Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts

AG Ferguson: 59% of Washingtonians may have been duped into subscription plans

Tuesday, October 11, 2022

OLYMPIA — Attorney General Bob Ferguson released the results of a consumer survey revealing that 59% of Washingtonians may have been unintentionally enrolled in a subscription plan or service when they thought they made a one-time purchase, highlighting a problem that may be impacting millions of Washingtonians. 

The U.S. Census Bureau estimates that just over 6 million adults live in Washington state. Consequently, 59% represents 3.5 million Washingtonians. Respondents reported that pre-check boxes constitute a significant source of the problem.

The survey also reveals that approximately 100,000 Washingtonians may have been unable to cancel the unwanted subscription because it was too difficult.

The Attorney General’s Office recently commissioned the online survey of 1,207 adult Washington consumers. The survey is part of the Attorney General’s Honest Fees Initiative.

Attorney General Ferguson urges consumers to file a complaint with his office if they inadvertently signed up for a subscription while attempting to make a one-time purchase. The Attorney General’s Office responds to every consumer complaint. 

It fields approximately 24,000 complaints annually, and returns approximately $18 million per year to consumers through its informal complaint resolution process, which involves working with businesses to resolve consumer complaints pre-investigation or litigation.




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Who's in your wallet? Seattle tech worker sentenced after stealing information from 100 million people

Wednesday, October 5, 2022

U.S. Attorney Nick Brown is disappointed
with the sentencing of the Seattle hacker
From the Department of Justice Western District of Washington

Seattle – A 37-year-old former Seattle tech worker was sentenced October 4, 2022 in U.S. District Court in Seattle to time served and 5 years of probation including location and computer monitoring for seven federal crimes connected to her scheme to hack into cloud computer data storage accounts and steal data and computer power for her own benefit, announced U.S. Attorney Nick Brown. 

Paige A. Thompson a/k/a ‘erratic,’ was arrested in July 2019, after Capital One alerted the FBI to Thompson’s hacking activity. A federal jury found her guilty in June 2022, following a seven-day trial. 

At the sentencing hearing U.S. District Judge Robert S. Lasnik said, time in prison would be particularly difficult for Ms. Thompson because of her mental health and transgender status.

“While we understand the mitigating factors, we are very disappointed with the court’s sentencing decision. This is not what justice looks like,” said U.S. Attorney Nick Brown. 
“Ms. Thompson’s hacking and theft of information of 100 million people did more than $250 million in damage to companies and individuals. Her cybercrimes created anxiety for millions of people who are justifiably concerned about their private information. This conduct deserves a more significant sanction.”

Thompson was found guilty of wire fraud, five counts of unauthorized access to a protected computer and damaging a protected computer.

Using Thompson’s own words in texts and online chats, prosecutors showed how Thompson used a tool she built to scan Amazon Web Services accounts to look for misconfigured accounts. She then used those misconfigured accounts to hack in and download the data of more than 30 entities, including Capital One bank. 

With some of her illegal access, she planted cryptocurrency mining software on new servers with the income from the mining going to her online wallet. Thompson spent hundreds of hours advancing her scheme, and bragged about her illegal conduct to others via text or online forums.

Asking the court to impose a seven-year sentence, prosecutors wrote in their sentencing memo, “…Thompson’s crimes … were fully intentional and grounded in spite, revenge, and willful disregard for the law. She exhibited a smug sense of superiority and outright glee while committing these crimes…. Thompson was motivated to make money at other people’s expense, to prove she was smarter than the people she hacked, and to earn bragging rights in the hacking community.”

“I am proud of how quickly our cyber task force worked together to recover the victims’ personal information and prevent further harm,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle Field Office. 
“This case is a good example of why companies and individuals who believe their data has been stolen online should immediately contact the FBI.”

Judge Lasnik scheduled a December 1, 2022, hearing to determine the amount of restitution Thompson must pay to her victims.

The case was investigated by the FBI Seattle Cyber Task Force. The case is being prosecuted by Assistant United States Attorneys Andrew Friedman, Jessica Manca and Tania Culbertson.



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AG Ferguson seeks to stop Seattle business scamming immigrants

Thursday, September 29, 2022


SEATTLE — Attorney General Bob Ferguson has filed a lawsuit against a Seattle business and its owner for preying on new immigrants by making deceptive promises to help them with legal assistance for immigration needs then later abandoning them in courtrooms after charging thousands of dollars.

