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How Epsilon Data Management Facilitated Elder Fraud Schemes and What to Do if You Lost Money

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Epsilon Data Management Fraud Case

Between 2008 and 2017, Epsilon Data Management sold lists of customer names and addresses to companies involved in fraudulent activities. These companies sent letters or emails to consumers saying they won a big prize or free psychic reading if they paid a reasonable fee. These scams were aimed at the elderly and other vulnerable individuals who paid the companies for the prizes or physic readings and received nothing in return.

The Epsilon Data Management Company had to pay $150 million for fraud and in 2021 entered an agreement with the Department of Justice and the US Attorney’s Office for the District of Colorado. They continued to sell client information even when their employees knew some of their partners had been arrested for fraud and scams.

Companies that sell customer lists have a responsibility to sell the lists to ethical companies and protect consumer information. Victims of this scam by Epsilon Data Management were to be contacted directly by the company, and funds are expected to be distributed by an independent claim administrator.

Types of Consumer Fraud

There are many distinct types of consumer fraud. For example, one company called consumers on the phone and told them their personal computers had serious technical issues. They posed as technicians and demanded payment for unneeded technical support.

There have been wire transfer companies involved in fraud, and consumers have reported that their funds never arrived at the bank or that the person for whom they were intended never received them. Some customers lost thousands of dollars, and the issue has never been resolved.

During the pandemic, companies sold fake vaccine kits and cures to consumers. Robo calls, telemarketing calls, emails, texts, and even door-to-door solicitation are just some of the ways scammers market their schemes. The level of federal fraud security class actions in 2019 was high, with plaintiffs filing 424 cases in 2019 as compared to 413 in 2017. Federal fraud security cases and federal civil cases continue to increase every year due to new scams.

What to Do About Scams and Fraud Schemes

When you discover you have been swindled or scammed, report the company and the scam to the appropriate agency. If you are a senior, you can report it to the Elder Fraud Hotline or the Department of Justice. Additionally, your state financial controller and attorney general take reports and complaints about fraud. You can report your case to the Better Business Bureau if a local company is involved in a scam. In severe scam cases, charges may be brought to the federal court. In 1962, 11.5% of federal civil cases went to trial. Today, only around 1% of civil cases actually reach trial in the Federal courts. However, for cases as large as the Epsilon Data Management case, taking the case to the federal level is essential.

If you are regularly paying the company that scammed you, do not pay any more money. Collect emails, documents and conversations you have had with the company to document the fraud. What websites or phone numbers did you use to contact them? Where did the money you paid come from and how did it affect your finances? All this information can be used to file a complaint.

If you provided a credit card number, debit card number, or bank account number to pay for services, you should contact the bank or credit card company to report the scam and fraud incident. You can change your passwords or be issued a new card or account number. Your financial institution can also freeze your account until the issue is resolved.

Some homeowner’s insurance policies have fraud theft protection for losses related to identity theft that affects your finances. You can hire a lawyer to help you with your case and a financial counselor to help you devise a plan to improve your financial situation. In cases of severe money loss, chapter 7 bankruptcy debt allows consumers with credit card balances, medical bills, and personal loans to have the fees discharged. This allows you to move forward with rebuilding your finances after you have been frauded out of your savings.

Reporting scams to the right agency can help protect other consumers and may be a way to help you with finances. Hiring a lawyer, financial advisor, or accountant can be a way to deduct costs from your income taxes and help you recover and protect yourself from scams going forward.

Saving Money on Car Repairs After an Accident

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What do you do if your finances are tight and you have an auto accident that causes damage to your vehicle? Some people have collision insurance and the auto insurance company will cover the costs of repairs. What if you do not? There are ways to save money on auto repairs after an accident. Here are some tips you can use.

Don’t Think A Car Accident Won’t Happen To You

You may be thinking that you will never know what it is like to have to worry about finances and auto repairs after an accident because you won’t ever be in an accident. No matter how careful you are, there is always a risk that you will be in an accident. As a matter of fact, the odds are very likely that you will at some point be in a car accident.

According to the DOT, there are about 733 auto accidents every hour of every day somewhere in the United States. In total, there are about 5 million car accidents each year. The odds of being in a car accident that results in property damage are about 88% for every driver.

Being prepared to deal with the damage that you may incur is important. The first tip below can help to preserve your finances after a car accident.

Choose Collision Coverage

You can opt-in for collision coverage to better protect your vehicle. Of course, if finances are tight, it can be difficult to pay the higher premium. However, if you have a newer model car, it may be worth the additional monthly premium cost. Balance your options carefully before you dismiss the idea of paying more for better coverage. In the end, it may be the smarter route to take for your finances. If that is just not an option, continue reading the tips below.

Is DIY an Option For You?

If you have the skill set, you can absolutely DIY auto accident damage. There are plenty of tutorials online that will talk you through the steps of all types of auto body repair. Of course, you will still have to invest in the parts and maybe some tools, but it will ding your finances considerably less to fix the damage yourself.

You can find most parts online at significant savings. For example, a piece of trim that is valued at about $5 will carry about a 5,000% markup at a retail outlet. Online, the markups are usually much lower because online retailers usually have lower overhead, according to Forbes.

Another way to save on parts is to head over to the “junkyard” or “car recycling center”. Many car parts can be recycled and often are taken through a salvage yard. You can find tremendous savings by getting your parts from an auto salvage dealer. About 80% of a vehicle can be recycled, and 20% cannot (the 20% of parts that cannot be recycled is called ASR-auto shredder residue) according to The Balance.

