"DIRECT CONNECTION" IS MADE BY MPT TO SERVE ALL OF OUR DIVERSE COMMUNITIES AND IS MADE POSSIBLE BY THE GENEROUS SUPPORT OF OUR MEMBERS.

THANK YOU.

LIVE FROM MARYLAND PUBLIC TELEVISION, THIS IS "DIRECT CONNECTION" WITH JEFF SALKIN.

♪♪] >> Jeff: GOOD EVENING, WELCOME TO YOUR "DIRECT CONNECTION".

COMING UP TONIGHT, JUST HOW DO THE SCAMMERS TRICK PEOPLE INTO PARTING WITH THEIR MONEY?

WE'LL GET ADVICE ON AVOIDING ROMANCE SCAMS AND HOLIDAY SCAMS THAT IS AHEAD.

>>> FIRST TONIGHT TEMPERATURES ARE FALLING AND THAT MEANS HEATING BILLS ARE RISING.

JOINING US FOR UTILITY SHOPPING ADVICE IS DAVID LAPP, MARYLAND'S PEOPLE'S COUNSEL.

Mr. LAPP, THANK YOU FOR JOINING US.

>> THANK YOU FOR HAVING ME.

>> Jeff: YOU HAVE AN UNUSUAL JOB IN STATE GOVERNMENT WHERE YOU'RE BASICALLY ASSIGNED TO REPRESENT THE INTERESTS OF RATEPAYERS BEFORE THE PUBLIC SERVICE COMMISSION AND IT SOUNDS BUREAUCRATIC BUT CORRECT ME IF I'M WRONG, WHAT YOU DO CAN AFFECT THE ENERGY BILLS THAT ALL OF US ARE PAYING?

>> ABSOLUTELY.

THE WORK WE DO EVERYDAY HERE AFFECTS WHAT UTILITY CUSTOMERS ARE PAYING ON THEIR BILLS, ON THEIR GAS BILLS ON THEIR ELECTRIC BILLS AND IN SOME CASES ON WATER AND OTHER UTILITY BILLS.

EVEN TAXICABS.

BUT A LOT OF IT IS ELECTRIC AND GAS UTILITY CASES THAT WE WORK ON HERE AND WE DO OUR BEST TO MAKE SURE THOSE RATES REFLECT GOOD PERFORMANCE AT THE LOWEST POSSIBLE COST.

>> Jeff: YOUR DOCKET IS PRETTY FULL.

LET'S START WITH THE SOLICITATIONS THAT I'M SURE MOST OF OUR VIEWERS GET IN THE MAIL FROM TIME TO TIME ASKING THEM TO SWITCH ELECTRICITY OR THAT RALE GAS PROVIDERS.

HOW DOES THAT WORK?

>> WELL, IN MARYLAND, CUSTOMERS CAN CHOOSE THE PROVIDER OF THEIR ENERGY.

AND THAT'S EITHER THEIR GAS THERMS THAT IS THE GAS ITSELF OR THE KILOWATT-HOURS, THE ENERGY THAT ARE PROVIDED OVER THE ELECTRIC LINES.

SO THE UTILITY PROVIDES THE DELIVERY SERVICE AND THERE IS A CHARGE ON YOUR BILL FOR THE DELIVERY, EITHER GAS OR ELECTRIC.

AND THEN THERE IS A SEPARATE WHAT WE CALL A COMMODITY CHARGE AND THAT IS THE CHARGE FOR THE GAS OR THE ELECTRIC ENERGY ITSELF.

AND YOU CAN SHOP FOR THAT.

SO THEE RHETTICLY YOU CAN -- THEORETICALLY YOU CAN CHOOSE BETWEEN COMPETITIVE PROVIDERS OF THE COMMODITY COSTS.

IF YOU DON'T CHOOSE, YOU WILL BE DEFAULTED TO PURCHASE WHAT THE UTILITY PROVIDES UNDER A REGULATED RATE.

THOSE RATES ARE FOR ENERGY OR ELECTRIC ENERGY OR GAS THAT ARE PROCURED BY THE UTILITY IN THE REGULATED PROCESS.

THOSE RATES CHANGE.

BUT THEY ARE REGULATED SO THERE'S SOME PROTECTION THERE.

WHEREAS IF YOU GO OUT ON THE MARKET AND CHOOSE FROM A COMPETITIVE PROVIDER, YOU MIGHT BE ABLE TO GET A BETTER DEAL.

