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Hurricane Irene, government grants: Your weekly ScamWatch

August 28, 2011 |  4:12 am

Hurricaneirenephoto 

Here is a roundup of alleged cons, frauds and schemes to watch out for:

Hurricane Irene -- Law enforcement agencies are forecasting that a wave of fraudulent charitable donation schemes will arrive in the aftermath of Hurricane Irene. To make sure donations get to those who need them, the Internet Crime Complaint Center suggests that donors do not respond to unsolicited emails or telephone calls seeking donations. Instead, donations should go directly to recognized charitable organizations, the agency said.

Government grants -- The Federal Trade Commission, along with four state attorneys general, has obtained a court order shutting down a fraudulent organization that promised to provide government grants to the needy but instead sold worthless how-to books and coaching services. Under a settlement, Wealth Power Systems and Aria Financial Services were banned from marketing grant-writing programs and ordered to pay a fine of $265,000. Several other individuals and organizations were banned from marketing moneymaking opportunities, the FTC said in a news release.

When a “law firm” calls -- The Better Business Bureau is warning residents of Texas to be careful if they receive telephone calls from people claiming to be from law firms that are suing them on behalf of payday loan providers. The callers use the name of an existing law firm and ask victims to provide bank or credit card information. The bureau cautions that you should never disclose personal financial or identifying information to people you don’t know.

RELATED:

Identity theft, fake gems: Your weekly ScamWatch

Social Security Administration employee accused of stealing from beneficiaries

Gold jewelry, foreign currency: Your weekly ScamWatch

-- Stuart Pfeifer

Photo: Satellite image of Hurricane Irene. Credit: Reuters  

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