Homework Question on Consumer Scams
- Click on the Federal Trade Commission website to see a list of recent consumer scams. Identify 3 scams and write a brief description for each
Homework Answer on Consumer Scams
New tax bill scam (November 17, 2016)
This was a fake Internal Revenue Service (IRS) tax notice that claimed to specific people that they owed the IRS money as a result of Affordable Care Act. This scam was designed to an extent that it looked real to IRS CP2000 notices. CP2000 are notices sent by the agency when the information about income sent by a taxpayer does not match with his or her tax return reports. In this scam, fake CP2000 notices were sent as an attachment to email-a red-flag-and U.S mail with payment links. The version had a payment voucher referring to LTR0105C whereby the scammers requested all checks to be sent to Austin Processing Center in Texas (“IRS warns of a new tax bill scam | Consumer Information”, 2016).
Phone scammers promising free money (October 28, 2016)
These were two telemarketing scams whereby the first callers deceived people that they have won a grant for a home, medical costs, and other important personal needs. However, through their engagement, they were able to retrieve personal information such as age, income and bank details after which they would gauge the amount of grant to receive depending on this information. Finally, they would tell their client that he or she qualifies for tens or hundreds of thousands of dollars.
To get the grant initiated, the client had to pay few dollars upfront. The second callers’ scam imitated Amazon website claiming that the clients would earn commissions by using Amazon.com links. However, the client had to pay several dollars, which they would earn back (“FTC sues phone scammers who promised free money | Consumer Information”, 2016).