IN FACT THAT DOES HAPPEN SOMETIMES BUT THERE ARE ALSO TREMENDOUS RISKS ASSOCIATED WITH SHOPPING AND THERE'S UNSCRUPULOUS COMPANIES THAT WILL TRY TO GET YOU TO SIGN ON TO THEIR SERVICE AND YOU WILL FIND MAYBE NOT RIGHT AWAY BUT SOON THERE AFTER YOU WILL BE PAYING A LOT MORE THAN IF YOU WOULD HAVE JUST STUCK WITH THE DEFAULT SERVICE PROVIDER.

>> Jeff: WELL, TELL US MORE.

WHAT ARE SOME OF THOSE RISKS?

WHAT SHOULD CONSUMERS LOOK OUT FOR?

>> WELL, CONSUMERS SHOULD LOOK OUT FOR SORT OF AMBIGUOUS PROMISES ABOUT CLEAN ENERGY.

THEY SHOULD KNOW EXACTLY WHAT THAT MEANS AS FAR AS RENEWABLE ENERGY OR CLEAN ENERGY.

SOME CASES IT MIGHT NOT BE MORE THAN JUST COMPLYING WITH STATE LAW AS IT IS NOW.

SO YOU MIGHT NOT BE GETTING ANYTHING MUCH CLEANER THAN WHAT YOU GET FROM THE DEFAULT PROVIDER.

BUT THE BIGGER RISK IS THAT YOU WILL END UP PAYING A LOT MORE.

AND THAT COULD HAPPEN EITHER BECAUSE YOU JUST SIGN UP FOR A BAD DEAL OR IT COULD HAPPEN BECAUSE A LOT OF COMPANIES SELL OR MARKET TEASER RATES WHAT WE CALL TEASER RATES SO THEY WILL GET YOU IN THE DOOR AT A LOW COST BUT THAT RATE WILL ONLY LAST A MONTH OR TWO OR THREE.

AND THEN UNLESS YOU ARE PAYING ATTENTION, AND SOMETIMES THERE ARE TERMINATION FEES BUT UNLESS YOU ARE PAYING ATTENTION YOU WILL FIND AT THE NEXT MONTH, MONTH FOUR, THAT YOU'RE PAYING SOMETIMES SIGNIFICANTLY MORE THAN YOU WOULD.

SO THEY SORT OF GET YOU IN, GET YOU IN THE DOOR AND THEN IF YOU AREN'T PAYING ATTENTION ALL OF A SUDDEN YOU WILL FIND YOUR BILLS ARE EXTRAORDINARILY HIGH.

A LOT OF THE COMPANIES ARE I SHOULD SAY SOME OF THE COMPANIES BUT A FAIR NUMBER ARE ENGAGING IN WHAT WE THINK ARE DECEPTIVE MARKETING PRACTICES.

AND IN FACT, THE COMPETITION HAS FOUND -- COMMISSION HAS FOUND IN A NUMBER OF CASE THE MARKETS PRACTICES ARE DECEPTIVE.

THEY MIGHT PRETEND THEY ARE FROM THE UTILITY.

YOU WILL NOT HAVE A UTILITY COMING TO YOUR DOOR ASKING YOU TO SWITCH PROVIDERS.

BE AWARE OF ANYONE THAT PRETENDS THEY ARE FROM THE UTILITY OR FROM THE STATE, YOU SHOULD BE REALLY CAREFUL TO UNDERSTAND THE TERMS OF ANY CONTRACT THAT YOU SIGN WITH THE COMPETITIVE PROVIDER.

>> Jeff: DAVID, IS THERE ANYTHING HAPPENING BEFORE THE PUBLIC SERVICE COMMISSIONER BEFORE THE LEGISLATURE THAT COULD BETTER PROTECT CONSUMERS FROM SOME OF THE COMPLEXITIES HERE, MAYBE SOME OF THE ABUSIVE DOOR-TO-DOOR SALES PRACTICES, ESPECIALLY IN LOW INCOME COMMUNITIES THAT WE'VE READ ABOUT?

>> ABSOLUTELY.

THERE HAVE BEEN BILLS.

THERE WAS A BILL PASSED TWO SESSIONS AGO THAT IS INTENDED TO PROTECT LOW INCOME CUSTOMERS.

AND WE KNOW SOME OF THESE SUPPLIERS THEY TARGET LOW INCOME OR CUSTOMERS MAYBE BECAUSE OF THE NEIGHBORHOODS THAT THEY LIVE IN AND THERE IS A BILL NOW THERE IS A LAW NOW THAT PREVENTS A SUPPLIER FROM CHARGING A PERSON ON ENERGY ASSISTANCE FROM PAYING ANYMORE THAN THE UTILITY'S DEFAULT RATE.

