Current Events in February 2012

If you surf the Internet or watch much cable TV, you can't have missed the dire warnings of what is about to befall us in the near future. Warnings of economic and societal collapse seem to be everywhere.

It started a couple of years ago with the proliferation of ads for gold. Companies selling physical gold – bullion and coins – lit up the airwaves with suggestions that gold is the only way to protect wealth from a dollar that is on its way to being worthless.

There are also ads for free online videos with the ominous titles “End of America” and “New America,” warning that a sudden event this year will change our lives forever. Both are the products of two separate financial experts who warn of the same event – the default of the U.S. government and the inability to repay debt. That's pretty much what's trying to be avoided in Greece at the moment.

Video pitches

The free videos are, in fact, pitches for products – financial advice and investments designed to make money if the U.S. economy does, in fact, drive over a cliff.

Watching the videos isn't exactly easy, either. There are few visual elements to make them interesting and it is impossible to skip ahead to get to the end to hear the pitch – you have to listen to the whole thing.

Doomsday preppers

On cable, the National Geographic Channel has entered the doom market with its new show, “Doomsday Preppers.” It's a reality series that profiles a number of people who are making preparations to live after the collapse of society. A panel of judges then offers opinions about whether the subjects' doomsday plans are adequate.

If all of this sounds vaguely familiar, it means you are old enough to have lived through the late 1970s. That was an era of despair over lines at gas stations, inflation and potential nuclear war. It spawned a similar “survivalist” movement and gold rose to a record high that stood until about five years ago.

Mayan calendar

A subplot to the growing focus on doom may be the fact that the Mayan Calendar ends on December 21, 2012, an indicator to some that the world will meet its fate on that date. When Hollywood made a movie two years ago about a small, undiscovered planet crashing into the earth on December 21, it prompted NASA to publicly dispute the idea. Dr. Robert Stencel, an astronomy professor at the University of Denver, found he was called upon to field a number of media questions about a possible end of the world event.

“This is not the first time, and it probably won't be the last, we've been promised something would happen,” Stencel said at the time. “I suspect it would be a safe bet that 2012 will come and go and it will be the least of our worries that the Mayan calendar flips over.”

Meanwhile, consumers should carefully assess any and all investments. While the U.S., and world economies have very real and significant challenges, it's always wise to be wary of investments that are being marketed solely on the basis of fear.

Just as you would with a doctor consulting about a health issue, it's smart to sample a variety of opinions, and doing independent research, before investing money.

The homebuyers' tax credit, enacted in 2008, was designed to jump start the rapidly declining housing market. It offered first-time homebuyers a refundable $7,500 tax credit if they bought a home.

But the tax credit isn't like ordinary credits. It must be refunded to the Internal Revenue Service (IRS) over a 15-year period. The law was amended in 2009 so that those who purchased homes that year and in 2010 don't have to return the money. But if you claimed the tax credit for a 2008 purchase, it's time to start paying it back.

You fall into this category if you claimed the credit for a home purchased that occurred after April 8, 2009 but before January 1, 2009. If you are in this category, you must make a payment to the IRS on your 2011 return.

How do you know what you need to pay? It's going to vary for each taxpayer. That's why the IRS has set up this online tool to help you determine the repayment amount for the current tax year.

Generally, there is no requirement to pay back the credit for a principal residence purchased in 2009, 2010 or early 2011. The obligation to repay the credit arises only if the home ceases to be your principal residence within 36 months from the date of purchase. The full amount of the credit received becomes due on the return for the year the home ceased to be your principal residence.  

The Government Grant Scam has been around a long time, and apparently, has a new wrinkle or two. Alicha Burlson, of Lincoln City, Ore., reports receiving a call from a woman telling her she had been awarded a grant of $8,400 to further her education. It just so happens that Alicha had, indeed, applied for an education grant a month earlier.

“She told me the information on my address and made sure it was correct,” Alicha told ConsumerAffairs.com. “Then she said I needed to call a number and talk to another person. When I called the number, the gentleman said that he received the information and wanted my bank's routing number and checking account. I feel silly but I did give it to him, then he said to receive the money I needed to donate 155 dollars to a charity. I told him I would not donate because I have no money and he said you must have cash to get grant. I repeated that I would not donate.”

Alicha should immediately contact her bank's fraud department since the man has her bank information. Any money she had in the account is probably gone. It's disturbing that the scammers had her address, suggesting they are taking more care in selecting their victims and not choosing them at random. The charitable donation demand is a new wrinkle. Chances are, the “charity” is one operated by the scammer.

Being followed

Mary Beth, of Rosamon, Calif., felt she had plenty of Dermitage Anti-Aging System product and cancelled her prescription when she moved at the end of December. But Dermitage followed her to her new address.

