SCAM ALERTS
This area of the site is designed to keep you updated on any special alerts or advisories regarding public messages provided by the Attoney General's Office. It is our goal to do everything possible to keep our citizens safe so make sure to check back here regularly to update yourself on current scams that are designed to steal your money.
To help keep you updated, the warnings will be posted as they are sent from the AG Office as well as with the posting date.
July 15, 2009
CONSUMER ALERT
Scam Artists Posing As Federal Trade Commission Officials Targeting Texans In
Sweepstakes Scam
The scammers make the initial contact by telephone and follow up with a letter featuring a fraudulent FTC logo that provides recipients with instructions for claiming their prize. The letter attempts to convince recipients that the FTC is contacting them because a sweepstakes company holding their prize was unable to locate them. In an effort to deceive letter recipients into believing the letters were legitimately sent by a federal agency, it lists a
The FTC never collects money from consumers and its employees have no involvement with delivering sweepstakes prizes. Additionally, Texans should be aware that they do not need to buy anything in order to enter a sweepstakes. In fact, it is illegal for companies holding sweepstakes to charge fees.
Texans who receive a call from someone claiming to be a representative of the Federal Trade Commission or any other government organization purportedly trying to deliver sweepstakes winnings should contact the Texas Attorney General’s Office at (800) 252-8011 or the Federal Trade Commission at (877) FTC-HELP.
March 3, 2009
Risks & Consequences: Keeping Up With Wireless Device Safety
Wireless telephones and other devices are everywhere – and there’s no doubt that they have made Texans’ lives more convenient. Cell phones have even helped save lives. Peace officers respond to innumerable calls citizens make from their cars or remote places where land lines are not available. While improved communication makes everyone more accessible, it does not come without risk – especially to young Texans.
Recent studies indicate that more than 40 percent of 8- to 12-year-olds – and almost three quarters of children between the ages of 13 and 17 – have wireless devices. As minors’ cell phone usage continues to increase, it is increasingly important that parents understand potential safety concerns.
The Office of the Attorney General (OAG) works tirelessly to keep children safe from sexual predators. The OAG’s Cyber Crimes and Fugitive units work closely with local law enforcement officers to track down fugitive sex offenders and child pornographers. Cyber Crimes officers also criss-cross the state speaking to students and parents about Internet and wireless communication safety. Some of the dangers related to wireless devices include:
Inappropriate content. Most current wireless devices have Internet-browsing and text-messaging capabilities. Many parents carefully monitor their kids’ Internet usage at home, so they should take the same precautions with their children’s cell phones. Web sites with harmful or inappropriate content can be easily accessed from cell phones. Parents should be encouraged to carefully evaluate whether to enable Web browsing or text messaging on their child’s telephone. Most cell phone carriers offer both free and fee-based services that allow parents to restrict browsing or texting.
Child predators. As with Internet-based e-mail, chat or instant messaging, text messaging can be used to persuade young Texans to reveal personal information or lure them into meeting a stranger. Kids should be taught not to respond to strangers’ messages – or any messages that make them uncomfortable – and they should be told to inform their parents if they receive any messages from strangers. Children should NEVER give out personal information or set up a meeting with someone they do not know.
Cyber-bullying. Unfortunately, some children are using modern technology to “cyber-bully,” which means using Internet chat, Web pages and cell-phone texting to intimidate, embarrass or hurt others. Often, cyber-bullying occurs among peers, but in some cases even teachers and other authority figures are targeted. Cyber-bullying can leave its victims with decreased self-esteem or feelings of fear, depression and anger. In some cases, cyber-bullying places its victims in real danger, especially if it provokes violence.
Young Texans should never tolerate cyber-bullying. Children who receive or discover intimidating or harmful messages, should notify a trusted adult immediately.
Sharing or posting inappropriate photos. According to a recent study, 20 percent of 13- to 19-year-olds have electronically posted or sent naked or semi-naked photos of themselves. This startling phenomenon reflects the need for parents to make sure their children realize that these messages or photos may:
• Get forwarded to others or posted on the Internet;
• Raise the expectation of sexual activity, potentially putting the young sender in uncomfortable or dangerous situations;
• Cause embarrassment and legal or employment problems for parents and family members;
• Result in suspensions from school or athletic participation; or
• Hinder future attempts to get into college, receive scholarships or gain employment.
