THE NEW YORK STATE DEPARTMENT OF LABOR HOLDS WORKER PROTECTION SHIELD CEREMONY

 

The New York State Department of Labor (NYSDOL) today held its second Division of Worker Protection enforcement staff shield ceremony on January 30, 2024, at the New York State Police Academy in Albany. State Labor Commissioner Roberta Reardon administered the oath of office to 64 members of the Department’s Worker Protection Unit from across the state, who vowed to uphold and enforce state and federal labor law. These state workers are on the frontlines of New York State’s unending commitment to ensure that all working New Yorkers are safe and protected while on the job.

“These dedicated public servants are vital to the protection and safety and health of our workforce,” said New York State Department of Labor Commissioner Roberta Reardon. “These shields they possess are a symbol of their authority to enforce labor law and their commitment to protect the rights of anyone working in New York State.”

NYSDOL’s Division of Worker Protection is made up of 511 members, including 380 enforcement staff who are represented in all five of the unit’s divisions: Bureau of Public Work, Division of Compliance and Education, Division of Labor Standards, Division of Safety and Health, and the Office of Special Investigations.

Over the past decade, NYSDOL’s worker protection team has recovered and dispersed more than $376 million in stolen wages and identified over a million misclassified workers. In 2023 alone, NYSDOL’s Worker Protection investigations recovered $16 million in wages for over 16,000 workers. During investigations and inspections, NYSDOL works with many partners to ensure workers are safe and employers comply with the labor law, including New York State Police, the Department of Agriculture and Markets, local District Attorney’s Offices, the United States Department of Labor, and organized labor.

New York State Police Acting Superintendent Dominick L. Chiumento said, “I congratulate these individuals as they take this important oath. Today’s ceremony is a testament to the level of commitment these investigators have in protecting the hard-working citizens of New York. Each of these individuals honored today exemplifies what being a public servant is all about – dedication and selfless service.”

PEF President Wayne Spence said, “PEF welcomes these new officers to the ranks of the Department of Labor. They play a critical role in fulfilling one of our union’s essential missions -- protecting workers.  Whether they’re enforcing labor standards, exposing unemployment fraud, or investigating wage theft, these officers create an equitable employment landscape in New York, making sure everyone is subject to the same standards.”

As part of ongoing NYSDOL modernization, the Worker Protection Unit is unveiling updated safety equipment for their staff. The new and improved safety equipment includes:

• Type 2 Unvented Hardhats complete with safety straps
• Carbon monoxide mono and multimeter detectors
• 3000HS Heat Stress Meter monitors to detect extreme heat and cold
• Class 3 Breakaway Tri-color safety vests

The new hardhats are designed to protect the worker’s entire head, equipped with a chin strap to prevent the hardhat from falling off as opposed to traditional hardhats that are designed to protect only the top of a worker’s head. The new Class 3 tri-color vests have a breakaway feature to ensure NYSDOL employees can get out of the vest easily if the vest becomes entangled in equipment.

In addition to rolling out new and improved safety equipment, the Worker Protection Unit has the option to utilize drones during an inspection process when needed. This new addition will allow inspectors to access remote areas with ease.

Attorney General James Sues Citibank for Failing to Protect and Reimburse Victims of Electronic Fraud

 

Citi Maintains Poor Security and Anti-Fraud Protocols, Leading to Millions of Dollars in Losses for New York Account Holders

New York Attorney General Letitia James today sued Citibank, N.A. (Citi) for failing to protect and refusing to reimburse victims of fraud. The lawsuit alleges that Citi does not implement strong online protections to stop unauthorized account takeovers, misleads account holders about their rights after their accounts are hacked and funds are stolen, and illegally denies reimbursement to victims of fraud. The Office of the Attorney General (OAG) has found that the bank fails to respond to fraudulent activity appropriately and quickly. As a result of Citi’s lax security, New York customers have lost millions of dollars, and in some instances, their entire lifesavings, to scammers and hackers. Attorney General James is seeking to hold Citi accountable for failing to protect its customers and require the company to pay back defrauded New Yorkers with interest, pay penalties, and adopt enhanced anti-fraud defenses to prevent scammers from stealing consumers’ funds. 

