Putting a face on it
A coalition of 42 attorneys general wrote to Facebook parent Meta last week requesting immediate action to address widespread investment scams on Facebook and WhatsApp. In the letter, the AGs describe (and attach examples of) a series of Facebook newsfeed ads with images of well-known investors offering membership in an investment group. After clicking on any of the ads, the AGs state, users are prompted to download WhatsApp and join a group that, in reality, is not sponsored by or affiliated with the pictured investors. Instead, those who join become targets of a "pump and dump" scheme in which the imposter investment experts provide recommendations to buy certain penny stocks. The AG's letter then helpfully explains that, "By convincing users to purchase these thinly traded stocks, the prices go up (“pump”). The fraudster can then profit from the price inflation by quickly selling the securities at a high price (“dump”), which in turn causes the prices to plummet." The new owner of the shares will typically lose a substantial part of their capital as a result of the price drop. How substantial is the loss? you might be asking. The letter mentions cases in which consumers lost from $40,000 to over $100,000, as well as a pump-and-dump scheme in which the SEC froze $200 million in ill-gotten gains. The AGs are calling on Meta to take several steps to protect consumers, including conducting additional due diligence on advertisers and human reviews of advertisements before they are run. If Meta is unable to implement a more effective process, the AGs assert, then it should stop running investment advertisements. In a related press release, Michigan Attorney General Dana Nessel reminds consumers of several things to keep in mind before investing. Check out the advice here, and if you see ads that look like these, steer clear.
Cheating "classmates"
According to a recent story in Fortune, criminal networks are using AI to enroll thousands of “synthetic” or “ghost” students in colleges and universities across the country, to then have them apply for and steal millions of dollars in financial aid. The fake students, the story explains, register under stolen or fabricated identities and, along with the stolen financial aid, make off with legit college email addresses. Fortune reported that, in the fall of 2024, Santiago Canyon College, in California, had over 10,000 fake students clogging its rolls—reduced to 3,000 by spring 2025. Fortune also cites Jordan Burris, vice president at identity-verification firm Socure. His firm has helped schools where 20% to 60% of student financial aid applicants were "ghosts." Burris said about one school, "It was a digital poltergeist effectively haunting the school’s enrollment system.” Fortune also describes how bad actors sometimes carry out the scheme in the dead of night, with empty classes becoming waitlisted overnight. As reported by The Associated Press, the U.S. Education Department has introduced a temporary rule requiring students to show colleges a government-issued ID to prove their identity as a measure to help stem financial aid fraud. The AP story also describes several cases of students who have discovered loans or grants taken out in their name, and the impact on credit reports. We'll certainly keep an eye on this new twist on fraud and ID theft. This "ghost" story provides another good reason to regularly monitor credit reports (and to look under your bed before you turn in). For more on the Education Department’s response, see here and here.
Cracking down on crooks
Romanceland. Scam roundups can so often be such downers, with stories of innocent victims losing thousands upon thousands of dollars. When we hear about perpetrators actually being caught, we get back a little of that hope that fairness and justice will one day prevail against the never-ending stream of fraud. The hopeful news today comes via the U.S. Attorney's office, which announced that a Texas man and his romantic partner pleaded guilty to their roles in harming elderly victims in a romance fraud scheme. According to the U.S. Attorney, from June 2022 through September 2022, Felix Clark conspired and agreed to receive the proceeds of fraud perpetrated by a co-conspirator in Ghana. Over the course of the conspiracy, one or more of Clark’s co-conspirators went onto online dating sites and, using fake names, pretended to be interested in romance, and even marriage, with the mostly elderly victims. Many of the victims, including an elderly New Jersey-based victim, had recently lost their spouses. The co-conspirators used electronic means to tell the victims a variety of lies to induce the victims to send money. For instance, they claimed that there was a large amount of gold in Ghana, but in order to gain access, the victim needed to pay taxes, fees, or other sums. Felix's romantic partner, Esther Amppiaw, admitted that she knowingly received checks, money orders and electronic payments totaling $317,290 from individuals she did not know, and that she transmitted most of the funds to other individuals in the U.S. and overseas, including to Ghana. Clark admitted that he was responsible for $501,071 in victim losses. The charges against Clark are punishable by up to 20 years in prison, and those against Amppiaw, by up to five years in prison. Quite the romantic partnership, indeed.
What a relief. The Federal Trade Commission (FTC) recently announced that the operators of an alleged transnational student loan debt relief scam have agreed to be permanently banned from the debt relief industry and to turn over more than $1 million in assets to resolve FTC charges that the operation bilked millions out of struggling student loan borrowers. The FTC made allegations against two companies: Florida-based Start Connecting, LLC, and Colombia-based Start Connecting SAS (doing business as USA Student Debt Relief [USASDR]), and their owners and operators. The allegations included that the operators of the scheme pretended to be affiliated with the U.S. Department of Education and its loan servicers to lure student loan borrowers seeking debt relief; made false promises of low, permanently fixed monthly payments and complete loan forgiveness; illegally called tens of thousands of consumers on the National Do Not Call Registry; extracted more than $7.3 million in illegal advance fees and payments for nonexistent debt relief services; and promoted fake consumer reviews and testimonials on social media and their own website. Student loan borrowers looking for help should take note of the resources for avoiding student loan debt relief scams at ftc.gov/StudentLoans; the help available at StudentAid.gov; and the information about student loan rights at StudentLoanBorrowerAssistance.org.