Ana Caroline Pinto do Nascimento, who owns ACN and Associates, LLC, targets Portuguese-speaking immigrants from Brazil. 

Nascimento is not a licensed attorney in Washington state nor does she have an educational background in the law. According to consumer complaints, Nascimento tells families she will represent them in immigration courts, but she has never appeared in any courts because she is not an attorney. When families ask for their money back, Nascimento refuses or delays.

More information here

Washington’s consumer protection laws protect everyone who lives in our state. The Attorney General’s Office is here to help all consumers. We will not ask about your immigration status.
  • Notify the Attorney General’s Office if you were in contact with someone who:
  • Advertised as a “notario público,” “notario,” immigration assistant, consultant or specialist.
  • Charged you a fee for referring you to an immigration attorney.
  • Charged you a fee for U.S. Citizenship and Immigration Services forms, or to file the forms.
  • Asked you to sign a form that contained false information.
  • Proposed they can “find” you a sponsor or spouse to get you a green card.
Do not agree to pay anyone for legal advice or assistance in an immigration matter until you confirm that he or she is a licensed attorney or federally accredited representative authorized to provide such services.



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$1.2 Million to be returned to Romanian Government, the victim of an international tax fraud and money laundering scheme

Sunday, September 4, 2022

WASHINGTON – The Department of Justice announced recently that more than $1.2 million in forfeited funds from an international tax fraud and money laundering case will be returned to the government of Romania. 

The funds are the proceeds of the sale of property located in the State of Washington that were owned by a Romanian couple who were extradited back to Romania at the request of the Romanian government.

According to records filed in the U.S. District Court for the Western District of Washington, in 2012, Romanian authorities asked the United States to extradite Radu and Diana Nemes to Romania to face charges of tax evasion and participating in an organized criminal group. 

The charges alleged that the Nemeses executed a scheme to avoid Romanian taxes on imported diesel fuel by claiming the fuel was a lower grade of industrial and maritime fuel. The untaxed income from the sale of the higher value diesel was laundered through a number of bank accounts and shell companies controlled by the Nemeses.

Arrest warrants for the couple were issued in Romania in July 2012. Sometime before those warrants, the Nemeses had left Romania and resided near Yelm, Washington, on a large piece of property with an elaborate bunker system. Following their arrest in the United States, the couple waived extradition and agreed to be returned to Romania in early 2014.

The couple’s assets in the United States were forfeited, including Yelm properties which were sold as part of the forfeiture process. The proceeds of that sale, $1,225,465, are being returned through a petition for remission to the government of Romania as a recovery on the tax fraud. The overall tax fraud scheme resulted in a $58.677 million loss to the Romanian government.

The case is being handled by Assistant U.S. Attorney Jehiel Baer of the Western District of Washington, in cooperation with the Criminal Division’s Office of International Affairs (OIA) and the Money Laundering and Asset Recovery Section (MLARS).



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Not as advertised: Federal Trade Commission settles with Credit Karma for deceptive claims

Friday, September 2, 2022

By Lesley Fair, Federal Trade Commission
Bureau of Consumer Protection

In the annals of marketing, “pre-approved” ranks right up there with “free” and “low-calorie” as a term guaranteed to attract people’s attention. 

The FTC just announced a $3 million proposed settlement with Credit Karma for allegedly luring consumers in with deceptive promises they had been “pre-approved” for financial products, including major credit cards. 

The truth? For many of these offers, almost a third of the people who received a “pre-approved” offer from Credit Karma and went to the time and trouble to apply for it were denied.


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Don’t click on that random text. It’s a scam

Wednesday, August 10, 2022

ReportFraud.ftc.gov
Don’t click on that random text. It’s a scam

Sorry to burst your bubble. That unexpected text from the Postal Service (USPS), Costco, or The Home Depot telling you about an unclaimed package or a survey you can complete to claim a freebie is NOT.

It's just the latest scheme to get your money and/or identity.

Remember - if something is too good to be true - it's not true



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FTC and 18 states join forces to protect military consumers from jewelry retailer’s illegal practices

Thursday, July 21, 2022

 The Federal Trade Commission (FTC) and 18 states just announced a settlement with Harris Jewelry, a national retailer alleged to have targeted military families with a host of deceptive and unfair practices, including violations of the Military Lending Act. 

