Report Fraud

Nebraskans Should Be Alert For Online Shopping Scams

The Nebraska Attorney General, OCIO, and the Nebraska Department of Banking join together to encourage consumers to be especially vigilant when shopping online.

In the past 30 days, the Federal Trade Commission (FTC) and, more recently, the Federal Bureau of Investigation (FBI) have both issued warnings regarding a recent increase in online shopping scams. 

According to the FBI, those affected by the scam were led to “imposter” websites that looked like legitimate businesses from social media or a search engine’s “shopping” page. The equipment purchased at a discount on these sites included gym equipment, small appliances, tools and furniture, none of which was delivered.1

To avoid being victimized, consider the following recommendations:

  • Do your homework on the seller to ensure they are legitimate.
  • Type the name of the online seller into a search engine with words like “scam” or “complaint.” – FTC2
  • If while browsing you get a pop-up message that asks for your financial information, don’t reply or follow the link. 
  • Watch out for unfamiliar sites selling products in short supply or name brand goods at steep discounts. – FTC
  • Know what the product should cost - if a price appears too good to be true, it probably is.
  • Pay by credit card and contact your card company to dispute the charges if a seller doesn’t deliver your goods or they are not as promised. – FTC
  • Make sure your personal and payment information is being encrypted – look for both a web address that begins with “https:” and the appearance of a closed padlock icon. 
  • Do not send cash or money transfers under any circumstances.
  • Confirm the online seller’s physical address and phone number in case you have questions or problems.
  • Keep a record of your purchases and compare them to your bank statements.  If there is a discrepancy, report it immediately to the seller and request a correction. – Cybersecurity & Infrastructure Security Agency (CISA)3

The Nebraska Attorney General has a consumer protection website offering additional tips for protecting yourself against scams and safeguarding your personal information.

Consumers may file a consumer complaint through the Attorney General’s website at www.ProtectTheGoodLife.Nebraska.gov or send an email to ago.consumer@nebraska.gov.

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Sources:

  1. Federal Bureau of Investigation (FBI): https://www.ic3.gov/media/2020/200803.aspx
  2. Federal Trade Commission (FTC): https://www.ftc.gov/news-events/blogs/data-spotlight/2020/07/pandemic-purchases-lead-record-reports-unreceived-goods
  3. Cybersecurity & Infrastructure Security Agency (CISA): https://us-cert.cisa.gov/ncas/tips/ST07-001

 

Protecting Senior Victims of Fraud During COVID-19

Lincoln--Attorney General Doug Peterson joined with a bipartisan coalition of 44 attorneys general, led by Louisiana Attorney General Jeff Landry and Wisconsin Attorney General Josh Kaul, in urging the U.S. Senate and House of Representatives to include Edith's Bill in COVID-19 relief legislation. This bipartisan legislation would amend the Victims of Crime Act of 1984 (VOCA) to include victims of senior fraud as eligible for reimbursement by the Crime Victims Fund for states that provide compensation to victims. Scam artists know that seniors are especially at risk from COVID-19 and they are targeting seniors who are isolated at home, separated from families and support networks.

“Now, more than ever, it is important to provide additional protection for our elderly family members and neighbors, to not only warn seniors about engaging with unknown solicitors but to take a step in providing compensation to defrauded seniors,” stated Attorney General Doug Peterson.

Edith’s Bill, or the Edith Shorougian Senior Victims of Fraud Compensation Act (S. 3487/H.R. 7620) will also amend VOCA so that penalties and fines from deferred prosecution and non-prosecution agreements, which can include white collar criminal conduct against seniors, are deposited into the Crime Victims Fund. The bill is being led by Sen. Baldwin of Wisconsin and Sen. Cassidy of Louisiana in the Senate and Rep. Bonamici of Oregon and Rep. King of New York in the House, who both co-chair the Elder Justice Caucus.
Across all states, there has been a surge in COVID-19 scams targeting vulnerable seniors. The U.S. Department of Health and Human Services Office of Inspector General has warned that fraudsters “are offering COVID-19 tests to Medicare beneficiaries in exchange for personal details, including Medicare information.”[1] This is unfortunately, just one of many COVID-19 scams targeting seniors. 

Even after the pandemic, it is widely expected that seniors will continue to be targeted by fraudsters. By using this legislation to add senior fraud as an eligible reimbursement expense under VOCA, states will be able to help victims receive the financial relief they deserve. States would be incentivized but not mandated by this legislation to provide compensation to victims of senior fraud. 

Charity Home Page

Charities today use a wide variety of tools to solicit donations – from car washes and direct mail to crowdfunding and social media. Advances in technology have allowed charities to quickly reach a larger audience than was ever previously possible, but these advances have also made the landscape more challenging to navigate. For donors, it may be difficult to tell whether a particular fundraising campaign is legitimate, as both a volunteer and a fraudster can create a fundraising page and start soliciting on behalf of charity within minutes.

