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☆ Warren Buffett says AI scamming will be the next big 'growth industry'
▼ + stars: | 2024-05-04 | by ( Pia Singh | ) www.cnbc.com time to read: +1 min

Warren Buffett isn't jumping on the artificial intelligence bandwagon just yet, warning about the technology's potential for harm. "When you think about the potential for scamming people ... if I was interested in investing in scamming, it's gonna be the growth industry of all time and it's enabled, in a way" by AI, Buffett said at Berkshire Hathaway's annual shareholder meeting on Saturday. Buffett pointed to the technology's ability to reproduce realistic and misleading content in an effort to send money to bad actors. "Obviously, AI has potential for good things too, but ... I do think, as someone who doesn't understand a damn thing about it, it has enormous potential for good and enormous potential for harm — and I just don't know how that plays out," Buffett added.

Persons: Warren Buffett, it's, Buffett, — Organizations: Berkshire Locations: scamming

☆ Gangs netting up to $3 trillion a year as Southeast Asia human trafficking becomes a global crisis, Interpol says
▼ + stars: | 2024-03-28 | by ( Kathleen Magramo | ) edition.cnn.com time to read: +5 min

CNN —Human trafficking-fueled fraud is exploding in Southeast Asia with organized crime rings raking in close to $3 trillion in illicit revenue annually, the head of Interpol has said in comments that reveal the huge profits being earned by cartels. One international organized crime group makes $50 billion a year, according to Interpol secretary-general Jurgen Stock, adding that $2 trillion to $3 trillion of illicit money flows through the global financial system annually. While drug trafficking contributes around 40% to 70% of organized crime income, criminal groups are also using those smuggling networks to illegally move humans, arms and stolen products among other things, Stock said. Criminal enterprises also exist in Laos, Thailand and the Philippines, with many of the lucrative online scam operations ranging from illegal gambling, to love scams and crypto fraud. Beijing has pressed Myanmar’s military government to rein in the scam operations, but with limited success.

Persons: Jurgen Stock, Stock, ” Stock, Human Rights Volker Turk Organizations: CNN, Interpol, International Monetary Fund, Covid, ”, “, United Nations, UN, Human Rights, Philippine News Agency Locations: Southeast Asia, Singapore, Asia, United States, Myanmar, Cambodia, Laos, Thailand, Philippines, China –, Beijing, China, Manila, what’s, Malaysia, Vietnam, Hong Kong

☆ Over 27,000 student-loan borrowers are getting $4.1 million in payments in the mail after debt relief companies 'lured' them into 'fake loan forgiveness claims,' a federal consumer agency says
▼ + stars: | 2024-03-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Read previewThousands of student-loan borrowers are getting checks in the mail after paying companies accused of scamming them for debt relief services. The Federal Trade Commission on Wednesday announced it would be sending over $4.1 million in refunds to 27,584 borrowers who gave money to South Dakota corporations Mission Hills Federal and Federal Direct Group. According to the press release, the FTC said the companies "lured consumers with fake loan forgiveness claims and pocketed their money." Advertisement"Moreover, because Defendants have failed to apply most or any of consumers' payments to their student loans, many consumers have accrued additional capitalized interest on the balance of their loans," the complaint said. Those with questions about the payments can contact JND Legal Administration — the company overseeing FTC's refunds — at 844-566-0108, or seek information through the FTC's refund information website.

Persons: — Organizations: Service, Federal Trade Commission, Wednesday, Mission Hills Federal, Federal Direct Group, Business, FTC, Court, Central, Central District of, —, Consumer Financial, Education Department Locations: South Dakota, Central District, Central District of California, California, reportfraud.ftc.gov

☆ Fed-up 23andMe users lash out at the company, accusing it of scamming them into auto-renewal
▼ + stars: | 2024-03-13 | by ( Grace Eliza Goodwin | ) www.businessinsider.com time to read: +3 min

Read previewIf you think you've been charged for a 23andMe subscription renewal even though you know you cancelled it, you're in good company. The Federal Trade Commission released over a hundred complaints that 23andMe users had submitted since the beginning of 2023, after Gizmodo submitted a FOIA request for the documents. In many of those complaints, some of which Gizmodo published, users detailed renewal practices that they considered dubious and unethical. I turned off the auto-renewal, which this company does not make easy to do and does not send a confirmation about. A spokesperson for 23andMe told Gizmodo that the company does send a notification to customers 30 days before their subscription is set to renew.