Among other things, the company must stop collecting millions of dollars of debt, provide refunds for purchased protection plans and refunds for overpayments, and once its obligations under the order are met, complete its shutdown of operations and dissolve pursuant to state laws.

Under the terms of the judgment, Harris Jewelers’ will stop collecting on $911,525 worth of debt for 547 Washington service members who made purchases from the company’s stores, which averages to approximately $1,666 per customer. Under a separate claims process, $597,925 will be split among 1,804 individuals who are eligible for refunds depending on which warranties they purchased.

Harris Jewelry, which had a store in Tacoma Mall, closed all its stores during the pandemic.

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Scams target utility customers - but there is help with utility bills

Wednesday, July 13, 2022

As Seattle City Light (SCL) and Seattle Public Utilities (SPU) work to inform customers about resources available to help with utility bills, there has been an increase in scam reports of people posing as representatives of the City.

SCL and SPU will not call customers to demand immediate payment or personal financial information. 

If someone calls demanding payment rather than working with you to establish a payment plan, that is a scam. Customers who believe they’ve been contacted by a scammer should call 206-684-3000 to verify their account.

If you or someone you know is behind on utility bills, please know that resources are available. Learn more about short- and long-term payment plans available to all customers. Income-eligible residential customers may also qualify for bill assistance programs.



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Student loan debt discharged for students of Corinthian (Everest) colleges

Saturday, June 4, 2022

Attorney General Bob Ferguson today announced that 16,850 Washingtonians who attended any school owned by Corinthian Colleges, a for-profit college that engaged in deceptive conduct, will receive $157.9 million in relief.

The U.S. Department of Education discharged $5.8 billion nationwide in student loans for Corinthian College students across the country. 

Ferguson had been calling for this action from the federal government since 2016. 

He asserted, and the federal government finally agreed, that every borrower who attended Corinthian was subject to illegal conduct.

This discharge applies automatically — borrowers do not need to do anything to receive relief. This relief applies to all remaining loans for Corinthian Colleges, including for borrowers who have not yet applied for a “borrower defense” discharge. 

Corinthian owned and operated Everest College campuses in Everett, Fife, Tacoma, Bremerton, Renton, Seattle and Vancouver until February of 2015, when they were sold to Zenith.

“Washingtonians’ student loan crisis is now $158 million smaller,” Ferguson said. “This is justice. The thousands of Washingtonians who were harmed by Corinthian’s illegal conduct deserve this relief from crushing student loan debt. 
"Today’s outcome is the culmination of years of investigation and collaboration between the federal government, my office, and other state attorneys general. Betsy DeVos and the Trump Administration had every chance to take this action, and they refused. I applaud the Biden Administration for doing the right thing.”

Ferguson has previously called on the Department of Education to discharge federal student loans for former Corinthian students. In December of 2016, Ferguson sent a letter to department officials calling for automatic loan discharges for victims of Corinthian’s fraud. In 2017, Ferguson, along with other state attorneys general, submitted a joint request seeking group discharge for Corinthian borrowers in their states.

Read more here



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AG: chicken producer will pay AG's office $725,000 in price-fixing conspiracy

Friday, May 20, 2022

sam-moghadam-khamseh-LUv656869_A-unsplash.jpg
SEATTLE — Attorney General Bob Ferguson announced today a chicken producer named in an antitrust lawsuit will pay the Attorney General’s Office a total of $725,000 to resolve claims against it. 

Today’s announcement is the first resolution of Ferguson’s lawsuit against 19 chicken producers regarding a widespread illegal conspiracy to inflate and manipulate prices, rig contract bids and coordinate industry supply reductions to maximize profits. 

The lawsuit also names an industry data reporting service accused of assisting in the conspiracy.

Ferguson asserts Mar-Jac Poultry, 18 other chicken producers and a data reporting service drove up the price of chicken, causing consumers to overpay by millions of dollars, which has impacted nearly every Washingtonian. Ferguson filed that lawsuit in King County Superior Court in October 2021.

“If you’ve eaten chicken in the last decade, this conspiracy touched your wallet,” Ferguson said. “This is an important step toward accountability. We aren’t done yet.”




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AG Ferguson shuts down Global Grid’s illegal robocalls, deceptive marketing targeting CenturyLink customers

Friday, May 13, 2022

OLYMPIA — Attorney General Bob Ferguson today announced that, as a result of his lawsuit against the company, Global Grid, a Corvallis, Ore.-based company, and its owner must shut down its illegal robocalling operation.


