fraud
Complaint
out of $899
Country: United States
This company has taken me for the amount of $899.93 call me at my place of employemnt threating that they where going to take nme to jail over a payday loan i got for 300.00. Me been stupid and did not think before reacting i hurry and sent them the amout of 600.00 thru money gram and and another on 4th of feb. His name is Jack Adams calling for payment for Cash net america. Jack adams stay on the phone with me the whole time i was making thr transaction. Did not let me off the phn. he state that he would send me confirmation of dissmal n 3 to 4 days and never did. On 2/8/2011 a guy by the name of craig miller called and said the same thing. Than i stated to hime i already paid this account an he said i had been scan. So i call Jack he said that they where trying to scan me and dont pay them . Than i started to question and then i did my own investigation, Please be ware of these people. If you here the names jack adams, craig miller, mike johnson or jones the guy could nor even know what name he gave.
Comments
https://complaintwire.org/Complaint.aspx/2jL2df9PkADHOAjNj8cVcw
They are a criminal extortion racket run by scammers calling from overseas, probably India. They are not "debt collectors", just crooks, and the alleged "payday loans" are fake. No one owes them anything.
They are just calling Americans at random, hoping to find someone who might have had a payday loan, so they can con them. They may even have access to identity, credit, employer, or relative information to use in this con, apparently obtained through access to credit reports, search or skip-trace sites, or through phony on-line "payday loan" sites.
It is illegal for debt collectors to threaten to "arrest", "prosecute", or "jail" you. Anyone calling you on the phone and making threats to get money from you is a criminal.
"did not think before reacting"
That is why these scams make extreme threats, to panic you into paying them without checking them out.
"sent them the amout of 600.00 thru money gram and and another on 4th of feb."
You have been conned.
"His name is Jack Adams calling for payment for Cash net america."
He is not "Jack Adams", and he is not collecting for "Cash Net America". He is a criminal running a scam.
"Jack adams stay on the phone with me the whole time i was making thr transaction. Did not let me off the phn."
He is controlling your attention to prevent you from finding out that this is a scam.
"he state that he would send me confirmation of dissmal n 3 to 4 days and never did. "
No surprise there. He lied, just like everything else.
"On 2/8/2011 a guy by the name of craig miller called and said the same thing. Than i stated to hime i already paid this account an he said i had been scan. So i call Jack he said that they where trying to scan me and dont pay them . "
They are both running the same scam. In fact, maybe the second one got your information from the first. If you were a sucker once, it's worth trying again.
"If you here the names jack adams, craig miller, mike johnson or jones the guy could nor even know what name he gave."
The names are all fake. Only the scam is real.
Money transfer agents like Western Union and Moneygram have been used by scammers for a long time. Several years ago they were the main payment mechanism used by fraudulent "advance fee" loan scams, phony "lottery" scams, and similar frauds.
FTC, state Attorneys General, and Canadian authorities started clamping down on these scams by going after the transfer agents, Western Union and MoneyGram, that were being used by the scammers to get the money.
For example, FTC reached a settlement with MoneyGram a couple years ago, having found that a number of MoneyGram agents were actively and knowingly assisting scammers. MoneyGram was required not only to refund consumer losses, but to prominently post warnings at their stores, on their forms, on their websites, and give warnings in phone calls, warning consumers of common scams using such services.
http://www.ftc.gov/opa/2009/10/moneygram.shtm
"For Release: 10/20/2009
MoneyGram to Pay $18 Million to Settle FTC Charges That it Allowed its Money Transfer System To Be Used for Fraud
Company Also Required to Implement Comprehensive Anti-Fraud Program and to Monitor its Agents
MoneyGram International, Inc., the second-largest money transfer service in the United States, will pay $18 million in consumer redress to settle FTC charges that the company allowed its money transfer system to be used by fraudulent telemarketers to bilk U.S. consumers out of tens of millions of dollars. MoneyGram also will be required to implement a comprehensive anti-fraud and agent-monitoring program.
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.
“Money transfer services have a responsibility to make sure their systems don’t become conduits to rip people off,” said David C. Vladeck, Director of the FTC’s Bureau of Consumer Protection. “In this case, MoneyGram not only ducked this responsibility, but also looked the other way while its agents took part in the scams.”