Parents, law enforcement officers and others who have questions or want more information about protecting children should visit the OAG’s Web site, www.texasattorneygeneral.gov. Together, we must work to teach young Texans and keep them safe from harm.
December 3, 2008
CONSUMER ALERT
Make Smart Decisions When Giving Gift Cards
With the arrival of the holiday shopping season, millions of Texans are expected to purchase prepaid gift cards for friends and family all across the state. Easily mailed to far-away loved ones and increasingly easy to purchase, gift cards undoubtedly simplify shopping at a very busy time of year, so they are more popular than ever. According to the National Retail Federation, shoppers nationwide spent an estimated $26.3 billion on gift cards at retailers last holiday season.
Unfortunately, recent reports indicate that the Grinch and his cronies have their eyes on gift cards as they scheme to steal Christmas this year.
Sources from around the country have reported seeing scam artists record the numbers on not-yet-activated gift cards. Once the card is purchased and activated, the crook pounces and drains the card’s value before its recipient can benefit from their gift. Unfortunately, it’s often days or even weeks before customers realize that their holiday spending money was stolen.
Texans can protect themselves by asking a store clerk for gift cards from behind a counter (or that have not otherwise been accessible to the general public). Some gift cards already have built-in security measures, such as an additional scratch off code. But even then, purchasers must make sure no one has tampered with either the card or its packaging.
In addition to avoiding outright theft, Texans should pay attention to the card issuer before deciding which gift cards to purchase. Gift cards purchased from businesses that later declare bankruptcy can become worthless or worth far less than face value. In a recently reported case, one bankrupt company only honored one-quarter of the value on its gift cards. As a result, customers who thought they had $100 to spend only got $25.
Don’t let someone get in the way of this year’s holiday season. Stay vigilant and well-informed. Customers who buy or receive a gift card that lacks any portion of the pre-paid balance should immediately notify the card issuer and ask for help.
Happy holidays.
October 2, 2008
CONSUMER ALERT
Law Enforcement Update
Five Warning Signs Of A Scam
Texans who know their neighbors and are active in their communities help protect our state and prevent crime. From neighborhood watch volunteers to residents reporting suspicious conduct to authorities, vigilant citizens help prevent crime every day. As we kick off National Crime Prevention Month, Texans can help support community crime prevention efforts by learning to recognize and thwart five familiar criminal schemes.
Among the most common avenues used to defraud unsuspecting Texans involves unsolicited telephone calls or spam e-mails. As technology evolves and online communication expands, it is becoming more difficult to identify whether a solicitation is from a legitimate source. Con artists often make up very reasonable-sounding and persuasive stories, or they may pretend to be government officials or other helpful professionals.
When callers or e-mailers claim to represent a trusted company or pitch an interesting offer, Texans should hang up and call the company directly using a number that appears in the local telephone directory. This simple precaution ensures that consumers are talking to an actual company representative.
Efforts to collect Texans’ personal information should always signal a red flag. Every Texan should safeguard their personal information, including bank account numbers and Social Security numbers. Consumers should never disclose sensitive information over the telephone or through e-mail unless they have independently verified who is asking for it and how that person or organization will use the information. Texans also should remember to shred or otherwise properly discard financial statements and other sensitive documents to protect themselves from identity theft.
The third warning sign of a scam is one which cannot be repeated often enough: As tempting as it sounds, Texans can rest assured they did NOT win the Spanish lottery, the Canadian lottery or any other foreign lottery. Sweepstakes and lottery scams continue to snare victims, particularly senior citizens. These offers are merely bait – dangled to hook unsuspecting victims. Texans who receive these solicitations should stop, delete the e-mails, throw away the letters and hang up the telephone.