Persons: —, you've, Gizmodo, 23andMe, Reddit Organizations: Service, Fed, Business, Federal Trade Commission, 23andMe

☆ A bizarre Willy Wonka-themed children's event became a viral disaster. Here's everything that went wrong.
▼ + stars: | 2024-03-01 | by ( Beatrice Nolan | ) www.businessinsider.com time to read: +5 min

A disastrous Willy Wonka-themed children's event went viral for all the wrong reasons. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Instead, the bizarre Willy Wonka-themed event in Glasgow, Scotland, featured a sparse warehouse filled with low-budget props and drew comparisons with the similarly ill-fated Fyre Festival. Videos of customers confronting event organizers have since been shared on social media. "I ended up playing Willy Wonka for three and a half hours straight," Paul Connell told The Independent.

Persons: Willy Wonka, Here's, —, Stuart Sinclair, Sinclair, Paul Connell, Wonka, Connell, BI's Katie Notopoulos Organizations: Service, Illuminati, The Daily Mail Locations: Glasgow, Scotland

A general view of the Baker Library/Bloomberg Center on February 17, 2024, at Harvard Business School in Allston, MA. A Harvard Business School graduate tricked his fellow alumni and associates into investing at least $2.9 million in a Ponzi scheme he ran, New York Attorney General Letitia James said Thursday. Artamonov allegedly lured at least 29 investors into the scheme, most of whom he met through his connections to the elite college, the attorney general said. "Vladimir Artamonov used his alumnus status from Harvard Business School to prey on his classmates and others while seeming legitimate and dependable. Harvard Business School did not immediately respond to a request for comment.

Persons: Letitia James, James, Vladimir Artamonov, Berkshire Hathaway, Artamonov, Artamonov's, fraudsters Organizations: Baker Library, Bloomberg Center, Harvard Business School, New York, Finance Locations: Allston , MA, Berkshire, Manhattan

☆ Investors in Airbnb arbitrage business allege they were defrauded in scheme promising 'higher returns than the stock market'
▼ + stars: | 2024-02-11 | by ( Rohan Goswami Annie Palmer | Rohan Goswami | In Rohangoswamicnbc | ) www.cnbc.com time to read: +18 min

Airbnb told CNBC that business practices such as Agyeman's aren't permitted. Airbnb told CNBC it had no business relationship with Agyeman and had taken action to curtail his operations. Carr and other HFA investors told CNBC their frustrations were dismissed or met with legal threats. To get around Airbnb's rules, HFA instructed its investors to list their own homes, a former employee and two investors told CNBC. Airbnb told CNBC that it was rolling out a more robust verification process in the U.S. and elsewhere beginning as early as 2024.

Persons: Elham Ataeiazar Daryn Carr, Carr, Anthony Agyeman, Agyeman, HFA, they've, Agyeman haven't, Airbnb, Brian Chesky, Brendan McDermid, Reuters Carr, Thomas Hunker, Hunker, Wessel Botes, Megan Shears, Shears, It's, Kathy, she'd, copywriters, couldn't, who'd, Collin Ballard, Collin Ballard Ballard, Ballard, lister, HFA's, Agyeman's Wealthway, Wealthway, David Levine, he's, Levine, Levine didn't Organizations: Federal Trade Commission, Department of Justice, Justice Department, FTC, CNBC, Inc, New York Stock Exchange, Reuters, Agyeman, Investors, Google, HFA, MGM, Dallas, North Locations: hustles, Covid, New York City, New York, Airbnb, HFA, Texas, Instagram, Fort Myers, Sanibel, Las Vegas, Dallas, U.S, Agyeman, Florida, North America, Botes

☆ What is catfishing and what can you do if you are catfished?
▼ + stars: | 2024-01-29 | by ( Sen Nguyen | ) edition.cnn.com time to read: +16 min

In the US, romance scams resulting from catfishing have among the highest reported financial losses of internet crimes as a whole. A 2019 study found that young LGBTQ+ men in rural America experiencing catfishing on dating apps felt angry and fearful. She also emphasized the need to recognize today’s loneliness epidemic, which “leads people to perhaps be more susceptible to catfishing scams,” she said. Catfishing is not explicitly a crime, but the actions that often accompany catfishing, such as extortion for money, gifts or sexual images are crimes in many places. In the US, romance scams resulting from catfishing have among the highest reported financial losses of internet crimes as a whole.

