Over 50 ethnic media and community activists met with top officials from the Federal Trade Commission, the nation’s leading consumer protection agency, to hear the latest advice on trending scams and how to prevent them. Information is the key weapon – getting the word out through trusted messengers – said Rosario Mendez in her opening remarks at the June 27 convening held at the Houston Endowment.
Even more important is that the people targeted by scams report them to us, Mendez, FTC Assistant Director, Division of Consumer & Business Education, emphasized. Serena Mosley-Day, from the agency’s SW Regional Office, cited three recent cases in Texas where the FTC used its enforcement powers to prosecute fraudsters, resulting in reimbursements of up to millions of dollars.
Reporting what’s happened means overcoming fears of being stigmatized or dealing with authorities — but it’s how you can get justice and defeat the scammers. It also means knowing who the key fraud-busting agents are at the local level. Starting off with lawyers from the US Attorney’s office for the Southern District, the Fort Bend DA’s office, and Lone Star Legal Aid, also in Fort Bend, the conference then opened to a lively exchange featuring representatives from the Houston PD and non-profit agencies, and questions as well as personal stories from local reporters.
Among the highlights of the exchange:
Scams Targeting Vulnerable Communities
John Brewer, Chief of the Economic Crimes Division at the Fort Bend District Attorney’s Office, provided a detailed breakdown of how different ethnic communities are targeted by scams. Brewer highlighted the risks for the Latino community, who often obtain fraudulent documents like driver’s licenses or Social Security cards to secure employment or housing. “Simply having those documents in their possession is a felony,” Brewer warned.
In the African community, Brewer noted the prevalence of money transfer schemes, where criminals use bank accounts to move money, which constitutes money laundering. For the Asian, South Asian, and Middle Eastern communities, he pointed out that business transactions are often based on relationships and handshakes without formal contracts, making it easier for scammers to exploit trust.
Romance Scams and Financial Exploitation
Sandy Close, Executive Director of Ethnic Media Services, summarized the powerful lesson experts shared on romance scams, which often manipulates victims into laundering money unknowingly. “Romance scams take more from you than money; they may turn you into a criminal,” Close warned.
Krystal Walker, Executive Assistant US Attorney for the Southern District of Texas, underscored the importance of vigilance. “My main takeaway is verify, verify, verify! If you care about your money, verify that you’re sending it to the right place and that you’re sending it to the right person. Don’t be afraid to ask,” she advised.
Phishing and Email Scams
Sheroo Mukhtiar, Executive Director of SERJobs & Financial Empowerment Center, shared her experience with phishing emails, where scammers impersonated her to target employees. “I was naive to think that nonprofits would be spared from scam and fraud because we do good work in the community, of course, I was wrong with that because, if anything, we are seen as an easy target,” she said. Mukhtiar’s story highlighted the need for vigilance and verification of unsolicited emails.
Immigrants and Language Barriers
Fraudsters often exploit vulnerable populations, including immigrants who may struggle with language barriers. Zenobia Lai, Executive Director of Houston Immigration Legal Services Collaborative, pointed out that scammers capitalize on the confusion surrounding constantly changing immigration policies.
“You all hear from the news basically every week there’s a new immigration policy. Sometimes in the immigrant community, it is very difficult to really know what is going on,” she said. Scammers promise to help with immigration status in exchange for large sums of money, exploiting the victims’ fear and uncertainty.
Practical Advice and Community Support
Stephanie Bauman, Elder Justice Coordinator at the United States Attorney’s Office, stressed the importance of reporting scams. “When you realize that something has happened, please report it,” she urged. Timely reporting can prevent further victimization and help authorities take action against fraudsters.
Tariq Gladney, Managing Attorney at Lone Star Legal Aid (Fort Bend), discussed the broader societal impact of scams, emphasizing that “Scams can lead to financial ruin and loss of homes. If you think about the wealth gap and more people falling into poverty, it is something that society as a whole should be concerned about.”
Elizabeth Tran, Legal Services Director at Houston Volunteer Lawyers, encouraged the community to seek help.
“A lot of people in our community are afraid to talk and they don’t want to tell other people about their woes just because they’re like ‘we’ve talked about it too many times,’” Tran said. “They’re scared they don’t want to be embarrassed, but a lot of times too is that they just don’t know if whether or not they have a legal issue. They know that they’ve been wronged, and they need some help.”
Alarming Fraud Statistics
Mendez provided a sobering overview of the latest fraud statistics. “Last year in 2023, the FTC received 2.6 million reports related to fraud. People reported losing $10 billion to fraud, a substantial increase from the previous year. One out of four people who reported fraud to the FTC in 2023 also reported losing money. Impersonator scams were the most-reported scam, with higher losses to business imposters. When the scam started on social media, people reported losing the most money overall to scammers, but when the scammer called, the per-person loss was the highest. Younger adults (ages 20-29) reported losing money more often than older adults (ages 70+), but when older adults did lose money, they lost more than anyone else. These numbers are staggering. We know that fraud and scams affect all communities. And scammers don’t just scam one person, so if you see or experience a fraud, scam, or any bad business practice, help your community and help protect your friends and family by reporting it to the FTC.”
Key Takeaways
To conclude, the FTC briefing underscored the importance of staying informed and vigilant. Mosley-Day recommended careful consideration of payment methods, “Watch how you’re paying for things. If someone wants you to pay in cryptocurrency, wire transfer, gift cards, checks, do not use their methods of payment. I am a belt and suspenders person so if I’m not 100% sure of what’s happening, I will pay you with a credit card through a processor because then I have two levels of protection that I can protest if you end up not being the person that I thought you were.”
The collective message from the briefing was clear: vigilance, reporting, and community support are essential in combating scams.