Texans also should be skeptical of demands for up front, cash payments in exchange for a loan or prize. Under Texas law, it is illegal to require payment before funding a loan or paying out a sweepstakes prize. Texans should immediately back off if told to pay “fees and taxes” up front or verify banking information to claim a prize. Once the money is paid or the bank account is compromised, the criminals will disappear with the victim’s hard-earned money. The promise of a large sum of money tomorrow should not trump good sense today.
Finally, Texans who are considering wiring money overseas in order to claim a prize, a loan, an inheritance or any other large sum of money should immediately STOP – and protect their savings. Con artists often use phony cashier’s checks and wire transfers to avoid felony mail fraud charges. The counterfeit checks are very good – so good, in fact, that even banks have been fooled. Convinced that they’ve received their prize, victims often let down their guard and wire money to cover non-existent fees and taxes. The cashier’s check turns out to be worthless, and the victim’s money is gone.
Whether they use e-mail, telephone calls, or even face-to-face visits, con artists dangle baited hooks in front of honest Texans every day of the week. By recognizing the warning signs of a scam and sharing these tips with family and neighbors, Texans can help strengthen their communities and stop thieves in their tracks.
For more information about National Crime Prevention Month, visit the National Crime Prevention Council online at www.ncpc.org.
CONSUMER ALERT
Take Simple Steps To Avoid Disaster-Related Scams
In the wake of Hurricane Ike, the Office of the Attorney General (OAG) reminds affected Texans to avoid fraudulent clean-up and recovery-related scams. By remaining vigilant, Texans can avoid costly schemes in the aftermath of a natural disaster.
Some scam artists will purport to represent charities that benefit storm victims. Texans who are contacted and asked to donate to a charity should verify the charity’s purpose and request brochures or other literature that describes the organization’s relief efforts.
Media links |
Homeowners should review their insurance policies to find out what property damages are covered. Property owners should be very wary of door-to-door contractors who offer to make home or roof repairs. The work of these laborers is frequently careless and overpriced. In some cases, they demand up front payment and leave with the homeowner’s money without making the promised repairs.
Texans also should be wary of vehicles that sustained water damage. Before agreeing to buy new vehicles from dealers in the area affected by Ike, consumers should look for water lines on the carpet or in the glove compartment.
Texans also should be on the look out for scam artists pretending to be employed by a government agency. Individuals posing as government officials may attempt to obtain bank account numbers or cash from affected residents. Before providing any personal information to someone claiming to be a government official, Texans should insist on seeing proper identification.
Consumers should keep written records and receipts of any potentially fraudulent transactions. If speaking directly with the service provider does not resolve the dispute, Texans should call the OAG’s Consumer Complaint Hotline at (800) 252-8011. Hotline staff is available between 7 a.m. and 7 p.m. If Internet service is available, consumers may file a written complaint online at www.texasattorneygeneral.gov.
A disaster declaration triggers heightened OAG enforcement authority under the Texas Deceptive Trade Practices Act. This authority protects Texans by prohibiting exorbitant prices for necessities, such as drinking water, food, batteries and generators.
August 25, 2008
CONSUMER ALERT
New FTC Rule Will Let Telephone Customers Avoid Prerecorded Telemarketing Calls
The Federal Trade Commission (FTC) has announced a new rule governing telemarketing calls that feature prerecorded messages. Beginning Sept. 1, 2009, telemarketing companies must obtain call recipients’ written permission before contacting them with a prerecorded message. More immediately, effective Dec. 1, 2008, prerecorded telephone marketing calls must have an opt-out mechanism so that recipients can elect not to receive those unsolicited calls in the future.
Telemarketers with pre-existing customer relationships will be allowed to continue using prerecorded messages to contact those customers only for one year after the rule is published in the Federal Register. At that time, telemarketing companies will need their customer’s written permission before calling anyone with a prerecorded message.
Under the new regulations, charitable organizations can continue contacting their members or previous donors, but will need to offer an opt-out mechanism once the new rule goes into effect.
The FTC’s new rule will not prohibit customers from receiving certain prerecorded informational calls, such as those which announce flight delay notifications, upcoming appointments, or similarly helpful information. These phone calls are unaffected by the new rule because they are not used to market products or services to the recipient. Healthcare-related phone calls also are exempt from the new regulations.
