Minnesota battles consumer fraud
Two years ago, 80-year-old Florence Teslow of Bloomington got a letter telling her she had won a large sum of money. All she had to do was pay the taxes to receive it. She cleaned out her savings account thinking she was going to be set for life.
She lost $1, 200 and her pride.
“I can’t believe I was so stupid,� she said. “I’ve learned my lesson.�
It is a lesson that the state of Minnesota is working to prevent others from learning the hard way in the future.
The state has developed a new program by partnering with private groups and state agencies to better protect its citizens from direct mail, phone and email fraud. Started in September 2007, the first-of-its-kind program in the U.S. was put in place to fight the types of scams where victims are asked to send money in order to claim a prize or be entered into a drawing.
According to estimates by the Minnesota Department of Public Safety, Minnesotans lose between $8 million and $10 million per year due to scam artists, with the majority of them being senior citizens.
“If citizens, especially seniors, learn to recognize fraud, that’s half the battle,� said special agent John Willems who works for the Minnesota Department of Public Safety’s Alcohol and Gambling Enforcement Division. “Seniors are especially vulnerable because sometimes they are conned out of their life savings and have no other source of income.�
But, the problem is nationwide.
In to a study done in the spring of 2000, Consumers Digest said at least 5 million people are financially abused in the United States each year, but only 1 in 25 cases gets reported. This abuse costs Americans over $50 billion dollars per year, according the Federal Trade Commission.
Partnering with AARP, the state’s Chiefs of Police and Sheriffs Associations, the Minnesota State Lottery, the Better Business Bureau, Bremer Bank and others, the Minnesota Alcohol and Gambling Enforcement Department will raise community and customer awareness about fraud.
Phase one of the program, which focused on organizing enforcement of the law with police and sheriffs associations, has been completed and now the program is starting phase two, said Nathan Bowie from the Minnesota Department of Public Safety.
“We’re now working with businesses, such as banks, to develop training materials for their employees so they can better recognize fraud,� Bowie said.
Along with employee training, pamphlets will be available for bank customers to better educate themselves about fraud, he said.
Once these support groups get fraud reports from citizens, they then will be able to put that information into a database that can be accessed by the police. Law enforcement can work with phone companies and ISPs to shut down the phone lines and email addresses of the scammers, Bowie said.
“Hopefully, we can make a big impact on reducing fraud in the state of Minnesota and keep our seniors safe,� he said.
Teslow’s daughter was able to help her get back on her feet by replacing the money in her account.
“If I didn’t have my daughter to help me out, I don’t know what I would have done. I probably would have lost my apartment,� she said.
To report a fraud, email the Department of Public Safety at www.dps.reportfraud@state.mn.us