    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (1999, Book II)]
    [November 6, 1999]
    [Pages 2003-2004]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Memorandum on Protecting Consumers From Fraud
    November 6, 1999

    Memorandum for the Attorney General

    Subject: Protecting Consumers from Fraud

        My Administration has taken unprecedented steps to safeguard
    consumers through vigorous law enforcement and prevention, but we must
    continue to do more. For example, we have announced new initiatives on
    Internet fraud and identity theft that call on law enforcement to step
    up their efforts on behalf of consumers. In addition, as part of my 21st
    Century Crime bill, I announced several new measures that will help
    protect elderly Americans from fraudulent activities. My crime bill will
    give the Department of Justice new authority to block and terminate
    telephone service to illegal telemarketers. In addition, it will give
    Federal prosecutors new tools to protect nursing home residents from
    abuse and neglect; to fight health care fraud; and to safeguard
    retirement and pension plans.
        Consumers are often unaware of where to receive assistance. A recent
    Postal Inspection Service survey found that 12 percent of respondents
    admitted to being a victim of fraud, but that 25 percent of all
    respondents did not know where to go for help if they were the victim of
    telemarketing or mail fraud.
        Today I announced the ``kNOw Fraud'' project, which is a public-
    private partnership of the United States Postal Service, the American
    Association of Retired Persons, the Council of Better Business Bureaus,
    the Department of Justice, the Federal Trade Commission (FTC), the
    National Association of Attorneys General, and the Securities and
    Exchange Commission (SEC). Even though violent crime rates are at record
    lows, illegal telemarketing fraud costs Americans an estimated $40
    billion every year. Project ``kNOw Fraud'' will help arm consumers with
    needed information so that they can protect themselves from
    telemarketing fraud. This initiative shows how Government can serve the
    public when working in close coordination to vigorously enforce consumer
    protection laws and keep the public informed about new scams and how to
    avoid them.
        Federal agencies such as the FTC and the SEC also have initiated
    important consumer

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    protection initiatives in order to thwart fraudulent activities. The
    FTC's Consumer Response Center takes consumer complaints and inputs them
    into a centralized database, the Consumer Sentinel, which is available
    for use by Federal, State, and local law enforcement agencies across the
    country and in Canada. Since its launch, Consumer Sentinel counts some
    214 partner organizations that have contributed an estimated 200,000
    complaints to the database, allowing law enforcement officials to
    ascertain whether a complaint is an isolated incident or part of a wider
    pattern of activity. Last year, the SEC's Office of Investor Education
    and Assistance handled more than 60,000 consumer complaints and
    inquiries, many of which dealt with telemarketing or online fraud. In
    addition, the SEC's website warns the public about fast-breaking scams
    and tells consumers how to investigate investment opportunities.
        Recognizing the need for closer coordination, earlier this year you
    directed the Council on White Collar Crime to coordinate and bolster the
    consumer protection activities of the Department of Justice, the FTC,
    the SEC, the Postal Inspection Service, and others. To further these
    efforts, I direct you to report back to me within 6 months with a plan
    (1) to better prevent consumer fraud activities and (2) improve
    coordination among the Federal Government's consumer protection
    activities to ensure that each agency's expertise is considered. In
    creating this plan, you should consult with all interested parties,
    including other Federal agencies and offices, including the FTC and SEC;
    State and local law enforcement; and consumer agencies and consumers.
    This plan also should build on efforts of the private sector, including
    nonprofits, to protect consumers.
        These steps, taken together, will help to protect consumers from
    fraud and also help to save consumers millions of dollars in the next
    millennium.

                                                          William J. Clinton

    Note: This memorandum was made available by the Office of the Press
    Secretary on November 5 but was embargoed for release until 10:06 a.m.
    on November 6. An original was not available for verification of the
    content of this memorandum.