“Banks are supposed to be the safest place to keep money, yet Citi’s negligence has allowed scammers to steal millions of dollars from hardworking people,” said Attorney General James. “Many New Yorkers rely on online banking to pay bills or save for big milestones, and if a bank cannot secure its customers’ accounts, they are failing in their most basic duty. There is no excuse for Citi’s failure to protect and prevent millions of dollars from being stolen from customers’ accounts and my office will not write off illegal behavior from big banks.”

Harm to New York Customers

Citi is one of the largest banks in the United States and maintains checking and savings accounts for millions of consumers nationwide, including through online and mobile banking. The lawsuit alleges that scammers are able to steal tens of thousands of dollars from Citi customers because the bank does not implement strong data security and anti-breach practices. As a result of Citi’s lax security protocols and procedures, ineffective monitoring systems, and failure to respond in real-time and properly investigate fraud claims, New Yorkers have lost millions to scammers. Customers have lost their life savings, their children’s college funds, or even money needed to support their day-to-day lives as a result of Citi’s illegal and deceptive acts and practices.

One New Yorker had $40,000 stolen from her retirement savings account. In October 2021, the customer received a text message that appeared to be from Citi instructing her to log onto a website or call her local branch. The customer clicked the link in the message but did not provide additional information as requested in the text message. Afterwards, the customer called her local branch to report the suspicious activity but was told not to worry about it. Three days later, the customer discovered that a scammer changed her banking password, enrolled in online wire transfers, transferred $70,000 from her savings to her checking account, and then electronically executed a $40,000 wire transfer, none of which was consistent with her past account activity. For weeks, the customer continued to contact the bank and submit affidavits, but in the end, she was told that her claim for fraud was denied.

Another New Yorker had $35,000 stolen from her account. She was reviewing her online account and found a message that her account had been suspended and was instructed to call a phone number. She called the number provided and a scammer told her that he would send her Citi codes to verify recent suspicious activity. The scammer then transferred all of the money in the customer’s three savings accounts into her checking account, changed her online passwords, and attempted a $35,000 wire transfer. Citi attempted to verify the wire transfer by calling the customer, but she was working and did not see the call at the time. Less than an hour later, the scammer attempted another $35,000 wire transfer, which Citi approved without ever having made direct contact with the customer. She lost nearly everything she had saved, and Citi refused to reimburse her. 

Insufficient Online Banking Security

The OAG found that Citi’s systems do not respond effectively to red flags, such as scammers who are using unrecognized devices, are accessing accounts from new locations, or are changing banking passwords or usernames. Additionally, Citi systems do not flag and stop efforts to transfer funds from multiple accounts into a single account and then send tens of thousands of dollars out the door in minutes. Citi also does not automatically initiate investigations or report fraudulent activity to police or law enforcement authorities when consumers first report it to Citi.

In addition, Citi fails to appropriately respond to notifications of fraud by its customers. When victims contact the bank to report fraud, Citi leaves them on lengthy telephone holds, allowing scammers to continue their fraud. Additionally, Citi does not implement sufficient measures to protect consumers from future unauthorized transactions until they visit a local branch. Citi representatives falsely told consumers that their accounts were secure and often promised that their money would be returned, although the bank did not take immediate steps to recover stolen funds. Citi also falsely tells consumers that they need to visit local branches and execute special affidavits detailing the scams that led to their losses — information Citi then used to blame consumers and deny their claims. 

