U.S. Attorney General Loretta Lynch and representatives of two federal agencies Thursday announced a major crackdown on mail fraud scams that target the elderly, among others.
Lynch, accompanied by officials from the U.S. Postal Inspection Service and the Federal Trade Commission, announced numerous civil and criminal actions against alleged scammers, such as executing search warrants, filing lawsuits, seizing criminal proceeds, and imposing economic sanctions. The actions are all aimed at putting an end to criminal networks that Lynch said have cost U.S. citizens hundreds of millions of dollars.
“Our senior citizens should be enjoying their retirement, not financing some fraudsters’ lifestyles,” Lynch told reporters at a news conference unveiling the initiative.
As part of the effort, she also announced the creation of a multiagency education campaign to help senior citizens and other vulnerable groups, as well as their families, identify and avoid mail fraud.
The agencies will coordinate their efforts with a wide range of consumer groups, including Consumers Union, the policy and mobilization arm of Consumer Reports; the AARP; the Consumer Federation of America; the National Consumers League; and Meals on Wheels, which have pledged to publicize the effort.
“This new campaign shines a spotlight on mass-mail fraud, where we see some of the most outrageous and sophisticated crimes aimed at the elderly,” said Laura MacCleery, Consumer Reports’ vice president for policy and mobilization. “We are committed to helping educate and empower people so that they can spot these schemes and avoid becoming the next victim.”
Consumer Reports published an investigation of fraud targeting the elderly in November 2015.
Types of Mail Fraud Scams
At Thursday's news conference, Lynch and other officials focused on three types of scams that they aim to prevent. Two of the scams involve mailed announcements telling would-be victims that they won sweepstakes or prizes. To claim their winnings, the mailings say, the recipients first have to pay taxes or other fees. Those who do often are asked to pay additional amounts.
In the third type of scam, mail purportedly from psychics or clairvoyants informs recipients that they are headed for great fortune or imminent doom. Recipients are told to perform some ritualistic task and pay a “symbolic” sum of money to the psychic, said Guy Cottrell, the Postal Service’s chief inspector. They also are encouraged to buy a good luck item.
“Once the scammer starts, he doesn’t stop,” Cottrell said. “Victims get bombarded with more and more solicitations as their demographic information is rented or sold to even more scammers.”