Persons: CNN —, Nev Schulman, “ Megan ”, Schulman, Evita, scammers, Catfishing, Snapchat, ”, Ngo Minh Hieu, Chong, Hieu, Wang, “, It’s, Fangzhou Wang, ” Wang, Maryna, WeChat Organizations: CNN, Cybersmile Foundation, Federation University, Fraud Intelligence, INTERPOL, Research, US Federal Trade Commission, SMS, University of Texas, Arlington, Getty, Facebook, UNICEF Locations: Alaska, Australia, Singapore, Southeast Asia, France, Germany, India, cryptocurrency, Vietnamese, America, catfishing, China, Cybersecurity, Australian

AdvertisementA few months later, she canceled the wedding due to the domestic violence she experienced from her fiancé. I found out by seeing a post on social media. Her husband posts pictures on social media washing brand-new four-wheelers they purchased for him and their two kids and an expensive truck. Research from the University of Wisconsin-Madison's Center for Financial Security tells us that 99% of domestic violence cases have a financial element. Certainly, remember what may happen before you give your niece money in the future, but don't stop showing up for her in other ways.

Persons: It's, she'll, we're, fiancé, Don't Organizations: University of Wisconsin, Madison's, for Financial Security

☆ A self-described real estate visionary was charged with running an Airbnb scam that made millions by tricking guests into booking non-existent properties
▼ + stars: | 2024-01-04 | by ( Hannah Getahun | Kelsey Vlamis | Lloyd Lee | ) www.businessinsider.com time to read: +5 min

NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . The complaint said Goel and associates would purposely double-book guests and then invent "fake last-minute excuses for cancelling overbooked guests or tricking them into switching to inferior replacements." Sometimes, they would encourage guests to stay at alternative properties they offered as a false upgrade and keep the money when guests complained, the indictment said. The indictment said that in some instances, Goel and others working with him listed properties for rent that didn't even exist.

Persons: Shray Goel, Goel, —, Shray Goel —, Alex, Brittany, Jess, Tyler, Goel's, Allie Conti, Airbnb, Vrbo Organizations: US, Prosecutors, Service, Business, FBI Locations: Florida, California, Florida , Illinois, Colorado, Texas, Vrbo

On Nov. 18, China’s Ministry of Public Security announced that authorities in northern Myanmar had handed over some 31,000 suspects. The Kokang Self-Administered Zone and the Wa Self-Administered Division both share a border with China and are heavily influenced by their bigger neighbor. The Ming family are not the only powerful Kokang families caught up in the drive. Wa police handed 194 Chinese nationals to Chinese authorities on Nov. 28, according to Wa's state media, Voice of Wa State. Others say that China is showing it won't tolerate the scams anymore, regardless of how powerful are the people behind them.

Persons: ”, Lu Jiantang, Jason Tower, Ming, Hu Xijin, ” Hu, Wei Qingtao, they’ll, ” Wei, Liu Zhengqi, Ming Xuechang, Kokang, Yin Masan, MNDAA, cyberscammers, Richard Horsey, “, Bai Suocheng, Li Kyar Wen, It’s, Wanqing Chen Organizations: China’s Ministry of Public Security, U.S . Congress, United States Institute of Peace, Communist Party, China’s Communist Party, CCTV, Global Times, of Public Security, Fully, Wa Construction Ministry, Wa Communist Party, Brotherhood Alliance, Arakan Army, Myanmar National Democratic Alliance Army, National Liberation Army, International Crisis Locations: BANGKOK, China, Myanmar, “, Wa, Kokang, Yunnan, Wa State, Shan, Arakan, cyberscams, Beijing

☆ OK, sure: Gen Z still thinks George Santos is kind of funny
▼ + stars: | 2023-12-03 | by ( Hannah Getahun | ) www.businessinsider.com time to read: +4 min

George Santos was expelled from Congress on Friday. AdvertisementTrue diva representation in Congress is now back to zero after scandal-plagued representative George Santos was formally expelled by his colleagues on Friday. Because, for Gen Z, Santos has become something of a star, a man worth having a shrine erected in his honor, per one post on X , "in memory of a Jew-ish icon ." As Santos exits the halls of Congress with post-congressional gym membership perks in tow, Gen Z says, "Gone but never forgotten." Representatives for George Santos did not immediately respond to a request for comment.

