FTC sues scammer’s little helper

What do you call a company that helps scammers drain people’s accounts without authorization? At the FTC, we call them “Defendants.” Badum bum.

In fact, the Commission just charged three companies and four individuals with helping a fraudulent internet operation withdraw $26 million without the permission of the account holders.

CardFlex, a payment processor, and its sales agents connected online seller iWorks with merchant accounts that let iWorks charge consumers for “trial“ memberships and other offers. Credit card companies warned CardFlex about iWorks’ troubled history and CardFlex knew that many consumers had disputed iWorks’ unauthorized charges. Despite that, CardFlex worked for almost a year to help iWorks evade credit card companies’ fraud monitoring systems. The companies opened nearly 300 bank accounts using 30 different corporate names to hide iWorks’ connection to the accounts and tried to conceal the high rate of consumer complaints. CardFlex’s help for iWorks came to a halt when one bank stopped doing business with CardFlex.

If you find a charge you didn’t agree to on your credit card bill, dispute it with your credit card company. Write to the credit card company at the address for “billing inquiries” within 60 days after the bill was mailed. Our sample letter gives an idea of what to say. You don’t have to pay the amount you dispute while the charge is being investigated, but you must make at least the required minimum payments, including related finance charges. If you think a creditor isn’t following proper dispute procedures, file a complaint with the FTC.

Blog Topics: 
Money & Credit

Comments

Sound like Carl Rove is at it again, the tea party needs money for november 2014.

The Tea Party and Rove don't like each other.

Well how do you like that !

I received a call yesterday from 202-506-8176 from a very nasty, rude woman (I couldn't understand what she said her name was) who said she was a police officer. She said I was facing criminal charges and 6 months in jail if I didn't comply with her requests. She had my name, phone number, and address which is very alarming. I ended up hanging up on her when she started getting very demanding. I google searched the phone number and it brought up Ymax Oration Landline in Beltsville, MD. I hope they get caught and that criminal charges are filed against them!

Suebugd6- got a message requesting call back regarding an "urgent legal matter" from the same number. Definitely a scam. Just wanted you to know you're not alone...still it's unnerving.

I got the same "urgent legal matter" message from the same number. So glad people posted on this site about the scammers.

I just received a call stating the above, that I owed 4,000 in unpaid taxes(delinquent amount) from the form 1099. That I will be arrested with 6 months in jail. I asked that I could go to the IRS office and settle the matter. He said no it could be done only over the phone and that if I hanged up the I will be facing charges. In order for this to be paid he asked if I had funds in my bank account and if not then i could go to the nearest convenience store and buy a validation payment voucher and give him the verification code and then he would give me the reference #, then I would need to mail the payment to the IRS at Washington in with the reference he would provide. Otherwise it would not be settled. Sorry my husband was in panic but not me I have received so many calls from different scammers i know what to ask. Amazingly he did give me a phone # which I called while he was on hold and the answering machine answered stating you have reached the Internal Revenue Service. So well others would believed it. Hope nobody comes accross Camberly Jones(the caller). Always ask for the local office if it is a government matter they have a local office.

I have gotten so many I stopped counting. The first time I (we )fell for it and lost $1200. Never got that money back and never will.
I would not say that was a very good day.

As soon as they say: "There is a complaint against you" I hang up....I know that it is a "SCAM' because that is NOT how the legal system works! HL

Just got a call from a woman that sounded like she was from India. Threats and bad tolerance towards my wife. Message was on answering machine. Do not call these people back or ever answer the phone if you do not recognize the numbers. Never!!

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