Over a week ago Bank of America canceled my debit card, saying it had been compromised. I am a woman traveling in India by myself and have absolutely no access to cash. This exact thing happened to me while traveling abroad 8 months ago so I made sure to notify the bank of my travel plans and was told it would not be a problem. I have been told that there is a computer system that is alerted to strange behavior (apparently withdrawing cash from a foreign country is strange) and the computer closes the card. I have also been told that there is no human, not even the president of the Bank of America himself, who can re-activate the card.

I have spent the last week on the phone with the Bank of America fraud department, customer service, Bank of America emergency dept and Visa 911. I have spent about $100 being hung up on and given incorrect information and hours of my vacation time trying to either get a new card rushed or cash sent via Western Union. I was told this morning that the bank will not send me the cash and when going through the security questionnaire for the 20th time I was hung up on. I was told by the fraud dept that the card would take 5-7 business days to reach me and now was told this morning (before being hung up on) that it will not arrive for 12 business days.

I am insanely frustrated by Bank of America's labrynthine bureaucracy and incompetence. I would love to re-enact a scene from fight club but instead I am here hoping that together we can rise up and demand accountability from our banks.

Bristol's terrible misadventures serve as a reminder to all travelers to never leave home without a backup source of funding, be it a credit card, other bank account, or traveler's checks.

RELATED:
BoA Strands Customer In Siberia With No Money
Update: BoA ATM Card Dispatched To Stranded Traveler After Return To U.S.
HSBC Cancels Traveler's Credit Card, Pays For Their Mistake
American Express Leaves Customer Stranded In Mumbai With No Money
WaMu Doesn't Care You Could Be Stranded In Himalayas With No Money

(Photo: mrkathika)

From NJ.com:

State officials said the company will no longer sell non-prescription drugs or infant formula beyond their expiration dates, nor will it sell merchandise for more money than the displayed price. Target also created a new position to monitor the company's compliance with the settlement for the next two years.

The state's Division of Consumer Affairs sued Target, Walmart, and Drug Fair in September 2008, after finding that despite earlier agreements with the state, they were still selling expired products and charging wrong prices. Lawsuits against the other two retailers are still pending.

"Target reaches $375K settlement with N.J. for selling expired baby formula, charging different prices" [NJ.com]
(Photo: j.reed)

"List of animals with fraudulent diplomas" [Wikipedia via Boingboing] (Thanks to Trai_Dep!)
(Photo: ourdogholly)

At last Friday's championship celebration parade, featuring World Series MVP Sean Carter, Yankee fans, apparently lacking confetti, flung documents containing sensitive personal information into the air.

According to Fox 5 New York, "Some of the documents were medical records listing names, addresses, insurance information, medical diagnoses, and other private information. One document was somebody's stock brokerage account, containing financial information."

Sure, it's not technically the Yankees' fault, but when your owner is a convicted felon, disrespect for the law will trickle down to the fans.

Private Documents Tossed on Yankees Parade [Fox 5 New York]
(Photo: frankieleon)

Storm8 makes games like Vampires Live and iMobsters, that operate very similar to the popular Facebook game "Mafia Wars," including letting you spend real money to get better weapons and more energy in the game. Many of Storm8's titles are top iPhone game app downloads, probably because each game says that you can get extra points in it if you download one of their other games.

BoingBoing reports that the number harvesting was hidden until the company noted it in August, chalking it up as a bug. However, the lawsuits says that only "very specific and specialized software code" could do that. Storm8 has not returned BoingBoing's requests for comment.

Lawsuit text (PDF)

iPhone game dev accused of stealing players' phone numbers [BoingBoing] (Photo: Cаvin 〄)

They're running a sweepstakes scam by pretending to be real people from the FTC, one the very organizations charged with stopping them.

Red Tape Chronicles reports:

In one case, a 67-year-old building inspector from Washington state named Ralph (he requested that his last name not be used) sent $1,300 to a criminal who identified himself as FTC Secretary Donald Clark from the "fraud division." The imposter said the agency was overseeing a sweepstakes, and the money was needed to pay for insurance on delivery of a $500,000 prize that Ralph had won.

To add to the air of legitimacy, the imposter left a call-back number in Washington D.C.'s 202 area code.

In similar cases, caller ID indicated the call had originated from the Federal Trade Commission, Broder said. The criminals used Internet-based telephone services to perform the caller ID trick, she said.

When Ralph called the number supplied to him, an answering machine message announced that the caller has reached the FTC.

Ballsy. Also, a really good way by the scammers to help the agency decide out of all the cases that come across its desk, which one to make a top priority.

Wicked new wrinkle: Scammers impersonate FTC officials [Red Tape Chronicles] (Photos: afagen, Tim Kiser)

Melissa writes,

I'm hoping you can help escalate the Tavern on the Green Halloween scam where thousands of people were scammed into buying tickets for a party they never got to attend.

We were among the thousands that got stranded in front of Tavern on the Green in the pouring rain and mud for 2 hours only to find out the party was shut down by the police due to overcrowding. What started as an annoying line turned into a dangerous crowd that threatened to riot. I was pushed and shoved and could hear people yelling to storm the doors. I was near the front, so it became a very nerve-wracking experience, hoping they wouldn't start trampling everyone in front of them. No one ever came out to tell us what was going on; we could only gather information from whatever people in the crowd were hearing.

People spent $60 to $130 for a party that never happened. Tavern on the Green is blaming the promoters for selling too many tickets (apparently 4,000 over the actual # they were allowed) [I can't verify this number. - Ed.], but all the promoters' phones have voicemails that direct the blame to Tavern on the Green. Neither side is returning our money to the thousands of us.

It's amazing how irresponsible Tavern on the Green was as the crowd grew larger and angrier; maybe they didn't hear about last year's Walmart trampling?

If you were one of the people who got ripped off on Saturday, here's a Facebook group where you can share information with others and find out how to fight for your refund.

Update, November 4th 2009: Here's a message that was just sent out to members of the Facebook group:

Subject: Update on refunds issued!

Update from 7 on your side: UPDATE 12:31pm Wednesday 11/4/09

Alex and Leo Entertainment say they will be responsible for organizing the refunds. The statement says those who purchased valid tickets online using a credit card or PayPal should request a refund directly from the online ticket seller. Customers should also dispute this charge immediately with their credit card company.