“I received the product at my new address in February, unopened, and I was going to send it back and request a return mailing slip,” Mary Beth said. “They automatically had charged me and refused to take back the product because they had 'notified me by e-mail' and therefore I could not return the product I did not request and they continue to charge me for the following month.”

Mary Beth should contact her credit card company and report it as an unauthorized charge. Unless the company can provide a proof of purchase, it will have to return the money.

Bad timing

Amanda, of Manteca, Calif., says she switched cell phone carriers from Verizon Wireless to Virgin Mobile last week. Everything was smooth, she said, expect the final bill.

“I called today to find out the balance due, and they told me I had to pay my entire bill; including all taxes and fees,” Amanda said. “I have used the service for approximately days out of the month and 10 minutes of use this billing period. My bill was $44.02 so that comes out to $4.40 per minute!”

Most cell phone companies do not prorate their bills, even though Amanda thinks that was the fair thing to do. If she didn't want to pay the overlap, she should have timed her move to Virgin Mobile near the end of the billing cycle.

Mark your calendar: Between April and November, about 30 Americans will get seriously sick and approximately 15 will die after eating raw oysters or other shellfish contaminated with deadly Vibrio vulnificus bacteria.

These contaminated oysters are mainly harvested from the Gulf Coast region, especially during the warmer summer months -- and the nonprofit Center for Science in the Public Interest (CSPI) wants the Food and Drug Administration (FDA) to set a performance standard for the shellfish industry that would reduce this threat to consumers.

CSPI says FDA should act now, before the increase in Gulf Coast water temperatures creates a more hospitable environment for the naturally occurring but deadly contaminant.

Raw or undercooked oysters are the primary Vibrio culprits. Symptoms include the classic signs of foodborne illness but for some consumers, the illness can progress to ulcerous skin lesions and septicemia. Almost half of those reporting these more serious infections die and those that survive can suffer lifetime infirmities.

Those most at risk include consumers with diabetes, hemochromatosis, compromised immune systems or liver disease. While the shellfish industry resisted a 2009 FDA attempt to require mandatory post-harvest processing of contaminated oysters, the new food safety law signed by President Obama in January 2011 requires the FDA to set performance standards for significant foodborne contaminants like Vibrio vulnificus.

“If we knew a serial killer were going to kill a dozen people like clockwork each year, the police would spring into action to stop it,” said CSPI senior food safety attorney David W. Plunkett. “We know Vibrio vulnificus strikes like clockwork. FDA should use its authority to keep seafood lovers safe from this hazard.”

Petition denied

In 2002, the FDA denied a CSPI regulatory petition calling for a performance standard for Vibrio, citing a voluntary plan to reduce the rate of illnesses coordinated by an Interstate Shellfish Sanitation Conference (ISSC).

The regulatory petition CSPI filed yesterday cites the new authority given to the agency by the FDA Food Safety Modernization Act, and the fact that the ISSC’s voluntary plan to reduce illnesses failed to achieve its goals. California, meanwhile, adopted the approach advocated by CSPI in its earlier petition and illnesses and deaths in that state were virtually eliminated.

“Consumers have waited long enough,” CSPI wrote in a letter to FDA Commissioner Margaret Hamburg that accompanied the petition. “In the nine years since FDA denied our original petition, 262 people have suffered serious illnesses including 121 people who died—all of which could have been averted.”

Pennsylvania Attorney General Linda Kelly today announced the filing of a series of felony charges against a Butler County man accused of using Facebook to operate an elaborate and disturbing false identity scheme that was used to solicit young girls for explicit photos or meetings for sex.

Kelly identified the defendant as William R. Ainsworth, 53, of Mars, Pa.

Kelly said the investigation by the Attorney General’s Child Predator Unit began in September 2011, after agents received information that Ainsworth had traveled to the home of a 14-year old girl in Butler County in order to engage in various sex acts. Ainsworth was arrested at that time and held on numerous criminal charges related to that alleged meeting.

 “We quickly discovered that there was much more to this case than the sexual solicitation of one girl,” Kelly said. “What we found was an intricate web of false Facebook identities that were used to establish online relationships with vulnerable girls, who were then manipulated into sending nude photos to Ainsworth – believing he was a young surfer living in Florida – or physically meeting Ainsworth for sex – under the impression that those sexual encounters would help raise money so the girls could run away to Florida to be with their new online friend.” 

Kelly urged parents to use this case as a reason to have serious conversations with their children about online social networking sites like Facebook, especially concerning predators who may manipulate these sites to victimize children.

“It is important to emphasize that the people you meet online may not always be who they say, and may actually be looking for something far more than just ‘friendship’,” Kelly said. “The things you say, the photos you post and your other online activities may be twisted against you in a sinister manner.”

Multiple personas 

Kelly said that Ainsworth is accused of fabricating the Facebook personas of two young men, “Bill Cano” and “Anthony ‘Rip’ Navari,” who were both supposedly living in Florida as surfers after dropping out of high school and running away from their families.  It is believed that Ainsworth copied numerous photos of young men and surfers from other social networking sites in order to support these fake Facebook profiles.

