Markets Wired

The Federal Trade Commission is warning consumers about a scam targeting families of military members. A caller, claiming to work for the Red Cross, notifies an individual that their family member has been injured while on duty. To get immediate aid to the injured service member, the caller says, paperwork must be completed, and personal information must be verified.

The FTC, the nation’s consumer protection agency, says this scheme is a variation of “phishing” – a technique identity thieves use to get personal or financial information from unwary consumers. The identity thief claims to represent a trusted source – a bank, a government agency, or in this case, The American Red Cross – to get someone to divulge their personal information. The FTC urges military family members not to give out personal information on the phone if they are contacted by an individual they don’t know – or via the Internet if the message comes via e-mail.

According to the American Red Cross, its representatives typically do not contact military members or their families directly. Visit http://www.redcross.org and http://www.defenselink.mil for more information.

For more information about phishing, visit http://onguardonline.gov/phishing.html. To report a phishing incident, visit www.ftc.gov or call 1-877-FTC-HELP. Because victims of phishing schemes can become victims of identify theft, you also may want to visit www.ftc.gov/idtheft.

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

The Federal Trade Commission has mailed reimbursement claim forms to more than 2,400 consumers who may have been victims of identity theft due to alleged security lapses at data broker ChoicePoint, Inc. In December 2006, the Commission mailed claim forms to 1,400 consumers who were identified with the assistance of law enforcement, with instructions on how to file a claim. In April 2007, 1,500 consumers were identified and contacted. The FTC also has created a Web site – http://www.ftc.gov/choicepoint – where consumers who do not receive a letter can download a claim form and obtain information about the claims process.

In 2005, ChoicePoint, which compiles and sells personal information, announced that it had sold information about many consumers to people who turned out to be identity thieves. The FTC, the nation’s consumer protection agency, investigated the ChoicePoint security breach and alleged that, in some cases, these sales resulted in identity theft. The FTC and ChoicePoint reached a settlement requiring the company, among other things, to pay $5 million to be used to reimburse consumers for expenses due to identity theft caused by ChoicePoint’s security breach. A press release explaining the settlement can be found at http://www.ftc.gov/opa/2006/01/choicepoint.htm.

Consumers who receive a letter and have out-of-pocket expenses due to identity theft caused by the ChoicePoint security breach should submit claims promptly. Consumers who do not receive a letter, but who believe that they have identity theft-related expenses due to this incident, also may submit a claim by completing the form available on the FTC’s Web site http://www.ftc.gov/choicepoint or calling (toll-free) 1-888-884-8772. The form must be postmarked by August 18, 2007 for consideration. The amount applicants receive will depend on a number of factors, including the total number and amount of claims that the agency receives.

More information for consumers is available by calling toll-free at 1-888-884-8772, or by sending an e-mail to [email protected].

The Federal Trade Commission today told the U.S. House Committee on Financial Services that the agency will continue its efforts to improve the accuracy of credit report information and to enhance consumers’ ability to dispute and correct inaccurate information.

Lydia Parnes, Director of the FTC’s Bureau of Consumer Protection, described the FTC’s progress toward these goals, including enforcing the Fair and Accurate Credit Transactions Act of 2003 (FACTA) and the Fair Credit Reporting Act, and offering guidance for consumers and for consumer reporting agencies (CRAs), furnishers of information to CRAs, and consumer report users.

The testimony noted several significant FTC enforcement actions, including cases in which the three principal nationwide CRAs (Equifax, Experian and TransUnion) agreed to pay a total of $2.5 million in civil penalties for allegedly failing to maintain adequate personnel to respond to consumers registering disputes, and a case against Far West Credit, a Utah-based CRA that agreed to pay $120,000 in civil penalties for allegedly failing to use reasonable procedures to ensure accuracy of information in consumer reports.

The testimony also cited recent actions against three companies that allegedly furnished inaccurate information to CRAs, and cases in which two telecommunications carriers were ordered to pay a total of almost $1.5 million in civil penalties for allegedly failing to provide consumers with adverse action notices that would enable them to dispute inaccurate information in their reports.