Minneapolis, Minnesota-based MoneyGram operates through a worldwide network of approximately 180,000 agent locations in 190 countries and territories. In its complaint, the FTC charged that in recent years this network has increasingly been used by telemarketing scammers to prey on U.S. consumers. Con artists prefer to use money transfer services because they can pick up transferred money immediately, the payments are often untraceable, and victimized consumers have no chargeback rights or other recourse.
In 2007, 72 percent of all complaints received by the FTC involving Canadian-based fraud reported using money transfer services to make payments. 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.
In many of the scams that used MoneyGram’s money transfer system, the con artists used counterfeit checks to induce consumers to send money back by wire transfer. The most prevalent of these scams were lottery or prize schemes in which consumers were told they had won thousands of dollars and just had to pay a fee for “taxes,” “customs,” or “insurance” to a third-party to collect their winnings. Consumers paid the fee using MoneyGram, but received nothing. In another scheme, telemarketers told consumers they were guaranteed loans, regardless of their credit score. All they had to do was pay “insurance,” “paperwork,” or “processing” fees to complete the transaction. Consumers who sent funds using a money transfer service got nothing in return.
In mystery shopping scams, the con artists called U.S. consumers or sent them a piece of direct mail in which they claimed to be hiring consumers to visit stores such as Wal-Mart to evaluate MoneyGram money transfer operations. The con artists sent consumers a cashier’s check, telling them to deposit it in their checking account and then send most of the money back using a money transfer at Wal-Mart. When the counterfeit checks bounced, consumers realized they had lost the money they transferred. By this time, however, the money transfer agents had already received and paid out the money, often either without checking IDs or by using fake drivers license information.
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.
In addition, at least 65 of MoneyGram’s Canadian agents have been charged by Canadian or U.S. law enforcers with, or are currently being investigated for, colluding in fraud schemes that used the MoneyGram system.
The complaint charges MoneyGram with violating both the FTC Act and the FTC’s Telemarketing Sales Rule by helping sellers or telemarketers who it knew – or consciously avoided knowing – were violating federal law, and for not taking adequate steps to prevent fraud.
The agreed-upon court order settling the FTC’s charges bars MoneyGram from knowingly providing substantial help or support to any sellers or telemarketers that are violating the Telemarketing Sales Rule and requires it to implement a comprehensive anti-fraud program. Under the anti-fraud program, MoneyGram must conduct background checks on prospective agents; educate and train its employees about consumer fraud; institute agent monitoring; and discipline agents who don’t comply with the rules. The order also requires MoneyGram to provide a clear and conspicuous fraud warning on the front of all its money transfer forms. The order’s conduct provisions apply to all MoneyGram money transfers sent worldwide from either the United States or Canada.
The order contains monitoring and discipline provisions that will ensure MoneyGram is properly training, monitoring, and taking actions to address problems related to its agents. To do this, the order requires MoneyGram to develop and maintain a system for receiving consumer complaints and data, and to provide that information to the FTC upon request. MoneyGram also must take all reasonable steps to identify agents that are involved in fraud. It must review its transaction data to identify any unusual or suspicious activity by its agents and fire any agent who it believes may be participating in fraudulent activities. It also must fire or suspend any agent who has not taken appropriate steps to stop fraudulent money transfers.
Finally, MoneyGram will pay the Commission $18 million, which will be used to provide redress to consumers.
..."
MoneyGram also reached a similar settlement with 44 states and the District of Columbia.
The states involved in this settlement are:
Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia and Wyoming, and the District of Columbia.
http://www.ag.idaho.gov/media/newsReleases/2008/nr_07022008.html
http://www.atg.state.vt.us/news/attorney-gene ... h-moneygram.php
http://www.wvago.gov/press.cfm?fx=more&ID=436
http://www.illinoisattorneygeneral.gov/pressr ... _moneygram.html
The above settlements were in connection with fraudulent telemarketing operations, largely cross-border (Canadian) "advance fee" loan scams. Today, complaints against those scams have declined, to be replaced by these "payday loan" extortion rackets, many of which are run from India.
Did MoneyGram's site display the consumer warnings required by their settlements?
MoneyGram may have some liability for allowing their network to be used for this fraud, if they failed to warn you as required by the terms of the settlements.
Contact FTC, your state Attorney General, and the Minnesota Attorney General to file fraud complaints. (MoneyGram is based in Minnesota.)
Only warnings here are fine print "consumer protection" and "scam alert".
www.moneygram.com
People who have fallen for a con using threats don't know it's a scam.
