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Thursday, March 28, 2024
HomeNewsArchivesDLCA Warns Consumers of 'Free Government Money' Scams

DLCA Warns Consumers of 'Free Government Money' Scams

The Department of Licensing and Consumer Affairs (DLCA) reminds all consumers to continue to be on the alert for scams circulating throughout the territory. “More than ever during these hard economic times scam artists and “opportunistic fraudsters” are targeting and manipulating cash-stricken consumers with sales pitches and schemes,” said Commissioner Wayne Biggs.

Although the department hasissued scam warnings before, a number of new, less obvious types of scams have appeared in the Virgin Islands, resulting in a flow of new consumer complaints. The old procedures of sending e-mails, telephone calls, invoices, bank checks or letters have been enhanced or replaced by newer, more sophisticated formats such as enticements from businesses that publicly advertise both locally and nationally. It is important for residents to note that scam artists will try any means necessary to scheme you out of your hard earned money.
Currently, a multitude of scams are claiming that they can provide consumers with information on how they can qualify to receive government funds such as federal grants, loans and subsidies. These offers may initially begin as a free service or seminar attendance; however, various tactics and enticements are later factored in to capture the consumer seeking more information. Additional costs, to include literature purchases, consultation fees, or monthly association fees, are typically required. The consumer in the end has paid thousands of dollars without receiving the results promised.
Additionally, there are solicitation schemes which claim to represent the Internal Revenue Service (IRS), President Barack Obama or local banks conducting debt consolidation. These solicitations are frequently received in the form of automated phone calls. V.I. consumers should be especially aware of telephone offers or requests because the use of automated or human-driven phone calls have been recently used to steal valuable information such as social security numbers, account information, PIN numbers, addresses and other personal information. “Consumers must not be afraid to ask questions or end the phone call completely if you do not feel comfortable disclosing this information,” said Commissioner Biggs.
As the leading agency of consumer protection, it is necessary for DLCA to highlight tips that can heighten awareness and provide residents with information on hidden risks. “With the current economic downturn, consumers are vulnerable to offers of free government money; these offers, however, are merely scams exploiting the recession,” said Biggs. The Federal Trade Commission (FTC) has reported that approximately 270,000 people have fallen victim to stimulus scams thus far. The FTC has also filed 400 cases on various types of stimulus fraud. “Stimulus fraud is not limited to the U.S. Mainland. Virgin Islands residents cannot at any time let their guard down when it comes to an offer, solicitation, sales pitch or infomercial that they have not further researched on their own,” said Biggs. That is especially true at this time of year when V.I. residents may gain access to or receive additional funds and spending is increased during the holidays.
If you have received solicitation of any kind and have questions about its legitimacy, or would like to file a complaint, contact the DLCA Division of Consumer Services, at 774-3130 on St. Thomas/ St. John or 773-2226 on St. Croix.
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