Michele Tafoya wants to crackdown on fraud
Republican nominee Michele Tafoya sat down on FOX 9’s All Day to speak on what her goals would be as a U.S. Senator for Minnesota, one of them being cracking down on fraud.
RAMSEY CO., Minn. (FOX 9) – Scammers are targeting seniors in Ramsey County, and local authorities want the community to stay alert and take action.
Fraud targeting seniors on the rise in Ramsey County
What we know:
The Ramsey County Sheriff’s Office says since Aug. 1, more than $1.2 million has been stolen from just 17 confirmed cases involving seniors in the county. Victims’ ages range from 61 to 78, with individual losses from $700 to $800,000.
Crime Prevention Deputy Ouellette said, “Nobody gets your financial information unless you know exactly who they are—and you WANT to give it to them.”
Ouellette emphasized that scam artists are creative and…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.