"Consumer Protection" only lists "Foreign Lottery" and "Buying a Vehicle", and a link to "common fraud scams".
https://www.moneygram.com/wps/portal/moneygra ... umerProtection/
"Common Scams" lists "Buying a vehicle", "Sending money to a stranger", "Lottery/Sweepstakes", "Internet Purchases", "Relative In Need", "Loans", "Check/Money Order", "Romance", "Newspaper Ads".
Here are the warnings they post:
https://www.moneygram.com/wps/portal/moneygra ... ommonFraudScams
"Buying a vehicle
Have you found a great vehicle online or in an advertisement with a price too good to be true? Are you being asked to send the down payment through a MoneyGram money transfer?
Unfortunately, it's a SCAM. Do not send money for the vehicle to the seller or a payments representative. The vehicle purchase scammer may try to convince you to pay through MoneyGram to avoid sales tax and get a great price. They may even send you a letter or e-mail of authentication telling you that you have purchased the item, but in order to deliver it you need to wire funds first. Do not send the money. It is a SCAM. You will not receive a car or truck.
Once money is wired and received, it cannot be recovered and, unfortunately, you will be at loss for any money transferred.
Sending money to a stranger
MoneyGram never recommends sending money to a stranger. Any monies received by a stranger cannot be recovered and unfortunately you will not get your money refunded back to you.
“MoneyGram is very safe and secure when sending to someone you know and trust.”
Lottery/Sweepstakes
Legitimate lottery or sweepstakes NEVER require people pay money up front. Get a letter, call, or e-mail saying you won something (money or a prize), but before you can collect the prize you need to send money to pay for taxes, customs, or any fees? But you didn't buy a ticket or enter a sweepstakes. This is a SCAM. Don't send transfer money to the people who are stating you have "WON" something but need to send them funds to collect your winnings.
Internet Purchases
Have you found something online that interests you - a puppy, a car, an apartment for rent or any item for sale? Does the price for the item seem to be too good to be true and are you being asked to pay for the item through a MoneyGram money transfer? Unfortunately, this is a SCAM. Do not send money for the item to the seller. They may even send you a letter or e-mail of authentication telling you that you have purchased the item but need to wire funds first. Do not send the money. It is a SCAM. You will receive no merchandise. Once money is wired and received it cannot be recovered and unfortunately you will be at loss for any money transferred.
Relative In Need
Did you receive a phone call from a grandchild or a family member? Or a "lawyer" or "police officer" there with your family member? Are they in despair because they have been detained in Canada for not having a fishing license or for catching a protected species of fish? Have they been in a car accident? Are they asking for money to pay fines or for car repair? Did a relative call because they need money for a family member in medical need or for medicine? THIS IS A SCAM! Use precaution when sending money in any of these situations. These callers can request that you send money anywhere in the world. If you cannot verify with your family member (calling their number you had before this call, not the "new number" the caller gives you) that they are requesting money and aren't sure about the transaction, do not send the money. You will be at a loss for any money that is sent.
Loans
Did you receive an e-mail or letter about getting a loan? Were you asked to send money for loan fees, taxes, service fees, advance payments, or any other reason? This is a SCAM. Do not send money to a loan company to obtain a loan. If the money is wired and received it can not be recovered. You will be at a loss for the money you have sent.
Check/Money Order
Get a check or money order in the mail with instructions to first cash it at your bank and then send some of the funds to someone else through a MoneyGram money transfer? If so, the check/money order is counterfeit and your bank will make you cover the loss. Be aware that counterfeit checks are very hard to identify. You may have been promised a percentage of the check for employment or because of an over payment. This is a SCAM. Do not send the money and do not cash the check.
Romance
Did you meet someone through a personal ad, e-mail, chat room or an instant message? Did they ask you to send them money for travel or to help them financially? Do not wire the money - this is a SCAM. Any money received by this person cannot be recovered and you will be at loss for any money sent.
Newspaper Ads
Have you found something for sale in the classifieds or any type of newspaper ad? Did they ask you to pay for the item through a MoneyGram money transfer? This is a SCAM. Do not use a money transfer to purchase an item from a stranger. It is not safe to use a money transfer service when trying to purchase an item
..."
The posted warnings are TOTALLY INADEQUATE to warn of EXTORTION RACKETS using THREATS OF ARREST under false color of authority, assuming fraud victims would even find them.
