Making a Difference in Our Community
Here’s a great example of how our Local Consumer Program is making a difference for our community:
A customer had repairs completed on their home’s plumbing system. The business installed an incorrect part, which led to further issues and required additional repairs. When the customer reported the problem, they were initially offered a discount on future services. Through our mediation efforts, we helped bridge the gap between the business's and the consumer's perspectives and interests, leading to full compensation for both the original work and the additional repair—totaling over $2,000!
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Scams Cost Seniors Billions
Last year, older Americans reported losing over $1.9 billion to fraud, but the FTC believes the real number could be much higher (possibly over $62 billion) because many scams go unreported. In its latest report to Congress, the FTC revealed that adults aged 60 and older typically lose more money per scam than younger people. For those 80 and older, the median loss was a staggering $1,450. Even more alarming, the number of seniors losing $100,000 or more has tripled since 2020.
Scammers are increasingly targeting older adults with tech support fraud, lottery or prize scams, and schemes where they impersonate family members. Investment scams caused the biggest financial hit in 2023, costing seniors $538 million, followed by business imposters and romance scams. Bank transfers and cryptocurrency were the most expensive payment methods, with Bitcoin ATMs being a favorite tool for fraudsters. Meanwhile, gift cards were the go-to payment method for tech support and impersonation scams.
The FTC’s ongoing work under the Stop Senior Scams Act highlights just how important it is to protect older adults and spread the word about these scams. For more information, visit ftc.gov/olderadults.
Equifax Fined $15M for Failing Consumers on Credit Disputes
The Consumer Financial Protection Bureau (CFPB) has imposed a $15 million penalty on Equifax, one of the largest consumer reporting agencies in the United States, for failing to properly investigate disputes regarding credit reports. According to the CFPB, Equifax's handling of consumer disputes was riddled with deficiencies, including ignoring submitted evidence and documents, which allowed previously corrected inaccuracies to resurface on credit reports. This negligence reportedly caused significant harm to consumers by keeping errors in their credit scores and reports, undermining confidence in the accuracy of Equifax's credit reporting processes. Additionally, Equifax was found to have issued confusing and contradictory communications to consumers about the resolution of their disputes, further eroding trust in them.
Equifax processes an estimated 765,000 disputes monthly, supplying credit data to lenders, employers, and landlords who rely on it for critical decisions. Under the Fair Credit Reporting Act, the company is required to thoroughly investigate disputes, notify the party who provided the disputed data, and report the results to consumers. However, the CFPB found that Equifax failed to meet these obligations, instead relying heavily on providers' responses without adequate scrutiny and disregarding evidence provided by consumers. The investigation also revealed that flaws in Equifax's systems allowed errors related to identity theft and previously disputed inaccuracies to reappear on reports. Software coding errors compounded the issue, leading to the dissemination of inaccurate credit scores for hundreds of thousands of consumers. As part of the CFPB's enforcement action, Equifax must comply with federal credit reporting laws and pay the $15 million fine, which will be directed to the CFPB's victims relief fund.
Spot the Scam: Red Flags in Your Inbox!
Spotting “red flags” in unsolicited texts or emails can help protect against scams. A simple phrase like “would you kindly” often signals a fraudulent message, especially if it appears to come from familiar U.S.-based companies like Amazon or Bank of America. Experts note that “kindly” is rarely used in common American English, suggesting the message may have originated overseas, from regions with British influence. These scams usually impersonate well-known companies, urging recipients to “kindly” provide sensitive information like Social Security numbers or make a payment.
Other common scam tactics include requesting unusual payment methods, such as gift cards or cryptocurrency. Since legitimate companies accept credit cards and checks, a demand for alternative forms of payment is a major warning sign. Scammers also create a sense of urgency to pressure victims into acting quickly, avoiding scrutiny or reconsideration. Additionally, they often insist on secrecy, discouraging victims from discussing the matter with family or friends. If you suspect a scam, end communication and verify the company’s contact information independently, avoiding links provided in unsolicited messages.
