Scammers target the financially troubled

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Mortgage frauds and foreclosure scams that target people in trouble are becoming more common.

Miami Herald
Jul. 31, 2008
BY FEDERICA NARANCIO

WASHINGTON --Frauds aimed at people in financial trouble rose sharply last year, according to a consumer agency survey released Wednesday.

''Mortgage fraud and foreclosure scams are among the fastest-growing and the worst complaints,'' said Susan Grant, the director of consumer protection at the Consumer Federation of America, which issued the findings.

In mortgage fraud, a supposed financial advisor charges fees to refinance home debt at a rate that's said to be favorable but isn't.

In a foreclosure scam, high fees and bad advice leave desperate homeowners worse off.

Also surging, according to Grant, are fake-check scams. In such a scam, the scammer demands cash back from an overpayment with what turns out to be a bad check. Or the scammer writes bad checks to someone who's paid a commission to cash them.

The surprising part in article was learning there is still a 'consumer protection' organization in existence.