The company must also stop all deceptive marketing practices, including misrepresentations about a product it falsely promised could block robocalls. 

Global Grid must pay more than $8,000 to the Attorney General’s Office, which Ferguson will deliver to approximately 200 Washingtonians harmed by the company’s hidden start-up fee.

Global Grid and owner Harry Hart III also face $603,000 in penalties, costs, and fees for its illegal conduct, including robocalls, which are suspended so long as they pay back the upfront fees and do not violate the terms of today’s consent decree.

In October 2021, Ferguson filed a lawsuit against the company asserting the company made over 54,000 illegal robocalls to Washingtonians, in violation of the Washington Automatic Dialing and Announcing Device (WADAD) Statute and the Consumer Protection Act (CPA). Ironically, the calls attempted to sell a purported robocall-blocking service.

The company also robocalled consumers on the Do Not Call Registry and made deceptive claims in its advertising. The company also told people that “subscriptions start at just pennies per month,” yet failed to mention that they would be charged up-front fees to activate the service — anywhere from $8 to $100.


Washingtonians impacted by Global Grid’s illegal hidden fees will receive restitution payments equal to the amount they paid. These payments will average approximately $35 per customer. The consent decree, currently pending approval from King County Superior Court, requires Global Grid to make all restitution payments to the Attorney General’s Office within the next 12 months due to the company’s current lack of funds and assets, which the Attorney General’s Office independently verified. 

The Attorney General’s Office will send checks to consumers once Global Grid has completed its payment. Consumers do not have to do anything to receive restitution.

This was a typical robocall:

“Please do not hang up. The voicemail system has an urgent announcement for you regarding your security and the Federal Trade Commission’s National Do Not Call Registry. There’s a new telephone feature that you can add to your current CenturyLink phone line that will screen and block robocalls and unwanted telemarketers.”

Ferguson asserts Global Grid Telecom’s voicemail messages sounded like official messages from CenturyLink, and consumers complained that the messages deceptively sounded as if the offer came from CenturyLink. Nearly all of the company’s messages referred to a “voicemail system announcement.”

Many of the messages also referred to the advertised service as an “upgrade” or new feature to CenturyLink accounts. Further, some of the messages referenced the Do Not Call Registry, which could have deceived people into believing the message was associated with the federal government.

The company also claimed its products would stop all robocalls, and would stop 90 to 100% of telemarketers and unwanted calls. 

In fact, “MAX|Command” did not prevent robocalls. It only would manage and add phone numbers to a list of blocked numbers on a telephone line, without actually blocking new incoming unwanted calls.

The robocall message did not provide an option for people to remove themselves from Global Grid Telecom’s call list. In some instances, consumers who informed the company they no longer wanted to receive messages from Global Grid Telecom continued to receive robocalls.





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Nigerian citizen pleads guilty to massive COVID-19 unemployment fraud

Wednesday, May 4, 2022

Nigerian citizen pleads guilty to COVID-19 unemployment fraud on Washington and 17 other states

Obtained personal identifying information of more than 20,000 Americans to submit fraudulent claims for more than $2 million in federally funded payments since 2017


Tacoma – A 45-year-old resident of Lekki, Nigeria, pleaded guilty today in U.S. District Court in Tacoma to wire fraud and aggravated identity theft for using stolen identities to claim hundreds of thousands of dollars in pandemic-related unemployment benefits, announced U.S. Attorney Nick Brown. 

Abidemi Rufai has been in custody since his arrest at New York’s JFK airport in May 2021. At the time of his arrest, Rufai was the Special Assistant to the Governor of Nigeria’s Ogun State.

According to the plea agreement, since 2017, Rufai unlawfully obtained the personal identifying information for more than 20,000 Americans to submit more than $2 million in claims for federally funded benefits under a variety of relief programs. The various agencies involved paid out more than $600,000.

The largest amount of fraud was committed against the Washington State Employment Security Department, which paid out $350,763 in fraudulent pandemic unemployment claims to accounts controlled by Rufai. Rufai also submitted fraudulent pandemic unemployment claims in at least 17 other states.

Rufai also defrauded the Small Business Administration (SBA) by attempting to obtain Economic Injury Disaster loans (EIDL) tied to the COVID-19 pandemic. Between April 8, 2020, and June 26, 2020, he submitted 19 fraudulent EIDL applications. SBA paid out $10,000 based on the applications.

