Mortgage Fraud: Just The Facts

Estimated Annual Losses*: $4 billion to $6 billion

Total Mortgage Fraud Suspicious Activity Reports (SARs) in Fiscal Year 2008: 63,173, with more than $1.5 billion in losses
– So far in fiscal year 2009: 28,873 SARs (February 2009)

Over a Million Consumers are Being Swindled

The Consumer Federation of America is launching a national campaign to combat fake check scams. Millions of consumers are lured into accepting genuine-looking checks and money orders and wiring money to crooks in return. According to the results of a CFA survey, nearly one third of adults have been approached with fake check scams and at least 1.3 million have become actual victims. With an average loss of $3,000 to $4,000 per consumer, billions of dollars have been pocketed by fake check scammers. “In today’s economy, as consumers struggle to make ends meet, vulnerability is at an all-time high. Phony claims of sudden riches or ways to make money have never been more attractive,” said Susan Grant, CFA’s Director of Consumer Protection. CFA created a Fake Check Task Force to help raise awareness about these scams and protect consumers.

Foreclosure Rescue Scams

The possibility of losing your home to foreclosure can be terrifying. The reality that scam artists are preying on the vulnerability of desperate homeowners is equally frightening. Many so-called foreclosure rescue companies or foreclosure assistance firms claim they can help you save your home. Some are brazen enough to offer a money-back guarantee. Unfortunately, once most of these foreclosure fraudsters take your money, they leave you much the worse for wear.

Data Breach at UC-Berkeley – 160,000 Records

The University of California-Berkeley acknowledged that hackers breached a database of the university’s health system records, including 160,000 names and Social Security numbers.

UC Berkeley said it was notifying the people affected about possible identity theft or fraud.

Credit Card Accountability, Responsibility, and Disclosure Act

Connecticut Senator Chris Dodd, the Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today hailed Senate passage of his legislation to put an end to the abusive, misleading, and deceptive practices employed by credit card companies.  Dodd’s Credit Card Accountability, Responsibility, and Disclosure Act was approved by a vote of 90 to 5, and will now be sent to the House of Representatives for consideration.

Layoff Tracker

Latest layoffs: May 15: Following review of operations announced in February, Nike ( NKE – news – people ) cuts 1,750 jobs (5% of total workforce).

May 15: Fruit of the Loom–a Berkshire Hathaway ( BRK.A – news – people ) subsidiary–pink-slips 80 in Alabama.

May 12: Applied Materials ( AMAT – news – people ) posts quarterly loss and increases previously announced job cuts by 300.

May 11: Dell ( DELL – news – people ) slashes 260 jobs in North Carolina and blames the economy.

May 7: Cummins ( CMI – news – people ) idles Indiana plant that supplies Chrysler and lays off 610 workers.

May 7: DuPont ( DD – news – people ) adds to December job cut of 2,500 with another 2,000-employee cut.