Consider Bartering Your Services

Not everyone has the skills or the time to deal with DIY auto body repairs, but that does not mean there are no ways to keep your finances in check with savings on auto repairs after an accident. Consider bartering your services with an auto body shop. Let’s say you have a skill set that an auto body shop can benefit from. For example, you are a painter, a carpenter, you install floors, you clean houses, or have any other skill set that you can trade for car repairs. You can offer your services to the body shop, buy your parts online, and perhaps realize some great savings to keep your finances in order. Sometimes you have to get crafty to protect your finances. Bartering is a great way to save. Of course, you have to put in the sweat equity but you will still come out on top.

Making your finances a priority in all situations is important. Don’t just write the check for auto repairs after an accident. Find unique ways to save money. Ask for discounts. Search for the lowest-priced parts, and do what you can yourself to save.

How To Reduce Liability During Construction Projects

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With all the energy and effort construction professionals put into planning and delivering a project, construction liabilities are not uncommon. Liability in projects can be due to several issues such as injuries, poor workmanship, labor and material shortages, inadequate designs, project delays, and unexpected events. 

However, construction professionals can be proactive and follow some proven steps through every construction process to minimize liability and prevent overall defects. From looking at how dust suppression systems control the amount of dust in an area, to ensuring that everyone has adequate health and safety training, there are many things you can do to guarantee the safety of yourself as well as those around you. That said, this article will review certain strategies that can help reduce liability and construction defects or accidents. Continue reading to learn more.
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What does Quantitative Easing Will mean For UK Bonds?

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QE, or quantitative easing, is a monetary policy technique used by central banks such as the Federal Reserve. Using quantitative easing, a central bank attempts to cut interest rates, expand the money supply, and boost lending to households and companies. The objective is to encourage economic activity and maintain credit flow amid a financial crisis. Quantitative Easing in the UK has changed how you invest in premium bonds. [Read more…]

Understanding the Importance of  Health Insurance 

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Not everyone in Singapore chooses to seek or retain health insurance coverage. Some people have it simply as a company benefit and would not have tried to procure it otherwise. 

Much of this comes from a lack of essential information, which is what everything here aims to clear up for you today. Not only will you understand why health insurance is necessary, but you  will also gain insight into how the choice of a provider is to be made. [Read more…]

Growing a Business: Here Are Some Tips for Growth

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Have you been trying to learn about how to grow a business through various online accounting resources? Well, you can get the answer to your question through this post, as we will discuss a handful of valuable tips to grow your business.

Just like starting a business requires a lot of planning and prep, growing your business requires the same amount of hard work and more. Whether you’re running a small retail business in local markets or a large regional company that is popular across the nation, you will desire an increase in sales revenue and profits at some point.

No two businesses operate with the same strategy and motives. And therefore, every business entity uses various rules and strategies to grow. In this post, we will talk about a few helpful tips we’ve gathered from valuable accounting resources to help you put your business on the track of “growth”. Here’s what to know! [Read more…]

Is A 401K Worth It?

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is a 401k worth it

When you’re planning for retirement, classic advice usually states to take advantage of every plan option available to you. However, while a 401K can be an asset, that doesn’t mean it’s the perfect choice for every situation. If you’re wondering if a 401K is worth it, here’s what you need to know.

The Benefits of a 401K

A 401K has specific benefits that can potentially make one a worthwhile addition to your retirement plan. One of the biggest is its tax-deferred status. When you start contributing, you reduce your tax burden immediately since the payments typically come from pre-tax dollars. If you earn more money now than you will in retirement, you’ll potentially come out financially ahead.

Employer matches are another benefit of a 401K. Many companies will match employee contributions up to a specific amount. By contributing enough to capture the maximum, you’re essentially collecting the most “free” money possible for retirement.

In most cases, 401Ks come with a wide array of investment options, too. This allows you to choose a portfolio mix based on your comfort with risk, values, financial goals, and other factors. Plus, there are typically several asset classes available, including stocks, ETFs, money market funds, and more.

Finally, many 401Ks allow people to borrow against the account. Essentially, your account balance acts as collateral, and you can pay the amount back with interest over time. In some cases, these loans offer more favorable rates. Plus, if you repay the full amount before changing to a new employer, it typically won’t impact your income for tax purposes.

The Drawbacks of a 401K

While 401Ks come with some notable benefits, that doesn’t mean there aren’t drawbacks to consider. As a defined contribution plan, you’ll send an amount to the plan every paycheck regardless of market conditions. While the concept of dollar-cost averaging could reduce any harm from investing at inopportune times, it does mean you’ll sometimes invest during periods that aren’t offering the best value.

You may also have to contend with 401K fees. Precisely what that involves varies from one employer to the next, but they can add up surprisingly quickly, offsetting at least some of your earnings or actually causing you to spend more than you make during economic downturns.

It’s also important to note that some 401K plans come with surprisingly few investment options. You may have only a small number of investments to choose from, and most of what’s available may simply be mutual funds, particularly target-date funds.

Finally, while employer matches are typically one of the benefits of 401Ks, not all companies offer one. Additionally, some have very low matches, which can make a high-cost 401K a poor choice for some investors.

Is a 401K Worth It?

Generally speaking, a 401K can be worth it, suggesting you have a plan available that meets your needs. If there is a wide array of investment options, a generous employer match, and a reasonable fee structure, and you’re in a higher tax bracket now than you will be in the future, using a tax-deferred option like a 401K could be worthwhile. However, if none of that applies, there are more flexible options available, and it could be wise to explore them instead.

Do you have a 401K? If so, do you think it’s worthwhile, or do you believe that other retirement savings options are a better fit? How do you make the most of your 401K to ensure your financial future? Share your thoughts in the comments below.

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