DETROIT — No Nigerian prince has a business opportunity for you. The IRS never calls taxpayers to collect money on the spot. And it is illegal for financial institutions to charge you money in advance for a loan or credit card.

Federal officials met activists and ethnic media reporters in Detroit Thursday to spread awareness about identity theft and scams, which are more prevalent in immigrant communities.

New America Media helped organize the event, which took place at the USCIS Detroit Field Office.

Kathleen Benway, chief of staff to the Bureau of Consumer Protection, urged people to report scams to the Federal Trade Commission.

She said the FTC combats fraud by helping consumers recognize scams.

The Commission is also a civil law enforcement agency that goes after fraudulent businesses, shuts them down and seeks retribution for victims, Benway added.

“The biggest obstacle that we encounter in our efforts to protect consumers from being victims of fraud is that only a small percentage of scams are ever reported to us,” she said. “We can’t take actions against frauds unless we hear about them. It is very important that consumers file complaint with us.”

In 2015, the FTC addressed 1.2 million fraud cases totaling $765 million, according to Benway.

She said a survey by the commission showed that 11 percent of the U.S. population — 25.6 million people — have been victims of fraud.

“Immigrant populations and African Americans and Latinos are more likely to be victims of fraud than non-Hispanic Whites,” Benway said.

She added that those communities underreport scams, although they have a higher victimization rate.

Benway encouraged the media to talk about scams because people are more likely to report fraud if they think they can help others avoid being victims.

The FTC is providing resources in several languages, including information about immigration scams in Arabic.

Jon Miller Steiger, director of the East
Central Region of the FTC, which covers Michigan, also emphasized the problem of underreporting fraud.

He said 60 percent of the fraud cases reported in Michigan last year came from Dearborn, Detroit and Warren.

Steiger warned against “red flags” that consumers should look out for when contacted by unknown individuals asking for money.

He said scammers create an urgent scenario to deprive victims of the ability to assess the situation.

“They get you to believe you need to make a decision right away,” Steiger said. “The scammers know that if you take the time to think about it, you’re going to realize that it’s a scam… That’s not the way any legitimate organization works. The consumer should know to stop the conversation right there.”

The Internal Revenue Service does not demand payments over the phone.

“The IRS is not going to call someone and say they’re about to go to jail,” Steiger said. The IRS contacts people via mail.

Computer pop-ups asking for money are also scams, he added.

Steiger said if lending companies ask for money in order to issue a credit cards or give out a loan, they are likely fraudulent because it is illegal to request money in advance before lending.

A matching phone number is not a good enough proof that callers are who they say they are. Steiger said it is “very easy” for scammers to make up a number that shows on consumers’ caller ID.

He said scammers are using local phone numbers to get victims to pick up. “It’s illegal for them to do that, but as a technological matter, it is possible,” he said.

According to Steiger, people of different educational levels have fallen for scams. He cited his own father-in-law, a medical doctor, who was a victim of fraud. 

“The best way to spot fraud is to give consumers the information, so they can stop the fraud,” he said.

According to Steiger, the FTC tracks down scammers, freezes their assets and helps prosecute them, even if they are based outside the United States. 

To report fraud, call 1-877-382-4357 or go to ftc.gov/complaint. Other online resources include consumer.gov and identitytheft.gov.