Under the new rule, the prerecorded telemarketing calls must:
- allow the telephone to ring for at least 15 seconds or four rings before an unanswered call is disconnected;
- begin the prerecorded message within two seconds of a completed greeting by the recipient;
- disclose at the outset of the call that the recipient may ask to be placed on the company's do-not-call list at any time during the message;
- in cases where the call is answered by a person, make an automated interactive voice and/or keypress-activated opt-out mechanism available during the message that adds the recipient’s telephone number to the company's do-not-call list and then immediately ends the call; and
- in cases where the call is answered by an answering machine or voicemail, provide a toll-free number that allows the recipient to be connected to an automated interactive voice and/or keypress-activated opt-out mechanism anytime after the message is received.
The new rule can be viewed online at www.ftc.gov.
February 12, 2008
CONSUMER ALERT
Scammers Taking Advantage Of New Federal Economic Stimulus Package
Texans should be aware of a scam that has emerged in connection with the proposed federal economic stimulus package. Under recently passed legislation, the IRS will mail tax rebate checks to eligible Texans over the next few months. President Bush has indicated he will sign the package into law on Wednesday.
Several Texans recently filed complaints with the Office of the Attorney General after receiving unsolicited e-mails and telephone calls from purported IRS agents claiming that the taxpayers are eligible for “Bush refunds.” The scammers demand taxpayers’ Social Security and bank account numbers, claiming the IRS will use the information to directly deposit “rebate checks” into the taxpayers’ accounts.
This is outright identity theft fraud. The IRS does not call or e-mail taxpayers unexpectedly to demand personal information for direct deposits. Taxpayers solicited in this manner should just hang up or delete the e-mail.
Texans who have received these bogus solicitations can file a complaint with the IRS at www.irs.gov or by calling (800) 829-1040. Consumers also can report such calls to our office.
January 7, 2008
CONSUMER ALERT
Landlords, Roommates Can Fall Prey to Counterfeit Checks
Texans who plan to get a roommate or rent out their house or apartment in the new year should beware of a new version of an old counterfeit check scam.
The U.S. Postal Inspector recently warned that some property owners are being duped by con artists using counterfeit checks. Managers of large apartment complexes and owners of a single rental property are targeted by the scam. A landlord should not trust a prospective tenant who responds from overseas to an online advertisement, pays a deposit with a cashier’s check (possibly even offering to pay several months’ rent in advance), and then asks the landlord to wire back part of the money. The checks often turn out to be clever counterfeits.
People who advertise seeking roommates should be careful of this scam as well. Roommates abroad who send large deposit checks and then ask to have some funds returned to them because of a “family emergency” or similar reason are simply trying to profit from the prospective roommate’s trust.
To provide further reassurances, the scammer might even telephone the person who places the advertisement. But the result is invariably the same: They want to separate consumers from their money.
Many consumers mistakenly believe it is possible to get back their money, but the con artists behind these ploys are almost always in other countries. Even with the assistance of international law enforcement authorities, these thieves are nearly impossible to catch because they are constantly on the move.
Landlords and roommate seekers who are contacted with one of these offers should simply say “no.”
December 14, 2007
CONSUMER ALERT
Identity Thieves Impersonate Texas
A new identity theft scheme is targeting Texans, particularly those who bank at Amarillo National Bank, a legitimate
This type of scam, also known as "phishing," typically involves e-mails that falsely appear to have been sent by trusted and well-known institutions, such as large banks or popular Internet-based merchants, like eBay and PayPal. In the latest twist, however, identity thieves are clearly targeting Texans by posing as trusted local institutions.
The Office of the Attorney General first learned of the Amarillo National Bank scam when its own employees received a series of e-mails with the subject line: "New Message From Amarillo National Bank." The e-mails read, in part:
We recently reviewed your account, and we suspect an unauthorized ATM based transaction. Therefore as a preventive measure we will temporary limit your access to sensitive features. To ensure that your account is not compromised please call our security center ... and verify your identity to prevent deactivation.
