LITTLE ROCK, Ark. -- The Federal Trade Commission (FTC) is seeing a spike in income scams, preying on people feeling financial pressure and looking for options to work from home during the pandemic.
Within the last year, it's estimated consumers have lost more than a billion dollars to income scams.
Emily Wu, an attorney at the FTC, said the agency has seen a 70% increase in complaints about these types of scams compared to the second quarter of 2019. She noted in crafting their pitches, the scammers tend to follow the headlines.
"They could range from work-from-home scams to investment schemes, to fake business opportunities, including pyramid schemes and something we call reshipping scams, and business coaching courses," Wu outlined.
She added some work-from-home scams have paid workers by check, but the check turns out to be fake, with the person cashing it on the hook.
Schemes that promise to teach "insider secrets" to start a business also are widespread. The FTC cautioned some college students have reported messages from someone impersonating their school's career services office. Others report being scammed after they've applied for a job or posted a resume online.
Wu also pointed out income scammers tend to target particular groups, including low-income and Black and Brown communities.
"So, there are certain scams that may reach out to people who only speak Spanish, or they may target groups like military families, or people with hearing loss," Wu explained. "So, I think that just means everyone needs to be on the alert for these types of scams."
Wu suggests doing an internet search, with the name of the company or business claiming to increase your income and words like 'complaint' or 'scam,' to find reviews.
She warned people to be skeptical of testimonials from anyone claiming to have made large sums of money within a short time period, as these often are fake. She added there are online resources that can help.
"For income scams in particular, you can go to ftc.gov/incomescams. And for coronavirus, you can go to ftc.gov/coronavirus," Wu stated.
The agency reported a surge in multiple types of fraud since the onset of the coronavirus, with more than 275,000 complaints since March, involving online shopping, travel and credit cards.
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Lawmakers in Olympia this session moved to add more protections for consumers against predatory loans.
Washington state lawmakers passed Senate Bill 6025 unanimously in both chambers, closing a loophole companies were using to evade caps on the amount of interest charged on loans.
Sam Leonard, an attorney in Seattle, said tech companies providing financial services such as loans would charter out of state banks, especially in Utah, where lenders can charge unlimited interest rates.
"These fintech lenders a lot of times will charge 150, 200% interest on relatively small dollar loans, $3,000, $5,000 and the like," Leonard explained.
Washington state has a set of protections called the Consumer Loan Act to shield people from predatory loans. Leonard said capping interest rates at the federal level would help people across the country.
However, he emphasized the bill goes a long way to increase protections for Washingtonians.
"Not a lot of states at this time have passed similar legislation," Leonard pointed out. "Washington is out in front of the curve with regard to protecting low-income Washingtonians or other Washingtonians that might enter into these predatory loan products."
Leonard added the issue with predatory loans is they keep people in continuous debt cycles.
"Loan products like these essentially strip low-income individuals' ability to improve their economic situation," Leonard noted.
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While there's snow in the immediate forecast, the spring storm season has arrived in Minnesota and state officials said with complaints related to homeowner insurance claims on the rise, it is important to monitor changes in policies.
The Minnesota Commerce Department said complaints from policyholders, largely stemming from their claims being denied, have more than doubled since 2020.
Julia Dreier, deputy commissioner of insurance for the Minnesota Department of Commerce, said under a changing climate, the nation is seeing plenty of extreme weather events resulting in wind and hail damage, and insurance companies are adjusting to what's happening.
"Insurance costs are going to increase," Dreier pointed out. "We do want to make sure that Minnesotans are prepared."
As some carriers narrow what is covered or require higher deductibles, Dreier urged consumers to carefully review their policy when it is up for renewal, to avoid surprises when they have to file a claim. The department acknowledged changes can slip under the radar when consumers rely on paperless statements sent via email, or with busy schedules preventing them from reading all the fine print in documents they receive.
The department emphasized it is a complicated process in getting complaints resolved, noting some can be partially reversed in favor of the homeowner. Dreier noted they work closely with the industry to make sure a company's actions are within the letter of the law.
"One of our jobs is to make sure that insurance companies aren't doing something unethical when they're submitting their policy forms to us and their rates to us for review," Dreier added.
The department does have a new video on its YouTube channel, which offers more details on how to better prepare yourself ahead of any future claims, including knowing whether your policy offers flood protection and assessing the value of items in your home.
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Wisconsin has announced a big development in trying to establish more digital equity around the state.
Gov. Tony Evers and the Public Service Commission say Wisconsin's blueprint for digital equity has been accepted by the National Telecommunications and Information Administration.
That means the state is eligible for up to $30 million to implement its approach over the next five years.
Martha Cranley - state director for AARP Wisconsin - called it a robust plan, noting that older populations continue to face challenges in being connected to the digital world.
"We know that at least 15% of people 50-plus in Wisconsin are not connected," said Cranley, "either because the wires simply don't come to their house, or they don't have a device, or they don't know how to use it."
Cranley said the lack of connection is especially concerning in rural areas across northern Wisconsin, where aging communities have limited resources.
Stakeholders also note an infusion of new aid is helpful with the federal government's Affordable Connectivity Program - which provides discounts on monthly internet bills for eligible households - in danger of running out of money.
Cranley said the state's plan came together following extensive public outreach, in which her organization helped convey the need for improved internet access for those 50 and older.
"They certainly heard from older people about how important this is to connect to their doctor," said Cranley, "and to connect to government services, and frankly, find employment."
Overall, Evers says the plan's federal approval means more than 410,000 homes and businesses will be better positioned to be connected to new or improved high-speed internet service.
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