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The special inspector general for the Troubled Asset Relief Program said Wednesday that it worked with Google to suspend advertising for a slew of alleged online mortgage modification scams.
November 16
WASHINGTON — A federal watchdog Monday announced more efforts to terminate loan-modification scams that advertise with online search engines.
Following similar efforts to shut down scams advertising on Google, alleged scams were blocked through cooperation with Yahoo! and Bing, said the Special Inspector General for the Troubled Asset Relief Program. The special watchdog has targeted 125 alleged scams advertising on the three sites in the past week.
"Many homeowners who have fallen prey to these scams were enticed by Web banner ads and online search advertisements that promised, for a fee, to help lower mortgage payments," Christy Romero, deputy special inspector general for SIGTARP, said in a press release.
SIGTARP said such outfits have made the bogus claim that they can aid troubled homeowners through the Home Affordable Mortgage Program, a federal initiative that provides resources for lenders doing modifications.
The watchdog said Microsoft, which is affiliated with both Bing and Yahoo! Search, had ceased ads for alleged scams targeted by SIGTARP. The technology giant has suspended over 400 advertising relationships. Last week, Google had announced similar steps to suspend over 500 relationships with advertisers and agents tied to the alleged fraud schemes.
"The most common schemes included asking homeowners for an upfront fee and telling homeowners to stop paying their mortgage and to cease all contact with their lender," SIGTARP said in the press release. "The schemes included diverting mortgage payments to the scammers, transferring property deeds, and/or releasing sensitive personal financial information."