The promoters also say "those who purchased tickets using cash should email their refund requests to Halloweenrefund@gmail.com." Each request "must include a copy of the ticket(s) purchased, together with the place and date of the purchase, as well as the ticket holder's mailing address. Alex & Leo Entertainment will process each request within four weeks of receipt."

It's advised when customers send your email get a documented record of when the email was sent and whether it was received/opened. If you find that refunds aren't received 4 weeks after delivery of email, contact the promoters at the email listed above. If that doesn't work, contact 7 On Your Side.

"Tavern on the Green Halloween party from hell, say booted patrons" [NY Daily News]
"We got scammed by Tavern on the Green 2009 Halloween!
Join" [Facebook]
(Photo: hmerinomx)

From the NYT:

In the interview, Mr. Madoff said that the young investigators who pestered him over incidentals like e-mail messages should have just checked basics like his account with Wall Street's central clearinghouse and his dealings with the firms that were supposedly handling his trades.

"If you're looking at a Ponzi scheme, it's the first thing you do," he said.

Those simple steps, he added, could have revealed years earlier that he was running the largest Ponzi scheme ever, a crime that has now dragged the S.E.C. into the worst scandal in its 75-year history. "It would have been easy for them to see," he added.

We are reminded of a Frontline episode about Madoff in which they cover how someone entirely unrelated to the SEC or Madoff figured out the Ponzi scheme and was ignored.

Way to go, SEC!

Lapses Helped Scheme, Madoff Told Investigators [NYT]

"Madoff Trustee Advances $534 Million to Customers " [Bloomberg]
(Photo: Todd Huffman)

At first, Jessica figured the problem stemmed from two recently disputed sales, both of which she resolved with the buyers on her own. But then, after getting stonewalled by PayPal's robot army of content-free email messages, she tried calling. Here's her story:

In mid-July, I sold a BlackBerry Pearl 8100 and a White MacBook with a fresh Leopard install on eBay. All was fine. Then in August, both buyers disputed in PayPal, for non-legitimate reasons. The phone guy disputed because he said it took too long to ship, but he had agreed to a longer ship time since he was from Indonesia and bought the phone even though I said US buyers only. The delay was because I had to go to the post office during the day to fill out the customs form, and I was busy studying for the NY bar and so it took me about a week to get to the post office. He dropped the claim when he received the phone and all was well. The girl who bought the MacBook disputed because of buyer's remorse, and lied and said that it had Tiger installed instead of Leopard, which it didn't. I mailed her a leopard disc and she dropped that dispute as well.

Lo and behold, PayPal decides to restrict my account because of "suspicious activity" so I can't use it. Fine, I understand selling to Indonesia and two disputes in a week seems sketchy. So I complete the steps in the Resolution Center to remove the limitation. But it's not lifted. I try calling, several times, and no one seems to be able to tell me why the system hasn't lifted the restriction. I send tons of emails to customer support, all of which are responded to by telling me that to resolve a limitation, I should complete the steps listed in the resolution center. Awesome, I love robots. I wait a week, and try calling again, nothing. Finally, at the end of September, I launch an EECB to all the addresses listed here on Consumerist for PayPal. I hear nothing, not one response. I try that again a week later, rewriting the email in case there are some kind of filters to delete repeat email. Again, nothing.

I called again, and spoke with a young man who told me that PayPal has "linked" my account to some other account (with a completely different email that he won't tell me what it is) that has a negative balance and until that balance is resolved, I can't have my account back. I ask him how much the balance is, but he won't tell me. He gave me absolutely no way of working out the problem so I can have my account back. He tells me he will send an email with details. I receive the email several hours later, but it of course has no actual details, and is a regurgitation of what the guy on the phone said.

So, here I am, with $24 in my account that I can't access (doesn't sound like much, but it is a week's worth of groceries for a future attorney who doesn't yet know whether she passed the bar and can begin her life's work of human rights law - no jokes please! ;)), and a PayPal Buyer Credit account that I can't use but of course can still make payments on, with no course of action or guidance whatsoever from PayPal. All I want is the restriction lifted, or at least something I can do to resolve this mess and close my account.

Does anyone have any other advice on what Jessica can do to get her money back?

I returned a call from Chase bank on October 14th regarding my credit card, and was asked about some suspicious purchases, including a $289.45 purchase from Walmart and a $26.26 purchase from McDonald's. Because my wife and I don't use this card for anything other than a couple of subscription services (Netflix, Zune, etc.), and also because we haven't shopped at Walmart or McDonald's for several months, I was very confident that this was a fraudulent use of my card. The individual from Chase informed me that I would not be charged for these purchases, and that the cards would be canceled and new cards would be issued. She gave the impression of a situation handled, and gave me no instructions other than to shred our existing cards, which we did both have in our wallets. No problem, life goes on, I thought.

Then, a week and a half later, I got a call on Friday afternoon from a fraud specialist at Chase. She questioned me a little bit, and arrived at the conclusion that this situation was not fraud. Apparently, the purchases were made very close to where we used to live. She asked if we'd filed a police report, I said no, because I'd never been in this situation before, and the other woman I had spoken to didn't give me any instructions. She made it sound like everything was going to be handled on their end. The fraud specialist said that they had identified it as my card specifically, and not my wife's, and was very confident that my physical card was present. The problem is, my wallet and I were 50 miles away that day at a hospital for a new job orientation.

So, she suggested maybe a friend I wouldn't suspect used my card and and put it back. Except that's not possible either, because I didn't see anyone between the last time the card was used and when Chase instructed me to shred it. Except my wife, of course, who wouldn't lie about this, and also hates Walmart and McDonald's.

The fraud specialist kept repeating her phrase of choice, "It just doesn't jive", which just made me increasingly more agitated.

With that, she informed me that my fraud claim was denied, and that I should file a police report and obtain security video from Walmart. I would need to provide this video to Chase, along with photo ID, so she could verify that I was not present at Walmart. Despite my extreme distress and confusion, she offered me no possible explanation for how my exact card could be used in Portland, OR when I was 50 miles away in Salem.

My question is, besides filing a police report, which I have done now, what should I do? And how can she be so confident that my card was used, when I know it wasn't? What else could have happened?

