Mississippians suffered through 12,759 fraud schemes that rang up a total cost of over $37.9 million in 2023, with the median victimized household losing $375, the Federal Trade Commission (FTC) reported at its July 24 conference in Jackson on spotting and avoiding scams. 

Scam and fraud victims in the Jackson Metro area numbered more than 1,850 in the top five fraud categories, including imposter scams (945), online shopping and negative reviews (416), sweepstakes and lottery scams (243), and at least seven other types of schemes and deceptions designed to separate unsuspecting victims from their hard-earned cash.

“Scammers are actively targeting every community, every day, in many different ways,” FTC Associate Director Lois Greisman informed the group of 35 representatives of the ethnic media and community stakeholders having traveled from all parts of Mississippi and at least two sites in Alabama.

The July 24 gathering was the first time in Mississippi that the FTC, law enforcement agencies, and aid groups specifically directed their growing concerns about frauds and scams to the Black and Latino communities. The number of scam cases in the state has risen in recent years, and the types of scams have also become more diverse and sophisticated.

RED FLAGS

“Know the red flags,” Greisman said. “Red flags are involved in the kinds of payments the scammer is requesting. No one legitimate is asking you to pay by gift card. No one legitimate is going to ask you to pay by crypto currency, or by wire transfer. Those are real red flags. The other thing I can identify is, you cannot trust caller ID. Don’t respond to a toll-free number that’s in the text. Go directly to the source in a way that you know how to contact that source.”

FTC Senior Litigator, Harold Kirtz advised scam victims to go online to ftc.gov to report all fraud and provide details about the scam with which you were involved.

“We encourage people to report any fraud or scams that they get caught up in,” Kirtz said. 

“What did you think of the scam? Hopefully, you aren’t paying money out. But if you think it’s a scam then go ahead and report to us about who’s been trying to call or text you or email you.

“Red flags are anything that’s coming across the email, text, or by phone and somebody is offering a job or a solution to an issue. Anything that the consumer is being called about, that’s when to be very cautious, because in all likelihood that’s when it’s going to involve a scam. 

“If the consumers themselves place a call to purchase something, to seek for a job or whatever, that’s a legitimate way the consumer can go about seeking the good or service or job that they’re looking for. But if they’re being contacted, that’s a big red flag and people need to be very cautious about that.”

HATTIESBURG HUSTLE

“If it sounds too good to be true, it usually is,” Mississippi legal aid attorney Sam Buchanan said to the gathering. “I always tell this to my clients. That works sometimes, sometimes it doesn’t.

“Unfortunately, we represent people who are highly vulnerable. They’re looking for opportunities to improve their station in life so when an enticing offer comes along, they are sometimes prone to leap before they look. My advice is to be cautious and if it sounds too good to be true, don’t jump at the opportunity. Seek counsel and advice prior to taking up any offer that might be a fraudulent offer.”

Sam Buchanan has been at this work a long time. One of his first cases involved a scam involving door-to-door solicitations for the sale of burglar bars in a predominantly Black low-to-middle-income community south of Hattiesburg. 

“They were enticed to purchase burglar bars with the offer of a loan on their homes,” Buchanan said. “The people wanted to protect themselves. And they were enticed through fear, not so much through intimidation. Given the prospect of someone breaking into their homes and they’re not able to protect themselves, they fell prey to the offer, which, of course, was not legitimate. 

“They came to us, and we were able to threaten litigation. They were able to get out of the deal because there was violation of both federal and state laws. 

“They were thankful to retain possession of their homes without paying a fraudulent loan.”

VICTIMS SPEAK 

Juana M., a Catholic Charities church worker and volunteer for the Mississippi Immigrants Alliance (MIRA), and prison parolee Clifford H., both of Jackson, saw their lives and bankrolls seriously affected by recent scams. Juana lost $4,000 December 13, 2023, to a scheme set in play by a caller to the church telling her of a package from Mexico that required $4,000 for delivery. 

“They knew the name of the priest. They knew my name,” she said. 

Although she knew the procedure for ordering and receiving materials for the church, the scammer, speaking in her native Spanish, was able to convince her that this was an extraordinary delivery and she wound up sending her good money via Western Union and Walmart to the scammer.

Clifford H. is a former detainee who was released on parole after 10 years of confinement in a state prison facility. Now at age 60, he has a parole officer and is required to pay a certain amount of restitution (or a fine) on a regular basis. 

He was victimized by someone who called him at his place of employment and represented himself as a member of the Sheriff’s Department on the morning of June 3, 2024. 

Said Clifford: “They asked me to verify my cell phone number. I gave them my cell number. They called me back on it. Told me I had missed my secondary DNA testing, that I had warrants out for my arrest, and I needed to come immediately to the Sheriff’s Department downtown.

“It was very sophisticated, and they knew every detail pretty much of my life. They kept telling me I had warrants out on me, both state and federal. Unless you’ve done time, you wouldn’t know that you would do anything to not have to do it again.

“They even told me after I had paid my fine to go downstairs to the tax assessor’s office and get refunded for this if I were to come in that day. 

“So, I paid the fine, thinking the old warrants were now rid of. And subsequently the whole thing turned out to be a scam, and they took everything I had. I’ve filed complaint forms with everybody, but I haven’t heard back from anyone yet. That includes the attorney general, Hinds County Sheriff’s Department, and the FBI.” 

OTHER SCAMS

Buchanan says the Legal Services Center in South Mississippi reaches out to the community to let them know the things they should be aware of – the  IRS phone call, and the call about a winning sweepstakes number that asks for a money payment before claiming the ticket, among others.

“Other scams will come to you through other means,” he says. “And I also let people know that should they become a victim, they shouldn’t be embarrassed by seeking help. I understand that. If I’m the victim of a scam, I really don’t want anyone to know about it.”  

“We have those clients who get numerous telephone calls a day,” said Attorney Adreain Reynolds of the North Mississippi Legal Services Center. “When they answer their phone, they might have prior issues with some government agencies, or might actually owe the IRS. So, when they get that call, their anxiety level might go so high that they just want to make sure they’ve given all they can to resolve the issues.  It’s the same with the Social Security Administration. They might have an overpayment. Or they might be expecting some income. We represent a variety of clients in disability claims that can span out over two years. And when that two years’ mark comes around, they’re excited to hear from someone calling from Social Security. And they’re more than likely to fall into those traps. I try my best to explain to our clients that those agencies are not going to contact you via text. And they’re not going to tell you to send money to receive your money.”

SCAM SHAME

Reynolds also addressed the victim’s sense of shame and reluctance to report a scam.

“We’re having this conversation here in Jackson, but a large part of our state does not know that we are here. They do not know that we provide these services. They don’t know that there is somebody out there to actually help them.  Another thing is, they’re ashamed. They’re ashamed and afraid to tell someone. So, a lot of people do not talk about these scams.”

To report suspected fraud, please visit https://consumer.ftc.gov/scams.