Georgia banks exempt from protecting you from scammers

[00:00:04] This is Scams and Cons News with Jim Grinstead. In this week's news, Thailand takes the unusual step of cutting off electricity to 500,000 people to stop scammers. And con artists are staging car crashes to collect insurance money. But we begin with how banks in Georgia are exempt from protecting people from scams.

[00:00:30] 93-year-old Loris Sinani is an FBI statistic. He's one of 100,000 victims over 60 who are financially scammed every year. Long story short, a con artist convinced Loris that he accidentally deposited $100,000 into his bank account. The scheme targets the elderly and it works.

[00:00:52] The scammer convinced him to make a series of cash withdrawals totaling $109,000 and ship it to a FedEx address in New York. How do you feel about all of this? I don't want to use any profanities, but I was very unhappy that I was stupid enough to continue until I paid back the $100,000.

[00:01:19] It sounds extreme, but Deborah Stokes, the executive director of Georgia's Council on Aging, says elder exploitation happens way too much. When you look at what happened here, does it just, does it make your jaw drop? No, no, it makes me very sad. But there are hundreds of cases like that across the county.

[00:01:41] It's crazy how much seniors lose $3.4 billion in 2023. And that's only what victims reported to the FBI. According to the Georgia Bankers Association, banks are required to train employees how to identify and prevent financial scams. But what about a law? Now we're talking in 2023, Georgia lawmakers passed the Spear Act.

[00:02:07] It gives the Georgia Secretary of State's office the ability to delay suspicious transactions for up to 25 days. We know it's helping. Gabe Sterling, the Secretary of State's COO, says it's been used more than 550 times since May 2023. The industry came to us and said, we need to have a structure in place to do this reporting because we can see it. But if our client is telling us to do it, we kind of have to.

[00:02:36] This is great. It's the kind of law meant to protect people like Loris, except in this situation, it does not. The Spear Act only applies to financial institutions that the state regulates, meaning financial advisors and stockbrokers. The law does not apply to banks. Why does it apply to financial institutions as opposed to banks? Can't answer that one. I wish I had the answer.

[00:03:06] Here's the answer in a nutshell. It doesn't apply to banks because they are regulated by the federal government. We talked to the Securities and Exchange Commission about how do we address elder exploitation at the bank level. And we didn't get any traction. Not yet anyway. And maybe we're not asking the right questions. It is a tragic fact that these criminals wreak havoc and can drive individuals to premature death or even suicide.

[00:03:33] In September, the U.S. Senate and Banking Finance Committee listened to senior advocates share horror stories. It happened around the same time Congress proposed the Protecting Consumers from Payment Scams Act. But banking trade groups already opposed the bill because it puts liability on the banks. Thailand has taken the unusual step of stopping scammers by cutting electricity to large swaths of the country.

[00:04:01] Whether we'll have any long-term effects remain to be seen as local residents and businesses cope with the unusual move. AI newsreader Sarah tells us more. Thailand has cut off electricity to five areas in Myanmar known as hotspots for call center scams. But has this move really made an impact? Prime Minister Peitong Tharn Shinawatra defended the decision, stating, We must put our people first.

[00:04:28] This issue affects both Thai citizens and the country's reputation. If we fail to act, the problem will only continue. The affected areas, Tachilek, Payathanzu, and Mayawati, are notorious centers for online gambling and large-scale fraud. Reports estimate that over 500,000 people have fallen victim to these scam operations, with total losses reaching $2.4 billion.

[00:04:54] In response, Thailand's government also cut internet services and halted fuel exports. The Maysat Customs Office has suspended fuel shipments, causing panic buying at gas stations in Mayawati. However, many businesses and wealthier residents have turned to generators and solar panels to keep running. While the power cuts may disrupt operations, experts warn they won't stop the scammers completely.

[00:05:20] Many rely on Starlink satellite internet, which remains unaffected. Security analyst Lalita Hanwang from Kassetsart University explains, Cutting electricity is just one step in the fight against scammers. But Myanmar has long struggled with unstable power, so many large buildings already have backup systems. She also raised concerns over Thailand's talks with China on the issue.

[00:05:43] China has previously cracked down on scam centers under its influence, arresting perpetrators and taking them back across the border. But would Thailand allow Chinese police to operate in its border regions? Meanwhile, calls are growing for the Thai government to focus on rescuing those trapped in these scam operations, many of whom were trafficked and forced into criminal work. Recent rescues of Chinese nationals have sparked diplomatic questions.

[00:06:10] Why were only Chinese victims freed, while others, including Bangladeshis and Pakistanis, remain? Authorities have also taken steps to curb illegal internet use, cutting unauthorized communication cables, and restricting SIM box operations. But with reports of unusual internet activity still surfacing, the fight against scam syndicates is far from over.

[00:06:34] One major company operating in the region, Allure Group, has drawn scrutiny due to past ties to illicit activities. The firm, founded by a former Thai senator and a Myanmar tycoon linked to the 2021 coup, initially ran hotel and casino businesses in Tachalik before changing ownership in 2019. Despite Thailand's latest crackdown, questions remain. Will these measures truly disrupt scam operations?

[00:07:01] And how will regional powers like China influence the next steps? No one fell for the scam. But a central Kentucky church congregation was targeted by scammers. Members of the Versailles Presbyterian Church received fraudulent emails appearing to come from interim pastor Catherine Redmond. The emails requested gift cards for three patients supposedly in hospice care.

[00:07:25] The real pastor Richmond quickly alerted members to the scam, urging them to block the sender's email address. Gift cards are a common tool for criminals because they're nearly impossible to recover once used. Doug Parker of Cruise News Today says some Carnival Cruise Line's passengers are getting surprise phone bills they unknowingly incurred while on their voyages. He explains.