People are being conned by these schemes because they are AFRAID OF THE CALLERS, and being threatened with immediate arrest if they don't immediately pay. If they already knew it was a scam, they wouldn't be afraid, and they wouldn't be going to a MoneyGram site to send money.
Since they are being threatened with imminent arrest, and are afraid, they do NOT know it is a scam, and they would NOT know to dig down through several levels of links, where they would STILL FIND NOTHING warning them that the crooks threatening them on the phone were running a scam.
There is NOTHING in the MoneyGram warnings that would give anyone a clue that criminals were doing this. Their scam is PERFECTLY ADAPTED to bypass any MoneyGram warnings.
http://www.westernunion.com/
"Could you be a victim of fraud?" links to this "resource" page, again no specific warnings yet.
http://www.westernunion.com/WUCOMWEB/staticMi ... ity&method=load
"Types of fraud" links to this page:
http://www.westernunion.com/WUCOMWEB/staticMi ... rity_FraudTypes
Here, finally, are their warnings:
"Common Fraud Types
Fraudsters are using the internet, the mail, and the telephone in many ways to try to make you fall victim to their schemes. It’s important to remember that fraudsters are clever at gaining your trust and gathering your personal information.
At Western Union, we want to help you recognize the many ways they attempt to gain access to your personal information and money. Below is a list of common fraud schemes you should watch out for.
Advance Fee / Prepayment
In this type of fraud the victim sends money to the fraudster in advance of receiving a certain product or service. The fraudster might ask the victim for a small fee in advance to open a new credit card or to secure a loan. Some examples of this type of fraud are credit cards, loans, investments, etc.
Mystery Shopping
There are multiple ways this type of fraud can occur. For this example we will use one of the most common.
Fraudsters contact victims through employment websites and ask them to evaluate the Western Union Money Transfer® service. The fraudster sends the victim a check and instructs them to deposit the check and use the funds to send a money transfer. The victim sends the money transfer and the fraudster picks it up and when the check bounces the victim is left responsible.
Overpayment
A common fraud in which the victim is sent a check in payment of a service or product that appears to be valid, but will eventually bounce. Typically the amount of the check exceeds what the victim expects to receive and he or she is instructed to send the excess to the fraudster. When the check bounces the victim is left responsible.
Employment
The fraudster will send a check to the victim who has accepted a job. The check can be for multiple reasons such as a signing bonus, supplies, etc. The victim will be instructed to deposit the check and use the money for any of these reasons and then instructed to send the remaining funds to the fraudster. The check will bounce and the victim is left responsible.
Lottery / Prize
Victims are informed through an unsolicited communication they have won a large lottery prize or sweepstakes. The victim receives a check for part of the winnings from the fraudster and is told to pay a small amount to cover taxes and/or processing fees. The victim uses the check to pay for the taxes or processing fees and is left responsible for the bounced check.
Rental Property
Fraudsters advertise a rental property usually at a considerable discount. This allows the fraudster to receive as many replies or inquiries as possible. The fraudster goes to great lengths to make this property look as legitimate as possible and might include pictures, floor plans, etc. To make sure you express an interest in the property the fraudster will ask you to send money for a deposit, verify funds, or other legitimate sounding reasons.
Emergency Funds
This fraud usually occurs in two ways. Fraudsters will either make you believe they are someone you know or acting on behalf of someone you know. The fraud is based on you sending money for an urgent situation or emergency. The fraudster will create a story such as the need for bail, fines, medical expenses, etc. The fraudster may also use social media sites to further this type of fraud.
Grandparent
This fraud is based on the Emergency Funds fraud. The fraudster will contact grandparents and impersonate either their grandchildren or a person of authority such as law enforcement, medical professional or attorney. The fraudster describes an urgent situation or emergency that requires money to be sent immediately.
Internet Purchases
Victims are told to send money for a product, auction item or service to the seller. The fraudster will use a number of tactics to make you believe they are legitimate, but once the victim sends the money they will not receive the purchased item or service.
Relationship
Fraudsters will create a fake relationship with the victim who believes it’s real, perhaps through online communication. At some point the fraudster will request money for a number of reasons such as travel, medical, etc. In the end the fraudster is only attempting to gain funds and not a relationship.
Fake Checks
Fake checks are used for many of the frauds explained in this section. These checks can be used for employment expenses, internet purchases, mystery shopping, etc. Remember not to use funds from a check deposited in your account until it officially clears which can take weeks.
..."
The Western Union fraud warnings are no better than the MoneyGram ones.