Persons: George Santos, —, you've, Gen, Santos, Gen Z, He's, scamming, Lauren Boebert, Mary Magdalene, grumbled, hasn't Organizations: Service, Republican Locations: Washington, Manhattan

☆ Casino operators in Asia are forcing workers to engage in online scams, says UN
▼ + stars: | 2023-11-21 | by ( Monica Pitrelli | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCasino operators in Asia are forcing workers to engage in online scams, says UNHundreds of thousands of people are being forced to work in online scamming operations, creating "two sets of victims" — the scammed and the scammer, UN Human Rights Office's Pia Oberoi told CNBC's Monica Pitrelli.

Persons: Office's Pia Oberoi, CNBC's Monica Pitrelli Organizations: UN Locations: Asia

☆ Organized scams are a growing issue for Southeast Asia, UN says
▼ + stars: | 2023-11-20 | by ( Monica Pitrelli | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOrganized scams are a growing issue for Southeast Asia, UN saysPia Oberoi, senior advisor on migration and human rights at the United Nations Human Rights Office, says transnational crime groups are tricking people into working in casinos that have been repurposed into scamming compounds in Southeast Asia.

Persons: Pia Oberoi Organizations: Southeast, United Nations Human Rights Locations: Southeast Asia, UN

☆ Fear is driving Chinese travelers away from two of Asia’s most popular destinations
▼ + stars: | 2023-11-20 | by ( Monica Pitrelli | Shalbha Sarda | ) www.cnbc.com time to read: +5 min

But both are losing ground with Chinese nationals as safety concerns rise among younger travelers. Both countries were the top choices for Chinese holidaymakers earlier this year but fell in the third quarter — Thailand to No. 8 — according to the marketing company China Trading Desk, which gauges Chinese travel sentiment on a quarterly basis. Both countries now lag behind South Korea, Malaysia and Australia in terms of Chinese travelers' next vacation destinations, with Singapore — deemed one of the safest places for travelers in 2023 — rising to the top spot. The World Health Organization and other safety groups have said seafood from Japan is safe to eat, but fears among Chinese travelers have "turned one of their most popular destinations into one of their least popular," Bhatt said.

Persons: Singapore —, Subramania Bhatt, Bhatt, Pia Oberoi, Oberoi, There's Organizations: China Trading, China, World Health Organization, United Nations, United Nations Human Rights, High, Afp, Getty, ASEAN, CNBC Locations: Japan, Thailand, Asia, Korea, Malaysia, Australia, Singapore, Southeast Asia, Thailand —, Cambodia, Laos, Myanmar, Southeast, South Asia, China, Taiwan, America, Pacific, perpetrating, Thu, People's Republic of China

☆ Opinion | Postpone Social Security for the Sake of the Young?
▼ + stars: | 2023-11-18 | by ( ) www.nytimes.com time to read: +1 min

The enormous income gap between workers and executives is a much more relevant factor in the lopsidedness of wealth distribution. The aging population is depicted as carefree, golf-playing, medically fit scammers living off struggling young wage earners. Social Security earnings are based on wages earned in a lifetime. The solution is not to raise the age limit for retirement but to eliminate the maximum taxable income for Social Security, currently $160,200. And to the authors, please stop finding ways to divide the young and the old.

Persons: Eugene Steuerle, Glenn Kramon, Florence Estes, I’ll Organizations: Security, Social, Social Security, Millionaires, Florence Estes Chicago Locations: U.S

☆ Anthony Farrer of LA’s The Timepiece Gentleman accused of scamming $3 million from customers
▼ + stars: | 2023-11-15 | by ( Faith Karimi | ) edition.cnn.com time to read: +7 min

According to federal court documents, Farrer’s life started unraveling months before his arrest. His watch business started in Dallas and moved to LAIn court documents, federal agents detailed Farrer’s downfall from luxury watch seller to alleged scammer. Investigators said Farrer pocketed customers’ money from the watch sales and used it to maintain his lavish lifestyle. At times, court documents said, Farrer would send customers pieces that were different from what they’d requested. Court documents state the Rolex actually belonged to another customer who’d given it to Farrer to sell on consignment.

