case. CarShield, a seller and heavy advertiser of vehicle service contracts, recently agreed to pay $10 million to settle Federal Trade Commission charges of deceptive and misleading advertisements and telemarketing pitches. To help anyone who may be considering a vehicle service contract, Singletary's column walks through the FTC charges against CarShield. These included false or misleading celebrity endorsements; exclusions not disclosed in advertisements or telemarketing calls; claims-processing requirements that resulted in preferred repair shops not accepting the coverage; out-of-pocket costs; and poor rental car coverage. Check out the article for tips for anyone considering a service contract. One we wholeheartedly agree with, and urge consumers to consider, is setting aside funds in a savings account for future repairs instead of buying a service contract.
Summer suspense. Consumer news junkies have been eagerly awaiting this summer’s blockbuster: the FTC's new Combating Auto Retail Scams (or CARS) Rule, originally slated for July 30. Alas, as reported by the Detroit Free Press, the new transparency rule is on indefinite pause as legal challenges brought by the National Automobile Dealers Association and the Texas Automobile Dealers Association are reviewed. To keep us on our toes while the CARS Rule is on hold, article author Susan Tompor offers tips on what buyers should pay attention to when car shopping. For example, one recommendation is to study the paperwork to see if there are unapproved charges for things like nitrogen-filled tires or add-on paint protection. And don’t sign incomplete paperwork (which the dealer could fill in later without you being aware). Tompor also cautions shoppers to watch out for bait-and-switch tactics, such as a super-low advertised price on a car that isn’t even available, or rebates and financing rates that very few buyers could qualify for—practices that would be prohibited if the CARS rule were in effect. CARS Rule or no CARS Rule, Tompor's sound advice should help you avoid unpleasant dealer surprises if shopping for a new set of wheels this summer.
Tips
Summer sunshine. The FTC's Military Consumer blog recently offered some tips on solar and clean energy scams that we can all use. FTC senior attorney Larrisa Bungo wrote in a post that, while reputable companies can help save us money with clean or solar energy improvements, scammers are offering more than they can deliver. Scam details can vary, Bungo explained, but, generally, someone will claim to be with the government or with your utility company and will promise big savings on utility bills from solar energy or other energy-efficient home improvements. If you agree to the scammer’s offer, Bungo continues, it could cost you tens of thousands of dollars. You'll want to watch out for lies that include promises of free or low-cost solar panels, huge rebates, tax credits, or utility incentives that pay for solar panels. Some scammers, Bungo adds, will even claim that your utility company signed you up for the program but that you must pay for it. The blog post offers resources for consumers exploring whether solar energy is right for them, and includes advice for avoiding high pressure sales and for protecting personal information. Like with sunburn, we'd recommend applying a good measure of protection to avoid being burned by a solar scam.
Raising the (gold) bar. Chevy Chase, Maryland-based WTOP News reported last month that Montgomery County police arrested a suspect in the case of a 74-year-old Bethesda man who lost more than $1 million after converting his money into gold bars and giving it to fraudsters. Citing Montgomery County State’s Attorney John McCarthy, the WTOP story explained that there have been at least 17 victims in the county who have lost, in total, millions of dollars to these types of scams. Detective Sean Petty of the Montgomery County Police Department told WTOP that scammers often prey on people worried that the dollar will lose value in this economy. Scammers tell their targets that their money needs to be converted to gold and placed in a Department of Treasury vault for safekeeping. When the gold is returned to them in a month or two, consumers are told, it will be worth more. Of course, scammed consumers never see the gold again. And, as Petty explained, gold is difficult, if not impossible, to track if melted down. While elderly victims may have more money to lose, Petty told WTOP that people of all ages have fallen victim to gold bar scams. If you have any doubt that gold bar scams are making the rounds, get this: Just last week, WTOP issued yet another story about an arrest in a case where a woman lost close to $800,000 after handing gold bars to fake FBI agents. The Gold Rush is back on, but the only ones getting rich this time around are the scammers.
Home, scheme home. With August quickly coming to a close and colleges getting back in session, a recent fresh look at rental scams by public media producer GBH couldn't come at a better time. Article author Sarah Betancourt notes that, in the Boston area, despite the Sept. 1 move-in rush being right around the corner, many people are still looking for a place (just like everywhere else!), and scammers are ready to take advantage of apartment hunters who may grow desperate in light of competition and low housing stock. One way that rental scams can play out, as suggested by Betancourt, is where an out-of-town homeseeker sees a listing on Facebook Marketplace at a good price, talks to a seemingly friendly broker, and then sends funds via PayPal to secure the place. What do you think happens to the "agent" after they get the money? Yes, they disappear with the cash. Check out the GBH article for details on different tactics used by fraudsters to carry out the scheme, such as copying legitimate postings and swapping out the contact information. The article includes tips for avoiding the scheme and, we'd add, protecting that house-warming party budget.
Music to scammers' ears. Don't let your next concert outing turn into a cash-making opportunity for fraudsters. Illinois Attorney General Kwame Raoul issued a warning recently that can benefit concert goers across the country by helping them avoid common ticket scams. In a statement, Raoul's office cautioned that buying tickets from a third-party vendor or private party increases the risk of fraud and of buying counterfeit tickets. The AG warned residents to avoid paying for tickets with anything other than a credit card, if possible, since credit cards offer additional fraud protections. “The proliferation of smart phones and online marketplaces have fundamentally changed the way many tickets are purchased for concerts and other entertainment events,” Raoul said. “While the emergence of smart technology has simplified the way we live our lives, bad actors use that same technology to take advantage of consumers." The AG's statement offered several tips to consider before purchasing tickets, including watching for fake or non-secure websites; knowing who the venue is using to sell tickets; checking whether brokers reselling tickets are members of the National Association of Ticket Brokers and the Better Business Bureau; not buying tickets from private parties that you don't know; being suspicious of sellers who don't allow credit card purchases; calling the venue in advance to verify whether a wristband or a ticket is fake; understanding terms and conditions of a ticket sale; knowing about any day-of requirements that tickets be shown through an app or other electronic means; plus more about being a savvy ticket shopper and avoiding high-cost buy-now-pay-later and layaway products that might include poorly disclosed auto-payments and lead to damaged credit when a payment is missed. Did you catch all that? These are great tips you'll want to read about in more detail in the press release. And then have a blast at the show!
Popping back up. A reader recently wrote to us about a pop-up window that appeared on his screen warning him of a virus infection and asking him to call an 800 number. The pop-up appeared while he surfed the web and visited a site he believed to be a news source. This, of course, is a classic example of the fake virus alerts that we've been warned about in the past by the FTC, by legitimate antivirus software providers like Norton and AVG, and by forums like MalwareTips.com. Our reader was able to keep his cool despite the virus warning and knew not to call the number in the pop-up window. His experience also serves as a reminder that some of the scams that we first saw years ago are still making the rounds. We would caution readers against clicking on any links or buttons in a pop-up, or any unfamiliar buttons appearing anywhere on your screen. Norton's recommendations for removing fake virus alert pop-ups, and the malware that may be creating them, include: force-closing your browser; removing suspicious apps and extensions; scanning for malware; and, if all else fails, performing a factory reset. Check out the links just above for more pop-up removal tips and advice on spotting the fake virus alerts in the first place. Happy and safe surfing to all.
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