Protecting Grieving Spouses from Aggressive Medical Debt Collectors
Losing a loved one is incredibly difficult, and the burden of medical bills can make it even harder, especially for surviving spouses. Many find themselves facing overwhelming debt, complicated legal systems, and financial strain, with only a quarter of them still earning a paycheck. Unfortunately, debt collectors often show little sympathy, and the Consumer Financial Protection Bureau (CFPB) has received numerous complaints about aggressive collection tactics targeting surviving spouses for their deceased partner’s medical bills. One grieving spouse shared their experience of being harassed by debt collectors for bills totaling hundreds of dollars, despite being advised by an attorney not to pay. The harassment severely impacted their credit, adding further stress to an already difficult situation.
The CFPB acknowledges that the system is broken, filled with errors, and often leaves surviving spouses facing unfair debt collection practices. Many collectors try to collect on incorrect or inflated medical bills, or wrongfully claim that the surviving spouse is liable for the debt. The agency is committed to working with state regulators and law enforcement to protect surviving spouses from these predatory practices. Until these issues are resolved, the CFPB advises consumers to understand their rights, seek legal advice when needed, and submit complaints about unfair practices to the CFPB. Surviving spouses should also be aware that they are not always required to pay their late partner’s medical bills and can access resources to protect themselves from aggressive debt collectors.
Unveiling Shrinkflation: Fighting Back for Fair Consumer Deals
Consumer concerns over shrinkflation are finally gaining attention, having long been overshadowed by corporate profit growth outpacing inflation. Efforts by both the Federal Trade Commission (FTC) and certain members of Congress aim to outlaw shrinkflation and empower governmental bodies to take legal action against companies practicing it. U.S. Representatives Christopher Deluzio and Marie Gluesenkamp Pérez have introduced the Shrinkflation Prevention Act, proposing penalties for companies that reduce product sizes without adjusting prices.
Senator Elizabeth Warren highlights the discrepancy between increased profits and the use of inflation as a smokescreen to mask shrinkflation. Examples like fewer chips in a bag of Doritos or fewer sheets in a roll of toilet paper underscore how consumers pay the same for less. Despite bipartisan efforts, some Republicans oppose the proposed legislation, concerned about its impact on businesses.
Shrinkflation, a practice dating back to Medieval times, has evolved into a subtle strategy for companies to maintain or boost profits. Products across various categories, from cereal to toilet paper, have been affected. Kyle James suggests consumer hacks to mitigate the effects, such as buying locally produced ice cream or paying attention to price-per-ounce for orange juice. While shrinkflation presents challenges, savvy consumer strategies can help navigate its impact on everyday purchases.
Demystifying 401(k)s: From Confusion to Clarity in Personal Finance
Understanding the intricacies of personal finance can be daunting, and many individuals find themselves puzzled by the complexities of financial terminology and strategies. A recent survey of 2,000 Americans conducted by OnePoll for Financial Practice Week revealed surprising gaps in financial literacy. Shockingly, 43% of respondents admitted they had no understanding of what a 401(k) retirement plan entails, and a staggering 70% lacked confidence in their ability to tackle personal finance trivia. Procrastination emerged as a common hurdle, with 39% of Americans admitting to delaying healthy financial practices, driven largely by factors such as stress, perceived financial health, and forgetfulness.
Chief Financial Wellness Advisor Dr. Erika Rasure of Beyond Finance highlighted the widespread tendency to overlook financial health, emphasizing the importance of striking a balanced approach to improvement. Rasure suggested adopting healthy money habits, remaining attentive to financial matters, and making manageable adjustments to spending behaviors. This middle ground, she argued, is pivotal for sustainable financial wellness.
Delving deeper into the specifics, financial writer Cassidy Horton elucidated the mechanics of a 401(k) retirement plan. She emphasized its role as an employer-sponsored savings initiative with substantial tax advantages, delineating key differences between traditional and Roth 401(k) options. Contributions to a traditional 401(k) are pre-tax, reducing taxable income and facilitating retirement savings growth, whereas Roth 401(k)s involve upfront tax payments with tax-free distributions upon retirement. Horton's breakdown underscores the critical nuances that should inform individuals' decisions regarding retirement planning.