No mention of fake debt collector extortion rackets pretending to be law enforcement and threatening to immediately arrest you if you don't immediately pay them.
Both Western Union and MoneyGram would be effective money transfer channels for use by these scams, as they would not tip off victims sent to pay through them.
The complaint rates for this type of scam, however, have been rising rapidly, while earlier phone scams, like "advance fee loan" and "lottery" scams, are fading. They now exceed complaint rates against legitimate debt collectors on this site.
In addition, complaints are reporting details consistent with "organized" operations ("businesses"), rather than lone scammers, including sounds of other people in the background using the same scripts, calls from "debt collectors" who are "inexperienced", and when they mess up, they transfer to a more experienced "supervisor" who tries to recover.
This means that the scam must be effective and profitable, which means that getting the money transferred must be no problem. Although a couple complaints have mentioned being told to "go to Walmart and purchase a prepaid debit card", this would not generally be effective as it would give the victim the opportunity to find out it was a scam before sending the card number.
Payments by normal credit or debit card, or even by checking account number, would be subject to reversal through fraud disputes, and would point back through the payment system to a business entity on the other side.
These scams also have to maintain the illusion that they are U.S. based, rather than scammers calling from India. This is seen in the "company" names they use, "American Law Division", "LLC Law Firm of New York", "American Law Division of California", "Bryon Keith & Associates", "Morgan & Associates", their Americanized aliases "Samantha Jones", "Paul Smith", "Mike Davis", "Ricky Christy", "Officer Robert Richmond", and so on, even though they are generally reported to have thick accents, and often poor English.
Essentially annonymous transfers, through transfer agents such as Western Union and MoneyGram, are really the only practical way to run this type of scam, particularly if the money must be transferred overseas. They also show up playing a key role in similar U.S. based scams, such as the Boyland scam out of Buffalo.
Odds are, most of the money flowing to these overseas scam "debt collectors" is flowing through Western Union or MoneyGram, as the largest of these international money transfer companies. The alternatives would just not work well enough to be supporting the observed growth in complaints.
Cut off the money, through more effective warnings of FAKE DEBT EXTORTION SCAMS on Western Union and MoneyGram websites, and by agent signage.
They are, however, vulnerable at two points:
1) Their phone provider. They may be using VoIP, but most likely use the same carrier even though they may change phone numbers frequently.
2) Their method of getting the money transferred.
If the scam got that far, how did they say payment should be sent?
Western Union?
MoneyGram?
Other?
They are, however, vulnerable at two points:
1) Their phone provider. They may be using VoIP, but most likely use the same carrier even though they may change phone numbers frequently.
2) Their method of getting the money transferred.
If the scam got that far, how did they say payment should be sent?
Western Union?
MoneyGram?
Other?
If you have any fear at all that they will jail you or sue you call the bluff demand a written complaint be mailed to you, a phone number you can call back, the name of person you speak to. If you owe a legit payday loan they have your home address and wont hesitate to mail you a notice and phone number will actually have name of loan company!
Sad to say only way to stop the maddness is to cancle your checking account, if you have a payday loan you know is valid a pay as you go debit csrd can be used and is safe.
Now for some good ole southern justice turn the tables call BRYON KEITH & ASSOCIATES and tell them you know they are scamming you demand your money back! DO NOT THREATEN OR CUSS THEM, (thats sinking to their level).Inform them you are reporting them to State Attorney General,Police dept, Better business bureau,and FCC and then take time to actually report them. Keep calling everyday several times a day if possiable, fight for your money dont pay a penny!! goodluck and remember you have to protect your self! They cant jail you but can cost your your job and a lot of sleep only if you let them. STOP THE MADDNESS
Although there have been cases of actual payday lenders whose systems have been compromised, many people who are applying for payday loans apply to several, which might create the appearance of a lender they used disclosing information to these criminals.
Also be aware that there are payday lenders who will get your information from an application, and then fabricate the appearance of a loan even when you reject their terms. They will cram through a deposit into your account anyway, then immediately start pulling out weekly "payments" at extremely high rates, claiming you are paying only the interest, so they will keep taking your money forever, when they got all their money back in only a few weeks.
The only way to stop this is to shut down your account, after which they start harassing you for the "unpaid loan and interest", which they might claim is now 5 to 10 times what they "lent" you, even afeter only a few months.
One of the best known of these scam lenders is CMG Group, using mail drops in Kansas City, but they also operate under many other names.