Attorney General James alleges that because Citi makes wire transfers available to consumers online and through mobile banking apps, Citi must reimburse victims of fraud under the Electronic Fund Transfer Act (EFTA), similar to when banks reimburse victims of electronic credit or debit card fraud. Under EFTA, banks such as Citi are required to reimburse their customers for money in their accounts that is lost or stolen through unauthorized electronic payments. However, Citi illegally exploited a narrow exception in these laws to deny consumer claims for reimbursement, resulting in millions of dollars in losses for New York consumers. Through this lawsuit, Attorney General James is seeking to stop Citi’s deceptive practices and to collect restitution for victims who were denied reimbursement in the last six years, penalties, and disgorgement. 

Attorney General James encourages all consumers who have lost money to scammers who hacked into their online or mobile banking, whether the bank accounts were with Citi or any other bank, to report their experiences to OAG’s Consumer Frauds Bureau.

This lawsuit is the latest action by Attorney General James to hold big banks accountable. Last month, Attorney General James led a coalition of 20 attorneys general in submitting letters to the federal Office of the Comptroller of the Currency and Consumer Financial Protection Bureau urging both agencies to ensure that national banks cooperate with investigations being conducted by state attorneys general. In April 2022, Attorney General James led a multistate coalition of attorneys general in calling on the CEOs of JPMorgan Chase, Bank of America, U.S. Bank, and Wells Fargo to eliminate all overdraft fees on consumer bank accounts. 

Man Pleads Guilty to International Money Laundering Linked to Nigerian Romance Scams and Business Email Compromises

 

A Florida man pleaded guilty yesterday in the Southern District of Florida to money laundering for his role in funneling the proceeds of scams against American consumers and businesses to co-conspirators located in Nigeria.

Niselio Barros Garcia Jr., 50, of Kissimmee, was indicted by a grand jury on July 12, 2023. According to court documents, Garcia supplied bank accounts to his co-conspirators for the purpose of receiving proceeds from romance scams, business email compromises and other fraud schemes. After receiving the criminal proceeds, Garcia used a cryptocurrency exchange to conceal and transfer the funds in Bitcoin to co-conspirators in Nigeria. Garcia personally laundered over $2.3 million of criminal proceeds and earned hundreds of thousands of dollars in fees.

Business email compromises involve criminals hacking or spoofing business email accounts to initiate fraudulent money transfers. Romance scams involve fraudsters creating fake online personas to gain the trust and affection of victims, leading to financial exploitation. These schemes not only cause significant financial losses, but also deeply impact the lives of victims.

“This prosecution demonstrates our ongoing commitment to protecting the public from complex financial crimes,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “This case serves as a reminder of the sophisticated methods employed by criminals and the need for vigilance in the digital age. The Justice Department remains committed to aggressively pursuing individuals and groups involved in these kinds of illicit activities.”

Garcia is scheduled to be sentenced in the Southern District of Florida on April 23. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Four additional defendants have been charged in this scheme but remain at large.

The FBI Buffalo Field Office investigated the case.

Trial Attorneys Lauren Elfner and Matthew Robinson of the Civil Division’s Consumer Protection Branch are prosecuting the case.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Information about the Justice Department’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

CONSUMER ALERT: New York Department of State’s Division of Consumer Protection Reminds New York Taxpayers to Stay Vigilant Against Scammers During Tax Season

 

Tips To Help Protect New Yorkers From Scammers During Tax Season and Year-Round

Secretary Robert J. Rodriguez: “I urge all New Yorkers to stay vigilant while preparing their taxes this year, and follow our Division of Consumer Protection’s tips so you can outsmart these bad actors year round.”

Follow the New York Department of State on Facebook, Twitter and Instagram for “Tuesday’s Tips” – Practical Tips to Educate and Empower New York Consumers on a Variety of Topics

For this week’s “Tuesday’s Tips,” the New York Department of State’s Division of Consumer Protection (DCP) shares important tips to help New York taxpayers stop identity thieves and tax fraudsters from stealing their identity and hard-earned money. DCP urges New Yorkers to stay vigilant against scams targeting taxpayers not only during tax season, but also year-round.