Between 2017 and 2020, Rufai attempted to obtain more than $1.7 million in IRS tax refunds by submitting 675 false claims. The IRS paid out $90,877 on these claims.

Rufai’s efforts to enrich himself with false disaster claims did not start with COVID-19. In September and October 2017, he submitted 49 disaster relief claims connected to Hurricane Harvey and Hurricane Irma. He filed $24,500 in false claims and was paid on 13 claims totaling $6,500.

Rufai has agreed to pay full restitution to the defrauded agencies.

This case was investigated by the FBI, with assistance from the Department of Labor Office of Inspector General, Internal Revenue Service Criminal Investigations, Department of Homeland Security Office of Inspector General, and the United States Small Business Administration Office of the Inspector General. The Washington Employment Security Department is cooperating in the investigation.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

More information here



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$5.5 million total FTC settlements with Kohl’s and Walmart challenge “bamboo” and eco claims, shed light on Penalty Offense enforcement

Sunday, April 10, 2022

Photo courtesy FTC
By Lesley Fair
Federal Trade Commission blog

For consumers shopping for textiles for the home, products promoted as made from bamboo are a popular draw. 

But the FTC says some items advertised by global retailers Kohl’s and Walmart as “bamboo” were actually made of rayon. 

According to separate FTC settlements, the companies’ misleading representations violated the FTC Act and the Textile Act. In addition, the FTC says Kohl’s and Walmart engaged in “greenwashing” by making deceptive eco-friendly claims for those products. 

The complaint against Kohl’s charges that the company falsely represented that sheets, pillows, bath rugs, and towels advertised as made wholly or in part from bamboo were, in fact, made of rayon. 

What’s more, the company described them with terms like “sustainable,” “highly renewable,” and “environmentally friendly.” 

Kohl’s also advertised some of the products online with a “Cleaner Solutions” seal that linked people to a “Sustainability at Kohl’s” webpage describing initiatives suggesting that the company “care[s] about the planet.”

According to the complaint against Walmart, the company also made false bamboo claims in promoting sheets, towels, blankets, and nursing bras. In addition, Walmart marketed the items with phrases like “eco-friendly and sustainable” and “renewable and environmentally sustainable”

So what’s the real story about bamboo? read more here



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AG: Watch out for charity scams seeking to profit from the crisis in Ukraine

Tuesday, April 5, 2022

CONSUMER ALERT: Watch out for charity scams seeking to profit from the crisis in Ukraine.

Do your research before donating, report suspicious behavior — scammers may take advantage of influx of donations amid Russia’s invasion of Ukraine

OLYMPIA — Attorney General Bob Ferguson is warning Washingtonians to be on the lookout for scammers targeting donations to aid Ukraine and Ukrainian refugees amid Russia’s ongoing invasion. Ferguson is asking Washingtonians to report suspicious solicitations to his office.

“During this tragic humanitarian crisis, many of us are looking for ways to help,” Ferguson said. “Unfortunately, scammers may prey on Washingtonians’ good will. My office is on the lookout for charity scams. If you see any suspicious or fraudulent solicitations, file a complaint with my office.”

You can protect yourself from scams by doing the following:
  • Research the charity before giving. Ensure the charity is registered with the Washington Secretary of State at www.sos.wa.gov/charities. If the charity is registered, you can review a summary of its financial records and tax status. You can also check the charity’s rating on Charity Navigator at www.charitynavigator.org or Guidestar Nonprofit Directory at www.guidestar.org.
  • Don’t give in to high-pressure tactics. If is someone is demanding immediate payment or sensitive personal information, it’s likely a scam.
  • Report any suspicious activity to the Attorney General’s Office. If you suspect a charitable solicitation might be a scam, report it to the Attorney General’s Office. To file a complaint about a charity or commercial fundraiser, visit the Attorney General’s website at www.atg.wa.gov/file-complaint. If you receive a suspicious robocall asking for a donation, file a robocall complaint at https://www.atg.wa.gov/robocall-and-telemarketing-scams.


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AG Ferguson announces new initiative to combat robocalls

Wednesday, March 30, 2022


OLYMPIA — Attorney General Bob Ferguson announced today an initiative to combat robocalls in Washington state. The Attorney General’s Office created a new complaint form for Washingtonians tailored for reporting robocalls.

Additionally, as part of an effort to educate and inform Washingtonians, the Attorney General’s Office launched a website with descriptions of robocalls and telemarketing scams, including strategies for combating them.

