E-commerce con finds targets, stirs court action
Military veterans and senior citizens living on fixed incomes are the targets in this nationwide telemarketing pitch. Thousands of consumers are out a total of $9 million so far, and an Arizona federal judge has temporarily shut down the operation that was housed in Phoenix, according to the Federal Trade Commission. Here’s how it works: The telemarketers call people and tell them about an opportunity to invest in e-commerce websites, such as Amazon. com. Signing up for the investment, the callers say, entitles participants to share revenue from the popular websites. The marketers would “promise lavish returns and assure skeptical consumers that the investment is `risk free’ or that it comes with a `100 percent money back guarantee,’” the agency said in a news release. The telemarketers are accused of accepting payments from their targets that ranged from several hundred dollars to more than $20,000 each. During the first 90 days after consumers authorize payment by credit card, those operating the scheme respond to calls and assure “investors” that they are earning “substantial money” and that the payments will come at the end of the quarter, the federal agency said. Many credit cards include a 90-day limit on when charges can be contested. After that period is over, the FTC says, the telemarkers “typically cease all contact with their victims, who receive neither the promised returns nor refunds.” “As soon as it was time for people to get paid, all contact stopped,” the FTC said. “There were no e-commerce earnings or investments. Anyone trying to get a refund of their investment was out of luck.” Lesson: Always do research, or ask someone you trust to do it for you, before investing in any kind of business. Be aware that those promoting a business investment are required to provide a disclosure document at least seven days before you sign a contract or make any kind of payment. The document must identify the seller, provide a list of references and disclose certain lawsuits or other legal actions involving the seller or its key personnel, among other information. In the strange but true category: Johnson & Johnson earlier this month issued a warning about the possibility that a hacker could gain access to its insulin infusion pump manufactured for diabetic patients. The company, which makes major medical devices, said there were no cases of this happening and that the danger to patients was “extremely low.” Still, it said, a computer security firm discovered it would be possible for a hacker to remotely take control of the Animas OneTouch Ping Insulin Infusion Pump. The pumps, used mostly by those with Type 1 diabetes, are worn on the body and deliver insulin through a catheter placed under the skin. The product also includes a meter that measures bloodsugar levels and can be used to remotely program the pump. Computer security firm Rapid 7 discovered it might be possible to take control of the pump via the unencrypted radio frequency communication system, according to Reuters. Insulin doses that are either too high or too low can cause serious illness or even death. Ellen Marks is assistant business editor at the Albuquerque Journal. Contact her at emarks@ abqjournal.com or 505-823-3842 if you are aware of what sounds like a scam. To report a scam to law enforcement, contact the New Mexico Consumer Protection Division toll-free at 1-866-627-3249.