If this is not completed by Dec 15, 2007, we will be forced to suspend your account indefinitely, as it may have been used for fraudulent purposes.
The message provides a toll-free number for consumers to call and furnish their personal information. However, neither the e-mail nor the telephone number is affiliated with Amarillo National Bank.
As always, Texans should NEVER provide personal information in response to unexpected e-mails or telephone calls, even if they appear to be from a respected local institution.
The Office of the Attorney General is working with Amarillo National Bank and
IMPORTANT NOTE!
One of our employees received this very email this morning addressed to his work email account. Be warned that this can happen to anyone at any email account. While the email body would appear to show someone is concerned about your financial well being, it is simply a ploy to steal your personal identifying information. If your email program shows return email addresses, you will immediately see that this email did not originate with any Amarillo National Bank service, but an online service that anyone can sign up for. This is just one clue that things may not be as they seem. Always remember to be careful with your identity. It takes a great deal of time and money to clear your good name should thieves manage to steal your identity.
Below is the email received in its entirety but with the toll free number blocked:
Dear customer,
At ANB, we understand how important it is to protect your personal and financial information. That's why we make every effort to protect the information that you share with us online.
We recently reviewed your account, and we suspect an unauthorized ATM based transaction. Therefore as a preventive measure we will temporary limit your access to sensitive features.
Please call our security center toll free at: 800-XXX-XXXX to verify your identity to prevent deactivation and then no additional action is required by you to continue to use your online services.
As part of our commitment to you, we are enhancing our current online security. This security upgrade is free, easy, and most importantly gives you additional protection from fraud and identity theft.
If this is not completed by Dec 16, 2007, we will be forced to suspend your account indefinitely, as it may have been used for fraudulent purposes.
This enhanced security is just one more way to prevent fraud, protect against identity theft and strengthen your online security. Your online security is our top priority, and we'll make every effort to provide you with the best online security available.
We look forward to continuing to provide you excellent service.
Sincerely,
ANB Online
If you do not have an account with us, please ignore this message as it has reached your email address by mistake. We are sorry for any inconvenience this may caused.
Please do not reply to this e-mail as this is only a notification. Mail sent to this address cannot be answered.
December 6, 2007
CONSUMER ALERT
Don't Pay Up-Front To Borrow Holiday Cash
With the holiday season in full swing, many Texans might encounter advertisements promising instant cash loans. Consumers should avoid loan offers that require up-front payments for "taxes" or "processing fees." Legitimate lenders never ask borrowers to pay money up-front in order to obtain a loan.
Posing as legitimate loan offers, these slick loan promotions often appear online, in newspaper classified ads or on flyers. Some scammers provide a toll-free number for borrowers to call and supposedly speak with someone who claims to be a reputable bank representative. Other con artists send official-looking correspondence guaranteeing a loan for hundreds or even thousands of dollars at a reasonable interest rate.
In both schemes, borrowers are instructed to wire several hundred dollars in advance to cover the loans' taxes or processing charges. Once consumers send the money, they never hear from the scam artist again.
Many of these schemes give the impression that they are based in the United States. Often, they provide "confirmation" correspondence with a return address in this country. The unfortunate reality is that most scammers are based abroad and use stolen or disposable cell phones that cannot be traced. The correspondence addresses are either nonexistent or anonymous drop boxes. Once money is wired to the scammers, they are able to pick it up from any of thousands of locations around the world, with little chance of being caught.
Consumers who need extra cash over the holidays should consider approaching local lenders to discuss their options in person. Borrowers should also carefully protect their personal information, especially Social Security and bank account numbers. While reputable lenders typically require Social Security numbers and other information to conduct credit checks on a borrower, scam artists often obtain victims' personal information to perpetrate identity theft.
Texans can verify they are dealing with a legitimate, properly licensed organization by contacting the Texas Department of Banking toll-free at (877) 276-5554 or online at www.banking.state.tx.us.
To report an advance fee scam or to obtain additional information, call the Office of the Attorney General at (800) 252-8011 or visit us online at www.oag.state.tx.us.
