State And Federal Government Issue Warning About Y2k Scams

Attorney General Spitzer today joined the United States Secret Service and the banking industry in issuing an urgent consumer alert regarding Y2K scams.

Consumers are warned not to be victimized by people claiming the ability to protect a consumer's money in bank and credit card accounts from the Y2K bug.

"With all the hype regarding Y2K and its potential to affect many significant computer operations, it is no wonder consumers are easily persuaded by these scams," Spitzer said. "One of my most important responsibilities is to educate consumers about ways to protect themselves in the marketplace, especially in light of these particular scams."

Scam artists have been calling consumers either to persuade them to transfer their bank accounts to "Y2K Safe" accounts or allegedly to send them new magnetic strips for their credit cards. The goal of the scam is to obtain names, addresses, social security numbers, bank account numbers and other personal information from consumers which could be used to apply for credit in consumers' names or steal their bank accounts.

Arnold A. Cole, Special Agent-in-Charge of the United States Secret Service in Buffalo: "More and more, financial scam artists are finding ways to lure unsuspecting consumers. This is another example of just how innovative thieves can be in their attempts to gather personal information so they can steal someone's identity."

Senator Charles J. Fuschillo, Jr., chairman of the Senate Standing Committee on Consumer Protection: "I have recently served as chairman of a fact-finding Senate hearing relating to the concerns of consumers in regard to the Y2K issue. I have concluded that consumers should feel confident in the preparedness of both state and nationally chartered banks in ensuring the safety of their assets. There is, however, a growing concern of the potential for con-men and scam artists to prey on the public and look to defraud trusting consumers. In the coming months, I look forward to further educating the public with this joint State and federal consumer alert." Senator Fuschillo is also a member of the Senate Banks Committee.

Assemblywoman Audrey I. Pheffer: "Educating consumers on ways to guard themselves from scam artists is a significant part of my role as the chair of the Assembly Consumer Affairs and Protection Committee. Although I am troubled to hear of yet another example of consumer exploitation, I am quite pleased to join in the effort to alert consumers pro-actively."

Sanford Belden, President and CEO of the Community Bank, N.A. of Dewitt, New York: "By working with the Attorney General and the Secret Service, we have designed a consumer alert that can be distributed to millions of bank customers throughout New York. This service is consistent with the banking industry initiatives to prepare both the bank and our customers as we head into the next millennium." Belden is president of the Independent Bankers Association of New York State and a member of the New York Bankers Association.

Consumers are advised never to give out personal information to a person who contacts them through a telephone solicitation. It is always best to request that the phone solicitor mail information so that a consumer can research and verify the legitimacy of any claims made.

Individuals who believe that they have been contacted by someone involved in this scam or any consumer scam are encouraged to contact the Attorney General's consumer hotline at (800) 771-7755.