SO THAT BILL IS IN EXISTENCE.

RIGHT NOW WE HAVE A BIG PROCEEDING THAT JUST OPENED UP BEFORE THE PUBLIC SERVICE COMMISSION THAT IS LOOKING AT THE WHOLE PACKAGE OF CONSUMER PROTECTIONS.

SO WE'VE FILED EXTENSIVE COMMENTSTH IN THAT PROVIDING AND WE'RE ASKING THE COMMISSION TO TAKE ON A NUMBER OF PROTECTIVE MEASURES FOR CONSUMERS.

SO FOR EXAMPLE, WE'RE ASKING THAT WHEN THERE ARE DOOR-TO-DOOR SALES THAT THERE BE WHAT WE CALL SORT OF A WAITING PERIOD.

SO WHEN YOU ARE AT YOUR DOOR, THEY CAN'T PRESSURE YOU TO SIGN ON RIGHT NOW.

SO THAT THERE IS A DELAY SO THE CUSTOMERS HAVE A CHANCE TO REALLY EVALUATE THAT.

WE'RE ASKING FOR STANDARDS FOR GREEN MARKETING.

SO THAT WE CAN BE SURE THAT THOSE PACKAGES ARE ACTUALLY GREEN.

WE'RE ASKING FOR MEASURES FOR EXAMPLE, TO HAVE THESE COMPANIES COME IN AND RELICENSE, BECAUSE RIGHT NOW THEY GET A LICENSE AND THAT LICENSE IS PERPETUAL.

WE THINK THEY SHOULD HAVE TO RENEW THAT LICENSE.

WE ALSO HAVE SOME COMPANIES THAT THEY HAVE A HOLDING COMPANY AND THEN THEY HAVE A BUNCH OF COMPANIES UNDER NEAT AFFILIATES THAT HOLD DIFFERENT LICENSES.

SO IF THEY GET CAUGHT VIOLATING CONSUMER PROTECTION LAWS WITH ONE COMPANY THEY MOVE THE CUSTOMERS TO ANOTHER COMPANY.

SO THERE'S VARIOUS REGULATORY LOOPHOLES THAT ARE EXPLOITED TO THE DETRIMENT OF CUSTOMERS.

AND WHAT IT ULTIMATELY MEANS IS THAT WE GET CUSTOMERS WHO SOMETIMES PEOPLE AREN'T PAYING CLOSE ATTENTION TO THEIR BILLS AND THEY WILL REALIZE SIX MONTHS LATER THEY HAVE BEEN PAYING MAYBE TWICE, THREE TIMES WHAT THEY WOULD HAVE PAID IF THEY WOULD NOT HAVE CHOSEN AN ELECTRICITY SUPPLIER.

WE HAVE A LOT OF -- WE RUN A CONSUMER HOTLINE HERE.

AND SO WE GET CONSUMERS WHO HAVE FACING THESE HIGH BILLS AND THEY CAN EVENTUALLY FIND THEMSELVES IN BIG TROUBLE BECAUSE OF EXTRAORDINARY BILLS THAT'S ARE COMPLETELY UNNECESSARY.

>> Jeff: LET'S SPEND A LITTLE TIME ON THE BIG PICTURE IN THE ENERGY WORLD, WHICH IS THE MOVE AWAY FROM BURNING FOSSIL-FUELS TO FIGHT CLIMATE CHANGE, BUT IT'S GOING TO CAUSE A MASSIVE CHANGE IN THE WAY ELECTRICITY IN PARTICULAR IS GENERATED AND DISTRIBUTED.

WE HAVE BIG COAL-FIRED POWER PLANTS THAT ARE DUE TO BE DECOMMISSIONED.

WE HAVE WIND POWER AND SOLAR ON-LINE BUT IT COMES ON-LINE FROM DIFFERENT PLACES.

CAN YOU TALK ABOUT THE MASSIVE CHANGE THAT THE INDUSTRY IS DIAGNOSE TO SEE AND -- IS GOING TO SEE AND HOW THAT AEXIFS YOUR WORK?

>> WELL, WE'RE ALREADY SEEING SOME MAJOR COAL PLANTS IN MARYLAND RETIRE.

WE HAVE BRANDON SHORES THAT ANNOUNCED IT'S 1200 WATT MEGA COAL PLANT NEAR BALTIMORE THAT ANNOUNCED ITS RETIREMENT EARLIER IN THE YEAR.