Tips
Leadfoot chasers. Memphis-based WREG News reported on the FBI's investigation of a viral DMV text scam that's currently making the rounds nationwide. The text message (that you, too, may have recently received) claims to be from the state department of motor vehicles and demands payment for an unpaid traffic ticket. It even threatens prosecution, WREG points out. The news outlet also mentioned several state and local law enforcement agencies who confirmed that scammers were using the agencies' names to try to scare consumers and steal their money. FBI Supervisory Special Agent David Palmer told WREG that the DMV text scam is a copycat version of the unpaid toll scam that's also made the rounds. Palmer noted that in places without toll roads, like Tennessee, scammers have had to pivot to the DMV text scam, since the toll scam wouldn't work there. Tips for avoiding the fraud include not clicking on links from unfamiliar senders and being wary of agency names that are slightly different from their correct, actual name. Here's another idea: Be the safest driver you can be using tips like these, and you'll never doubt your innocence if you receive one of these scammy texts.
Summer gigs. Young adults looking to make bit of cash this summer should check out the Federal Trade Commission's recent alert about fake job scams. First, the FTC cautions, you should know that scammers do post fake job ads on job sites and social media. But they also send unexpected texts pretending to be recruiters for companies. If they then tell you to reply with financial information or ask you to pay for things like starter kits, training or certifications to get the job, it’s a scam, the FTC warns. The scam might also come in the form of an email that looks like it's from someone you know. Know that it's a fraudster if they ask you to deposit a check into your account and transfer money to another account. Check out the FTC alert for several more tips and resources, and definitely keep this sound advice in mind: Never pay anyone to get a job.
The scam landscape. Is your backyard looking manicured and ready for family barbecues this summer? Or, could your lawn use a bit of attention and perhaps some decorative flora around the edges? A recent ABC 7 news story out of Chicago pointed viewers to a Better Business Bureau (BBB) warning about con artists being out in full force, preying on people during the landscaping and gardening season. According to the story, the BBB has received reports of homeowners paying money for lawn care services upfront only to have the supposed providers disappear without performing any work. The BBB suggests conducting online searches for reviews and ratings before hiring a service (and we'd suggest asking neighbors, friends and family for recommendations, of course). Additional tips in the ABC 7 story include avoiding contractors who try to pressure you into a deal and who provide you with unsolicited estimates and "discounted prices." Consumers should also insist on a detailed, written contract that includes start dates, services, costs and payment terms, ABC says. For more tips from the BBB on how to get the landscape and lawn you want (and avoid the issues described above), check out this link. And while you're at it, here's a link for avoiding those pesky mosquito bites this season.
No sympathy. According to WMBF News in Georgetown County, South Carolina, several legitimate funeral homes in the South Strand have had dozens of their customers victimized by a scam that the homes haven't seen before. Local law enforcement, WMBF reports, is warning about crooks posing as funeral home representatives to try to take advantage of family members of the recently deceased. WMBF spoke with Kellie Harter, a woman who nearly became a victim. Harter's son died, tragically, in a recent car accident and was cremated. Following the cremation, WMBF explains, Harter received a call from a man pretending to be with the funeral home and demanding immediate payment for an "outstanding balance." Harter sensed something was off and noticed that the man seemed to be "scrambling." She told WMBF that the red flags quickly added up because she had already paid for her son’s funeral in cash. Fortunately, unlike other victims WMBF learned about, Harter did not share any of her financial information or lose any money. Harter made an important point about this opportunistic scam, offering words that can remind us all to be on guard if we lose a loved one: "When you’re grieving, you’re not really thinking, and it easily can happen to the smartest people."
Dopey delivery? We've often warned readers to be wary of scammers that use caller ID spoofing to fool their targets, masking their real number and falsely displaying the number of a legitimate entity, like a government agency, for example. Police in Arlington, Massachusetts, are warning that their real non-emergency phone number is being used and displayed in a scam related to a curious package delivery. According to a Patch news story, the spoofing scammers are pretending to be police officers and telling Arlington residents that a package of cocaine has been delivered to their residence. Their goal is to frighten and intimidate their targets into revealing personal and financial information. Arlington police, the Patch explains, have emphasized that they would never call from the number that's being displayed, nor would they demand personal information. They recommend that consumers hang up on any such callers, remain vigilant, and protect their personal information. Regardless of how outlandish their story (drugs on your doorstep!—or whatever else they come up with), don’t let these dopes dupe you.
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