Fundraising Platforms

Online fundraising, especially peer-to-peer fundraising, is a relatively new method of charitable fundraising.  As a third-party fundraising platform, you are giving charities and their supporters new opportunities to connect with donors.  To ensure that you are acting to the maximum benefit of the charities and donors using your website, fundraising platforms should follow these tips:

Donating to Charities

Online fundraising allows donors to give to numerous causes with the click of a button.  To help make an informed decision on how to donate online, donors should be aware of the following:

Make sure you are donating to a legitimate charity:

  • If you receive an email or text message asking for a donation, confirm that the request is from the charity, and not an imposter, by contacting the charity or visiting its website.
  • Review the organization’s eligibility to receive tax-deductible charitable contributions and federal tax returns (Form 990-series) by using the IRS Tax Exempt Organization Search.
    • Certain eligible donees (i.e., churches, group ruling subordinates, and governmental units) may not be listed. See this information from the IRS for further detail.
  • “Doing business as” (also known as DBA) names of organizations are not listed. Visit the IRS website for additional guidance.
  • You can also check out the following resources to learn more about specific charities: GuideStar, BBB Wise Giving Alliance, Charity Navigator, and the National Center for Charitable Statistics.
  • Be cautious of “look-alike” websites.  These fraudulent websites will often ask for personal financial information or may download harmful malware into your computer.
  • Watch out for charities with names that sound similar to well-known organizations. Sometimes these sound-alike names are simply intended to confuse donors.
  • Don’t assume that charity recommendations on Facebook, blogs, or other social media have already been vetted.  Research the charity yourself.

Peer-to-Peer Fundraising:

  • Individual supporters, like yourself, can raise money for charities or specific individuals in need through peer-to-peer fundraising campaigns.  Supporters can set up fundraising pages on fundraising platform websites to raise money from friends and family members for their favorite cause. 
  • If you want to set up a peer-to-peer fundraising page, please contact the charity or individual beneficiary beforehand to make sure the representations you make on your page are correct.
  • If you want to make a donation on a peer-to-peer fundraising page, first make sure that your donation is going directly to the charity or beneficiary and not the individual supporter.
    • Find out what percentage of your donation will go to the charity and whether you will be charged any fees for making a donation through the fundraising platform website.
    • Find out what the website will do (if anything) with your personal information; be wary of websites that do not provide a privacy policy.

Additional tips:

  • Be cautious when considering giving to newly formed charities since they won’t have a track record that you can take into consideration. 
  • Be extra vigilant when donating online in the wake of natural disasters or national tragedies. 
    • Some charities are formed shortly thereafter and may have the best of intentions; however, an existing charity is more likely to have the sound management and experience to quickly respond to these situations, and it will have a track record which you can review. 
    • Also, be aware of sham charities that pop up to take advantage of people’s generosity during these times.
  • You may want to give to a specific program or purpose within a charity; for example, disaster relief. If a website has a “donate” button, see whether you can designate a specific purpose for your donation. If you can’t, contact the charity to be sure your donation will be spent for the purposes you intend.
  • Some charities sell merchandise online and claim that “100% of the proceeds” will benefit the charitable purpose. But “100% of the proceeds” does not necessarily mean 100% of the sales price.   Contact the charity to ask how much of each purchase it will receive.  If they cannot give you an answer, consider donating another way.

If you are considering making a gift to an individual or family, instead of an established charity, please keep the following information in mind:

  • Ask the fundraiser whether there is a trust or deposit account established for the individual’s or family’s benefit.  Contact the banking institution to verify the existence of the account, and check locally to confirm that there really is such a need. 
  • Do not give cash.  Contribute by check that is payable to the fund, not to an individual, and mail directly to the fund.
  • Contributions earmarked for relief of a particular individual or family are not tax deductible, even if they are made to a qualified charitable organization.  Ask whether the charitable contribution is tax deductible, and verify with your tax advisor or the IRS. The fact that a charity has a tax identification number does not necessarily mean your contribution is tax deductible.  Ask for a receipt showing the amount of the contribution and stating that it is tax deductible.

If you wish to establish a fund to assist victims of a tragedy, be especially careful to respect the wishes of the victim’s family and friends.  Be specific and transparent about how the funds will help victims or their families and how quickly collected funds will be distributed.  Be clear in your fundraising appeal from the beginning if there are multiple purposes for the funds, such as funding future community needs related to the tragedy.  Many donors give with the expectation that all funds will be distributed quickly and solely to victims and their families. If you would  like to file a complaint regarding a nonprofit corporation, charitable asset or charitable trust matter, please click here: Charity Complaint Form.

Charity Fundraising

Charitable fundraising can be conducted online in numerous ways. A charity can conduct a fundraising campaign through its website, social media pages, emails, or it can use a third-party fundraising platform to crowdfund a specific project or campaign; a charity’s supporters can fundraise through emails, social media, or by initiating a peer-to-peer fundraising campaign through a fundraising platform; or donors can search for charities pre-listed on fundraising platforms and make a donation without the involvement of the charity.