AND THAT RETIREMENT WHICH WE DON'T THINK SHOULD HAVE COME AS A SURPRISE BUT IT WAS TREATED AS A SURPRISE AND SO THERE'S A VERY HIGH COST TRANSMISSION BUILD THAT IS BEING PLANNED TO ADDRESS THE RETIREMENT OF THAT PLANT.

AND WE HAVE A LOT OF THE RENEWABLES WIND AND SOLAR ARE NOW MUCH CHEAPER.

THEY DON'T REQUIRE THE FUELS THE COAL AND THE GAS AS A FOSSIL-FUEL PLANT, BUT THEY ARE ALSO INTERMITTENT AND LOCATED IN DIFFERENT PLACES THAN THE BIG PLANTS.

THERE IS A LOT OF ADJUSTMENT THAT NEEDS TO HAPPEN WITH THE TRANSMISSION SYSTEM.

AND SO WE'RE LOOKING AT SOME SUBSTANTIAL COSTS ASSOCIATED WITH THAT.

OF COURSE, WE THINK SOME OF THOSE COSTS ARE BEING OVERBLOWN.

THE COST OF THE TRANSMISSION BUILD TO DEAL WITH THE PROBLEM OF THE BRANDON SHORES COAL PLANT RETIRING, IS PROJECTED TO BE $800 MILLION.

MUCH OF THAT FALLING ON MARYLAND CUSTOMERS.

UNFORTUNATELY THAT PROJECT WAS NOT PUT OUT TO A COMPETITIVE BID.

WE THINK IT SHOULD HAVE.

AND WE ALSO THINK THAT THERE SHOULD HAVE BEEN ALTERNATIVES THAN JUST A BIG TRANSMISSION FIX.

SO THEY ARE VERY COMPLICATED ISSUES AND THEY ARE VERY IMPORTANT.

WE'RE GOING TO HAVE TO MAKE OUR WAY SORT OF YOU KNOW FIGHTING AND DEALING WITH YOU KNOW THE DIFFERENT COST PROPOSALS AND THE DIFFERENT SOLUTIONS.

BUT ULTIMATELY, HOPEFULLY WE'RE GOING TO GET TO A BETTER PLACE IN TERMS OF HAVING A CLEANER ENERGY MIX YOU KNOW AT A LOW COST.

WE HAVE CUSTOMERS THAT WILL BE MIGRATING FROM THE GAS SYSTEM TO THE ELECTRIC SYSTEM.

AND THAT HAS DIFFERENT IMPLICATIONS FOR BOTH GAS RATES AND ELECTRIC RATES.

>> Jeff: PEOPLE MAY THINK WHY WOULD THE UTILITY COMPANY NOT PUT SOMETHING OUT TO BID?

WHY WOULD THEY WANT TO SPEND MORE MONEY THAN THEY HAVE TO?

BUT THE UTILITY WORLD THE REGULATED UTILITY WORLD IS A LITTLE BACKWARDS FROM A BUSINESS STANDPOINT BECAUSE POTENTIALLY THE MORE MONEY THEY SPEND, THE MORE MONEY THEY CAN MAKE IS THAT RIGHT?

>> THAT'S CORRECT.

AND THEY ARE REGULATED MONOPOLIES.

SO THAT'S WHY WE HAVE MY OFFICE AND THAT'S WHY WE HAVE BIG BOOK OF STATUTES RIGHT HERE IF YOU SEE IT THAT'S OUR REGULATIONS AND STATUTES THAT GOVERN PUBLIC UTILITIES.

AND IT'S BECAUSE THEY ARE MONOPOLIES.

AND THEY ARE GUARANTEED AN OPPORTUNITY TO EARN A RETURN ON THE CAPITAL INVESTMENTS THAT THEY MAKE.

SO WHEN THEY HAVE A CHOICE BETWEEN A LARGE CAPITAL INVESTMENT AND A SMALLER ONE OR BETWEEN MAKING AN INVESTMENT THEMSELVES OR PROCURING IT THROUGH COMPETITION, THEY WOULD RATHER DO IT THEMSELVES, BECAUSE THEN THEY GET THAT OPPORTUNITY TO EARN A RETURN ON THAT INVESTMENT.

AND THE GREATER THE INVESTMENT, THE MORE IT IS THE GREATER ULTIMATELY THEIR INVESTORS PROFIT OFF OF THAT.

THAT'S NOT ALL -- >> Jeff: WELL, I HAVE JUST A MINUTE.

AND ONLY TIME FOR MAYBE A COUPLE SENTENCES ON THIS.

BUT IS THERE ANYTHING COMING UP BEFORE THE LEGISLATURE THAT YOU WANT MARYLANDERS TO KNOW ABOUT?