While 401(k) plans offer substantial benefits, potential risks loom, particularly in an age of increasing investment scams. ConsumerAffairs cautioned against phishing attacks, unauthorized fund distributions, and dubious investment schemes targeting retirement accounts. Investment fraud remains a pervasive threat, with the FBI's Internet Complaint Center reporting a significant rise in losses due to such scams. As individuals navigate the complexities of personal finance and retirement planning, vigilance against financial fraud becomes paramount to safeguarding long-term financial security.
Revving Towards Reality: Biden's EV Plan Adjusts Amidst Industry Pushback
The Biden administration has adjusted its approach towards phasing out gasoline-powered vehicles from American roads, acknowledging the slow uptake of electric vehicles (EVs) among consumers. This shift in stance comes with the announcement of revised standards, granting automakers extended timelines to meet emission targets. Under the new guidelines, car manufacturers are tasked with producing a fleet of vehicles aimed at halving greenhouse gas emissions by 2032, reflecting a more pragmatic approach compared to the previous proposal issued by the U.S. Environmental Protection Agency (EPA) a year prior.
The decision to recalibrate expectations stems largely from resistance encountered from the auto industry and its labor unions, traditionally aligned with the Democratic Party. With EVs constituting merely 6% of U.S. vehicle sales and showing signs of stagnation, automakers have responded by scaling back or postponing EV production ventures. Major players like Ford and GM have adjusted their strategies, citing substantial losses and logistical challenges. This hesitance towards EV adoption persists despite a noticeable decline in used EV prices, signaling a persistent gap between early adopters and mainstream consumer sentiment, a divide that continues to impede widespread EV adoption efforts.
Housing Affordability Crisis: Rental Profits and Ethics
In light of soaring rent prices and allegations of rent price fixing, many individuals are contemplating the viability of sleeping in their cars as a more feasible option. A recent investigation by Accountable.US, a watchdog organization, sheds light on the immense profits being garnered by rental companies amidst these escalating housing costs. Notably, Invitation Homes and AMH, identified as the largest and second-largest single-family rental companies respectively, collectively amassed a staggering $953.1 million in profits in 2023, representing a substantial 37% increase from the previous year, largely attributed to relentless rent hikes.
Equity Residential, ranked as the third largest publicly traded apartment owner, has also reported significant profit increments amid rent escalations. Despite facing legal battles over privacy infringements and late fees, the company continues to expand its property portfolio and boost profits, further exacerbating concerns surrounding housing affordability. Accountable.US defends its analysis by referencing the U.S. Labor Department’s latest Consumer Price Index (CPI) report, which underscores shelter costs as a primary contributor to inflation, with a notable 5.7% increase in the shelter index over the past year, significantly impacting the overall cost of living.
The report from Accountable.US highlights egregious practices by Invitation Homes, including tenant abuses dating back to the COVID-19 pandemic and subsequent civil penalties for violating tenant protection laws. Similarly, AMH faces scrutiny for its lobbying efforts against legislation aimed at addressing housing affordability, despite boasting substantial revenue increases. Equity Residential, while financially prosperous, grapples with allegations of participating in a price-fixing scheme, tarnishing its reputation and raising questions about the ethics of its business practices amidst a growing housing crisis. As the debate intensifies, calls for legislative action to rein in corporate greed and ensure housing affordability for all echo through both public discourse and political arenas.
CFPB Removes Medical Debt from Credit Scores
Medical bills often arise unexpectedly, presenting individuals with substantial expenses for necessary procedures or medications. Despite the imperative nature of these costs, worrying about their impact on credit scores should not be an added concern for consumers. Recognizing this, the Consumer Financial Protection Bureau (CFPB) collaborated with major credit bureaus like Equifax, Experian, and Transunion to exclude medical bills from credit score calculations. Patricia Kelmer, the health care campaigns director at the U.S. PIRG Education Fund, emphasizes the distinct nature of medical debt, advocating for its separation from credit reports to prevent undue financial strain on individuals already burdened by illness or injury.