No matter how charitable dollars are raised online, charities should keep these tips in mind:

  • PROTECT YOUR BRAND!  Defend your charity’s reputation, brand, and fundraising strategy.
    • Your charity has the right to control the use of its name and brand. Your charity may want to establish a policy as to who can fundraise on its behalf and the process to receive authorization.
    • In a majority of states, an individual supporter must get written consent from a charity before he or she uses its name when fundraising. If your charity gives consent, follow up with the supporter to verify that your charity received all donations.
  • Research your charity’s online fundraising presence. It may be more extensive than you know:
    • Third-party fundraising platform websites provide charities an opportunity to connect with donors and fundraise online, and allow individual supporters to raise funds for their favorite causes through peer-to-peer fundraising.
    • Some fundraising platforms acquire a database of all tax-exempt charities and allow supporters to initiate peer-to-peer fundraising, even without the charities’ knowledge. Find out who is fundraising for your charity and what information and representations they are making on your behalf.
    • If your charity wants to receive funds from a fundraising platform that has your charity pre-listed in its database, contact the fundraising platform and claim ownership of your charity’s presence on that website, so the site has the correct contact and bank account information.
    • If your charity does not want to be associated with a fundraising platform, contact them to request that they remove your charity from the website.
  • When deciding to use a fundraising platform website, a charity should research the following issues:
    • What fees will the website deduct from each contribution?
    • Will a charity be provided with its donors’ information?
    • How will the website use a charity’s donors’ information? Is a privacy policy in place?
    • When will contributions be deposited into a charity’s bank account/mailed to the charity? Solicitation laws in some states require funds to be deposited in the charity’s bank account within a few business days. 
    • What happens to contributions that don’t meet a certain threshold amount?
    • What steps are being taken by the website to prevent solicitation fraud?
    • What kind of accounting will the website provide to a charity? If questions arise, what procedures are available for the charity to challenge the accounting?
  • Contact the fundraising platform and the Nebraska Attorney General’s Office if you suspect any solicitation fraud.

By following these tips, your charity can fundraise smartly and safely online.

If you'd like to file a complaint regarding a nonprofit corporation, charitable asset or charitable trust matter, please click here: Charity Complaint Form

AG Peterson Asks Apple and Google to Ensure All Contact Tracing Apps Serve a Public Health Purpose

Bipartisan Coalition of Attorneys General Expresses Concern about Contact Tracing Apps Privacy Implications in Letters Sent to Apple and Google

Lincoln – In the wake of the COVID-19 pandemic, Attorney General Peterson and a bipartisan coalition of 39 attorneys general asked Google and Apple to ensure all contact tracing and exposure notification apps related to COVID-19 adequately protect consumers’ personal information. Specifically, the coalition asked Google and Apple to guarantee that such apps, when available to consumers, are affiliated with a public health authority and removed from Google Play and the App Store once no longer needed by public health authorities.

In a letter sent today to the Chief Executive Officers of Apple and Google, cosponsored by Oregon Attorney General Ellen Rosenblum and Nebraska Attorney General Doug Peterson, the Attorneys General acknowledge that while digital contact tracing and exposure notification tools are valuable in understanding the spread of COVID-19 and assisting public health authorities, these same technologies pose a risk to consumers’ privacy.

“Public health authorities across the country and throughout Nebraska are working diligently to understand the spread of COVID-19,” Attorney General Peterson said. “Contract tracing and exposure notification apps that collect sensitive information from consumers without meaningfully contributing to this understanding deserve no place in the App Store or on Google Play.”

The coalition expressed concern regarding contact tracing and exposure notification apps available to consumers in Google Play and the App Store, particularly the “free” apps that utilize GPS tracking, offer in-app purchases, and are not affiliated with any public health authority or legitimate research institution.

To protect consumers without interfering with public health efforts to monitor and address the spread of COVID-19, the letters ask Google and Apple to:

  1. Verify that every app labeled or marketed as related to contact tracing, COVID-19 contact tracing, or coronavirus contact tracing or exposure notification is affiliated with a municipal, county, state or federal public health authority, or a hospital or university in the U.S. that is working with such public health authorities;
  2. Remove any app that cannot be verified as affiliated with one of the entities identified above; and
  3. Pledge to remove all COVID-19 / coronavirus related exposure notification and contact tracing apps, including those that utilize the new exposure notification application program interfaces (APIs) developed by Google and Apple, from Google Play and the App Store once the COVID-19 national emergency ends. In addition, the attorneys general asked Google and Apple to provide written confirmation to their offices once the apps have been removed or an explanation why removal of a particular app or apps would impair the public health authorities affiliated with each app.

Click here for a copy of the letter.

Nebraska Joins Complaint in Ongoing Investigation into Generic Drug Industry

Lincoln – Attorney General Doug Peterson joined a coalition of 51 attorneys general led by Connecticut filing the third lawsuit stemming from the ongoing antitrust investigation into a widespread conspiracy by generic drug manufacturers to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade for generic drugs sold across the United States.

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Nebraska Attorney General

1445 K Street, Room 2115
Lincoln, NE 68508
(402) 471-2682