>> WELL, WE HOPE THAT THERE IS A BILL TO ADDRESS SOME OF THE GAS INFRASTRUCTURE SPENDING.

WE THINK IT'S ACCELERATED SIGNIFICANTLY OVER THE PAST FEW YEARS.

AND WE THINK WE NEED LEGISLATION TO MAKE SURE THAT THE UTILITIES ARE CONSIDERING ALTERNATIVES TO WHAT THEY HAVE THE GAS UTILITIES HAVE PROGRAMS WHERE THEY ARE ESSENTIALLY BUILDING NEW SYSTEMS NEXT TO THEIR OLD SYSTEMS.

FOR LIKE BALTIMORE GAS AND ELECTRIC THAT PROGRAM IS GOING TO LAST ANOTHER 20 YEARS.

AND WE THINK THAT THAT'S A HIGH-RISK PROGRAM IN TERMS OF INVESTING BILLIONS OF DOLLARS IN PROJECTS THAT MAY BECOME UNECONOMIC BECAUSE ELECTRIC TECHNOLOGIES ARE MORE EFFICIENT.

AND GETTING BETTER ALL THE TIME.

>> Jeff: DAVID WE HAVE TO LEAVE IT THERE.

DAVID LAPP IS MARYLAND'S PEOPLE'S COUNSEL.

THANK YOU SO MUCH FOR THE TIME.

>> THANK YOU FOR HAVING ME.

APPRECIATE IT.

>> Jeff: AND JOINING US NOW FOR THE AARP CONSUMER ALERT IS KAREN MORGAN MEMBER OF THE EXECUTIVE COUNCIL OF AARP MARYLAND.

THANK YOU FOR BEING HERE.

>> I'M SO HAPPY TO BE HERE.

>> Jeff: WE WANT TO BRING PEOPLE UP TO SPEED ON A COUPLE OF DISAMS THAT -- SCAMS THAT TEND TO PROLIFERATE AT THIS TIME OF YEAR.

ONE IS ROMANCE SCAMS.

HOW DO THOSE START?

>> IT STARTS WITH YOU'RE ON-LINE THAT'S HOW PEOPLE ARE FINDING DATES, THERE'S NOTHING WRONG WITH THAT BUT SOMEONE REACHES OUT FROM THE ON-LINE ETHER AND SAYS OH, IT SEEMS LIKE WE HAVE A LOT IN COMMON AND YOU START HAVING A CONVERSATION BEFORE YOU KNOW IT, YOU'RE IN LOVE.

AND THEN THEY ARE ASKING YOU FOR MONEY.

AND YOU FEEL OBLIGATED TO GIVE IT TO THEM BECAUSE YOU ARE IN LOVE AND YOU'VE BEEN SCAMMED.

>> Jeff: THE WAY THEY TEND TO ASK IS THEY MAKE IT AN EMERGENCY?

>> YES.

>> Jeff: AND THE NEED IS NOW AND GET YOU TO SUSPEND THE DISBELIEF THAT WE ALL HAVE OVER ANY SORT OF ASK IN THE NORMAL COURSE OF BUSINESS.

>> RIGHT.

AND THEY COME UP WITH ALL KINDS OF STORIES.

I'M IN THE MILITARY I HAVE A TOP SECRET CLEARANCE SO I CAN'T TELL YOU WHAT I'M DOING I COULD PUT YOU IN DANGER BUT I REALLY NEED MONEY TO GET OUT OF THE COUNTRY.

AND SURE.

OR MY DAUGHTER, MY POOR DAUGHTER IS HAS TO UNDERGO EMERGENCY SURGERY OR MY POOR DOG HAS TO GO TO THE VET FOR EMERGENCY SURGERY.

I NEED YOUR HELP.

PLEASE.

AND WHEN SOMEBODY IS APPEALING TO YOUR HEART AND YOU'VE GIVEN THEM YOUR HEART IT'S HARD TO SAY NO.

>> Jeff: HOW DO THEY BUILD A RELATIONSHIP WHEN IT'S NOT SOMEBODY IN YOUR COMMUNITY, RIGHT, IT TENDS TO BE SOMEBODY ON THE OTHER SIDE OF THE COUNTRY.

>> IT TENDS TO BE BUT GUESS WHAT THESE PEOPLE ARE ALWAYS SMART.

THEY ARE ALWAYS GOOD LOOKING AND THEY ARE ALWAYS CHARMING WITHOUT FAIL.

SO WHEN THEY SEND YOU THAT PICTURE OF THEM LOOKING THAT WAY, YOU KNOW, OF COURSE, YOU ARE GOING TO BE INTRIGUED.