We would guess that Jake's card had been cloned somehow—perhaps from an ATM skimmer, or dishonest waitstaff in a restaurant. Where have they used this card in the past year?

However, a few questions remain for Jake to ask Chase, if he hasn't already:

• Why were these two transactions flagged as fraudulent in the first place? Was it because of the retailer, the location, or another reason?
• Why is Jake responsible for obtaining surveillance video from Walmart?
• Will proving that he was not the person who made the purchases get these transactions reclassified as fraud?

Good luck, Jake, and keep us updated.

UPDATE: A few readers pointed us toward this delightful gem from the U.S. Code, which dictates that the burden of proof is on Chase, not Jake.

(b) Burden of proof
In any action by a card issuer to enforce liability for the use of a credit card, the burden of proof is upon the card issuer to show that the use was authorized or, if the use was unauthorized, then the burden of proof is upon the card issuer to show that the conditions of liability for the unauthorized use of a credit card, as set forth in subsection (a) of this section, have been met.

(Photo: epicharmus)

First, here's how MoneyGram delicately addresses it:

"While we don't agree with the FTC`s allegations regarding our fraud prevention in the past, we can agree on fraud prevention today and in the future," said Patsley. "We don`t want our customers being victimized by third-party fraud. What we are announcing today with the FTC is our commitment to enhance our already comprehensive efforts to combat fraud and ensure our customers can continue to rely on MoneyGram for safe, reliable money transfer services."

But check out these specific allegations from the FTC's press release, which also came out today (emphasis ours):

The FTC charged that between 2004 and 2008, MoneyGram agents helped fraudulent telemarketers and other con artists who tricked U.S. consumers into wiring more than $84 million within the United States and to Canada – after these consumers were falsely told they had won a lottery, were hired for a secret shopper program, or were guaranteed loans. The $84 million in losses is based on consumer complaints to MoneyGram – actual consumer losses likely are much higher.

The FTC charged that MoneyGram knew that its system was being used to defraud people but did very little about it, and that in some cases its agents in Canada actually participated in these schemes. According to the FTC's complaint, MoneyGram knew, or avoided knowing, that about 131 of its more than 1,200 agents accounted for more than 95 percent of the fraud complaints it received in 2008 regarding money transfers to Canada; a similarly small number of agents was responsible for more than 96 percent of all fraud complaints to the company in 2006.

[...]

According to a recent FTC survey cited in the complaint, at least 79 percent of all MoneyGram transfers of $1,000 or more from the United States to Canada over a four-month period in 2007 were fraud-induced. The Commission's complaint further stated that based on the more than 20,600 fraud complaints MoneyGram itself received, U.S. consumers lost more than $44 million to cross-border money-transfer frauds between 2004 and 2008 alone. When combined with losses reported by U.S. consumers on money transfers within the United States, that number grows to $84 million.

[...]

The FTC's complaint alleges that MoneyGram ignored warnings from law enforcement officials and even its own employees that widespread fraud was being conducted over its network, claiming that proposals to deal with the problem were too costly and were not the company's responsibility. The company even discouraged its employees from enforcing its own fraud prevention policies or taking action against suspicious or corrupt agents. Some employees who raised concerns were disciplined or fired, the FTC charged.

Wow, that sure doesn't sound like MoneyGram gives a hoot about its customers. They say, "Ensuring safe and reliable money transfers for our customers all over the world is at the forefront of all we do." Except for that estimated $84 million, we guess.

"MoneyGram International Reaches Agreement with FTC" [Reuters]
"MoneyGram to Pay $18 Million to Settle FTC Charges That it Allowed its Money Transfer System To Be Used for Fraud" [FTC]

RELATED
"Money Transfers Can Be Risky Business" [FTC]
(Photo: renaissancechambara)

The NYT says:

Mr. Vargas, 35, even posed in front of the property for a photograph that appeared in a real estate journal.

By May 2008, an independent developer agreed to buy Mr. Vargas's share for $4.8 million, giving him a $1 million down payment.

Five months later, New York Road Runners, the nonprofit organizer of the New York City Marathon, signed a contract to buy the same 60 percent share for $8.5 million.

The property, it turned out, was not Mr. Vargas's to sell, prosecutors said on Wednesday. In fact, he owned no part of it, and Mr. Duran was the sole owner, Robert M. Morgenthau, the Manhattan district attorney, said at a news conference in his office.

Mr. Vargas apparently forged paperwork to make it look like he owned a stake in the building — using information he obtained while posing as a potential buyer.

The Road Runners never paid Mr. Vargas any money, says the NYT, but prosecutors says that they wasted $300,000 in attorney and consultant fees. The guy who gave him a million bucks... well: Ouch, ouch, ouch.

Man Charged in Scheme to Sell Harlem Property [NYT]
Landlord's Son Busted for Trying to Sell Building He Didn't Own [Gothamist]
(Photo:DCvision2006)

The lawsuit says there are two specific promises that Cash4Gold makes and breaks: 1) that there is a 12-day return policy and 2) items sent in will be handled with the highest care. Cash4Gold breaks the first, claims the lawsuit, when checks are received by customers either after the return period is over or close to it, or when the company melts the jewelry before the expiration of the return period - allegedly a frequent occurrence.

Cash4Gold breaks the second when it "repeatedly 'loses' the items sent," frequently blaming the mail service for "an absurdly high number of 'lost' items," according to the suit.

The lawsuit says, "These promises are lies. In a massive scheme to defraud tens of thousands of consumers throughout the nation, Cash4gold breaks both of its well-publicized promises with abandon, all the while committing a series of other frauds and misconduct, including attempts to silence former employees who dare to expose this fraud."

Furthermore, Cash4Gold employs "a deliberately frustrating so-called "customer service" system which results in most individuals eventually giving up attempting to receive compensation for their "lost" or greatly under appraised jewelry."

The various techniques Cash4Gold customer service reps use to delay and discourage consumers from getting their money's worth or their gold back illustrate how Cash4gold's "institutional culture is corrupt to its very core, designed at all levels to commit fraud," says the lawsuit, which seeks treble damages.

Reached for comment, Cash4Gold responded, "Cash4Gold has not been served with a complaint and therefore has no comment at this time."

Read the entire lawsuit here. (PDF)

More information about the suit can be found in the press release on the plaintiff's lawyer's website.

