When she got a call asking for money from someone claiming to be a priest with the local diocese in Jackson, Mississippi, Juana Mollinada knew something was off. But the demands were so persistent, and the details so precise, that she ultimately relented.
St. Anne’s Catholic Church, where Mollinada is a volunteer, would lose $4000 in what the Federal Trade Commission (FTC) says is a growing epidemic of scams nationwide.
“I felt terrible that I was the one to fall into this trap,” recalled Mollinada, speaking during a recent media roundtable organized by Ethnic Media Services and the FTC in Jackson, Mississippi.
Scams and various types of fraud cost U.S. consumers more than $10 billion in 2023, according to Lois Greisman, an attorney with the FTC’s Bureau of Consumer Protection.
Greisman, speaking at the July 23 event, added that the most common types of scams in Mississippi and nationally involve government or business impersonation, where scammers pretend to be either government officials or business representatives. The FTC received 850,000 reports involving these types of scams last year, leading to some $2.7 billion in losses.
“These numbers are off the charts, and they are continuing,” said Greisman, noting that scams impact communities differently. The Black and Latino community, for example, report scams involving cash transfers, crypto currency or gift cards at higher rates.
“Why does that matter? Protections afforded under the law are virtually non-existent with crypto, and much weaker with debit cards,” noted Greisman. She added that, as a law enforcement agency, the FTC “investigates fraud and scams. We sue people. Ideally, we will be able to free some money and return it to consumers.”
She urged consumers to be on guard for signs of potential fraud. “Know red flags. Red flags involved in what kinds of payment is being requested. No one legitimate is asking you to pay by gift card or crypto or wire transfer. Those are real red flags.”
Greisman also warned consumers not to trust caller ID. “Go directly to the source,” she said.
Mississippi is among the poorest states in the US, with a median income of just over $28,000. Scams here cost residents about $38 million last year, with the average consumer losing some $400, a painful sum for someone worried about making rent or putting food on the table.
According to Harold Kirtz, a senior litigator with the FTC’s Atlanta division, some of the more common scams seen in Mississippi include things like work from home opportunities, or those where the perpetrators will claim prize money is available and can be sent once a small payment is made.
In one case, Kirtz described an intricate scheme to get people to pay $1000 to become members in an investment circle that promised lucrative payouts. “95% of consumers lost their entire investment,” said Kirtz. Among those who did make money were individuals creating video content for social media urging people to buy into the scheme.
According to Kirtz, the FTC sued both the owners of the company and the influencers peddling the scheme on social media. “We were able to send some money back to consumers who were scammed,” he said.
Addressing the reporters in the room, Greisman emphasized the FTC’s efforts to connect with communities in places like Mississippi. “It is critical for the FTC to know what is going on in these communities.”
But making that connection isn’t always easy.
Adrienne Reynolds is a lawyer with North Mississippi Rural Legal Services, a non-profit that provides free legal aid to low-income residents across 39 counties in the state. “A lot of people do not contact us about scams. Mostly because they are ashamed, or they don’t think they can get their money back. So, they just do not tell anyone.”
Victims of scams also become less trusting of messages they receive, especially if they come via text or email. “I send formal letters, and they are more trusting in that regard.”
Reynolds described a recent scam where homeowners were approached by a local contractor who told them to file a claim with their insurance companies for a supposed hole in their roofs. The contractor requested that the claim check be sent directly to him, at which point he would repair the damage.
“What really raised red flags for me was the homeowners did not know how much their insurance would pay. It could have been $1,000 or $40,000. This was a mobile home. If you get $1,000 that won’t cover the materials. If you get a claim for $40,000 that is way more than you need.” Reynolds says she got involved before the claim was finalized.
The proliferation of social media presents additional risks, she explained. “Specifically in the communities where I live, we were seeing scams with messages saying, ‘If you send me $100, I can flip that and send you $1000. People knew details of the individuals being targeted.”
Reynolds reminded consumers to be mindful of what they post on their social media accounts. “What people don’t understand is the more information you put out the more scammers have to know you.”
In Mollinedo’s case, the caller knew intimate details – including the precise location where cash was kept in St. Anne’s church, located in Carthage, an hour northeast of Jackson. Pretending to be a priest with the diocese in Jackson, the individual claimed that a shipment of books was arriving at the church and that Mollinedo had to pay FedEx for the delivery.
Suspicious, Mollinada tried to push back, insisting that she had to check with superiors at the church. “They even called my cell phone, and I wanted to block them… they insisted and insisted.”
Mollinada joined the media roundtable to share her experience. It was the first time she’d recounted what happened to anyone besides her husband since falling victim last year.
“I felt shame,” she said. “But I also felt that I have to share this to help other people.”
If you or someone you know is the victim of a scam, report it to reportfraud.ftc.gov. The site is available in multiple languages. The FTC also has translators available for those with limited English proficiency.