Historically, medical debt posed significant challenges for consumers, lingering on credit reports for seven years and hampering their ability to secure loans or mortgages. The CFPB's 2022 report revealed that approximately 20% of Americans grappled with medical debt, amounting to nearly $90 billion in total. Rohit Chopra, the CFPB director at the time, underscored the incongruity between the predictive value of medical bills in credit decisions and the widespread inclusion of such debts in consumers' credit histories. The decision to remove medical bills from credit reports aimed to alleviate the financial pressures faced by individuals during times of illness or injury.
In collaboration with Equifax, Experian, and Transunion, the CFPB instituted measures to alleviate the impact of medical debt on credit scores. These efforts include the removal of paid medical bills from credit reports, exclusion of medical debts under $500, and a one-year delay in posting medical bills to provide consumers with sufficient time for payment. Building on these initiatives, the U.S. PIRG Education Fund and the CFPB continue to advocate for expanded protections against adverse credit reporting due to medical debt. Additionally, consumers are advised to vigilantly review their credit reports for inaccuracies and to scrutinize medical bills before payment, ensuring that they are not unjustly burdened by erroneous or inflated charges.
Deciphering the Housing Puzzle: Soaring Prices, Scarce Supply, and Mortgage Hikes
The current real estate landscape presents a paradox: while mortgage rates are on the rise again, home prices show no signs of declining. In fact, the national average price continues to ascend. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index revealed a 5.5% annual gain in December, up from the previous month's 5.0% rise. Despite YouTube "experts" predicting a collapse, evidence suggests otherwise.
Realtor.com's nationwide analysis unveils a critical factor driving the market dynamics: the U.S. requires an additional 7.2 million homes to meet existing demand. This imbalance between supply and demand sustains high prices, even amidst increasing mortgage rates. Danielle Hale, chief economist at Realtor.com, emphasizes the persistent housing shortage, with new construction failing to match the pace of population growth. While recent upticks in construction offer hope, bridging the gap remains a time-consuming endeavor.
The numbers tell a story of their own. In 2023, 1.7 million households formed, resulting in a total of 17.2 million new households between 2012 and 2023. Despite this, home construction has lagged behind, exacerbating the housing shortage. Moreover, the affordability crisis looms large, as new homes command higher prices than existing ones. While increased construction may ease rental markets, buying a new home demands robust finances and a stellar credit score. With only 43% of new homes in 2023 selling for less than $400,000, affordability remains a significant barrier for many prospective buyers.
Beware of Tax Season Scams: Protecting Yourself from Digital Deception
As April 15 approaches, taxpayers across the country are turning their attention to their impending tax obligations. Amidst this atmosphere, receiving an email purportedly offering a new tax-saving program from the IRS might catch the eye of many. However, such a reaction could lead to a costly mistake, as the link embedded in the email actually directs unsuspecting individuals to a gambling website. Unfortunately, this deception represents just one of the numerous tax-related scams infiltrating email inboxes as the tax deadline draws near.
In addition to the fraudulent tax-saving program scheme, another concerning scam has come to light. Victims are being informed via email that their 2023 tax payment was unsuccessful and are prompted to inspect tax receipts attached to the message. Clicking on these attachments, however, unwittingly installs malware onto the recipient's device. According to the ConsumerAffairs-Trend Micro Threat Alert, the research team identified 142 instances of such activity between February 14 and 20, underscoring the pervasive nature of these digital threats.
Jon Clay, the vice president of Threat Intelligence at Trend Micro, warns of the looming increase in tax-related scams as April 15 draws nearer. He emphasizes the importance of vigilance among consumers, advising against interacting with unsolicited messages containing tax information, whether through text or email. While security apps can provide a layer of protection, Clay stresses the necessity for individuals to exercise caution and skepticism when encountering such messages, given scammers' propensity to exploit routine events for their fraudulent activities. Alongside tax-related scams, phishing attempts impersonating reputable organizations like USAA, Apple, and T-Mobile are also on the rise, underscoring the need for individuals to verify the legitimacy of messages and refrain from responding to unsolicited communication.