PREVIOUSLY:
Cash4Gold Drops Consumerist From Lawsuit
Cash4Gold Threatened Jail If Negative Comments Weren't Removed
Cash4Gold Defendant Liberis Files To Vacate Default
Cash4Gold Activates Magical Press Release Machine
The Article Cash4Gold Doesn't Want You To Read
Cash4Gold Counters Critics With Super Polite Blog Posts
Florida AG Examining Cash4Gold Complaints
10 Confessions Of A Cash4Gold Employee
Cash4Gold Offers Blogger $3,000 To Remove Negative Post
How To Avoid Getting Ripped Off By Cash4Gold

According to GazetteOnline, a 22-year-old woman was arrested last Friday in a mall in Lake Grove, New York, for trying to sell a teenager a magic stone and some miraculous body wash for $1,250. The woman had approached the teen a few days before at the mall and offered to read her fortune for $25, which she then upsold to a $100 "in depth" reading. Two days later, she met up with the teen again to warn her that she was cursed and should buy the stone and body wash. The teen paid $600 for the objects and agreed to come back in two days time with the remaining $650.

Instead, the teen went to the police, who arrested the woman and charged her with fraudulent accosting, fortune telling, and attempted grand larceny. Which is weird, because we're fairly sure Axe Shower Kits—which sell for nearly the same amount—use pretty much the same argument to convince teenage boys to hand over their money.

We bet you're wondering what we wondered: holy frak, you can get arrested for pretending to accost someone when you have no intention of following through on it?!! Does that mean you can get arrested for bailing on a handshake and saying "Psyche!"? But no, that's not what it means in New York Penal Law:

A person is guilty of fraudulent accosting when he accosts a person in a public place with intent to defraud him of money or other property by means of a trick, swindle or confidence game.

"Woman at NY mall charged in curse scam; Offered to get rid of it for $1,250" [GazetteOnline] (Thanks to David!)
(Photo: twid)

According to the FBI, the U.S.-Egypt phishing operation collected personal information from thousands of victims and used that information to defraud U.S. banks. Hackers based in Egypt allegedly captured banking information and other personal details, then supplied that information to associates in the U.S. who then withdrew funds using the stolen credentials and wired back a portion of the proceeds to Egypt.

Information Week notes that "all 53 defendants in the U.S. face charges of conspiracy to commit bank fraud and wire fraud, which carry a maximum sentence of 20 years in prison."

"One Hundred Phishers Charged In Largest Cybercrime Case" [Information Week]
(Photo: adobemac)

From the WSJ:

The Web site is just a week old but already has some 88,000 receipt downloads, according to Deacon Webster, chief creative officer at Walrus, the New York-based agency behind the campaign.

He added that the receipts, while remarkably authentic, are not intended to be passed off as the real thing. "If somebody's letting a receipt for $3,000 worth of cyan toner through their department, then we're the last people who'll get in trouble."

The WSJ also says that the restaurant, located near the offices of American Express, Morgan Stanley and Bank of America, has replaced their bags with fake ones from cheaper restaurants so the free-spending bankers won't get caught with fancy food.

The restaurants, which were not mentioned by name in the article, have sent cease-and-desist orders.

[Expense-A-Steak]
Can ‘Expense-a-Steak' Save the Restaurant Industry? [WSJ]

Unsurprisingly, there's now an entire site dedicated to preventing and dealing with the aftermath of this type of scam, which provides lists of warning signs, a database of scammers and their dating profile aliases and photographs, and resources for reporting online dating scams.

What are the most common scams? Other than green card and reshipping fraud, the most common online dating scams involve simple pleas for money or advance fee fraud scams.

Scammers are on dating sites, and social networks setting up fake profiles. Scammers will pose under the disguise of beautiful pictures as either male or female claiming to be from the United States. The scammer weaves a story of a successful business person working over seas, having no family; they present themselves as a thoughtful, caring and loving individual who is looking for their soul mate. The scammers are good at what they do; they ask lots of questions of the victim regarding what they want in their lives.

The scammer then takes the information and turns it into a dream that becomes a reality to the victim. They use words we all like to hear to woo our hearts so they can burn our souls. They use psychology to hold you in their spell. Once they have established a relationship then the scamming begins. In all cases the plea for financial assistance is the key to the scam. ... They are desperate to come to you but need your help with the money to manage that. They were mugged and are in the hospital and need you to pay their hospital bill as they are being held hostage until it is paid.

Romance Scams (via iovation) (Thanks, RandomHookup!)

PREVIOUSLY: Scammers Also Use Dating Services To Look For Easy Marks

(Photo: Romancescams.org)

I wanted to confirm that this memo is a complete fabrication. 'Robert Trugabe' is not a McDonald's Australia employee and never has been. Needless to say the contents of the letter are also completely fabricated. McDonald's practices the highest standards of consumer ethics and would never encourage employees to act in a way that undermines our core customer values.

PREVIOUSLY: (Parody) New Profit Center For Australian McDonald's: Fraud?
(Photo: Jim U)

You know when you leave a fast-food restaurant, look in your bag, and notice that something small is missing? Like, one of your drinks, or an apple pie? Maybe that's not the result of error. Maybe your local McDonald's is the center of a criminal conspiracy.

Earlier today, Buzzfeed posted this purported memo from the managing director of McDonald's Australia, which specifically instructs an underling to intentionally leave items out of customers' orders in order to ...save money? Is it actually plausible that someone could be this stupid?

We need to discuss the drive through orders as well. If the girls leave one item out of every second or third order, this adds up to several thousand dollars per week revenue. On smaller orders if they leave out the hot apple pie or fires [sic] and larger orders just 1 burger from every third order this totals around $2,118.00 per day. We need to work out if there is a way of making this a procedure without making it documented.

This one's obvious: just be sure to hire very, very stupid employees. They'll forget stuff all the time! Problem solved, and I don't even have an MBA! Someone give me a bonus. Or just an apple pie.

Robert Trugabe is a Crook [Buzzfeed]

Jordan writes:

Hello,

Writing to let you know about an interesting letter two friends and I received from Bally's. Hope I'm not duplicating something you've seen, although I checked your site and didn't see this.

