Launder payments for a scam. Get caught, too.

Share This Page

At the FTC, one lawsuit can lead to another. Two years ago, the FTC shut down Money Now Funding, a scam that promised people they would earn thousands to find and refer small businesses in need of a loan. After people paid the required upfront fee, they found out there was no business “opportunity” there. Instead, the company just took people’s money — adding up to millions. Fast forward to the present, and the FTC is suing the people and payment processing businesses it says laundered more than $5 million in credit card charges that Money Now Funding collected from its victims.

Here’s how credit card laundering operations work. Before they can take credit cards as payment, legitimate businesses have to apply for merchant accounts with a bank. But scammers can’t always get (or keep) merchant accounts in their own name. So they’ll sometimes create — or get another business to help them create — fake businesses to help them process their scam credit card transactions. Charging people through other companies helps keep scammers from being detected — and lets them keep charging.

The FTC says the payment processing defendants kept submitting fraudulent merchant applications to the bank for fake Money Now Funding companies, despite obvious signs that these companies were illegitimate and defrauding people. According to the FTC, the defendants created accounts for more than 40 shell companies that processed people’s credit card payments and hid the scam. The FTC is asking the court to prevent the defendants from credit card laundering in the future and to return money to people who lost it.

If you see a charge on your credit card statement from a merchant you don’t know, or for an amount you didn’t agree to, contact your credit card company. You have rights to dispute unauthorized charges and other billing errors. If you think a business or person who charged you isn’t following the law, tell the FTC.

 

Tagged with: credit card, dispute
Blog Topics: 
Money & Credit

Comments

Is prosperfunding loan Llc being investigation theyve,scam me out of over 5000.using offshore banks and Nigeria fees to receive. I apply thinkING they were legally cause they were in USA. And bank I thought was in Louisiana, New Iberia bank. I'm a senior citizen. Please help me recover. I spoke to them just a few weeks ago. Now they're saying that they were fraudulent yet they found my records of payments. I need my funds please.

You can report a scam to the FTC. Call 1-877-382-4357.

If you told a scammer your bank account number, they can take your money. Call your bank and ask how to protect your account. Older Americans can call 1-800-677-1116 to ask about other help that's available in the community.

I really wish I could help. These calls are driving me crazy. Morning to night. They put up fake #'s. I check them all. I'm so tired, literally, tired of these people who constantly invade my privacy. I'm at a loss at what to do about it.

ShirlB,I know how you feel.they are calling from so many different numbers to.the phone starts at 7am before most are up.You can answer and most of the time it hangs up. one called a few days ago and i could not understand one word he was saying.I dont think there is a thing we can do.

FTC gave me the following Nomorobo.com to register your landline. Apple has an app for it but android phones don't yet. The app has a charge but the one for the landline does not. IT WORKS. The number of calls has dropped significantly. Also check with your phone company to get the code to block all calls with no information or unknown caller IDs. Life is much more peaceful since I started using these suggestions. Thanks to FTC for these suggestions.

Is the government really so incompetent and/or corrupt that it cannot prevail upon the telecoms to stop these phony scammers with their phony phone numbers. We get 6 -10 of these calls EVERY day - early in the morning, late at night, all day long. We are registered on the highly ineffectual "Do Not Call" list (which I suspect may be hacked and lead to even MORE of these calls). Would like to see a comment from the FTC...

The Federal Communications - not Trade - Commission regulates interstate and international communications by radio, television, wire, satellite, and cable in all 50 states, the District of Columbia and U.S. territories.

The Federal Trade Commission's Do Not Call Registry prohibits sales calls. You still may receive political calls, charitable calls, debt collection calls, informational calls, and telephone survey calls. In addition, companies may still call if you’ve recently done business with the company, or if you’ve given the company written permission to call you. However, if you ask a company not to call you again, it must honor your request. Record the date of your request.

You can help law enforcement by reporting the unwanted calls you get. You may have seen our recent blog which explained that we collect the phone numbers people report release them each business day. This helps telecommunications carriers and other industry partners that are working on call blocking solutions.

This is just one of many steps the FTC is taking to stop illegal robocalls and other scam calls. The FTC will continue to go after the scammers behind illegal calls. Your complaints help us and other law enforcement agencies do that.

These robo callers are getting trickier. Now, if you ask them the name of their business the mumble it no matter how many times you ask them to repeat what they said. I've even asked them to spell it out. Mumbling. They try to wear you down. If you tell them not to call you and take you off their calling list, as is suggested, they hang up on you before you get the whole sentence out. So I can't report them. We should have theo choice of who we get calls from. Blocking all numbers that don't allow their number to be shown doesn't always work. Many professionals such as physicians or mental health providers don't allow their phone number to be shown. My husband sometimes calls from his medical office and that number is an unknown number. So how are consumers to get these important calls if we block unknown numbers?

Leave a Comment

Comment Policy