Criminals Take Advantage Of Disaster

It didn't take long for the nation's scam artists to take advantage of the September 11 tragedy in New York, Washington, D.C., and Pennsylvania. Within days, reports of schemes to get people to donate started circulating:
A company claimed to need money for computer experts who could track down Osama bin Laden. (Wouldn't that be a trick, since the whole U.S. law enforcement effort is after him, too.)

Someone tried to pass themselves off as a Reader's Digest official notifying a woman that disrupted mail was holding up her prize money, a situation that could be corrected if she would just wire $2,500 to a certain account. (Yeah, right!)

People passing themselves off over the phone as Publishers Clearing House sales reps that said a portion of money sent for subscriptions would be sent to donation efforts. (The company does not use the phone to market.)

The Federal Trade Commission reports no specific complaints of consumer fraud, but also issued a consumer alert to watch out for such schemes. Tips it gave in that alert include:

Donate to recognized charities to which you have given in the past. Watch out for organizations with names that sound similar to those you know.
Give directly to the charity when possible.
Do not give out personal or financial information, including Social Security numbers or credit card or bank account numbers to anyone who solicits such information.
Ask for identification if you're approached in person.
Don't give cash.
Check out the charity with the Better Business Bureau's Wise Giving Alliance at (703) 276-0100 or www.give.org.
Contribute through www.libertyunites.org, an online site put together by some of the powerhouses of the Internet and electronic commerce to donate safely to a number of charitable organizations focusing on the tragedy.

Also, the Department of Justice lists a number of places you can go to report fraud or to check the legitimacy of a fund-raising effort. See www.usdog.gov/criminal/fraud/ WTCPent-SpecRpt.htm.

Copyright © 2001 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 11, No. 10, 10/01