December 3, 2007
Five Holiday Scams Texans Should Avoid
With Texans across the state preparing holiday meals and shopping for gifts, a few con artists are dusting off old scams and looking for new victims. Law enforcement can help Texans by spreading the word about how to avoid five popular holiday scams: gift card scams; online shopping schemes; phony charities; credit repair scams; and spam e-mail and other unsolicited offers.
Gift card scams. Scam artists often take advantage of gift cards by writing down or memorizing the serial numbers on the face of the card while the cards are still displayed in the store. When an unsuspecting consumer purchases and activates the card, the scammer simply calls the card's customer service number, verifies it is active, and uses the memorized serial number to make online purchases. Sadly, it is often days or weeks before the legitimate buyer learns that the card balance was drained by a thief.
To avoid scammers who drain gift card balances, consumers should ask a store clerk to provide them with a gift card from behind a counter or one that has not otherwise been accessible to the general public. Some gift cards have additional security measures, such as scratch off codes, so consumers should always verify that no one has tampered with a card or its packaging.
Online shopping schemes. Consumers should never respond to bulk e-mails that offer merchandise, travel deals or solicit charitable contributions. Crooks often set up Web sites that look like they sell products or collect money for charities when, in fact, all they do is collect credit card numbers, take the money and run. Consumers should always verify a Web site's security status before placing an order. Online shoppers also should consider using a credit card for online purchases. Paying by credit card often makes it easier for consumers to dispute unauthorized charges or undelivered products.
Bogus charities. Charitable giving is commendable, but consumers should ask questions before donating to a telephone or door-to-door solicitor: Does the solicitor have identification? How will contributions be used? Texans also should independently check what they are told about the organization and make sure their gifts will count. To verify an organization's legitimacy, donors can contact www.give.org. This Web site is maintained by the Council of Better Business Bureaus to promote wise charitable giving. Consumers also should confirm the tax-exempt status of any organization before they reach for their wallets.
Credit repair scams. Online or in the classifieds, credit repair offers often guarantee consumers loans despite their poor credit ratings; all consumers have to do is pay an upfront "processing fee." These offers are invariably a form of advance fee fraud, so Texans should steer clear of them. Consumers who need extra money over the holidays should visit a local lender in person.
Unsolicited offers. The best way to guard against scams and swindles is simple: Never respond to unsolicited offers. Consumers should never respond to spam e-mails sent by strangers or unfamiliar companies.
Consumers should also be skeptical of unsolicited telephone offers. Even if the caller claims to represent a trusted company or pitches an interesting offer, Texans should hang up and call the well-known company directly using a number that appears in the local telephone directory. This simple precaution ensures that consumers are talking to an actual company representative.
Fraudulent offers also can arrive in the mail. As tempting as it sounds, consumers can rest assured they did NOT win the Spanish lottery, the Canadian lottery, or any other foreign lottery just in time for the holidays. Texans should be extremely wary of cashier's checks sent by people they do not know and should never provide their personal financial information to unfamiliar solicitors.
Con artists tend to spend money just as fast as they steal it, so money lost in these or similar scams is difficult to recover. Prevention is an important key to stopping thieves in their tracks. By taking a few simple precautions, Texans can enjoy a safe and happy holiday season.
November 27, 2007
CONSUMER ALERT
Spoof Credit Union E-Mails Could Ruin Consumers' Holidays
A new, dangerous identity theft scheme is targeting credit union customers across the country. According to consumer and credit union groups, spoof e-mails are directing credit union customers to call a telephone number and confirm their personal information. Consumers who make the call do not reach their credit union, but instead end up on the telephone with a scam artist who wants to steal their identity.
Savvy consumers have increasingly learned to identify and delete spoof e-mails that falsely appear to originate from legitimate banks or credit card companies. Known as "phishing," these e-mails direct consumers to a decoy Web site that allows the scammers to collect all the information they need to empty the customers' bank accounts and ruin their credit.
"Phishing" scams have been around for years, but increasingly sophisticated criminals now send e-mails instructing consumers to call a telephone number instead of clicking on a link. This tactic, known as "vishing," can be especially effective because consumers who encounter a live person are much more likely to let down their guard.