The testimony described the Commission’s many publications to educate businesses about their legal responsibilities and to inform consumers of their rights and legal remedies, noting that the FTC receives up to 20,000 contacts per week from consumers asking how to recover from identity theft or avoid becoming a victim.

Noting the provisions of FACTA that help reduce identity theft and help consumers respond to it, the testimony related that the FTC initiated an identity theft education program last year (“Deter, Detect, Defend”) and recently helped launch a new Web site ( www.idtheft.gov) that eventually will serve as a centralized government clearinghouse for educational resources for consumers, businesses, and law enforcement on ways to prevent and detect identity theft and help victims recover.

According to the testimony, the FTC and other agencies have completed most of the FACTA-mandated rules, guides, forms, and notices, and the agencies are committed to completing the tasks that remain. In addition, either acting alone or with other agencies, the FTC has completed six FACTA-mandated studies related to consumer report accuracy, and two studies are still in progress.

“The Commission is troubled that, despite its efforts, consumers continue to report errors in their credit reports that have made it difficult, or more expensive, to obtain credit, insurance, or employment,” the testimony concluded. “The Commission is committed to using all of the tools at its disposal to address consumer report accuracy concerns.”

The Commission vote authorizing the presentation of the testimony and its inclusion in
the formal record was 5-0. A copy of the testimony can be found on the FTC’s Web site and as a link to this press release.

Copies of the testimony are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint in English or Spanish or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov/ftc/complaint.shtm. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,600 civil and criminal law enforcement agencies in the U.S. and abroad.

Prom, graduation, senior trips… there can be a lot of tricky situations this time of year with teens and access to alcohol. DontServeTeens.gov, available in both English and Spanish, provides parents and others with tools and information to reduce teen drinking and related harm.

We Don’t Serve Teens, a national campaign sponsored by the Federal Trade Commission and other public and private sector organizations, offers information on stopping teens’ easy access to alcohol, the dangers of teen drinking, and what to say to friends and neighbors about serving alcohol to teens. National, state, and local organizations are encouraged to use materials offered on the Web site, including press releases, announcements for broadcasters, and camera-ready logos to spread the We Don’t Serve Teens message.

Consumers, including corporate and banking executives, appear to be targets of a bogus e-mail supposedly sent by the Federal Trade Commission but actually sent by third parties hoping to install spyware on computers. The bogus e-mail poses as an acknowledgment of a complaint filed by the recipient, and includes an attachment. Consumers who open the attachment to this e-mail unleash malicious spyware onto their computer. The agency warns consumers who get this e-mail that purports to be from the FTC:

• Don’t open the attachment.
• Delete the e-mail.
• Empty the deleted items folder.

The hoax e-mail is personalized, and contains the name of the recipient and their business. The bogus message explains how the complaint will be used, who will have access to it and states, “Attached you will find a copy of your complaint. Please print a hard copy of the complaint for your records in the upcoming investigation.” Opening the attachment downloads the malicious spyware.

Consumers can learn more about protecting themselves from malicious spyware and bogus e-mails at OnGuardOnline.gov, a Web site created by the FTC in partnership with other federal agencies and the technology industry to help consumers stay safe online. The site features modules on spyware and phishing, at http://onguardonline.gov/spyware.html and
http://onguardonline.gov/phishing.html

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint in English or Spanish or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov/ftc/complaint.shtm. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,600 civil and criminal law enforcement agencies in the U.S. and abroad.

Dad may always be ready to share his wisdom and advice with you, but this Father’s Day the Federal Trade Commission has information you can share with him. A Father’s Day e-card, available from the FTC in English and Spanish at http://www.ftc.gov/dad and http://www.ftc.gov/padre, offers dads advice on keeping their personal information secure.

When Internet fraudsters go “phishing,” they send spam or pop-up messages asking for personal information such as credit card numbers, bank account information, Social Security numbers, or passwords. Often, they pose as a trusted source like a bank, an Internet Service Provider, or a government agency. The e-card shares tips to “school” dads on how not to get “hooked,” along with wishes for a “fintastic” Father’s Day!

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them.