“Fraudsters are always finding new ways to steal money and personal information from innocent people, and unfortunately, tax filings are full of personal information they want to get a hold of,” said New York State Secretary of State Robert J. Rodriguez. “I urge all New Yorkers to stay vigilant while preparing their taxes this year, and follow our Division of Consumer Protection’s tips so you can outsmart these bad actors year round.”

Acting Commissioner of Department of Taxation and Finance, Amanda Hiller said, “Always keep your guard up when it comes to your personal information. This is especially important during tax filing season. If you’re doing your own taxes, be especially careful when mailing or electronically filing your returns. If you’re using a tax service, know your rights under the state’s Bill of Rights for those who use a tax preparer.” 

While taxpayer scams can take on a variety of forms, the following tips include some examples of scams to look out for:

File early! File promptly using e-file and direct deposit of your tax refund. Filing your tax returns as soon as possible can reduce the likelihood that an identity thief will be able to claim a fraudulent tax refund using your stolen information. Filing electronically is also safer, faster and more efficient than sending paper returns through the mail.

Mail your tax returns from a secure location.  If mailing, mail directly from the post office. Never leave mail in your home mailbox for pickup by your letter carrier. Do not allow the tax preparer to mail your return. 

Avoid Phishing Scams and Government Impersonators. Scammers use email, text messages or calls to trick you into giving your personal or financial information. Remember, the IRS and NYS will typically first initiate contact with a taxpayer concerning a tax issue via regular mail. Government agencies do not request personal or financial information through email and will not ask for credit card numbers over the phone. Government agencies also don’t send tax refunds by email or text. For more tips, check out this recent press release from the Federal Trade Commission.

Beware of scam artists posing as tax preparers. If you choose to file your tax return using a tax preparer, take precautions to protect your refund and prevent identity theft by keeping the following tips in mind:

• Work only with tax preparers whom you have researched thoroughly. Avoid preparers who claim they can obtain larger refunds than other preparers can, as well as those who base their fee on a percentage of your refund.

• Make sure your tax preparer is willing to sign your return and provide their IRS Preparer Tax Identification Number (PTIN). The preparer must also provide you with a copy of the return.

• Look over your return carefully – you are legally responsible for what’s on it. Similarly, never sign a blank return.

For tips on choosing a tax preparer, check out these resources: 

• Internal Revenue Service’s Tips to Help Choose a Reputable Tax Preparer  and 
• NYS Department of Taxation and Finance’s Consumer Bill of Rights Regarding Tax Preparers

To report fraudulent activity by a tax preparer, contact the NYS Tax Department’s Office of Professional Responsibility at (518) 530-HELP (option #2) or file a tax preparer complaint online. 

About the New York State Department of State’s Division of Consumer Protection

The New York State Division of Consumer Protection provides resources and education materials to consumers on product safety, as well as voluntary mediation services between consumers and businesses. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumer-protection.

Follow the New York Department of State on Facebook, Twitter and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

For more consumer protection tips, follow the Division of Consumer Protection on Facebook and Twitter.

KRVC - Book Signing at 505BX Tomorrow Evening -- More Events Coming Up

 

Wednesday, January 31st at 7pm

"I read this in three days. What a find! Funny and yet soulful, reading about Sarah's adventures in the city." "A marvelous 'back to the future' ride through the '90's fashion, beauty and magazine advertising days." "A smart, well-observed, often hilarious first novel about a young woman trying to make it in the cut-throat 90’s New York City fashion world." CaraKagan.com Wednesday, February 7th  Book Club 1-3pm we will be discussing Remarkably Bright Creatures by Shelby Van Pelt ​NAMED A BEST BOOK OF SUMMER by: Chicago Tribune * The View * Southern Living * USA Today A charming, witty and compulsively readable exploration of friendship, reckoning, and hope that traces a widow's unlikely connection with a giant Pacific octopus​. We Recurring Events at 505BX Meditation, Karaoke, Book Club, Medicare Workshops Look forward to seeing you! 505BX.org