COMPANIES SELLING SCAM INSURANCE COVERAGE.

U.S. regulators are cracking down on the growing number of companies that fraudulently sell so-called medical discount plans by telling consumers they work like health insurance and cover medical costs.

The Federal Trade Commission said on Wednesday it is working with 24 states to crack down on sellers of medical discount plans that market them as health insurance that covers doctors, hospitals and other services.

Such scams have increased in the wake of the health care reform law passed in March, said David Vladeck, director of the FTC's Bureau of Consumer Protection. The law aims to expand coverage to tens of millions of uninsured and requires people to have health coverage starting in 2014.


The Obama administration is trying to prevent companies from taking advantage of consumers in the wake of the health reform passage, including warning traditional insurers not to use the law as an opportunity to push through big rate increases. .

INTERNET FRAUD DOLLARS HAVE DOUBLED

The FBI says the amount of money swindled by Internet frauds doubled last year to about $560 million.

The FBI, in partnership with a private fraud-fighting group, reports that complaints of Internet scams rose 22 percent in 2009.

The most frequently reported scams were those that falsely used the FBI's name, accounting for 16 percent of the more than 300,000 complaints received last year. Authorities say another scam involved messages with a voice similar to President Barack Obama's, urging people to visit a Web site to claim a share of government stimulus cash. Visitors are charged a fee, and no money is ever received.