As part of the scheme, Kelly said that Ainsworth allegedly used “Bill” and “Rip” to initiate online friendships with young people from throughout the greater Pittsburgh area, nearly all of them female. She noted that Ainsworth accumulated more than 600 Facebook “friends” using the bogus profiles (The false accounts were removed at the request of the Attorney General’s Office during this investigation).

Initially, Ainsworth is accused of using the “Bill Cano” profile to identify vulnerable girls. In some cases, Ainsworth’s victims believed that “Bill” had attended their school before running away, while in other cases the victims responded to his online invitations because of multiple overlapping friends.

Kelly said that Ainsworth allegedly used Bill to “groom” potential victims; asking about their interests, complimenting them about their physical appearance and discussing problems with school or family members in order to establish an emotional relationship.  “Bill” would then convince the victims to send him nude or sexually explicit photos.

A death foretold

Kelly noted that after establishing connections with many young people as “Bill Cano,” Ainsworth enhanced the emotional manipulation of this scheme by orchestrating Cano’s death.

Using the persona of Anthony or “Rip” Navari – supposedly a step-brother or fellow surfer/friend of Bill Cano – Ainsworth concocted a story that Cano had been attacked by a group of people, was hospitalized in a coma, and eventually died as the result of his injuries.

“This fake death triggered an outpouring of sympathy and grief within the group of young Facebook users who believed that ‘Bill Cano’ was their friend,” Kelly said. “Ainsworth allegedly fueled this grief with posts on Cano’s Facebook page and using it as a mechanism to help his new persona establish even deeper connections with the victims.”

Kelly said that Ainsworth used “Rip” to introduce the girls to another fictitious character, known as “Glenn Keefer.”  Keefer was supposedly an adult from the Pittsburgh area who identified himself online as a “Sugardaddy looking for Sugarbabies.”

According to the criminal charges, Ainsworth – posing as “Rip” – solicited potential victims to meet with Keefer for anything from stripping to sex.  Supposedly, “Glenn” would send money to “Rip” if the girls would meet him, either to help Rip with his living expenses or to help the girls run away to Florida to be with Rip.

Kelly said that Ainsworth is charged in connection with alleged indecent contact involving seven different victims, ranging in age from 13 to 15.  In five of the cases, Ainsworth requested and received nude photos of the girls and in two of the cases he allegedly met with the victims for the purpose of committing sex acts. 

Kelly noted that some of the intended victims were as young as 12 when they were initially contacted. 

Kelly said the criminal charges announced today are the result of an extensive investigation that involved interviews with more than 30 children, the execution of 18 search warrants and the review of thousands of pages of communications between Ainsworth and his alleged victims.

68 felonies

Ainsworth is charged with 68 felony counts including involuntary deviate sexual intercourse, criminal attempted unlawful contact with a minor, criminal solicitation to commit unlawful contact with a minor, sexual abuse of children (possession of child pornography), and criminal use of a communications facility.

Additionally, Kelly said that Ainsworth is currently awaiting trial in Butler County on 13 other felony counts related to his initial arrest in September 2011.

Online safety

Kelly urged parents to be aware of a number of online safety issues that were identified during this investigation:

• Several of the victims indicated that their parents had little or no awareness of their activity on Facebook or did not closely monitor their online communication with others.  
• Many victims regularly accessed Facebook outside their homes, away from any possible oversight by parents, using cell phones and other portable devices.
• All of the victims had been experiencing stresses at home or school, ranging from parental custody disputes to substance abuse and/or harassment by peers.  Those issues appear to have been used by Ainsworth to develop closer online relationships.

Kelly encouraged parents to stress the importance of not sharing personal information online, like full names, ages, addresses, phone numbers and school information

She added that children should always be especially cautious about strangers who approach them online. 

She also encouraged parents to take time to closely review how their children are using social networking sites and to monitor their communication with others, especially with young teens who may not yet be sensitive to deceptive or predatory behavior involving online “friends.” 

Kelly recommended that parents take the time to learn and understand the technology involved in social networking and online communications so they can properly screen these services.

Additionally, Kelly urged parents to frequently discuss Internet safety and security issues with their children, including the importance of telling a trusted adult if someone engages in inappropriate online activity, such as:

• Sexual discussions.
• Sending or requesting nude photos or explicit videos.
• Sending pornography or links to pornographic websites.
• Trying to arrange face-to-face meetings.

Banks rely more on automation to save money these days, but when machines begin making account calculations instead of humans, a growing number of customers have begun to question the results.

The New York Times reports some customers using an Apple iPad to access Citibank's online bill pay are being charged twice for some transactions, essentially paying the same bills twice. It apparently stems from a bug in the bank's iPad app, according to a bank official interviewed by the Times.

