News/Events

LITTLE ROCK – Scenes of destruction left by Hurricane Florence in North Carolina and South Carolina have left many Arkansans wanting to find a way to help. But Arkansans should use caution and take time to research, ensuring their donations are actually used toward helping our fellow Americans. Following natural disasters, the Attorney General’s Office often receives reports of unscrupulous “charities” targeting the kind and generous spirit of Arkansans wanting to assist those in need.

“Scammers often create fake organizations by selecting a name and logo similar to an existing, legitimate organization that actually helps those in need,” said Arkansas Attorney General Leslie Rutledge. “These scammers provide limited information, while still trying to tug at the heartstrings of potential donors to convince them the ‘charity’ is legitimate. Arkansans must remain vigilant and do research to know how their money will be used.”

Attorney General Rutledge released the following tips to help consumer give to only legitimate charities:

LITTLE ROCK – Consumers should be on alert for persons calling and claiming to be government officials. The Attorney General’s Office has received complaints of callers claiming to be from the Internal Revenue Service and even the Attorney General’s Office. And now Arkansans are reporting receiving calls from someone claiming to be with the Social Security Administration and requesting social security numbers and bank account information.

“The government will never call consumers requesting financial information,” said Arkansas Attorney General Leslie Rutledge. “If the caller is requesting personal or financial information and claiming to be a government agency, hang up, find the phone number from an official source and call the agency directly. It is important for Arkansans to know who they are talking to at the other end of the phone line.”

Attorney General Rutledge and the Federal Trade Commission released the following tips for Arkansans who may be dealing with a government imposter:

• Never give out or confirm sensitive information, such as bank account, credit card or Social Security numbers, unless the caller is trusted and his/her identity has been confirmed.
• Be cautious of callers using organization names similar to existing agencies. Scammers use internet technology to spoof area codes, so although it may seem the call is from Washington, D.C., it could originate from anywhere in the world.
• The Social Security Administration and other government agencies have warned about these scams and suggest contacting the agency directly.

The Social Security Administration can be contacted at 1-800-772-1213 to verify the reason for the contact and the person’s identity prior to providing any information to the caller.

LITTLE ROCK – Consumers should be on the alert for door-to-door sales people using scare tactics to sell home alarm systems. The Attorney General’s Office receives complaints against home alarm systems and monitoring services for violations of the Home Solicitations Sales Act, including high pressure sales, misrepresentations of products, failure to provide a copy of the contract and others.

“Arkansas law provides specific protections for consumers purchasing items from a door-to-door salesperson,” said Arkansas Attorney General Leslie Rutledge. “My office is here to protect consumers with education and awareness. At times, this requires legal action to respond to bad actors trying to take advantage of Arkansans.”

Attorney General Rutledge provided the below tips for consumers to help spot an unscrupulous door-to-door salesperson:

• Consumers have a right to review the contract outside the presence of the sales agent, and cancel the contract without obligation within three days of the home solicitation sale. The sales agent must provide the consumer written notice of this right to cancel along with the proposed contract.
• High-pressure tactics are rarely employed by companies whose business depends on providing quality customer service. A legitimate company will allow consumers to weigh options and will review the system details and notification procedures.
• The solicitor may suggest the existing security system needs an “upgrade,” when the salesperson actually represents a different company. This may lead a homeowner to believe the system must be “upgraded” just to remain reliable.
• The salesperson offers “free installation.” The homeowner may think it is a bargain, but many “free installation” offers are coupled with long-term, high-cost monitoring contracts. In the long run, the “free” offer may be the most expensive of all.

Arkansans who may have been victimized by these practices are encouraged to contact the Public Protection Department of the Attorney General’s Office.

LITTLE ROCK – Scammers are dusting off the IRS scam and intimidating Arkansans once again by trying to convince innocent consumers that they owe back taxes that must be paid immediately. Consumers have recently been contacting the Attorney General’s office reporting that the scammers are spoofing phone numbers and posing as the IRS.

“Scammers continually use new strategies to frighten Arkansans,” said Attorney General Leslie Rutledge. “There are various versions of this scam. Consumers should know that the IRS may send multiple letters, but will never make threatening phone calls.”

The IRS continues to remind consumers that these scam calls are recognizable and that the agency will not do the following:

• Call demanding immediate payment. The IRS will not call if taxes are owed without first sending a bill in the mail.
• Demand that taxes are paid without providing the individual the opportunity to question or appeal the amount owed.
• Require a specific form of tax payment. For example, the IRS will not demand payment by prepaid debit card.
• Ask consumers for credit or debit card numbers over the phone.
• Threaten to bring in police or other agencies to make an arrest for not paying taxes.

LITTLE ROCK – Many college students take out loans to help pay for higher education, but scammers prey on those in debt with student loan forgiveness “programs.” Scammers will pose as government agencies offering to help with complicated federal student loan debt or claim to be independent organizations that are aware of new changes in repayment programs. But offers that do not come from an assigned federal loan servicer are a scam.

“Student loan debt can be intimidating,” said Arkansas Attorney General Leslie Rutledge. “Con artists often make unrealistic promises, such as drastically reducing or doing away with monthly payments altogether. While this may seem attractive at first, it can be detrimental in the long run, accumulating interest and potentially sliding into default. Some of these scammers will even charge for their assistance.”

Attorney General Rutledge released the following red flags of a student loan forgiveness scam:

• Borrowers are instructed to stop paying on the loans
• Borrowers are offered a promise of guaranteed reduced payments and/or loan forgiveness
• The scammer requests Federal Student Aid username or passwords (FSA ID)
• Borrowers are instructed to ignore letters or emails from a federal loan servicer
• The scammer stressed the difficulty for the average person to navigate the Federal Student Aid system

If Arkansans believe they have been a victim of one of these companies, they should contact the federal loan service and update account information by changing all passwords and cancel any automatic withdrawal payments.