LifeLock Settles with FTC on I.D.-Theft Protection ‘False Claims’

LifeLock — whose CEO brashly displayed his Social Security number in commercials to demonstrate his company’s anti-identity theft prowess — has settled with the Federal Trade Commission on charges it used false claims in promotions. The FTC called it one of its largest “coordinated settlements on record.” LifeLock has agreed to pay $11 million to the FTC and $1 million to a group of 35 state attorneys general.

FTC Settles with Advance-Fee Credit Repair Service

A credit repair company that allegedly made false claims it could raise consumers’ credit ratings and illegally charged advance fees will settle with the Federal Trade Commission, the federal agency said today. The FTC had charged Chicago-based Advantage Credit Repair and Mark D. Solomon with violating federal law by “falsely promising to remove negative information from consumers’ credit reports, even if it was accurate and current.” The charges were part of a federal-state crackdown on credit repair scams.

FTC Gets Judge to Halt $19M Phone Bill ‘Cramming’ Scam

A U.S. district judge has ordered a halt to operations of an Internet services company that allegedly bilked thousands of consumers and small businesses by “cramming” unauthorized charges on their phone bills. The Federal Trade Commission successfully sought the preliminary injunction, pending a trial, against Inc21 and its affiliated companies. They sold Internet services, including website design services, website hosting, Internet directory listings, search-engine advertising and Internet-based faxing, for charges ranging from $12.95 to $39.95 a month, the FTC alleges.

HUD, Groups Debut Site to Fight Foreclosure Rescue Scams

Scams that prey on desperate homeowners seeking mortgage modifications are soaring and U.S. housing officials have partnered with a national coalition to launch PreventLoanScams.org. The website expects to hear from 50,000 homeowners affected by such foreclosure-rescue scams, according to the Loan Modification Scam Prevention Network, which developed the site.

Foreclosure Crisis Spurs Soaring Mortgage Relief Scams

The unabated foreclosure crisis has spawned soaring mortgage relief scams and related complaints from consumers, according to law enforcement and consumer protection authorities. The most telling statistic was released by the Federal Trade Commission yesterday in its annual review which reported that nearly 1 million fraud and identity theft complaints were filed last year. In the category of “mortgage modification/foreclosure relief,” only 1 complaint was filed in 2008. That number rocketed to 7,927 last year, the FTC said.

FTC: Credit Card-Related Fraud Complaints Climbing

Cases of identity theft and fraud reported by consumers to the Federal Trade Commission last year jumped 4 percent to almost one million complaints, the FTC reported today. Total complaints filed with the consumer protection agency for 2009 were up 8.6 percent to more than 1.3 million, led by identity theft (21 percent); “third party and creditor debt collection” (9 percent); Internet services (6 percent); and “shop-at-home and catalog sales” (also 6 percent).

Born to Bait: FTC-Ticketmaster Settle Over Springsteen ‘Tactics’

Ticketmaster and the Federal Trade Commission have settled a complaint filed by the federal agency alleging that the event marketing giant used “bait-and-switch” tactics to sell Bruce Springsteen concert tickets, the FTC said today. Ticketmaster has to pay consumers who bought tickets for 14 Springsteen concerts in 2009 through its ticket resale website, TicketsNow.com, and it has to be “clear about the costs and risks of buying through its reseller sites,” the FTC said.

Credit Card Fraud Surging in I.D. Theft Cases, Study Says

Credit card fraud surged in 2009 as the No. 1 form of rising identity theft, and it now comprises 75 percent of I.D. crime cases, according to a survey of 5,000 adults by Javelin Strategy & Research, the California-based research firm. That credit card portion of I.D. fraud is up from 63 percent in 2008, Javelin’s study found. The overall number of identity theft victims in the United States rose 12 percent to 11.1 million last year, the firm’s findings show.

FTC Returning $1.6M to Victims of Phony Debt Collection Scam

The Federal Trade Commission is sending $1.6 million in recovered funds to 24,916 consumers it said were scammed each for about $100 or more by phony debt collectors who harassed and threatened their victims. They will start receiving checks this month. The operators of the scam were charged with harassing and abusing consumers; falsely threatening criminal prosecution; illegally communicating with third parties; collecting amounts that were not due; and other violations of federal laws.

FTC Wants to Bar Upfront Fees by Mortgage-Relief Firms

The Federal Trade Commission today proposed a new rule banning upfront fees by companies promoting mortgage modification services to rescue distressed homeowners from foreclosure. The move is an attempt by the government’s consumer protection agency to shield homeowners from firms that accept hundreds, if not thousands of dollars, then fail to deliver.

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