FTC goes after recession scammers with Operation Short Change
To crack down on companies and individuals that are taking advantage of the severe recession, the Federal Trade Commission (FTC) has launched “Operation Short Change,” a combined effort by the FTC and law enforcement agencies to execute a number of cases against scammers.
The companies and people targeted seduce consumers to part with their money, by promising them loans, grants, debt reduction or renegotiation, and pushing work-at-home and other get rich quick schemes. Some perpetrators also trick victims into giving away personal information. Such predatory practices, either online or in infomercials, have cost consumers about $300 million, David Vladeck, Director of the FTC’s Bureau of Consumer Protection, told the Senate this week.
The FTC’s web site lists some of the companies and people that the FTC is taking action against. One of the operations listed is Google Money Tree —a company that has no affiliation with the Google search engine—which Consumer Reports recently reported on in an article warning readers about work-at-home scams. Operation Short Change has already initiated legal action against Google Money Tree in the US District Court of Nevada.
To avoid becoming a victim, Consumer Reports recommends that you steer clear of work-at-home “jobs” that promise big bucks overnight. Be wary of companies that flaunt the word “stimulus.” And be especially cautious about companies that use clever, official-sounding titles.
Also, before doing business with a company you don’t know, make sure you check its credentials at the Better Business Bureau’s Web page. If the company gets an “F”—like Google Money Tree did—stay away.
For free information and advice about staying safe online, visit our Online Security Guide.
Have you encountered an online scam that takes advantage of the economic crisis? Tell us about it below.— Will Dilella
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