Just last month, a California man was sentenced to four years in prison for being the mastermind behind romance scams - in which he received hundreds of thousands of dollars from two elderly Arizona women - according to the Arizona Attorney General's Office.
One local group is sounding the alarm.
Dawn Alexander is a communications analyst with AARP Arizona, and wants to encourage all Arizonans to be mindful about who they're speaking to and how much information they're giving out.
"These romance scams, they'll start to ask for gift cards, they'll start to ask for money, and then they'll get more brazen," said Alexander. "A lot of times, it can easily turn into a money mule situation - which is basically they will eventually gain access to their bank accounts and start running money fraudulently through those."
Alexander added that while romance scams can start on dating apps, they can also start through less conventional avenues.
She added that romance scammers look to exploit the desire for love and companionship - and says warning signs can include professing love early on, someone who needs money to deal with an emergency, or an individual who makes plans to meet in person but never follows through.
Alexander contended that as technology and things such as artificial intelligence get more advanced, so do the scams.
She added that AI has enabled scammers to more easily produce things such as photos and videos which seem legitimate.
She said AARP has the AARP Fraud Watch Network, which is a free resource for both AARP members and nonmembers alike. She said if you're in doubt, there are those who are ready to help.
"They can reach out to AARP.org/fraudwatchnetwork or they can call a toll-free number, 1-877-908-3360," said Alexander, "and they will speak to an actual person who can assist them with any of their concerns."
Alexander said another tip is to never send money including wire transfers or cryptocurrency to a stranger or someone you met online, as she said they're wanting forms of payment to be what she calls "untraceable."
Disclosure: AARP Arizona contributes to our fund for reporting on Budget Policy & Priorities, Consumer Issues, Health Issues, Senior Issues. If you would like to help support news in the public interest,
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CORRECTION: An earlier version of this story misstated the nature of additional flood insurance requirements. It is optional in most, but not all, cases. (10:45AM MST, October 28, 2024)
Since Hurricanes Helene and Milton devastated Florida, more than
49,000 insurance claims have been denied, leaving thousands of residents in financial uncertainty as they attempt to rebuild.
According to data from the Florida Office of Insurance Regulation, many companies denied claims related to flood damage, a peril not typically covered under standard homeowners' insurance policies.
Mark Friedlander, corporate communications director for the Insurance Information Institute, explains that many denied claims result from homeowners not having separate flood insurance, which is required for policyholders with Citizens Insurance and those with mortgages in high-risk zones.
"Standard home, condo and renters policies do not include flood damage," Friedlander pointed out. "If you're filing a flood loss with your property insurer, it's going to be denied. Another issue is not meeting the deductible; that's another big category of denials."
For instance, he noted if you have a $10,000 windstorm deductible and your damage is $8,000, there will be no claim payout. He added the threshold has led many homeowners to find themselves without compensation for damages falling just short of deductible limits. He emphasized property owners should consider purchasing separate flood-insurance policies to be fully financially protected.
For residents whose claims were denied, Friedlander advised considering Federal Emergency Management Agency assistance as a partial alternative. He revealed some homeowners intentionally file claims they know will be denied to meet FEMA requirements.
"In order to qualify for FEMA emergency grants, you must prove to FEMA that you did not have insurance coverage for the loss," Friedlander stressed. "The only way to do that is to get a denied claim. You need to show the letter from your insurer to FEMA as part of the application process for the grant."
Florida's high cost of property insurance added another layer of difficulty, with annual premiums averaging $5,527 dollars for a home valued at $300,000. The premium is more than twice the national average, creating a financial strain for many. Despite the recent hurricanes, Friedlander reassured residents Florida's insurance market remains resilient, crediting recent legislative reforms.
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Critics of recent court cases they say allow corporations to evade responsibility are pointing to legislation in Congress that could fix this issue. Large companies often urge arbitration in cases where legal disputes arise, such as for a couple in New Jersey that was injured when an Uber driver ran a red light. The couple sued Uber but was rebuffed because their daughter checked the company's terms and conditions agreement which says riders will settle disputes through arbitration rather than in court.
Jagjit Nagra, head of Oregon Consumer Justice, said these agreements can often appear dishonest.
"These mandatory clauses that are buried in the fine print - they're there to evade accountability, and what it does is it funnels disputes into a private system that more often than not favors corporations over individuals rather than it playing out in a court of law," Nagra added.
A similar case recently played out in a wrongful death case against Disney, and the Oregon Supreme Court ruled in a 2022 case in favor of employers that require arbitration to settle employment-related disputes. Companies with arbitration clauses have argued the process is quicker and less costly than court. But Nagra said the Forced Arbitration Injustice Repeal, or FAIR Act in the U.S. Senate would take this process off the table. The bill has support from Oregon Senators Ron Wyden and Jeff Merkley.
Nagra added the FAIR Act would apply in a variety of cases, including employment, consumer, antitrust, and civil rights disputes. He says the court process is more transparent, which is good for the public.
"Say there's an unsafe product or a fraudulent practice, what have you. This allows folks to be able to hold these corporations and other bad actors accountable in a public process," he said.
Nagra noted the arbitration process has different rules than court, concerning evidence, for example, and added evidence can be admitted in arbitration that is irrelevant or based on hearsay.
"Something that would be anathema in a court of law can take place there because they're private proceedings. And the judges are privately paid for judges by the arbitration company," he continued.
Disclosure: Oregon Consumer Justice contributes to our fund for reporting on Consumer Issues, Human Rights/Racial Justice, Poverty Issues, Social Justice. If you would like to help support news in the public interest,
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Several Connecticut groups are partnering to help people claim COVID relief money.
The Get Your Refund Campaign aims to help more than 45,000 families statewide get the enhanced tax benefits they were entitled to in 2021. Internal Revenue Service data show $120 million in unclaimed federal Earned Income Tax Credits for 2019.
Juan Berrios, executive director of the tax assistance nonprofit SimplifyCT, said there are a few key reasons for people failing to collect what's owed them.
"I think it's really just about the level of information and misinformation that was out there during that timeframe," Berrios recounted. "If you recall, our government moved very swiftly, right, so the very first stimulus package was passed and then within a couple of weeks, people were actually getting their checks."
Some people could receive up to $6,700 from the federal Earned Income Tax credit alone, available to anyone who earned $64,000 or less in 2021. The expanded child tax credit is available for any family with children who have a valid social security number. The last day to claim or file for these 2021 missed credits is April 15, 2025.
Campaign feedback has been positive with many families grateful to claim the benefits. Berrios noted some have been leery of claiming the refunds since the credits typically apply to people who do not file their taxes but he added collecting refunds will not affect their benefits.
"Filing taxes does not affect government-provided benefits," Berrios emphasized. "The Child Tax Credit, the Earned Income Tax Credit and the third stimulus payment, they're not counted as income. They do not affect your other benefits that an individual or a family receives. And, also, it's very important to note that immigrants can also file taxes."
Berrios added given the chaotic state of the world in 2021 due to the pandemic, local tax preparers might not have been open or returns were done virtually. He acknowledged some might fear filing because they owe the IRS money or fear being penalized for not filing but if you're due a refund, you will not be penalized.
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