AND IT'S LIKE GOODNESS I'M 7 FIVE YEARS OLD BUT THIS REALLY HOT LOOKING PERSON REALLY WANTS TO DATE ME.

IT'S LIKE WELL IT COULD BE A STOCK PHOTO THEY'VE SENT TO 25,000 OTHER PEOPLE.

>> Jeff: YOU CAN FIND OUT IF IT IS A STOCK PHOTO BUT IT'S NOT EASILY DONE.

YOU HAVE TO RUN IT THROUGH AN IMAGE SEARCH.

>> YOU COULD GOOGLE AN IMAGE SEARCH OR YOU COULD DO A REVERSE LOOK UP.

BUT A LOT OF THESE CRIMINALS WHO USE THE SAME PHOTO TO RUN THE SAME DISAM BECAUSE THEY ARE RUNNING IT ON MULTIPLE PEOPLE AT THE SAME TIME.

>> Jeff: THE OTHER IMPORTANT POINT WITH THE ROMANCE SCAMS IS TO NEVER SEND PICTURES INTIMATE ANYTHING THAT THEY NO MATTER HOW NICELY SOMEBODY ASKS.

BECAUSE ONCE IT LEAVES YOUR COMPUTER.

>> EVEN IF IT'S IN YOUR COMPUTER WHEN IT LEAVES YOUR COMPUTER, YEAH.

AND I MEAN, THAT'S THE THING.

THEY WILL ASK YOU HAVE TO GET COMFORTABLE WITH SAYING NO.

IF YOU YOUR ONLY RELATIONSHIP WITH THIS PERSON IS ON-LINE, THAT'S A RED FLAG.

ASK TO MEET THEM IN-PERSON.

AND WHEN SOMETHING COMES UP BECAUSE WITH MOST OF THESE CRIMINALS IT DOES, THAT'S A RED FLAG.

SO GUARD YOUR HEART AND LOOK FOR THESE WARNING SIGNS TO PROTECT YOURSELF.

>> Jeff: YES.

IT IS A SHAME WE HAVE TO BE SO SUSPICIOUS BUT ESPECIALLY THIS TIME OF YEAR AROUND THE HOLIDAYS.

DELIVERY SCAMS PROLIFERATE.

EVERYBODY IS EXPECTING PACKAGES.

HOW DO THESE SCAMS WORK?

>> WELL, I CAN TELL YOU HOW IT WORKED WITH ME.

I GOT AN E-MAIL FROM THE POST OFFICE SAYING WE CAN'T DELIVER YOUR PACKAGE WE NEED YOU TO VERIFY YOUR ADDRESS.

AND I ALMOST DID, BECAUSE I WAS CAUGHT OFF GUARD UNTIL I REALIZED THAT I WASN'T EXPECTING A PACKAGE A, AND B, IF IT'S THE POST OFFICE DON'T KNOW ALREADY KNOW WHERE I LIVE?

I THINK THEY DO.

WHY DO I NEED TO TELL THEM WHERE I LIVE?

>> Jeff: HOW WOULD THE SCAMMERS HAVE MADE MONEY OFF OF THIS ONE?

>> WELL, THEY GET YOUR PERSONAL IDENTIFYING INFORMATION WHEN YOU SEND THAT TO THEM AND THEN THEY CAN USE IT.

THEY WILL HAVE -- THEY MAY HAVE A PACKAGE DELIVERED.

THERE ARE SCAMS WHERE PEOPLE WILL LIKE SEND PACKAGES TO PEOPLE UNSOLICITED PACKAGES TO PEOPLE IT'S CALLED BRUSHING, I THINK.

BECAUSE THEY WANT TO GENERATE FAVORABLE REVIEWS SO IF THEY CAN SAY THEY HAD X AMOUNT OF SALES THEN THEY CAN GENERATE THE FAKE REVIEWS AND THEN THAT WAY THEY CAN MAKE MONEY IN SOME SORT OF WAY.

>> Jeff: AND THEY CAN SETUP WEBSITES THAT LOOK FABULOUS AND OFFER GREAT BARGAINS ON EITHER PHYSICAL GOODS OR TRAVEL FOR EXAMPLE.

>> YES.

>> Jeff: HERE'S A TERRIFIC ALL EXPENSE PAID RESORT AND WE JUST NEED YOUR CREDIT CARD NUMBER.

>> WE JUST NEED YOUR CREDIT CARD NUMBER.

BUT IF IT'S TOO GOOD TO BE ASSUME IT'S TOO GOOD TO BE TRUE.

IT IS.