The problem began as early as the summer though Citibank wasn't made aware of it until December.

Mysterious fees

Meanwhile, other customers are increasingly questioning the way Citibank - and other banks - determine fees. For example, Latasha, of Farmington Hills, Mich., said she recently closed her Citibank account.

"Citibank charged me $25 in fees," Latasha told ConsumerAffairs.com. "The first $15 was a general account fee, after the account was closed, and the second was the automatic 10 dollars for the overdraft protection because the accounts were empty at the time."

Keep in mind Latasha didn't overdraw her account. She took her money out of her account and closed it. It isn't clear what the $15 fee was for, but because she had emptied her account in order to close it, it triggered an overdraft fee.

Questions

"If the account were closed, then how could they deduct $15 plus the $10 from my final check from the bank," Latasha said. "It's a bug in their system."

It does seem perplexing that the fees were deducted from the money the bank gave Latasha when she closed her account. That suggests there was money still in the account when the overdraft fee was assessed. Otherwise, how could it be deducted from the account balance Latasha received in the form of a check?

Latasha said she questioned the teller about the fees as she withdrew her money and was told "the account was empty, so they had to activate the overdraft." It might pay Latasha to seek a more detailed explanation from the branch manager.

Overdraft fees are definitely a sore spot for many consumers. Customers at other banks have long complained that they were assessed multiple overdraft fees when only one transaction placed them in a negative balance.

At Citibank, meanwhile, officials say they have fixed the glitch that caused the double payments and the bank will reimburse any fees charged customers due to the double payments.

Bank of America has agreed to pay $1 billion for "fraudulently and recklessly" underwriting loans to unqualified borrowers, thereby defrauding the Federal Housing Administration (FHA).

The wrongdoing was uncovered during the Justice Department's investigation of Bank of America and its Countrywide Financial subsidiary, said Loretta E. Lynch, United States Attorney for the Eastern District of New York.

“We announce today the largest ever False Claims Act settlement relating to mortgage fraud," Lynch said yesterday. "Through their underwriting and origination of tens of thousands of government-insured loans to unqualified borrowers, Countrywide Financial subsidiaries systematically abused the Federal Housing Administration and became some of the main players in this country’s financial crisis."

Lynch said the settlement "puts lenders on notice that they will face serious financial consequences for violating their obligations under the FHA’s programs.”

Lynch said that since 2009, her office has been investigating the Bank of America’s lending practices to determine whether the bank, through Countrywide, which the bank acquired in 2008, knowingly made loans insured by the Federal Housing Administration (FHA) to unqualified home buyers.

To date, the FHA has incurred hundreds of millions of dollars in damages as a result of this conduct, she said. The investigation also encompassed allegations that the bank and Countrywide defrauded the FHA insurance fund by originating mortgage loans that were based upon inflated appraisals.

Loan modification fund

As part of the settlement, Bank of America will pay $1 billion to resolve the wrongdoing uncovered during the office’s investigation. The settlement will entail an immediate payment of $500 million to provide a recovery for the harm done to the FHA by Countrywide’s conduct. Payment of the second $500 million will be deferred to fund a loan modification program for Countrywide borrowers across the nation with underwater mortgages.

Under the terms of the program, Bank of America will solicit all potentially eligible borrowers and provide a loan modification to anyone with an eligible mortgage who accepts the offer. If, after the expiration of three years, the bank has not met its obligation to apply the full $500 million to provide such relief, any remainder will be paid directly to the United States.

“It is fundamental that lending institutions that earn the authority to directly endorse FHA-insured mortgages apply our standards,” said HUD Secretary Shaun Donovan. “This is the largest false claims act settlement related to mortgage fraud and will not only compensate FHA but will also ensure assistance for homeowners who have been harmed by Countrywide.”

Nissan is recalling about 37,000 2012 Versa models because of a problem with the shift pattern indicator.

The company said that, due to interference between the shifter rod and the shift knob, the vehicles may be shifted out of the "park" position without depressing the brake pedal, increasing the risk of a crash or injury to a pedestrian.

Nissan dealers will replace the assembly, as needed, at no charge. Owners may contact Nissan at 1-800-647-7261.

When a scammer hooks a victim, they need a way to get money from the unfortunate person without it being traceable or retrievable. For years, Western Union filled that need.

Victims were instructed to wire the money to the scammer and, once they did, the money was gone. In recent years, however, Western Union and a number of law enforcement agencies have taken steps to educate consumers about this danger. As a result, some scammers are looking for new ways to move money.

In Fairfax County, Va., recently, a 70-year old woman fell victim to a sweepstakes scam in which the scammer used pre-paid debit card. Here's how it worked.

