HOTLINE PUT IN PLACE, WARNINGS ISSUED OVER Y2K SCAMS.

Byline: Angela M. Lemire Staff Writer

A mutated form of the Y2K bug is on the loose, taking the form of scam artists who feed off people's fear of Y2K-related problems.

A toll-free hotline has been set up by the Los Angeles County Department of Consumer Affairs to receive complaints of suspected Y2K fraud. Depending on the jurisdiction of the complaints, the reports will be forwarded to the appropriate law enforcement agencies, officials said.

Santa Clarita Mayor Jo Anne Darcy issued a warning to the public Monday on the types of fraud and scam artists that have increased in frequency throughout the state as the last year of the millennium approaches.

``It is my hope that everyone will protect themselves against these scams by becoming aware and by reporting suspected fraud,'' she said.

Local city and sheriff's officials reported no incidents of Y2K scams in the Santa Clarita Valley.

``We're sending this (warning) out as a precaution,'' said Donna Nuzzi, who monitors Y2K issues for the city. She said city officials are concerned particularly for area senior citizens, the demographic group most often targeted by scam artists.

One fraudulent scheme that law enforcement and consumer watchdogs have identified is known as the Trojan Horse.

Contracted computer programmers, who are hired to fix Y2K bugs, reconfigure their customers' computers so they can later access the company's financial data undetected, providing them ample opportunities to steal from the company or vandalize its computer system, according to city officials.

Los Angeles City Attorney James Hahn and the Department of Consumer Affairs also put out alerts this week to the following Y2K-related scams that are under investigation:

Telemarketing calls encouraging victims to take their money out of banks to avoid potential Y2K computer problems and to make alternative investments such as gold, silver, rare stamps or risky stocks, that might or might not exist.

The offer or sale of bogus investments in nonexistent companies.

The offer or sale of bogus products to fix the Y2K bug.

Calls from scam artists representing themselves as credit card company representatives, who ask people to verify their credit card number to make sure it conforms to the issuing company's Y2K computer upgrades.

Calls from scam artists claiming to be bank officials requiring the bank customer to transfer their funds to a ``Y2K safe'' account over the phone.

Charging exorbitant prices for survival supplies and services such as bottled water, candles, communications devices and ``guarantees'' to fuel and food.

City officials urged residents with Y2K concerns to obtain a copy of its newly published brochure, ``Preparing the Way to Y2K,'' now available for free at City Hall and other municipal buildings.

The survival guide was prepared to allay fears, inform residents and dispel false rumors on the types of problems that should be expected at the turn of the millennium. For example, the brochure lists the types of appliances or utility services that could be disrupted, Y2K-significant dates and the types of emergency items homeowners should keep in storage.

Becoming informed and prepared for realistic Y2K problems also could help consumers avoid falling prey to scams, officials said.

Residents with Y2K fears or questions can contact city staff member Donna Nuzzi at 286-4093. To report suspect Y2K-related fraud, call the Los Angeles County Department of Consumer Affairs at (888) 355-4Y2K (4925).