July 2, 2009 - 3:37am
As the severe economy times come upon the shoulders of ordinary people scammers are trying to take advantage of others’ despair and difficult conditions by offering them promising jobs that don’t exist, get-rich-quick schemes, debt-reduction scams and other phony services. On Wednesday the Federal Trade Commission announced a major crackdown on fraudsters to help Americans avoid being entrapped.
According to the official data the biggest case involved a California company called Family Products that marketed alleged get-rich schemes such as “John Beck’s Free & Clear Real Estate System.” The FTC reports that the agency marketed bogus services via DVDs, brochures and national infomercials promising people to help them quickly raise the cash. The commission says that in total over 600,000 people were duped out of about $300 million.
In association with the Justice Department the FTC launched the law enforcement program “Operation Short Change” which includes 15 cases from the FTC, and dozens of additional cases brought by Justice and at least 13 states.
David Vladeck, head of the commission’s consumer protection bureau, says that these fraud schemes “raise people’s hopes and then drive them deeper into a hole.”
One of such scam victims Beverly Steward, 46, who is the single mother of two in Washington said she was defrauded by an agency identified as Job Safety USA. The company promised people certifications for a cleaning job. As she was desperate about finding a job she answered the paper ad and paid over $89. The certifications never came and neither did a job.
However Steward is not a single example. According to the FTC’s reports over 4,000 people fell victims to the scheme.
At the moment authorities are making preparations to file lawsuits so as to halt operations of these scammers and seek damages to recompense the victims.
According to the official data the biggest case involved a California company called Family Products that marketed alleged get-rich schemes such as “John Beck’s Free & Clear Real Estate System.” The FTC reports that the agency marketed bogus services via DVDs, brochures and national infomercials promising people to help them quickly raise the cash. The commission says that in total over 600,000 people were duped out of about $300 million.
In association with the Justice Department the FTC launched the law enforcement program “Operation Short Change” which includes 15 cases from the FTC, and dozens of additional cases brought by Justice and at least 13 states.
David Vladeck, head of the commission’s consumer protection bureau, says that these fraud schemes “raise people’s hopes and then drive them deeper into a hole.”
One of such scam victims Beverly Steward, 46, who is the single mother of two in Washington said she was defrauded by an agency identified as Job Safety USA. The company promised people certifications for a cleaning job. As she was desperate about finding a job she answered the paper ad and paid over $89. The certifications never came and neither did a job.
However Steward is not a single example. According to the FTC’s reports over 4,000 people fell victims to the scheme.
At the moment authorities are making preparations to file lawsuits so as to halt operations of these scammers and seek damages to recompense the victims.