Today’s launch is a continuation of the Attorney General’s work to stop illegal robocalls. In the past two years, Ferguson filed three lawsuits aimed at holding illegal robocallers accountable.

  1. In October 2021, Ferguson filed a lawsuit against a Corvallis, Ore.-based company, Global Grid Telecom, and its owner for illegally robocalling Washingtonians more than 54,000 times with deceptive recorded messages. Ironically, the calls attempted to sell a purported robocall-blocking service. The case is ongoing.
  2. In March 2021, two companies that made more than 1.7 million robocalls into Washington paid $495,000 to legitimate charities as a result of a lawsuit by Ferguson, 39 other attorneys general and the FTC.
  3. In August 2020, as a result of the Attorney General’s lawsuit, a King County Superior Court judge ordered Vancouver, Wash.-based air duct cleaning companies and their owner to pay civil penalties of $10 million. US Air Ducts and Sky Builders and DLM Services Inc. made over 13 million robocalls within Washington state from 2017 to 2019, including calling more than 500 individual Washingtonians over 100 times. Robocalls are a type of phone call that comes from automated systems where computers play a recorded message when someone answers the phone or when it goes to voicemail.

“Robocalls are more than just annoying — they can also be illegal,” Ferguson said. “Many of our cases are based on tips we receive from Washingtonians. If robocalls are harassing you, please file a complaint with my office.”

Prior to the creation of the specific complaint form for robocalls, Washingtonians could report any suspicious calls through the Attorney General’s Office general consumer complaint form. The creation of a specific complaint form for robocalls will give attorneys, investigators and staff more precise information for quicker reaction to complaints.

The robocall complaint form includes specific questions for reporting the details of a suspicious call to help our office better track and discover patterns for robocalls in the state — and prevent other Washingtonians from getting more illegal calls. 

Even if illegal robocallers fake their caller identification, the Attorney General’s Office has resources to track these calls when Washingtonians report their telephone number, telephone provider and the exact time and date of the call.


Signs of a scam
  • Caller asks for personal information. A legitimate caller should never ask for your password, social security number or bank account number. Scammers ask for your personal information to steal your money or identity.
  • An offer that seems too good to be true. If the message on the call advertises something for free or at low cost, it is likely a scam.
  • Request payment other than credit card. Scammers usually ask for payment with a gift card, online money transfer or other payment method that is hard to track. Resist any pressure to send immediate payment, or hang up.
  • Threats, scare tactics. Some robocallers threaten individuals with cutting off their utilities, filing legal complaints against them or other actions to get them to send in money or call them back. The government or a legitimate business will generally send a letter if there is a legal issue or a problem with an account.
What to do if you suspect a robocall scam
  • Do not trust your Caller ID. Scammers can fake, or “spoof,” the name and number that appears on your caller ID, making it look like the call is from an unknown number, legitimate business, government agency or local number.
  • Do not answer the call. If you do not recognize a phone number, you can let the call go to voicemail.
  • Hang up. If you answer a call and it seems like it is a robocall, hang up immediately.
  • Do not pay for or accept any offers. Scammers will try to pressure you to make a decision without doing any research or talking to friends or family who may help identify a scam. Don't make any decisions under pressure.
  • Resist the urge to call back or confront the caller. Individuals who call robocallers or scammers back can end up on a list of people who answer the calls then get more calls.
  • Block. You can call your telephone service provider to see what options are available to block phone numbers associated with robocalls and telemarketing scams.
  • Report. Report any robocalls or other suspicious calls you receive to the Attorney General’s Office.Some robocalls may give you an option to opt out of receiving future calls, but if the caller is a scammer, they are unlikely to honor your request. However, you can add your number to the national “Do Not Call” registry (https://www.donotcall.gov/) to reduce the number of annoying telemarketing calls.

A few types of robocalls are allowed without permission. These include political calls about candidates, charities asking for donations or any message that is purely informational, like calls about a flight status or school closure.

Some robocalls or telemarketers may come from legitimate charitable organizations, but it is wise to contact the Washington Secretary of State's Charitable Division at 1-800-332-4483, or visit their website, to make sure any charity is registered with the state before you give money or credit card information.