Put simply: After quitting Bally's and being assured by customer service that we were paid up and no longer obligated, all three of us received "bills" in the mail for $48 about a month later. The bill includes a CURRENT and PAST DUE amount. It includes a PLEASE RESPOND BY date, our Membership Numbers, and a bill voucher on the bottom to mail in.

On the back of the bill, there's a paragraph that reads in part:
Past Due/Adverse Credit Reports: If your account is past due, we have included a message about that on the front of the statement. This is an attempt to collect a debt and any information will be used for that purpose. A negative credit report reflecting on your credit may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations.

Here's the rub: we called and found out this was not a bill. Our account had been closed. Needless to say, any phone call to Bally's is a 30 minute search for the truth. What we assumed was a bill was actually a way to reinstate our membership. I'm a careful reader. My job is to read peer-reviewed science journals for a major research university and turn them into press releases that make sense to the lay public. I don't always succeed, but I always read every word and this Bally's letter is, in my opinion, deliberately made to look like a bill that must be paid. I wonder how many folks, in this recession, are freaked out by any overdue bills and would just send in the money?

After contacting customer support, Jordan received this message:

The offer you received is another type of monthly statement for members who do wish to continue their membership. Therefore, the past due mentioned on this, reflects the amount the member must pay to continue their membership. This does not apply to you, as you don't want to continue your membership.

Yeah, this is pretty sneaky. Jordan said he is sending this to his local representatives, and hopefully it will get their attention, but we'd suggest notifying the FTC and your state's attorney general, too. Also, we're not experts in mail fraud, but this seems like a pretty clear willful misrepresentation in an attempt to deceive Jordan and his friends.

Below are scans of the letter Jordan received. We especially like that Bally, after trying to trick ex-members into rejoining, would also sell their names to junk mailers in the process. Well done!

(Photo: os_las)

In the ad, a corporate rumor-squasher (read: PR spokesbot) responds to a rumor-mongrel's (read: pudgy gadget blogger) request for comment about a tip he got about a PS3 price-drop. "You can't believe everything you read on the Internet. Otherwise I'd be a Nigerian millionaire by now."

In response to this false, defamatory and confidential claim, Nigeria demanded an immediate recant. "Nigeria also demands an unconditional apology from Sony Corporation for this deliberate negative campaign against the country's image and reputation," said a spokesman for the Nigerian government.

Sony Corporation portrayed Nigeria as home of fraud [Vanguard NR via The Raw Feed]

When BoA's CEO Kenneth Lewis fired Merrill Lynch's CEO John Thain this past January, it was because Thain had allegedly fast-tracked bonuses for employees without BoA's knowledge or approval, and had withheld the true amount of losses that Merrill Lynch faced for 2008 (a record $27.6 billion ultimately). Thain, who spoke yesterday at Wharton Business School in Pennsylvania, says that wasn't true at all:

Thain said he didn't speed up the bonuses and Charlotte, North Carolina-based Bank of America shouldn't have been surprised by the fourth-quarter loss .

"When I got fired in January and they said ‘John Thain secretly accelerated these bonuses,' they were lying," Thain said. "And that has now trapped them into a lot of trouble, because there is a document that says yes, in fact, they agreed to this in September."

Thain also joked that if he had to redecorate that office again, he would have gone with IKEA, which would have been genuinely funny if he at all meant it.

Cuomo's office is also investigating whether federal regulators pressured BoA into completing the deal whether they knew about Merrill Lynch's huge losses or not, which is what BoA executives have said.

"NY AG Subpoenas 5 BofA Board Members" [ABC News]
"Thain Says He Should Have Picked Ikea Furniture for Merrill" [Bloomberg]

RELATED
"Judge: BoA SEC Deal Violates 'Most Elementary Notions Of Justice And Morality'"
"Thain's $35,000 Commode On Legs Actually Chest Of Drawers"
(Photo: mrkathicka)

The settlement comes after the New York Supreme Court upheld charges by Cuomo that Dell "engaged in fraud, false advertising, deceptive business practices, and abusive debt collection practices" by, among other things, promoting "no interest" financing that later morphed into rates that went over 20%.

"Today's announcement is the final step in ensuring New Yorkers harmed by Dell's deceptive and illegal business practices are fully compensated," said Attorney General Cuomo. "Going forward, this deal means that Dell will have to clearly and fully disclose the terms and conditions of their products and services, to avoid this kind of fraud at the consumer's expense. My office is committed to ensuring a fair and honest marketplace across New York by rooting out these unlawful practices, and we encourage anyone who was ripped off by Dell to come forward and file a claim to get their money back."

New York customers who think they may be entitled to part of the $4 million have until December 15 to file a claim.

Cuomo Announces Dell Will Pay $4 Million For Defrauding New York Consumers [Office of Andrew Cuomo]
Information about filing a Claim for Compensation related to the Dell Settlement [NY Consumer Frauds Bureau]

(Photo: Brent and MariLynn)

The Seattle Times reports that the (tall) Federal agents had shown identity theft victim Michelle McCambridge a surveillance photo of the woman who stole her identity. Michelle didn't recognize the lady then, but she sure did when the lady came up to the counter where Michelle worked at JC Penney and tried to sign up for a credit card.

Michelle stepped away and made sure the manager got an image of the lady and reported it to law enforcement. Because of her cool thinking, she helped law enforcement apprehend the woman and four others who were part of an id theft ring that had defrauded at least 39 people.

The key in cracking the case, authorities say, was that Michelle and other victims got active in their cases and contacted the stores to make sure they saved their security tapes.

That doesn't happen very often, [Agent Velling] said. Usually, people just file a police report, cancel their accounts, and the cases languish for lack of evidence and resources.

"Identity-theft crimes are some of the most difficult criminal cases to investigate," Velling said.

Identity-theft victim meets her identity thief [The Seattle Times] (Photo: XISMZERO)

"But you accepted the other 3 much larger checks that were typed in black, and signed with blue ink...", I offer helpfully.

"But I can't accept this handwritten check", she answers "because of the two different ink colors".

"So, no one can write me a blank check?" I ask. "Or if they do, I have to find a typewriter to fill in the amount?"

"We need to prevent fraud." she explains.

Big mistake.

"Are you implying that I might attempt fraud?" I ask after picking my jaw up off the floor. "Look at the account balance" I instruct. "It is several thousand times the amount of the check I am depositing. This is nonsense - let's get your manager over here."

