Consumer Scams

Increased penalty for identity fraud

2008 legislation increased the penalty for felony identity fraud from 5 to 15 years in prison.  The bill established that is is a crime for a person to intentionally attemp to copy, possess, or attempt to possess, any part of a computer database that was unlawfully accessed.  A violator is guilty of a misdemeanor and is subject to maximum penalties of imprisonment for 3 years, and/or a fine of $1,000.  See HB 1113 for full text.  (Effective 10/1/08)  

(SB 250) Entitled: Criminal Law – Forgery of Signature and Counterfeit documents – Prohibition

This bill expands and clarifies the prohibition against counterfeiting public documents; establishes a new offense against forging, falsifying, or counterfeiting the signature of court officers or employees or using the forged, falsified, or counterfeited documents; and establishes penalties.  (Effective 10/1/08)

Along with the explosion in the use of the information superhighway has come a new avenue for crooks to take advantage of consumers. Along with the rise in Internet fraud, telemarketing scams are also taking their toll on the American consumer. Below are the 2007 Internet and Telemarketing Fraud Statistics as reported by the National Fraud Information Center.

2007 Internet and Telemarketing Fraud Statistics

Top 10 Internet Frauds

Top 10 Telemarketing Frauds

Internet Frauds

FBI Launches Web Site to Report Web Fraud The Justice Department and FBI launched a new online, one-stop Internet Fraud Complaint Center where consumers and businesses can send e-mail if they are victims of fraud on the Internet or suspect wrongdoing.

Consumers Pay Big for Dangerous Downloads National Consumers League's Internet Fraud Watch warns consumers that downloading certain programs on their computers for entertainment may cost them hundreds of dollars in unexpected telephone charges. That's because some programs are designed to disconnect the computer from the consumer's regular Internet service and reconnect it directly to the entertainment provider by dialing a phone number in Africa or in another country.

Nigerian Money Scam cost victims thousands and are targeting seniors in Maryland. The scam has netted an average of $6542 per victim. People are being contacted by these scam artists through both the regular mail and email over the Internet.

What to Do if You've Become the Victim of Telemarketing Fraud The National Consumer Law Center provides this free online brochure on what you can do if you have been a victim of a telemarketing fraud.

1-900 Number Scams Watch out for calling that 900 number when you receive deceptive advertising notices for prizes, credit and employment opportunities because that call could end up costing you a lot of money.

• Never respond to sweepstakes offers that require you to buy something first. A genuine "free prize" has no strings attached and should not require a purchase.

• With legitimate sweepstakes, you do not have to pay anything to collect your prize. If you have won merchandise, like a necklace or car, the sweepstakes promoter will pay the delivery charges. If you win cash, the sweepstakes promoter either will withhold taxes from the cash award or report the winnings to the Internal Revenue Service.

• Legitimate sweepstakes do not need your credit card number to award a prize. Never give your credit card number over the phone to someone you don't know. The number may be used to make unauthorized charges to your account.

• Be wary of offers that entice you to call 900 numbers in order to claim a free gift. The charge for the 900 number will likely cost you more than the prize is worth.

• Read the fine print. Remember, few, if any, consumers who respond to prize offers actually win anything worth as much money as they spend. The majority loses money.

Contact the National Do Not Call Registry to remove your number from telemarking lists.

If you are still receiving unsolicited telephone marketing calls you can file a complaint with the Public Service Division of the Federal Communications Commission, or contact

"British Premium Savings Bond Scam" Law enforcement authorities on both sides of the border have moved to halt a Vancouver-based telemarketing scam targeting senior citizens in the United States. The FTC charged that the telemarketers, who operated under a variety of names, called consumers guaranteeing substantial monthly payments between $5,000 and $12,000 in return for a one-time payment of up to $5,000. Alternately, the telemarketers called claiming to be marketing bonds -- in some cases British Premium Savings Bonds -- purchase of which would qualify consumers for cash prizes, monthly cash payments or bond investments with the chance to participate in monthly drawings for cash prizes.

If you have been defrauded by a telephone or Internet scam and would like to file a complaint about telemarketing fraud, Internet fraud or other scams, contact.

You can speak with trained counselors who will help you identify warning signs for possible fraud and, if necessary, refer you to the right places for assistance. After filing a report, your complaint will be routed to the appropriate federal, state or local law enforcement agencies and placed on the National Fraud Database. Although the National Fraud Information Center does not guarantee that you will get your money back, your complaint will help protect yourself and others from future scams.

• Your Home

• Your Credit

• Tax Fraud

• Your Education

• The Internet

Your Home
Predatory Mortgages This February 2007 USA Today article examines the how predatory lending practices have led to a 40% spike in mortgage foreclosures since 2006.  The U.S. Department of Housing and Urban Development (HUD) has tips to help homeowners avoid foreclosure as well as HUD approved list of Housing Couseling Agencies.

Beware of "Flipping" Scams The Maryland Consumer Protection Division at the Office of the Attorney General provides this useful guide to protect yourself against being ripped off by a seller.

Your Credit
Credit Card Loss Protection Offers Scams Telephone scam artists are lying to get people to buy worthless credit card loss protection and insurance programs. If you didn't authorize a charge, don't pay it.

Credit Card Skimming Costs Millions in Phony Charges A new type of identity theft, credit card skimming, also known as cloning, happens when an illegal copy of your credit card is made during a legitimate transaction. Criminals then quickly use "cloned" cards to make fraudulent purchases against the unsuspecting consumer's account. Additional information on identity theft can be found on the Federal Trade Commission web site.

Tax Fraud
There isn't a legitimate scheme that exempts you from your obligation to pay taxes as a United States Citizen. To report suspected tax fraud activity contact the Internal Revenue Service' s Criminal Investigation department at 1-800-829-0433.

Beware of Unexpected Charges for Buyers Clubs Consumers are finding charges on their credit card bills and debits from their bank accounts for memberships in buyers clubs that they never agreed to join or didn't agree to renew after an initial trial offer. Complaints about buyers clubs to NCL's National Fraud Information Center are on the rise. Buyers Club complaints currently rank as the ninth most common telemarketing complaint.

Renting or Leasing Treasury Securities Scams.  We often hear about solicitations to "rent" or "lease" Treasury securities. Usually, the securities offered either don't exist (for instance, the offer is for bearer securities in an amount that exceeds the amount that remains outstanding in bearer form for that particular CUSIP) or are not owned by the party making the offer.  The Securities and Exchange Commission has tips on how to avoid fraud and filing a complaint if you have been a victim of such a scam.

Your Education
Ouch! Students Getting Stung Trying to Find $$$ for College This May 1999 article was produced in by the Federal Trade Commission in cooperation with the College Parents of America and provides useful information on catching the "tell-tale" lines used in by fraudulent scholarship groups.

For more information you should contact the College Parents of America at toll free 1-888-256-4627 or visit CPA online at www.collegeparents.org. CPA is a resource, advisor and advocate working on behalf of the millions of parents of current and future college students throughout the United States. 

The Internet
Nigerian Money Scam cost victims thousands and are targeting seniors in Maryland. The scam has netted an average of $6542 per victim. People are being contacted by these scam artists through both the regular mail and email over the Internet. You can also visit the Scambusters page on the Nigerian Advance Fee Scheme.

Last Legal Update: 9/22/08 (PLL/M.A.J.)