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Federal Court bans deceptive health claims and a wide range of other deceptive conduct but declines to order compensation to victims

Saturday, March 26, 2022

Illegal marketing techniques
banned by court

At the request of the Federal Trade Commission (FTC), a federal district court in California ordered a stop to the illegal tactics used by marketers who deceptively promoted dissolvable oral film strips as effective smoking cessation, weight-loss, and sexual-performance aids.

The court found that the FTC had prevailed on all 16 counts in its complaint against Jason Cardiff, Eunjung Cardiff, and seven entities they control, doing business as Redwood Scientific Technologies. 

The court’s permanent injunction, among other things, bans the Cardiffs and their companies from selling dissolvable oral film strips directly to consumers, bans engaging in multi-level marketing, bans them from making robocalls, and bans them from using negative-option marketing. 

It also imposes severe restrictions on their future conduct related to false advertising, fake testimonials, and unauthorized billing.

However, despite the fact that the FTC presented evidence that consumers lost $18.2 million to the defendants’ deceptive marketing, the court declined to order any compensation because of a recent Supreme Court’s ruling in the case of AMG v. FTC, which undercuts the agency’s authority to obtain such consumer redress.

“We’re pleased the court ruled in our favor as to every count in the complaint and entered such a strong injunction, including bans on several types of marketing,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. 
“Unfortunately, the FTC still hasn’t been given back its full authority to return money to fraud victims, meaning the people hurt by this scheme – which brought in over $18 million – get nothing.”

More information here



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AG Ferguson files lawsuits against two companies for sending more than 200,000 deceptive letters to Washington small business owners

Sunday, March 20, 2022

SEATTLE — Attorney General Bob Ferguson today filed consumer protection lawsuits against two companies and their owners for sending more than 210,000 deceptive letters to small business owners in Washington. 

The letters deceptively appear to originate from the government, and demand payment for a “Certificate of Status” or a workplace poster that are available from the government free of charge or for a fraction of the monetary demand. 

More than 15,000 Washington businesses paid these two defendants more than $1.2 million in response to their deceptive letters.

Ferguson’s two lawsuits, both filed in King County Superior Court, assert CA Certificate Service, which also does business as WA Certificate Service, and Labor Poster Compliance violated the state Consumer Protection Act hundreds of thousands of times. 

The lawsuits name the four co-owners of CA Certificate Service — James L. Beard, Dean G. Marshlack, Chad M. Davis and Joshua T. Strawn — and two co-owners of Labor Poster Compliance, James L. Beard and Chad M. Davis. The four defendant owners are located in the St. Petersburg, Florida area, and their companies operate nationwide.

The two companies sent at least 210,784 letters into Washington state since March 2019. Ferguson asserts these letters unlawfully duped small business owners into making unnecessary payments to the companies.

At least 14,743 Washington business owners paid $82.50 to CA Certificate Service — a total of approximately $1.2 million. The Attorney General’s Office estimates over 318 Washingtonians paid Labor Poster Compliance $79.25 — a total of more than $25,000.

Ferguson will also soon file motions for preliminary injunction to shut down the companies’ operations in Washington and prevent further mailings of their deceptive letters while the cases are ongoing. The Attorney General’s Office continues to receive complaints about the letters and Washingtonians have so far filed 90 complaints.

The Attorney General’s Office will ask the court to require both companies to pay back the money they obtained deceptively from Washington business owners, seek civil penalties of up to $7,500 per violation of the Consumer Protection Act and pay attorneys’ costs and fees.

“Small businesses power our economy,” Ferguson said. “With this lawsuit, I intend to get the impacted business owners their money back – with interest.”

If you suspect you are the target of similar scams, please contact the Attorney General’s Office. You can file a complaint online at atg.wa.gov/file-complaint or call the office toll-free at 1-800-551-4636.

More information here



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Secretary of State offers tips on how to donate to Ukraine without getting scammed

Saturday, March 12, 2022

OLYMPIA — Washington Secretary of State Steve Hobbs encourages Washingtonians to do their due diligence and conduct research on the charities or nonprofits to which they donate to support relief efforts in Ukraine.
“Americans are a generous people. Whenever a tragedy or crisis occurs around the world, we express our compassion by donating to any number of honest, legitimate charities,” said Secretary Hobbs. “These charities have the resources and infrastructure to ensure the money we contribute directly supports their designated causes.” 

Valeriy V. Goloborodko, Honorary
Consul of Ukraine in Seattle. 
“On behalf of the government of Ukraine and its people, we are grateful for the compassion and generosity of Washingtonians and so many millions around the world,” said Valeriy V. Goloborodko, Honorary Consul of Ukraine in Seattle. 