The latest "vishing" scam immediately disarms consumers by specifically warning about similar schemes. One recently circulated e-mail reads:
Dear Credit Union Customer,
We regret to inform you that we have received numerous fraudulent emails which ask for personal account information. The emails contained links to fraudulent pages that looked legit. Please remember that we will never ask for personal account information via email or web pages.
Because of this we are launching a new security system to make Credit Union accounts more secure and safe. To take advatage [sic] of our new consumer Identity Theft Protection Program we had to deactivate access to your card account.
To activate it please call us immediately.
The e-mail provides a telephone number with a U.S. area code, adding to its air of legitimacy. In an especially brazen move, the e-mail offers identity theft tips and links to the Federal Trade Commission's identity theft prevention Web site. Consumers who think the e-mail is legitimate call the number and furnish sensitive information to a person they believe is a trusted credit union employee. Only when their identity is stolen do they realize it was all a scam.
These "vishing" scams combine the "phishing" ploy with a Web-based telephone scheme. The telephone numbers that appear in these e-mails are set up through VoIP, which is an Internet-based telecommunications service. Even though the phone number appears to be based in a familiar U.S. area code, the scammers are most likely in other countries and impossible to track down.
Consumers who receive this or any other unexpected e-mail or phone call seeking personal information should not respond. Consumers who have concerns about their account should contact their credit union by calling the telephone number that appears in the local directory or on their periodic statements. Never click on a link or call a telephone number that appears in an unexpected e-mail.
November 15, 2007
CONSUMER ALERT
Office Supply Scams
Several businesses recently complained to the Office of the Attorney General about invoices they received for office supplies that were never ordered, including paper, toner cartridges and other office products.
Business owners should be aware that scam artists often send fraudulent billing invoices to companies of all sizes, hoping that the accounting department will simply pay the bill. Crooks count on the business's failure to confirm that a purchase order was issued or that goods actually arrived.
Office supply schemes can take multiple forms. In one variation, the scam artist simply sends an invoice without ever delivering any products. Other thieves send merchandise that the business did not order and charge a price that dramatically exceeds what the same supplies would cost at a local retailer. If the invoices are unpaid, scammers try to intimate the businesses with threatening telephone calls and letters.
Most office supply scammers are based in other states, so Texas businesses can only communicate with them by telephone or e-mail. Businesses that attempt to question the invoices are often met with vague statements claiming that "someone" at the company ordered the supplies.
By law, businesses that receive unordered merchandise are under no obligation to pay to return the unwanted products. Generally, these items can be considered a gift. Otherwise, the retailer that sent the merchandise must pay to retrieve it within a reasonable period of time at no expense to the business. A scam artist will seldom bother to do so.
Businesses should consider alerting all employees about office supply scams, not just those who work in accounting and billing departments. Some scammers are known to dial random numbers throughout a business until they find an unsuspecting employee who will "accept" the unordered merchandise. According to some reports, employees have also been persuaded to fill out sweepstakes forms without realizing that the fine print committed their company to buy unwanted, overpriced supplies.
Businesses that receive fraudulent invoices or unordered supplies, or are subjected to bogus collection threats or any other scam should file a complaint with the OAG Consumer Protection Division by calling (800) 252-8011 or visiting the OAG Web site at www.oag.state.tx.us.
November 7, 2007
CONSUMER ALERT
Give Wisely To Organizations Claiming To Benefit Public Safety Officers
Before donating to an organization that claims to represent law enforcement, Texans should ask questions and check the facts. Donations to groups with the words "police," "law enforcement," or "trooper" in their names may not actually benefit real peace officers or their families. As with most things, the devil is in the details.
Two common types of organizations can serve law enforcement. The first are legitimate charities, such as police benevolent societies. These charitable organizations might honor outstanding officers with an annual gala or raise money to provide scholarships for the children of wounded or fallen officers. However, when an unknown caller solicits donations for a peace officers' charity, Texans need to ask questions before they open their wallets.