The branch manager slides up trailing the unctuous slime of someone who will grovel to placate, but never look one in the eye and directly address a concrete issue. The conversation ambles around for a bit, without any progress toward connecting a small messy check with the reality of a customer with significant deposits and a long track record. Apparently, my "admitting" that the check was signed by our treasurer, and the amount filled in by me makes matters somehow "worse". I guess I might have lied and claimed that his pen ran out of ink, but I am not a skilled liar.

Let's see, if the check turned out to be fraudulent, Jim would have legally been responsible for it, and the bank could have repaid itself out of his account balance. If he attempted to withdraw his entire balance—which Jim says was "several thousand times over the amount of the check"—the bank could have sounded an internal alert and postponed the withdrawal until a supervisor could sign off on it. But somehow it made more sense to offend a long-term customer by inconveniencing him and implying that he was a criminal.

Jim figured out a simple workaround:

"Never mind", I say after getting nowhere fast for about 2 minutes. "Your bank WILL accept this check, and thank me for my deposit, too. Just watch."

I then deposited my check with no problem at all - steps away over at the ATM, which I had noticed being serviced by an armored truck on prior visits.

The machine thanked me nicely in its usual pre-programmed way. I waved to the branch manager, and cheerily suggested that he "have a nice day".

The best advice I can offer to those who wish to commit check fraud against Wachovia Bank is to purchase a typewriter. The best advice I can offer to honest customers of banks staffed by unthinking automatons who refuse to allow reason to even color their blind obedience to the latest customer dissatisfaction initiative is even simpler. Deposit such checks via the ATM machine located only steps away from the uncooperative employees. The check was credited to my account the same day, and the ATM did not insult me with any implied accusations.

(Photo: kb35)

Reporter Samantha Maziarz Christmann identifies one particularly nefarious ruse involving adorable puppies:

Also known as the Cameroon pet scam, this one preys on animal lovers with soft hearts. The scammer posts an ad online for a purebred puppy, free to a good home. Often claiming to be a missionary in Africa, the scammer says they are unable to care for their pet overseas and wants to assure she is taken in by a loving owner. All you have to do is wire the money (it's almost always wired or a money order) to ship the pup to her new home. The advertised breeds are often expensive ones that are hard to get your hands on, such as English bulldogs and Yorkshire terriers.

Once you wire the money, you might be solicited for more funds to "cover unforeseen expenses," such as customs charges or necessary vaccines. Either way, you'll never see your puppy - or your cash.

Christmann's advice: "Do business only with people you can research and do business with in person. If you want a purebred dog, contact a reliable breeder."

Sadly, the article goes on to deflate my dreams of making millions by wiring some good-faith money to Nigerian princes. Surely my good pal the Honorable Dr. Jason Biggs, Phd, ESQ is on the level though.

Hold onto your money: Wise up to scam artists [Buffalo News]
(Photo: Brian Jackson Now)

A bank firewall account is very simple, especially if you have an ING Direct account (or any bank account that lets you add sub-accounts easily). Open a new account with a $0 balance and use that account number to link to other services that require a funding source, like PayPal. If you are ever the victim of fraud, such as a phishing email or keystroke logger, the scammer that got access to your PayPal account can't empty your bank account because it's already empty.

While banks do offer protection if you are the victim of fraud, it still takes time to resolve. It's better to have a firewall in place so that if you are scammed, they don't get the money in your account.

Do you use a firewall account? If so, let us know and at what bank.

Jim writes about personal finance at Bargaineering.com.

(Photo: epleitez)

I am writing to tell you the results of my complaint to Bank of America about having my ATM card shut down in Irkutsk, Russia, despite informing the bank of my travel plans. Bank of America has sent me an apology letter and a $100 Amazon gift card. I consider myself pacified as far as my U.S. bank transactions go. However, I will probably open an account at a more globally-oriented bank like Citibank or HSBC the next time I travel abroad.

I would rate the customer service I received about a 5.5 on a scale of 1-10. I was contacted the same day I e-mailed my complaint, but the representative who initially contacted me was unsympathetic and unpleasant to deal with. She may have sounded unsympathetic, though, because she was clearly being coached through my complaint call by a third party on the line whose comments I could not hear.

My experience with Darrell Esch, the Senior VP who contacted me after I complained about my initial conversation, was more productive. Mr. Esch took time to listen, or convincingly pretended to listen, to my complaints well after the close of the business day. Mr. Esch was attentive, apologetic and professional, which I appreciated.

Also, BofA rushed me a new ATM card, but neglected to also rush the accompanying pin number, which arrived five days after the card did. As a result I was unable to activate my card in a BofA ATM, as a sticker on the new card instructed me to. I ended up having to speak with a rep at a local BofA branch, but between the fact that she spoke English combined with my somewhat diminished expectations of BofA, I was able to handle it without further issue. The $100 doesn't hurt either.

So an international incident was avoided, and Shannon received an apology and was compensated for her inconvenience. What do you think?

PREVIOUSLY: BoA Strands Customer In Siberia With No Money

Yes, Alibi HQ, a company better known for providing fake invitations, conference programs, and phone screening to give people plausible cover stories, also provides employment services. They provide fake references and employment verification services. From their page:

If you're in need of Fake Job Reference services, we'll provide a local or toll free number for your previous employer or employers. We'll answer all incoming calls as the fictitious company and confirm your dates of employment, indicate that you are eligible to be rehired.

The reader who shared this with us is looking at the situation from a hiring perspective. As should you. This is why it's a good idea to double-check numbers provided to you. Reverse lookup is your friend. If there's no Yellow Pages listing for a number that your prospective renter or employee claims is a law firm....big red flag, right there.

FAKE JOB REFERENCES [Alibi HQ]

(Photo: matt512)

The timing of the rule changes, which lets defrauded investors claim investment fraud losses stretching back five years rather than two, is important because Oct. 15 — the tax filing deadline for those who filed for an automatic six-month extension — is only weeks away.

David Earley, tax senior manager for New York-based Deloitte LLP, explains the benefits for fraud victims:

Under the IRS' revised rules, investors defrauded in any Ponzi scheme after Jan. 1, 2008, can declare their net operating loss from the investment a "theft loss," which may be carried back five years instead of two, which was the case under the old rule. That is important, Mr. Earley said, because a theft loss is considered an ordinary loss that allows taxpayers to offset other types of income fully.

