Hood Warns of Stimulus Scams

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Attorney General Jim Hood warns of scams about the federal stimulus.

March 9, 2009

[verbatim from the Mississippi Attorney General’s office]
Attorney General Jim Hood, along with the Federal Trade Commission, is warning consumers about bogus web sites and emails promising to help them qualify for a payment from President Obama’s economic stimulus package. The scammers tell consumers they can help with only a little information or for a small payment from the consumer.

The scams come in different forms. Email messages may ask for bank account information so that the operators can deposit a consumers’ share of the stimulus directly into the consumer’s bank account. Instead, the scammers drain consumers’ accounts of money and disappear.

The scam may be in the form of a bogus e-mail appearing to be from government agencies and asking for information to ”verify” that you qualify for a payment. The scammers user that information to commit identity theft. Some e-mail scams don’t ask for information, but provide links to find out how to qualify for funds. By clicking on the links, consumers have downloaded malicious software or spyware than can be used to make them a victim of identity theft.

Some sites suggest that for a small sum of money—as little as $1.99 in some cases—consumers can get a list of economic stimulus trans for which they can apply. But two things can happen: the number of the credit card the consumer uses to pay the fee can fall into the hands of scam arts, or the $1.99 can be the down payment on a “negative option” agreement that may cost hundreds or thousands of collars if the consumer does not cancel.

“We are continuing our diligent effort to educate Mississippi consumers on new scams that arise daily,” said Attorney General Jim Hood. “With knowledge comes power and we want Mississippians to have the power to protect themselves against these scam artists.”

Consumers who may already have fallen for these type scams should carefully check their credit card bills for unauthorized charges and report the scam to the Consumer Protection Division of the Attorney General’s office (1-800-281-4418) and to the Federal Trade Commission (1-877-382-4357).

This alert and others like it can be found on the Consumer section of the Attorney General’s Web site.

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