The pitch

According to Fairfax County Police, the woman received a telephone call, congratulating her on winning the sweepstakes and telling her she won $3.5 million and a brand new Mercedes Benz. This particular scam usually includes a Mercedes in the phantom winnings - apparently it becomes more real for the victim if it's more than just a large amount of money.

Up until now, this particular incident has been exactly like countless others. But instead of instructing his victim to send money in the form of a Moneygram - for "taxes" of a "processing fee" - the scammer told the woman to purchase $13,000 worth of Green Dot payment cards and give him the account numbers. He could then obtain the money, even though he did not have the cards themselves.

For good measure, the scammer requested the woman's Social Security number, date of birth and other sensitive information, and unfortunately, she complied. By the time a relative intervened, it was too late - the money was gone.

Don't fall for it

It should go without saying that you do not send money, or give information to a stranger, just because they say you have won a prize. You do not have to pay a fee to receive a prize and you cannot win a contest that you did not enter.

And just because you aren't asked to wire money - but instead are asked to transfer money using a pre-paid card - doesn't mean it isn't a scam. It is.

Blood levels of trans–fatty acids (TFAs) in white adults in the U.S. population decreased by 58 percent from 2000 to 2009 according to a Centers for Disease Control and Prevention study published in the Feb. 8 edition of the Journal of the American Medical Association.

This is the first time CDC researchers have been able to measure trans fats in human blood.

Unlike other dietary fats, trans fats are not essential to human health and do not promote good health. Research has indicated that high consumption of trans–fatty acids is linked to cardiovascular disease in part because TFAs increase LDL cholesterol (“bad” cholesterol).

Changing to a diet low in TFAs may lower LDL cholesterol levels, thus decreasing the risk for cardiovascular disease.

CDC researchers selected participants from the National Health and Nutrition Examination Survey (NHANES) years 2000 and 2009 to examine trans–fatty acid blood levels before and after the Food and Drug Administration′s 2003 regulation, which took effect in 2006, requiring manufacturers of food and some dietary supplements to list the amount of TFAs on the Nutrition Facts panel of the product label.

During this period, some local and state health departments took steps to help consumers reduce their daily consumption by requiring restaurants to limit their use of TFAs in food and increase public awareness campaigns about the health risks associated with TFAs.

“The 58 percent decline shows substantial progress that should help lower the risk of cardiovascular disease in adults,” said Christopher Portier, Ph.D., director of CDC′s National Center for Environmental Health. “Findings from the CDC study demonstrate the effectiveness of these efforts in reducing blood TFAs and highlight that further reductions in the levels of trans fats must remain an important public health goal.”

The current study provides information for white adults only, and additional CDC studies are under way to examine blood TFAs in other adult race/ethnic groups, children, and adolescents, Dr. Portier added.

Some of the most enthusiastic users of social media are also some of the oldest ... and some of the youngest. And now a study from AARP and Microsoft Corp. finds that online communication is helping to bridge the generation gap.

The report cites three key findinsgs:

• 83 percent of those surveyed (ranging in age from 13 to 75 years old) consider going online to be a “helpful” form of communication among family members.
  
• 30 percent of grandparents of teens/young adults agree that connecting online has helped them better understand their teen/young adult grandchildren, and 29 percent of teens/young adults say the same about their grandparents.
  
• Teens agree that the computer increases both the quantity (70 percent) and quality (67 percent) of their communication with family members living far away.

“For decades, baby boomers and other older Americans have valued computers and mobile devices as tools for work, but technology is now playing an increasingly vital role in helping the 50+ population communicate and stay connected to their children, aging parents and other family members,” said Jody Holtzman, Senior Vice President, AARP Thought Leadership. “By enhancing communication across all generations, technology is improving the quality of life for people of all ages.”

Safer surfing

The report also confirms the need for educating all consumers, from teenagers to grandparents, about Internet safety and the steps they can take to help protect themselves online. 

While most respondents — teens, parents and grandparents — wish they knew more about how to keep personal information private (58 percent), and how to safeguard their devices (50 percent), the younger generation wants more information than older respondents about using social networks more safely (38 percent compared to 27 percent). 

There is also a disconnect between how teens deal with online content that makes them feel uncomfortable and their parents’ perception of how they are dealing with such images and information.  Nearly half of parents (49 percent) say their teens know to come to them when they see something online that makes them uncomfortable, yet less than a third of teens (29 percent) say they actually would know to go to their parents to talk about it.

And while 49 percent of parents say the lines of communication between them and their teenage children remain open, only 37 percent of teens agree. 

“Teenagers and young adults are very knowledgeable about technology, but their parents and grandparents often have better judgment and greater wisdom born of experience,” said Jacqueline Beauchere, Director, Trustworthy Computing for Microsoft. “Together, AARP and Microsoft are helping generations of Americans stay connected, and are providing the tools and guidance they need to help each other have safer online experiences.”