"It's a very beneficial loss," he said. "If you have to take a loss, that's the kind of loss you want to have."

"Beneficial loss" has the hollow ring of "moral victory" to it. But it must be better than an "unbeneficial loss" or "immoral defeat."

IRS rules for victims of fraud in focus as deadline looms [Investment News]
(Photo: stuartpillow)

I live in Park Ridge, a suburb of Chicago, and I was recently the victim of ATM skimming. My ATM/debit card was skimmed at the Charter One branch in Park Ridge during the weekend of July 25-26. Withdrawals totaling $2,000 were made from my checking account on August 5 and 6. Fortunately, the bank reimbursed me for the funds stolen, but this incident caused me a lot of unnecessary hassle and worry.

What I wanted to share with you is some information I got from a bank employee I'm friendly with. She told me that the scammers who did this are an Eastern European gang who have already skimmed numerous other ATMs in the Chicago area. They got over 50 people's card and PIN information from the Park Ridge ATM alone. According to her, the FBI and bank investigators have been chasing this gang for six months. She said that they started out in the city and are now working their way out into the suburbs.

What's amazing to me is that to the best of my knowledge there has been not one single story about this in the local media. Do a Google news search for "ATM skimming Chicago" and you won't find anything. If these guys have been in the area for six months, they must have already scammed hundreds if not thousands of people. You would think that might warrant a story in the Trib or something. It wasn't even mentioned in the police blotter of the local Park Ridge paper.

Very interesting. To prevent something similar from happening to you, familiarize yourself with how to recognize an ATM skimmer, try to stick to a few familiar-looking ATMs when possible, and be generally alert.

RELATED:
Here's What A Card Skimmer Looks Like On An ATM
Reader Finds Another Card Skimmer On ATM
ID An ATM Skimmer

I did almost all of my banking in New Zealand with local banks, but I still needed a card for a handful of internet transactions. Unlike here, the Kiwis don't freely hand out credit cards. Everyone uses debit, and it's almost everywhere.

HSBC knew that I was abroad, and all of my transactions screamed "traveling customer!" Bus tickets, Skype credits, stuff like that. I only used the card about once every month, but HSBC religiously flagged each and every transaction as fraud. Whenever they did, I'd call international collect and verify that the transactions were legitimate. The fraud alerts were annoying but bearable, and even a little amusing. By the third month, I offered to send postcards.

I didn't that notice that they canceled the card until I logged into my account and saw that, surprise!, I had a new credit card number. When I called to ask why, the customer service representative responded with: "Oh, you didn't get our letter?" Sure enough, HSBC canceled the card due to fraudulent activity (there was none,) and sent a new card to my address on file, creating the potential for actual fraud. Whoops!

It took almost an hour to sort out the mess since HSBC's CSR didn't realize that the card she was going to send to New Zealand probably shouldn't have the same number as the one sent to my U.S. address. Afterwards, I spoke with a supervisor and explained that my troubles with The World's Local Bank warranted a courtesy credit. She offered $25, which I accepted. I also asked her to write into my account notes that I would ask for a credit every time HSBC's security department interrupted my trip by flagging clearly legitimate transactions. Problem solved? Not quite.

HSBC's security department called the very next morning to ask: "Was I really in New Zealand?" Sigh! After verifying that I was, in fact, as promised, yes, really in New Zealand, I again asked for a supervisor and got another $25.

All told, HSBC ended up paying me $100 to apologize for their over-eager fraud detection system. I would have preferred to enjoy my trip without the bother, but hey, as long as they paid a reasonable rate, I was willing to chat with them.

If I had been traveling in Russia, and not living in New Zealand, I would have been far less accepting of the bank's failures. This is why a backup card is so vital. If your bank does screw up, don't let them off the hook with a simple apology. Demand the service you deserve, and if you don't get it, make them pay—literally, if need be.

PREVIOUSLY: BoA Strands Customer In Siberia With No Money

A place where the postal systems are so unreliable that "many Russian offices have their mail sent to Finland, where it is then privately couriered to Russia." Shannon attempted an EECB on Bank of America and had her mother, who is listed on the account, call BoA as well, to no avail. Anyone know how to say "I haven't yet booked a stay at your hostel but would like to have a package sent there, can you hold it for me" in Russian?

Here's her letters:

"Mon, Aug 10, 2009 at 12:47 PM

To Whom it may concern:

Bank of America on July 28, soon after I arrived in Irkutsk, Russia, for a 2-week trans-Siberian vacation, deactivated my debit card after I withdrew about $400 from an Irkutsk ATM. This was quite unexpected since I had called Bank of America before my vacation to inform them that I would be in Russia. My boyfriend, who banks with Citibank, used every ATM I did and experienced no problems. I am very thankful that he is a Citibank customer and had access to his money, because Bank of America literally stranded me in the middle of Siberia with no access to cash and a limited window of time to get out of the country before my visa expired and I became subject to enormous fines.

Being in Irkutsk, Russia (I have included a map for your convenience) and having had trouble communicating to hostel management that I needed to call Bank of America's toll-free number, I e-mailed my mother, Valerie O., to ask that she call BoA and have my debit card reactivated. My mother, who spent several hours on the phone with various representatives, was told that my account was "compromised," and the only option for me was to have Bank of America mail a new ATM card to a hostel in Russia where we were staying. At this point it became glaringly apparent to me that Bank of America does not often do business in Russia. The Russian postal system is famously unreliable, as are courier services there. In fact, many Russian offices have their mail sent to Finland, where it is then privately couriered to
Russia. Also, we had not booked many of our hostels and hotels in advance, and explaining the situation to a hostel or hotel over the phone with my 30 words of Russian would have proven frustrating indeed.

In closing, I would like to know why I should continue to bank with Bank of America after it has proven completely incompetent at handling my affairs while I am abroad. This is not the kind of account "protection" I signed up for. I would like to be compensated for my extreme inconvenience, and the inconvenience my distraught mother went through while futilely attempting to right the situation on the phone. If Bank of America does not rectify the situation to my satisfaction
within two weeks, I will close all three of my accounts and move my money to Citibank, and urge my parents to do the same.