[00:07:51] A Carnival Cruise Line passenger is taken to social media after receiving a $411 phone bill. Now this is after their 17 year old daughter made calls to her boyfriend while on board Carnival Pride. The passenger claims that they weren't warned about roaming charges and requested a partial refund, although Carnival declined that. Grand Ambassador John Heald responded saying that crew staff regularly advise passengers to switch their phone to airplane mode.

[00:08:20] This story has sparked a debate online with many saying the teens should take responsibility for the charges. A good reminder about the cost of data at sea and using airplane mode. Good gosh. Two Florida pool contractors are facing serious criminal charges after allegedly defrauding hundreds of residents out of millions of dollars.

[00:08:41] Charles and Kristen Black, owners of Legacy Pools, are accused of collecting more than $2 million from more than 300 customers across Brevard, Orange, and Oceola counties between October of 2019 and August of 2022. Authorities say the couple took large payments for pool construction projects but failed to complete them. Instead, they used the funds to finance a lavish lifestyle.

[00:09:09] The Florida Attorney General's Office of Statewide Prosecution has charged the blacks with multiple offenses, including schemes to defraud and filing false documents. Acting Attorney General John Gard has urged Floridians to exercise caution when hiring contractors for major projects, advising them to verify credentials and check references.

[00:09:34] The couple was arrested during a traffic stop in Arizona and is awaiting extradition to Florida. Victims have reported significant financial losses, with some left paying off loans for unfinished pools. This is Scams and Cons News. Scammers in New York are staging car crashes to collect insurance money. AI Newsreader Drew explains.

[00:10:04] The Department of Motor Vehicles says New York State drivers are losing hundreds of dollars annually due to staged car crashes designed to scam insurance companies. In 2023, intentional accidents in New York increased by 34% compared to 2021 and 14% compared to 2022.

[00:10:27] The DMV issued a warning about the rise in staged crashes and advised drivers to practice defensive driving to avoid insurance fraud schemes. DMV Commissioner Mark Schroeder stated, By practicing defensive driving habits such as anticipating other drivers' actions, not tailgating, and being prepared to react quickly, New Yorkers can avoid being victims of fraud.

[00:10:52] New York ranked second in the nation for staged accidents in 2023, with 1,729 reported cases. The Insurance Information Institute estimates that these fraudulent crashes cost New York car insurance policyholders between $100 and $300 per year in increased premiums 78. To protect themselves, drivers are advised to

[00:11:18] Maintain a safe following distance using the 3-second rule, avoid speeding, and use directionals. Stay off their phones while driving. Take pictures of any damage if involved in a crash. Collect the other drivers' license plate and insurance information. Report crashes to law enforcement and insurance carriers. File a report with the DMV.

[00:11:42] The DMV also recommends taking a defensive driving course to refresh skills, remove points from driver licenses, and potentially reduce insurance premiums by 10% annually for three years. A newly formed advocacy group, Citizens for Affordable Rates, estimates that fraudulent claims and exaggerated litigation from staged car crashes could account for up to 10% of total insurance payouts in New York.

[00:12:11] In Georgia, if you lost money in a scam, you might be able to get restitution unless it's from a bank. They're exempt. Atlanta's America's News Force breaks the bad news. 93-year-old Loris Sinani is an FBI statistic. He's one of 100,000 victims over 60 who are financially scammed every year.

[00:12:35] Long story short, a con artist convinced Loris that he accidentally deposited $100,000 into his bank account. The scheme targets the elderly and it works. The scammer convinced him to make a series of cash withdrawals totaling $109,000 and ship it to a FedEx address in New York. How do you feel about all of this?

[00:13:01] I don't want to use any profane profanities, but I was very unhappy that I was stupid enough to continue until I paid back the $100,000. It sounds extreme, but Deborah Stokes, the executive director of Georgia's Council on Aging, says elder exploitation happens way too much. When you look at what happened here, does it just, does it make a jaw drop? No, no, it makes me very sad.

[00:13:31] But there are hundreds of cases like that across the county. It's crazy how much seniors lose. $3.4 billion in 2023. And that's only what victims reported to the FBI. According to the Georgia Bankers Association, banks are required to train employees how to identify and prevent financial scams. But what about a law?

[00:13:57] Now we're talking in 2023, Georgia lawmakers passed the Spear Act. It gives the Georgia Secretary of State's office the ability to delay suspicious transactions for up to 25 days. We know it's helping. Gabe Sterler, the Secretary of State's COO, says it's been used more than 550 times since May 2023. The industry came to us and said, we need to have a structure in place to do this reporting because we can see it.

[00:14:27] But if our client is telling us to do it, we kind of have to. This is great. It's the kind of law meant to protect people like Loris, except in this situation, it does not. The Spear Act only applies to financial institutions that the state regulates, meaning financial advisors and stockbrokers. The law does not apply to banks. Why does it apply to financial institutions as opposed to banks?

[00:14:57] Here's the answer in a nutshell. It doesn't apply to banks because they are regulated by the federal government. We talked to the Securities and Exchange Commission about how do we address elder exploitation at the bank level? And we didn't get any traction. Not yet anyway. And maybe we're not asking the right questions. It is a tragic fact that these criminals wreak havoc and can drive individuals to premature death or even suicide.

[00:15:24] In September, the U.S. Senate and Banking Finance Committee listened to senior advocates share horror stories. It happened around the same time Congress proposed the Protecting Consumers from Payment Scams Act. But banking trade groups already oppose the bill because it puts liability on the banks. This is Scams and Cons News. Thanks for listening. Thanks for listening.