Persons: CNN — Anthony Farrer’s, Farrer, ”, Erica Choi, scammer, “, Anthony Farrer, they’d, who’d, he’d, “ I’ve, I’ve, …, Ciaran McEvoy, he’s Organizations: CNN, Lamborghini, Ducati, Business, YouTube, Office, Central, Central District of, Rolex, US Locations: Beverly Hills, Santa Monica, Las Vegas, Central District, Central District of California, Dallas, LA, Los Angeles, California, South Carolina , Colorado , Texas, Florida, Beverly, Swiss, Texas

☆ Walmart, Amazon, and others lost millions of dollars to an organized online refund fraud scheme
▼ + stars: | 2023-11-07 | by ( Dominick Reuter | ) www.businessinsider.com time to read: +4 min

Retailers, including Walmart and Amazon, lose millions of dollars to refund fraud schemes. AdvertisementAdvertisementA coordinated refund fraud scheme has cost online retailers like Walmart and Amazon millions, according to Federal prosecutors. If the retailer provided a no-return refund, ARG would take a percentage cut, and the customer would keep the item. Retailers like Amazon, Walmart, and Target sometimes offer no-return refunds when the cost of the return outweighs the value to the seller. 404 Media also found numerous Reddit and Telegram groups openly swapping tips on perpetrating refund fraud, with specific advice for individual retailers.

Persons: Courtwatch, —, Artemis, Kate Spade Organizations: Walmart, Amazon, Service, Media, Watch

☆ The Biden Administration wants to close a retirement savings 'loophole' that could be costing you 20% on your investments
▼ + stars: | 2023-11-01 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +5 min

The Biden administration is proposing a new rule to ensure people saving for retirement get the best advice possible. AdvertisementAdvertisementThe Biden administration is continuing its crackdown on junk fees — and this time, retirement savings are in the limelight. A new proposed rule by the Department of Labor would close what the administration calls "loopholes" in retirement advice, potentially saving retirees billions. However, some advisers steer their clients towards what's best for them, not the retirement savers, he said. Currently, the Securities and Exchange Commission has regulations mandating that investment advice needs to be in a saver's best interest.

Persons: Biden, Obama, —, DOL, that's, they're, LIMRA, Jason Berkowitz, Berkowitz Organizations: Service, Department of Labor, Securities and Exchange Commission, SEC, White, Federal Reserve, FTC, The Department, Labor Locations: pushback, Washington

☆ We can use AI to fight predatory robocalls, experts tell senators
▼ + stars: | 2023-10-24 | by ( Chelsey Cox | ) www.cnbc.com time to read: +1 min

WASHINGTON — Senators took a bipartisan stance against abusive robocalling on Tuesday, appealing to experts for enforcement measures as more scammers employ deceptive artificial intelligence. Witnesses told the Senate Commerce's Subcommittee on Communications, Media and Broadband that generative AI can also work in regulators' favor. Mike Rudolph, chief technology officer for robocall-blocking firm YouMail, Inc., said the AI could flag insufficient mitigation controls in the Federal Communications Commission's Robocall Mitigation Database. "That's a great place where you could apply that [AI] technology and probably discard half the entries in the database in an afternoon or a week of work," Rudolph said. Sen. Ben Ray Luján, D-N.M., chair of the subcommittee, said robocalls have eroded the public's trust in the nation's communications networks.

Persons: robocalling, Mike Rudolph, Rudolph, Sen, Ben Ray Luján, Chuck Schumer Organizations: WASHINGTON, Senate, Communications, Media, Inc, Federal Communications, Capitol

☆ Student-loan borrowers in Minnesota are getting over $17,000 in refunds after paying a company that 'falsely promised' debt relief, the state attorney general says
▼ + stars: | 2023-10-13 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Student-loan borrowers in Minnesota are getting over $17,000 in refunds through a recent settlement. The attorney general accused a company, Docupros, of pocketing illegal fees over the false promise of debt relief. It's one of the 52 companies Minnesota is investigating over potentially fraudulent behavior with borrowers. AdvertisementAdvertisementAnother day, another settlement for student-loan borrowers. Along with Ellison's efforts, government agencies have been scrutinizing companies that are misleading borrowers into unnecessarily paying for debt relief services.

Persons: —, Keith Ellison, Docupros, Ellison Organizations: Service, Minnesota, Federal Trade Commission, Justice Department, Consumer Financial Protection Bureau, Education Department Locations: Minnesota, California

BANGKOK (AP) — One of Myanmar’s biggest and most powerful ethnic minority militias has arrested and repatriated more than 1,200 Chinese nationals allegedly involved in criminal online scam operations, an official of the group said Saturday. The arrests were carried out in territory controlled by the United Wa State Army, or UWSA, in eastern Shan state in raids on Tuesday and Wednesday, Nyi Rang, a liaison officer from the militia, told The Associated Press. The United Wa State Army is the biggest and strongest ethnic armed organization among the major ethnic minority groups in Myanmar, with an army of approximately 30,000 well-equipped soldiers and sophisticated weaponry including heavy artillery and helicopters, from China, with which it maintains close relations. The U.N. report about Southeast Asian cybercrime said the online fraud gangs were also active in southeastern Kayin state on the Thai border. The complexes were developed by Chinese investors in cooperation with the local Border Guard Forces, which are militias affiliated with Myanmar’s army.