Safety tips

AARP and Microsoft offer these tips to help families connect the generations when it comes to online safety:  

1) Use social networks more safely

• Look for Settings or Options in services like Facebook and Twitter to manage who can see your profile or photos tagged with your name, how people can search for you and make comments, and how to block people. 
• Don’t post anything you wouldn’t want to see on a billboard. 
• Be selective about accepting friends; regularly reassess who has access to your pages, and review what they post about you.

2) Help protect sensitive personal information 

• Before you enter sensitive data, look for signs that a webpage is secure — a web address with “https” and a closed padlock beside it. 
• Never give sensitive info (like an account number or password) or call a number in response to a request in email or IM or on a social network. 
• Think carefully before you respond to pleas for money from “family members,” deals that sound too good to be true, or other scams.

3) Parents and grandparents should have regular conversations with kids, keeping communications open: 

• Negotiate clear guidelines for web, mobile and online game use that fit your children’s maturity level and your family values. 
• Watch your kids for signs of online bullying, such as being upset when they are online or a reluctance to go to school. 
• Be the administrator of your home computer; use age-appropriate family safety settings to help you keep track of what your kids are doing online. For example, in all editions of the Windows 7 operating system, you can create separate accounts for each family member. Using Parental Controls (found in Control Panel), you can: 
• Specify the exact days and times when children can use the computer.
• Prevent kids from playing certain games, based on title, content, or age-rating.

Tired of shrugging off your shoes and belt each time you slog through the airport security line?  The Transportation Security Administration (TSA) is expanding PreCheck program, which lets pre-approved travelers move through security more quickly.

“TSA PreCheck moves us closer to our goal of delivering the most effective and efficient screening by recognizing that most passengers do not pose a threat to security,” said TSA Administrator John S. Pistole. “We are pleased to expand this important effort, in collaboration with our airline and airport partners, as we move away from a one-size-fits-all approach to a more intelligence-driven, risk-based transportation security system.”

Pistole and Department of Homeland Security (DHS) Secretary Janet Napolitano said the program has screened 336,000 passengers so far at seven pilot locations around the country and is now being expanded to 28 airports in major cities.

They said the concept enhances security by enabling TSA to focus its efforts on passengers the agency knows less about while providing expedited screening for travelers who volunteer information about themselves prior to flying. Also, it means prescreened passengers can avoid taking their shoes off and may even be able to keep their belts on.

Program members’ bags are still run though the x-ray conveyer belt and they are still required to go through a metal detector, but they are not subject to shoe or coat removal requirements and don’t have to remove their laptops or liquids packed in carry-on bags.

Initially, the program will only be available to passengers traveling on US Airways, United Continental, Alaska, American and Delta Airlines.

Eligible participants include some frequent fliers from participating airlines as well as members of the Customs and Border Protection’s Trusted Traveler programs. Those travelers who apply for the program and are approved will get special barcodes on their boarding passes that tell TSA screeners to move them to an expedited screening line.

Frequent travelers can apply through the TSA’s Global Entry program here.

Airports that will be added this year include:

• Baltimore/Washington International Thurgood Marshall Airport (BWI)
• Boston Logan International Airport (BOS)
• Charlotte Douglas International Airport (CLT)
• Cincinnati/Northern Kentucky International Airport (CVG)
• Denver International Airport (DEN)
• Fort Lauderdale-Hollywood International Airport (FLL)
• George Bush Intercontinental Airport (IAH)
• Honolulu International Airport (HNL)
• Indianapolis International Airport (IND)
• John F. Kennedy International Airport (JFK)
• LaGuardia Airport (LGA)
• Lambert-St. Louis International Airport (STL)
• Louis Armstrong New Orleans International Airport (MSY)
• Luis Muñoz Marín International Airport (SJU)
• Newark Liberty International Airport (EWR)
• O’Hare International Airport (ORD)
• Orlando International Airport (MCO)
• Philadelphia International Airport (PHL)
• Phoenix Sky Harbor International Airport (PHX)
• Pittsburgh International Airport (PIT)
• Portland International Airport (PDX)
• Ronald Reagan Washington National Airport (DCA)
• Salt Lake City International Airport (SLC)
• San Francisco International Airport (SFO)
• Seattle-Tacoma International Airport (SEA)
• Tampa International Airport (TPA)
• Ted Stevens Anchorage International Airport (ANC)
• Washington Dulles International Airport (IAD)

When investigators in Illinois began looking into allegations of wrongful foreclosures, they focused on how documents were handled. The result is a suit by the state against Nationwide Title Clearing (NTC), that accuses the company of filing faulty documents with Illinois county recorders.

NTC is a Florida-based company that prepares documents for mortgage servicers to use against borrowers who are in default, foreclosure or bankruptcy.

“The practices that NTC used were a key contributor to the mortgage crisis by undermining the integrity and accuracy of the mortgage servicing and foreclosure process,” Illinois Attorney General Lisa Madigan said.

