Officials Warn of Post-Attack Scams

Ventura County Dist. Atty. Michael Bradbury has issued a warning to consumers and charities to beware of price gouging and telemarketing fraud in the wake of the terrorist attacks in New York and near Washington.

Though the district attorney’s office has received no reports of price gouging or charity fraud since the Sept. 11 attacks, authorities remain concerned that people could be scammed or overcharged for goods during this national emergency.

“The reason why it is a concern is because it can have a ripple effect through the economy,” said Chief Deputy Dist. Atty. Michael Frawley, who oversees the fraud and welfare division.

“If it starts spreading from one industry to another, you could have a crisis,” Frawley said.

Such concerns prompted state lawmakers in 1994 to make it a crime for merchants or contractors to increase prices for vital goods and services by more than 10% in the days following a national disaster or emergency.

The law was drafted because of widespread price gouging after the 1994 Northridge earthquake.

Thousands of people were overcharged for water, medical supplies and other essential items. More than a dozen Los Angeles-area merchants and contractors were later prosecuted.

So far, prosecutors and industry researchers say the attacks on the World Trade Center and the Pentagon have not resulted in the same kind price gouging.

Gasoline Prices Slightly Lower

Camarillo-based Lundberg Survey, an independent market research company that tracks prices at 8,000 fuel dealers across the nation, reported the U.S. average price for self-serve regular gasoline rose 1 cent in the days after the attacks. Gas prices have since dropped by 2 cents.

With millions of dollars being donated to disaster relief efforts, federal and state authorities are warning consumers to be wary of scam artists posing as charity workers.

According to a report issued last week by the U.S. Justice Department, some consumers have reported receiving unsolicited e-mail messages urging them to donate money to the Red Cross or other victim-assistance funds.

“Some of these e-mails are being sent by people with a sincere desire to help,” the report said. “Others, however, have tried to persuade people to leave valuable personal or financial data, such as credit card numbers, at Internet Web sites that do not belong to legitimate charitable organizations.”

The report also warned that telemarketers operating fraudulent magazine subscription schemes may be falsely promising consumers that a portion of their money will be given to disaster recovery efforts.

In Ventura County, prosecutors recommend that people deal only with reputable organizations, such as the Red Cross, when donating to the relief effort.

“Use extreme caution,” Frawley said. “Really be aware of telemarketers. Legitimate organizations that are helping out in the disaster relief effort are not going to hire telemarketers to solicit money.”

Cash Donations Are Discouraged

The public also should be cautious about giving credit card numbers over the phone or on the Internet, and should avoid making cash donations, authorities said.

Ventura County consumers can report suspected price gouging or fraudulent solicitations to the district attorney’s office by contacting investigator Larry Cox at 289-1962.