In 2003, the Office of the Attorney General and the Harris County Attorney's Office filed an enforcement action against the Texas Police Officers Alliance (TPOA), which collected nearly $300,000 that it claimed would benefit peace officers. Before the state intervened, TPOA had given a paltry $500 to benefit the families of three sheriff's deputies. Texans who want to donate funds to law enforcement charities should know how the organization will spend their money – and whether it will actually benefit any peace officers.
A second type of law enforcement organization is a non-profit professional association or labor union. Their membership is usually comprised of dues-paying peace officers who rely on the association for professional insurance, legal counsel, and representation before city, county, or state officials. These associations typically are governed by an elected board of directors that includes actual licensed peace officers. Non-executive board members ordinarily receive no compensation, so many organizations rely on a professional staff to administer day-to-day operations at the association.
Though many of these organizations legitimately represent actual peace officers and their interests, they are not charities. Because they do not serve a charitable purpose, donations to these organizations are not deductible for federal income tax purpose. For the same reason, it is entirely lawful for a law enforcement association to use donations to pay for administrative expenses, provided they do not mislead prospective donors about how contributions will be spent.
To separate organizations that actually serve or represent peace officers from those that may not, it helps to examine the size of an organization's membership, the composition of its governing board, its history, its affiliations, and the organization's willingness to disclose how it spends its resources.
The state's largest peace officers' organization is the Combined Law Enforcement Associations of Texas (CLEAT), a labor union with more than 15,000 members and 100 local associations. Founded in 1974, CLEAT is governed by a 17-member elected board of directors that are all licensed peace officers. It is affiliated with the National Coalition of Public Safety Officers.
Another prominent law enforcement association, the Texas Municipal Police Association, represents more than 13,000 Texas peace officers. Its 14-member board of directors, which is elected by its membership, receives no compensation and is composed almost entirely of licensed peace officers. Other examples of well-known, established organizations that represent peace officers include the Fraternal Order of Police, the Houston Police Officers Union, and the Dallas Police Association, among others.
While some organizations rely largely on membership dues to fund their operations, others solicit contributions by telephone and mail. Unfortunately, a few organizations that claim to represent law enforcement may not actually spend donors' contributions on items that directly help Texas peace officers.
Consider, for example, the Texas State Troopers Association (TSTA), which hires professional telemarketers to call potential donors for contributions. While the paid solicitor might have a good sales pitch urging potential donors to support the state police, much of the money raised by TSTA doesn't actually go to officers or their families. According to a recent IRS filing by the TSTA, its telemarketing efforts yielded $3.59 million through telephone solicitations. Of that amount, more than 75% – or $2.78 million – was spent on "professional fundraising fees." The IRS documents also indicate the organization spent just $10,800 on trooper death benefits; $22,000 on a "trooper event;" and $72,000 on contract lobbyists.
Texans who are solicited for donations by a purported law enforcement association need to ask tough questions before contributing to any non-profit organization. If the solicitation is made by telephone, prospective donors should take their time and ask for more information. Consumers should ask whether solicitors are volunteers or paid telemarketers. If a solicitor claims that a state or local police department has authorized the solicitation or will somehow benefit from a contribution, citizens should contact the local police department to determine whether the caller's claim is accurate.
To understand how their contribution will be used, prospective donors should ask the organization to provide a written comparison of how much donated revenue goes to telemarketing or lobbying expenses and how much directly benefits peace officers or their families.
Prospective donors should be wary of high-pressure sales tactics or unsolicited "pledge" letters. The Office of the Attorney General has received complaints by citizens who received unsolicited "pledge letters" from certain organizations. These letters claim that the recipients "generously agreed to donate" a certain amount when, in fact, no such promise was ever made. Texans should also question solicitors who imply their organization's donors receive special treatment by law enforcement authorities. And, of course, no legitimate public safety organization would intimidate or harass consumers who decline to give.
Consumers who receive bogus pledge cards or harassing telephone calls from organizations claiming to benefit law enforcement may file a complaint with the Office of the Attorney General by calling (800) 252-8011 or visiting our Web site at www.oag.state.tx.us.