>> Jeff: THE RED FLAGS THERE ARE THAT THIS IS A PRICE YOU'RE NOT SEEING ANYWHERE ELSE?

>> RIGHT.

CHECK TO SEE IF THERE'S ANYTHING SIMILAR.

AND IF YOU ARE GETTING LIKE TWO WEEKS FOR LIKE $200, NO.

THAT'S NOT REAL.

AND GET COMFORTABLE WITH MISSING OUT ON THE BEST BARGAIN EVER.

BECAUSE THE BEST BARGAIN EVER COULD BRING YOU A WORLD OF HEARTACHE IF YOU SAY YES TO IT.

YOU HAVE TO GET COMFORTABLE WITH SAYING NO AND MISSING OUT ON THE BEST BARGAIN GET THE SECOND BEST BARGAIN.

>> Jeff: I THINK MY E-MAIL PROVIDER IS DOING A SOMEWHAT BETTER JOB OF FILTERING OUT THE SPAM AND THE PHISHING ATTEMPTS THESE DAYS AND ACTUALLY I SORT OF HOPE THAT I'VE NOT LET MY GUARD DOWN BECAUSE OF THAT.

ANYTHING THAT COMES IN YOU WANT TO LOOK AT IT CLOSELY AND MAKE SURE THE ADDRESS OF THE WEBSITE MATCHES WHAT IT'S SUPPOSED TO BE, THAT IT'S COMING FROM THE PLACE THAT IT APPEARS TO BE COMING FROM.

FREQUENTLY, I MEAN ONE OF THE THINGS THAT USED TO BE A GIVEAWAY AND MAYBE THEY'VE GOTTEN BETTER AT THIS, YOU WOULD FIND SPELLING MISTAKES OR SEE A WEB ADDRESS WHERE IT'S OFF BY A DIGIT.

>> RIGHT.

AND THAT STILL HAPPENS.

BUT WITH ARTIFICIAL INTELLIGENCE BEING USED BECOMING MORE A PART OF OUR JUST SORT OF COMMON ENVIRONMENT, IT'S GOING TO BECOME EASIER OVER TIME TO GET RID OF THE SPELLING ERRORS AND TO CREATE A WEBSITE THAT IS THE EXACT REPLICA.

AND SO YOU'RE NOT GOING TO BE ABLE TO TELL AS EASILY.

AND THE OTHER THING IS THAT IN THE OLD EN DAYS WE HAD OUR PERSONAL INTERACTIONS WE HAVE THE PERSONAL SENSE TO TELL US THIS PERSON MAY NOT BE ON THE UP AND UP.

ON AN ON-LINE ENVIRONMENT YOU DON'T HAVE ACCESS TO THAT.

THAT IS WHY YOU HAVE TO BE MORE CAREFUL AND YOU HAVE TO DO MORE ANALYSIS AND VERIFICATION.

>> Jeff: THE ARTIFICIAL INTELLIGENCE THING IS SUCH A BIG WORRY.

IT'S EARLY IT'S ONLY GOING TO GET BETTER AND ALREADY THEY CAN DO DEEP FAKE VIDEOS THAT LOOK AND SOUND AUTHENTIC AND MAY SOUND JUST LIKE A FAMILY MEMBER.

>> YEP.

AND PEOPLE WORRY ABOUT THAT WITH REGARD TO GRANDPARENTS SCAMS FOR EXAMPLE.

LITTLE SUZE SOUNDS LIKE SUEDSY, YOU ONLY NEED THREE SECONDS OF AAN AUDIO FILE TO GENERATE THAT PERSON'S VOICE SAYING ANYTHING THAT YOU WANT IT TO SAY.

BUT WHAT WE KEEP GOING BACK TO IS IN THE INFORMATION AGE, WE HAVE TO FIND INDEPENDENT TRUSTED SOURCES AND WE NEED TO VERIFY THAT WHAT WE THINK WE'RE HEARING IS WHAT WE'RE HEARING OR WHAT WE THINK WE'RE SEEING IS WHAT WE'RE SEEING.

WE HAVE TO TAKE MORE TIME TO VERIFY THE INFORMATION WE'RE GETTING NOT LESS.

THE COMPUTERS MAKE THINGS SLOWER THAT IS WHAT WE'RE TELLING PEOPLE.

>> Jeff: ONE OF THE THINGS YOU TELL PEOPLE TO LOOK OUT FOR IS GIFT CARDS NOT THAT THEY ARE BAD.

>> NO, THEY ARE NOT.

>> BUT THEY CAN BE USED FOR INAPPROPRIATE PURPOSES?