Sincerely,
Shannon O."

2nd email:

"Mon, Aug 10, 2009 at 5:13 PM

Hello, I spoke with Max White concerning the incident below, in which I was literally stranded in the middle of Siberia with no cash flow because Bank of America did not heed my notification that I would be abroad for two weeks. Ms. White informed me that there was nothing Bank of America could do for me because I myself was in error for not contacting Bank of America from Russia, upon receiving an e-mail notifying me of my account being frozen. This despite the fact that my mother, whose name is on my account, called to try to rectify the problem from the U.S. I was told that because my mother had called, the situation had actually become *more* suspicious; apparently Bank of America thinks my own mother was trying to defraud me.

I insist that my complaint can be escalated further, because I am quite outraged over being stranded in Siberia with no money and for the rude treatment I received upon escalating my complaint. How was Bank of America supposed to help me even if I had reached them from Russia? More offers to send me a new card through the infallible Russian postal service? I was told repeatedly throughout the episode that the card in my possession *must* be closed.

Sincerely,
Shannon O."

Bank of America has used super-science security technology and policy-making to determine the following: not reactivating a card used in Russia prevents fraud, but sending a new debit card to an unverified address is A-OK! Luckily it turns out that Shannon has a backup credit card she can use. But what if she hadn't? Future international travelers take heed of this tale and protect yourself accordingly.

Bloomberg has the story:

"I believe he's cooperating," said John J. Fahy, a former federal prosecutor not involved in the case. "He would be very valuable to the government because he has been close to Madoff for so many years and had to have seen some of the fraudulent transactions that went on. From what we know of Madoff, he trusted very few people."

DiPascali is aiming for a reduced prison term. Whatever he gets it most likely won't be worse than Madoff's 150 years.

Ex-Madoff Finance Chief Could Point U.S. to Other Accomplices [Bloomberg]
(Photo: Kevin Dean)

Both were courteous enough to call Mike and deny the thief's attempts at opening the accounts, but their helpfulness stopped when Mike asked to know where his assailant was:

I got a call from AT&T asking to verify that I was opening a new account with them. I said no I'm at home. They apologized and then said they will halt the application process. I said, tell me where this is occurring so I can file a report. They said they couldn't divulge that information as it's private and due to the privacy act they cannot discus such information over the phone, I ask to speak to a manager they said nobody was available.

Next up Sprint. I got a call Monday 8/3 asking the same thing. This time I lost my cool. I demanded some sorta retribution for this. I asked repeatedly why they could not help me. They suggested I speak to their fraud department. I said well thanks that may help. I then call Sprints fraud department and got the runaround. It would seem that somebody would have to open an account in your name for them to actually be able to help you. I again speak to a person that gives me this "privacy act riot" I again ask to speak to a manager and was denied.

I went online and did a search on what to do, problem is I'm not sure how to file a police report if I don't know where this is occuring from. I filed a very brief FTC complaint. And I already have a Fraud alert. I also requested my credit report from one of the credit agencies (however due to my fraud alert I have to give my first born child in order to get it as I'm not able to view over the internet.

So bottom line. I'm at my wits end. I don't know where else to turn. I don't even know how they got a hold of my social as I'm very very anal about giving it out and shred all of my papers that would've had it. I don't even carry my social card with me it's in a fire proof safe at home. The only thing I can think of is I recently bought a house and switched my cell phone into my name. So either Verizon or somebody at a bank stole my info.....

At least Mike is better prepared than most identity theft victims. But his story is a cautionary tale that no matter how careful you are, you're always vulnerable to such attacks, and won't necessarily find potentially defrauded corporations in helpful moods.

(Photo: Spidra Webster)

Reader Ho Ko spotted the chicanery:

Ordinary looking phone numbers, like (908-554-2787) that are pay-per-call, often for $10 a call. The latest scam is to call people with Craigslist ads, asking them to call back at one of these numbers. The caller is charged $10 to leave a message on an answering machine.

Ho Ko pointed out that Verizon's customer service site has a listing of numbers to watch out for, and Fat Wallet has a thread about the scam.

(Photo: nadbasher)

Here's one example from last summer where a beadmaker posted that Kuntze was reselling her beads. Kuntze referred to the post on a legal advice site and asked how to get it shut down for defamation. According to this site, she succeeded in getting at least one website shut down temporarily by accusing it of spamming.

Our tipster, who asked to remain anonymous to avoid Kuntze's wrath, pointed us to her new blog Online Fraud investigation, where she accuses beadmakers of committing tax fraud, and TaxEvaderWatch, her similarly themed Twitter account.

She doesn't seem to be having much effect so far, fortunately, except that her actions did bring about this funny parody blog from someone who's been following her exploits. Here's a sample rant from Fake Ullja Kuntze, filled with the sort of creative punctuation and misspelling that the real Kuntze has demonstrated:

This seller has been selling handmade lampwork beads and jewelry online at various venues such as Etsy, Ebay etc. THIS IS WRONG!! Because no one is buying MY THINGS for reasons such as POOR QUALITY, NASTY COOKIES AND CRAP ASS BEADS !!!

In our minds. In our reality. In our world we are QUEEN DUCHESS TEAPOT HABERDASHERY!! RULER OF ALL!! PARTY OF ONE!!!

" Info about unethical customer" [Frit-Happens]
"International Criminal in My Own Backyard" [skyisland design]
"Allegations of Fraud on Etsy" [Unofficial Etsy News]

RELATED
Ullja Kuntze's Blog [Blogspot]

The Columbus Dispatch tells you how to avoid such shenanigans. Tip No. 1 is to avoid websites that force you to go through them to take advantage of Cash for Clunkers:

Many claim — falsely — that consumers must preregister to participate in the program. Some ask for addresses, phone numbers and Social Security numbers, none of which is required. Others promise to put consumers in touch with "authorized" dealers.

"Nobody should be fooled into registering or giving out personal information," Cordray said. "If anyone asks for that, it's a scam."

The story also warns you not to try to scam the program yourself by buying a cheap clunker and exploiting it for rebate money — you've got to prove you've owned the car for the past yearnto partake.

Scams pose as 'Cash for Clunkers' program [The Columbus Dispatch]
(Photo: improbcat)