The Federal Trade Commission announced a new law enforcement crackdown on scammers trying to take advantage of the economic downturn to bilk vulnerable consumers through a variety of schemes.
Some of those scams include promising non-existent jobs, promoting overhyped get-rich-quick plans, bogus government grants, and phony debt-reduction services, or putting unauthorized charges on consumers’ credit or debit cards.
Dubbed “Operation Short Change,” the law enforcement sweep announced Wednesday, includes 15 FTC cases, 44 law enforcement actions by the Department of Justice, and actions by at least 13 states and the District of Columbia.
To help consumers understand how easy it is to be conned--and how to avoid fraud--the FTC produced a new consumer education video featuring a former scammer who hawked phony business opportunities and ultimately served prison time for deceiving investors.
To view the video, go to ftc.gov or YouTube.com/ftcvideos.
In the video, the former scammer gives an insider account of how these operations use high-pressure tactics and celebrity endorsers to trick cash-strapped consumers, and how consumers can protect themselves by demanding written disclosures on earnings and other sales data.
In addition, the FTC today announced that it has brought eight new cases against companies that have conned consumers who are struggling to make a living and pay their bills during these difficult economic times.
The Commission brought seven additional cases challenging similar conduct earlier this year.
In each new case, the FTC alleged that the defendants’ practices were deceptive or unfair. In some of the cases, the FTC also charged the defendants with making illegal electronic funds transfers or violating the Telemarketing Sales Rule.