“I am thankful for Secretary Hobbs’ commitment to helping people protect themselves against fake charities that are undermining genuine, legitimate efforts to support the people of Ukraine. Thank you for both your spirit and support in driving strong efforts to provide relief where Ukrainians need them today.”

“Unfortunately, malign actors and scam organizations try to profit from these crises and take advantage of people’s generosity,” Secretary Hobbs added. “As the state agency responsible for registering corporations and charities, we encourage people to research any nonprofits and charities they choose to support before donating.”

The Office of the Secretary of State’s Charities Division offers the following tips for anyone considering donating to a charity, nonprofit, or relief organization:

  • Check the charity’s registration status. Charities operating in Washington state may need to register and submit reports to the Charities Division. To determine whether a charity is properly registered and in good standing, search for the charity on the Corporations and Charities Filing System at ccfs.sos.wa.gov
  • Check the charity’s experience and if Ukraine crisis relief matches its purpose. Charities that are formed or that shift their direction overnight to respond to a crisis may lack the experience, contacts, or staff to address the issue. Look for charities that have a track record in the region and a good reputation. Consult watchdog organizations like Charity Watch or Charity Navigator that evaluate thousands of charities across the country.
  • Be cautious of online fundraising. Before donating online through charity websites or online giving portals, review the Charities Division’s Guide for Online Giving. Avoid donating to any charities or individuals online unless you know them.
  • Do not share personal financial information over the phone. Do not share your credit/debit card or bank account information over the phone, and don’t feel pressured to do so. Send donations directly to the charity. A legitimate charity will not pressure you to make a donation immediately.
For more tips and resources, visit the Charities Division’s GIVESMART! webpage at 
www.sos.wa.gov/charities/givesmart.

In addition, the Washington State Combined Fund Drive (CFD) offers a list of several reputable and reliable charities — including Doctors Without Borders, UNICEF USA, and American Red Cross International Services — to which Washingtonians can donate.

Administered by the Office of the Secretary of State, the CFD is the charitable-giving program for state and higher-education employees and retirees.


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FTC knocks out Raging Bull’s deceptive earnings claims

Wednesday, March 9, 2022

By Lesley Fair

For people trying to gain a financial foothold, the promise of “$10,000 per week” is a heavyweight representation. 

But all too often, they wind up losing their life savings to the promoters of bogus investment schemes. 

The Federal Trade Commission (FTC) just announced a $2.425 million settlement in its action against RagingBull.com, an outfit the agency says exploited people’s dreams of economic security while often leaving them on the financial ropes and trapped in hard-to-cancel subscriptions.

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Consumer Alert: Washingtonians affected by 2021 T-Mobile data breach need to protect their personal information

Saturday, March 5, 2022

Large amounts of personal information offered for sale on the “dark web”

OLYMPIA — Attorney General Bob Ferguson urges all Washingtonians who believe they were impacted by the data breach announced by T-Mobile in August 2021 to take appropriate steps to protect their personal information from identity theft.

The data breach affected approximately 2 million Washingtonians.

“Data breaches continue to be an escalating threat to Washingtonians,” Ferguson said. 
“We want to make sure Washingtonians have the tools they need to protect themselves in the wake of a data breach.”

On Aug. 17, 2021, T-Mobile reported a massive data breach compromising the sensitive personal information of millions of current, former and prospective T-Mobile customers. The breach affected more than 50 million individuals nationwide. Millions of people had their names, dates of birth, Social Security numbers and driver’s license information compromised.

Recently, a large subset of the information compromised in the breach was for sale on the “dark web” — a hidden portion of the internet where cyber criminals buy, sell and track personal information. 

Many individuals have since received alerts through various identity theft protection services informing them that their information was found online in connection with the breach, confirming that impacted individuals are at heightened risk for identity theft.

Ferguson urges anyone who believes they were part of the August 2021 T-Mobile data breach to take the following steps to protect themselves:

  • Place a fraud alert on your credit report. A fraud alert tells lenders and creditors to take extra steps to verify your identity before issuing credit. You can place a fraud alert by contacting any one of the three major credit bureaus.
Additional Resources. If you believe you are a victim of identity theft, go to identitytheft.gov for assistance on how to report it and recover from it. Washingtonians can also visit https://www.atg.wa.gov/guardit.aspx for additional information.



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