Serves eight of the top 10 lenders

NTC provides a range of mortgage loan services to eight of the top 10 lenders and mortgage servicers in the country. It specializes in creating, processing and recording mortgage assignments, which are often used for a lender to foreclose on a borrower.

The lawsuit, filed in Cook County Circuit Court, alleges numerous violations of the Illinois Consumer Fraud and Deceptive Practices Act and the Uniform Deceptive Trade Practices Act. Madigan is asking the court to require NTC to review and correct all documents it unlawfully created and recorded in Illinois, and pay back all revenues, profits and gains achieved in whole or in part due to unlawful practices.

The suit also asks the court to impose civil penalties against the company.

Criminal charges in Missouri

The action by Illinois comes as 40 states reached a settlement this week with five major lenders, resolving allegations that “robo-signers” were illegally employed to sign foreclosure documents. In Missouri, a county grand jury has returned a criminal forgery indictment against DocX, a company that prepares foreclosure documents for major banks.

The indictments were the result of months of investigation by the Missouri Attorney General’s Office into the robo-signing scandal that injected thousands of questionable mortgage documents into the market. When the practice began to come to light, several major lenders temporarily suspended foreclosures in 2010.

DOCX’s role in the robo-signing process came to national attention when 60 Minutes reported that Linda Green, an employee of DOCX, purportedly signed thousands of mortgage-related documents on behalf of several different banks and in multiple handwritings.  The 68 documents on which the indictments are based were purportedly signed by Linda Green, but were allegedly signed by someone else.  

Motorola's latest smartphone, the Droid 4, goes on sale at Verizon Wireless stores tomorrow (Friday) after turning heads at January's Consumer Electronics Show. The phone has a lot of the same things as other top of the line smartphones, but something extra as well – a real keyboard.

As taxpayers begin to receive W-2 forms, Internal Revenue Service (IRS) impersonation schemes tend to flourish. For example, scammers prey on seniors or college students by impersonating tax authorities, solicit follow up information on a tax form, and collect identification numbers and social security information, which is then used to steal people’s money or identities.

Some scammers have even gone to the extreme of using spoofing technology to make their caller ID numbers come up to look like they are from the IRS. The New York Attorney General’s regional offices note multiple reports from consumers about tax preparation schemes like these.

The good news is that you can help shut down these schemes and prevent others from being victimized. If you receive a suspicious e-mail that claims to come from the IRS, you can relay that e-mail to a new IRS mailbox, phishing@irs.gov.

Follow instructions in the link for sending the bogus e-mail to ensure that it retains critical elements found in the original e-mail. The IRS can use the information, URLs and links in the suspicious e-mails you send to trace the hosting Web site and alert authorities to help shut down the fraudulent sites. Unfortunately, due to the expected volume, the IRS will not be able to acknowledge receipt or respond to you.

Deceptive practices

In addition to these scams, there are tax preparation businesses that take advantage of consumers through a variety of other deceptive practices. One common tactic is to advertise low fees to get the customer in the door, only to increase the final fee by hundreds of dollars, claiming the tax return was more complicated.

New York Attorney General Eric Schneiderman says there are also offers of "instant cash" to help a consumer pay bills while waiting for their refund, but they can come with undisclosed fees and high interest rates. In addition, some business are just not equipped to handle the volume of business they take in, resulting in delays in getting the refund that one paid a premium to get "fast."

“Preying on the desperation of people in a tough economy is unconscionable,” Schneiderman said. “While there are plenty of legitimate and law-abiding tax preparers doing business, there are some who use the allure of fast cash to take advantage of unsuspecting consumers. When hiring tax preparation services, consumers must have as much information as possible to protect themselves from fraud, and should file a complaint if they feel they've been victimized.”

Some services are notoriously hard to cancel. AOL is one, according to the many complaints received by ConsumerAffairs.com.

“I found out in December of 2011 that AOL was taking funds from my account,”Craig, of Pasadena, Md., told ConsumerAffairs.com. “I cancelled my service over eight years ago. So I called many times to tell them this was cancelled but I got nowhere. I just received a bill for December and January because I had my bank block them. What can I do!

Craig should write a letter to AOL at this address: AOL, P.O. Box 65100, Sterling, VA 20165-8800

Specify that you're cancelling, give your full name, phone number, address and signature, and either the primary billing contact's AOL screenname or the last four digits of the current payment method. It's a good idea to send it registered or certified, and retain a copy for your file.

Keep a copy of the letter and, when you get the delivery receipt, keep that together with the letter. If that doesn't do the trick, you can sue the company in small claims court, complain to your state's attorney general and to the Federal Trade Commission.

Always check the paperwork

At the rental counter, a clerk may ask you a series of questions and then fill in the form with your answers. Or at least, you hope they are your answers.