Persons: Nyi Rang, —, Wa, Aung, Suu Kyi, Chen Hai, cybercrime, Shwe Kokko Organizations: Myanmar’s, United Wa State Army, Associated Press, Human Rights, United Wa State Party, Beijing’s Ministry of Public Security, Foreign, Border Guard Forces Locations: BANGKOK, Shan, Wa, Yunnan province, Asia, Southeast Asia, Myanmar, Cambodia, Kayin, Mong, China, Thailand, Suu, Thai, Shwe, Myawaddy

☆ Trump's Top 5 defenses in his massive NY financial fraud case, in his own words
▼ + stars: | 2023-09-03 | by ( Laura Italiano | ) www.businessinsider.com time to read: +17 min

AdvertisementAdvertisementHere are Trump's top five business fraud defenses – in his own words – as revealed in a recently-unsealed deposition transcript. New York attorney general's officeTrying to pass the blame won't work, two attorneys who used to work for previous New York attorneys general told Insider. And you're suing them instead of going after violent criminals," he scolded the attorney general and her lawyers. Then there's the $250 million Trump allegedly pocketed by lying about the size of his collateral. 3: his math is "worthless"At the center of the attorney general's case are a decade's worth of Trump's Statements of Financial Condition.

Persons: Trump, Donald Trump, Letitia James, James, Andrew S, Amer, Kevin C, Wallace, Brittainy Newman, Eric, I've, Mazars, We're, I'm, general's, Kenneth Foard McCallion, Tristan Snell, –, Susan Watts, they'd, Snell, McCallion, Donald Trump's, Laura Italiano, Kathy Willens, Jennifer S, Altman, Carlo Allegri, John Minchillo, Drew Angerer, George Washington, Jack Nicklaus, Tom Watson, He's Organizations: Trump Org, Service, York, New York State, New York, AP Trump, Trump Organization, New, Trump University, Trump, Deutsche Bank, NY Daily, Getty, Associated Press Deutsche Bank, McCallion, Associates, Washington, MSNBC, Reuters, U.S, Marriott Marquis Locations: NY, Wall, Silicon, Manhattan, New York, Trump's, Trump Tower, Manhattan , NY, . New York, Trump, New York City, Springs, Westchester County , New York, Mount Kisco, N.Y, Washington ,, Miami

☆ Over 22,000 student-loan borrowers are getting $9 million in refunds after being charged up to $800 in 'illegal' fees for debt relief services, federal watchdogs say
▼ + stars: | 2023-08-22 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The FTC and DOJ announced it would be sending $9 million in refunds to 22,000 student-loan borrowers. It's a result of a company that was convicted of illegally charging borrowers for debt relief services. The FTC in 2020 banned the company from providing debt relief services, and the same year, a federal judge sentenced Frere to 42 months in prison. Most recently, the FTC announced on Monday that a federal court halted operations of two companies that misled borrowers into paying for debt relief services, scamming them out of $8.8 million. And in June, an additional 37,000 borrowers began receiving $3.3 million in refunds following accusations of misleading debt relief behavior by separate companies.

Persons: Brandon Frere, Frere, Joe Biden Organizations: FTC, DOJ, Service, Federal Trade Commission, Department of Justice, Ameritech, Education Department, PayPal, Rust Consulting, Department, Education Locations: Wall, Silicon

☆ 2 companies scammed student-loan borrowers out of $8.8 million in 'illegal' fees over 'phony promises of loan forgiveness and lower monthly payments,' a federal watchdog says
▼ + stars: | 2023-08-21 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The FTC accused two companies of scamming student-loan borrowers out of $8.8 million. The FTC said they pocketed "illegal" fees for debt relief services that are normally free. A federal court halted the operations of the companies last week, and it will determine whether they violated the law. Biden's administration has previously warned borrowers to keep an eye out for scams, especially with confusion surrounding the debt relief conversation. Nearly a year ago, the Education Department announced up to $20,000 in debt relief for federal borrowers.

Persons: Joe Biden's, Samuel Levine, Pell Grant Organizations: FTC, Service, Federal Trade Commission, Intercontinental Solutions, Joe Biden's Education Department, Education Department, FTC's Bureau, Consumer Locations: Wall, Silicon

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