FTC Stops Payment Processor Who Aided Cross-Border Telemarketing Fraud

GuidanceFederal Trade Commission (FTC)Identity Theft

At the request of the Federal Trade Commission, a federal court has shut down a payment processing operation that allegedly helped fraudulent telemarketers take millions of dollars from consumers' bank accounts.

According to the FTC's complaint, since at least January 2003 the operation has aided at least nine Canada-based, advance-fee credit card schemes that induce consumers to allow an electronic debit of several hundred dollars from their bank account in exchange for an unsecured credit card; but consumers never receive a credit card or, at best, they receive a "benefits package" containing relatively worthless items.

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