“I was careful to verbally decline the LDW coverage at the Budget Rent-A-Car counter when renting a car for one day in in Las Vegas recently. I was also careful to return the car within the 26 hour timeframe that the paperwork clearly stated was allowed, including a 26 hour grace period,” said Mark, of Madison, Wisc. “However, when I returned the car the next day, I was unpleasantly surprised to notice that not only had they deceptively charged me for the declined LDW coverage, they actually charged me for TWO days of coverage. Apparently somewhere in the fine print it notes there is no grace period for LDW coverage. When I raised the issue, they pointed out that I had initialed a box indicating acceptance of LDW coverage. Shame on me for not reading the paperwork carefully enough - I guess I trusted the woman at the counter to fill in the form based on my verbal responses to her questions.”

Most of us don't both to read the rental car agreement, but with the increased possibility of extra charges these days, it's wise to make the time.

Unwelcome calls

In late January, Randy, of Mississauga, Ontario said he received two strange calls on his Skype app., both from women in Ghana, Africa.

“The first female was begging me for money, told me her parents were dead and she had no job,” Randy said. “The second call was also a female who told me she needed a husband and could I help her with money problems. She also asked for my Skype password, and when I refused she was upset and changed her attitude toward me!”

Randy is wondering if his account has been hacked. He says he's changed his credit cards and his passwords. Anyone else having this experience?

Walmart is adding an icon to its private label food products to help shoppers pick healthier foods, the company announced at an event in Washington, D.C., today. The "Great For You" icon will initially appear on select Walmart Great Value and Marketside items, as well as on fresh and packaged fruits and vegetables at Walmart U.S. stores nationwide this spring.

“Walmart moms are telling us they want to make healthier choices for their families, but need help deciphering all the claims and information already displayed on products,” said Andrea Thomas, senior vice president of sustainability at Walmart. “Our ‘Great For You’ icon provides customers with an easy way to quickly identify healthier food choices. As they continue to balance busy schedules and tight budgets, this simple tool encourages families to have a healthier diet.”

“Today’s announcement by Walmart is yet another step toward ensuring that our kids are given the chance to grow up healthy,” said First Lady Michelle Obama. “Just over a year ago, Walmart committed to save shoppers a billion dollars in their cost of fruits and vegetables and the fact that Walmart exceeded this number is a real accomplishment and a milestone in our efforts to support families eating better. In addition, the healthy seal will be another tool for parents to identify the best products for their kids. Giving parents the information they need to make healthy choices is a key piece of solving childhood obesity.”

Walmart, the nation's largest grocer, said Items with the “Great For You” icon must meet rigorous nutrition criteria informed by the latest nutrition science and authoritative guidance from the 2010 Dietary Guidelines for Americans, U.S. Food and Drug Administration (FDA), U.S. Department of Agriculture (USDA) and Institute of Medicine (IOM).

Developed in consultation with food and nutrition experts from the public and private sectors as well as leading health organizations, the “Great For You” nutrition criteria are available to the public on the web (www.walmartgreatforyou.com), representing a collaborative and transparent effort to develop a trusted and reliable system for consumers. The icon will also be made available to national brand products that qualify and can be complementary to other nutrition labeling systems being used by the food industry.

“Walmart’s effort to bring healthier food to kitchen tables nationwide was inspired by our customers and informed by the latest food science and policy,” said Leslie Dach, executive vice president of corporate affairs at Walmart. “Last year we stood with the First Lady and showed how Walmart, working with its suppliers, the public sector and non-governmental organizations, can truly make a difference in people’s lives.”

Two-step process

The icon serves as a guide to help people make incremental changes to their diet by encouraging more nutritious food choices. The science-based criteria use a two-step process: Step one focuses on encouraging people to eat more fruits, vegetables, fiber-rich whole grains, low-fat dairy, nuts and seeds and lean meats.

Examples of these items include brown rice, 1 percent milk, raw almonds and 93 percent lean ground beef. Step two limits the amount of total, trans and saturated fats, sodium and added sugars that can be found in items such as sweetened oatmeal, granola bars, flavored yogurt and frozen meals.

“When it comes to food, our customers want a variety of choices, but they also want help identifying healthier options. Customers asked us to make healthier food choices easy while keeping prices low,” said Jack Sinclair, executive vice president of grocery for Walmart. “The nutritionists we engaged told us to make the criteria tough and significant. We feel confident the ‘Great For You’ icon balances those objectives, and will become an important tool Walmart shoppers can use to fill their pantries with healthier food at prices our customers can afford.”

The development of the “Great For You” icon is part of an initiative Walmart launched in 2011 to make food healthier and healthier food more affordable. The initiative includes reformulating packaged food to reduce sodium and added sugars and eliminate industrially produced fats by 2015; making healthier food more affordable by providing savings on produce and reducing the price premium on better-for-you food items; developing solutions for food deserts; and increasing charitable support for nutrition education programs.