>> YES.

GIFT CARDS ARE FOR GIFTS.

GET A GIFT CARD FOR A GIFT BUT NO LEGITIMATE BUSINESS IS GOING TO ASK YOU TO PAY THEM WITH A GIFT CARD.

OR AND MOST LEGITIMATE BUSINESSES YOU WILL NOT BE PAYING BY WIRE TRANSFER OR THROUGH CRYPTO CURRENCY.

THOSE WHOEVER THERAPEUTIC ASKING YOU TO DO THOSE THINGS, JUST ASSUME IT IS A SCAM.

>> Jeff: WHY DO THE SCAMMERS LIKE GIFT CARDS?

>> BECAUSE THEY'RE ALMOST IMPOSSIBLE TO TRACE.

AND IT'S ALMOST THEY CAN GET THE MONEY.

THEY ARE EVEN FOUND SITUATIONS WHERE THEY JUST GRAB CARDS FROM AN UNSUPERVISED KIOSK AND GET THE NUMBERS THEY RUN SOFTWARE SO THEY KNOW WHAT THE NUMBERS ARE.

AND THEN THEY PUT THE CARDS BACK AND WHEN SOMEBODY PREFERS THAT CARD, THEY CAN EMPTY THE CARD OF VALUE IMMEDIATELY.

LIKE IN A FEW SECONDS.

SO AND THE PERSON WHO IS GETTING THE GIFT, IS NOT GOING TO BE ABLE TO GET THE GIFT AND THE PEOPLE WHO GAVE THE GIFT IS NOT GETTING THEIR MONEY BACK.

>> Jeff: YOU LIKE CREDIT CARDS.

>> BECAUSE YOU HAVE MORE RIGHTS WITH A CREDIT CARD.

THE CREDIT CARD COMPANIES MAKE IT THEIR BUSINESS TO GIVE YOU YOUR CREDIT BACK IF YOU'VE BEEN FRAUDULENTLY -- ATTACKED BY FRAUD.

BECAUSE IT'S THEIR MONEY UP FRONT.

WHEN YOU USE YOUR CREDIT CARD IT'S THAT COMPANY'S MONEY ON THE LINE IT'S NOT YOUR MONEY.

SO THEY ARE GOING TO MAKE IT THEIR BUSINESS TO GET THEIR MONEY BACK WITH RESOURCES EXCEED WHAT YOU AND I MIGHT HAVE.

>> Jeff: THE TIME OF YEAR WHEN WE WANT TO BE IN A HOLIDAY SPIRIT AND TRUSTING OF OUR FELLOW MAN, BUT A DEGREE OF SKEPTICISM ALWAYS A GOOD IDEA?

>> YES.

AND WHAT WE WOULD SAY, OF COURSE, WE WANT TO GIVE DURING THE HOLIDAY SEASON THAT IS ONLY HUMAN AND IT'S GREAT TO DO THAT.

BUT MAKE A PLAN.

IF YOU WANT TO GIVE TO CHARITIES, MAKE A PLAN TO THE CHARITIES YOU WANT TO GIVE BEFORE DECEMBER 24.

MAYBE JANUARY 2, YOU MIGHT WANT TO WORKOUT THAT PLAN AND SAY OKAY THESE ARE THE GROUPS I'M GIVING TO THIS YEAR PERIOD FULL STOP I WILL NOT BE DIVERTED BY AN IMPULSIVE UNSOLICITED PHONE CALL THAT SAYS MY RABBIT NEEDS MONEY CAN YOU GIVE ME SOME.

I'M NOT GOING TO BE DIVERTED TO THAT AND I WILL STICK TO MY PLAN.

>> Jeff: IF A CALLER IS ASKING FOR AN IMMEDIATE DONATION WE NEED IT RIGHT NOW, YOU SAY IS A RED FLAG.

>> A TOTAL RED FLAG THAT IS A SCAM.

PERIOD, FULL STOP.

HANG UP AND GET COMFORTABLE WITH THE WORD NO.

>> Jeff: GOOD ADVICE, KAREN MORGAN OF THE EXECUTIVE COUNCIL OF THE AARP MARYLAND.

>> THANK YOU AND HAVE A SAFE HOLIDAY, JEFF.

>> Jeff: AND THAT IS "DIRECT CONNECTION" FOR THIS WEEK.

WE'RE BACK FRY DATE WITH "STATE CIRCLE" AND THE LATEST ON MARYLAND POLITICS.

FOR ALL OF US AT MPT THANK YOU FOR WATCHING AND HAVE A GOOD NIGHT.

[♪♪]