Navigating the Perils of Remote Job Scams: How to Stay Safe in the Digital Frontier
Job scams have long been a concern for consumers, but their sophistication and potential risks are escalating. Among the myriad scams, those promising remote employment pose a particular threat, often serving as veils for identity theft or financial exploitation. To address the growing danger, FlexJobs has spotlighted prevalent remote job scams and provided guidance for job seekers to navigate the treacherous terrain safely.
In the realm of remote job scams, the landscape is evolving, demanding heightened vigilance from applicants. FlexJobs identifies ten common schemes, ranging from AI-generated positions to phishing attempts, underscoring the evolving tactics scammers employ. Spencer, an expert at ConsumerAffairs, stresses that the believability of scams directly correlates with their potency, citing the allure of sophisticated ploys and the ease with which individuals can fall prey to them.
Despite the prevalence of scams, remote job seekers can safeguard themselves with informed strategies. Spencer advises a discerning approach, emphasizing warning signs such as requests for sensitive information, unrealistic offers, and vague job descriptions. Encouraging diligence and skepticism, Spencer underscores the importance of utilizing reputable job search platforms, verifying legitimacy, and recognizing red flags. Ultimately, Spencer advocates for prudence, urging individuals to prioritize caution over expedience and empowering them to walk away from dubious offers, thus fortifying their defenses against scammers' evolving tactics.
Tech Repairability Scorecard: Empowering Consumers
Let's acknowledge the indispensable role of cell phones and computers in nearly every aspect of modern life, spanning work, education, communication, and entertainment. These personal devices have become essential purchases, raising concerns about affordability beyond their initial cost. Consumer advocates emphasize that high repair costs or intentional design barriers should not compel consumers to replace their vital electronics when they break.
A recent report from the U.S. PIRG Education Fund sheds light on how many tech companies prioritize planned obsolescence by making their products difficult to repair, thus nudging consumers towards expensive replacements. In response to this concern, PIRG has unveiled its annual "Failing the Fix" scorecard, which evaluates the repairability of popular cell phone and laptop brands. Factors such as the provision of free service manual information, ease of device repair, availability and affordability of replacement parts, all contribute to the assessment.
The organization underscores that companies embracing long-lasting and easily repairable designs stand to gain customer loyalty, while those pushing unnecessary replacements risk alienating their consumer base. By highlighting the top repairable options within each brand, the scorecard empowers consumers to make informed choices that align with their financial interests and environmental concerns. Lucas Gutterman, U.S. PIRG Education Fund’s Designed to Last campaign director, emphasizes the importance of consumer awareness regarding their Right to Repair.
Despite the availability of repair scorecards, major tech companies are slow to heed the message. The latest findings reveal that no tech company earned a grade higher than a B+, with persistent trends from previous years persisting into 2024. For instance, Google’s Chromebooks, though budget-friendly, remain less repairable compared to other manufacturers' laptops. Meanwhile, Apple continues to lag in laptop repairs, despite its loyal user base. In the cell phone realm, Motorola leads with a C+, while Apple and Google tie for second place, each earning a C. Samsung trails with a C-. Among laptop manufacturers, ASUS leads in repairability, followed by Acer, DELL, and Microsoft, with Apple ranking last.
Gutterman stresses the importance of repair scorecards in enabling consumers to make informed decisions and advocates against exorbitant prices for disposable technology. Long-term value lies in products designed for repair and longevity, emphasizing the need for companies to prioritize durability and lawmakers to enact Right to Repair legislation to safeguard consumers' ability to fix their possessions.
Navigating Recalls: Consumer Challenges and Advocacy in Refund Processes
The U.S. PIRG Education Fund recently concluded a consumer report assessing the refund process for recalled items, revealing a challenging and often lengthy ordeal for consumers seeking reimbursements. Teresa Murray, the Consumer Watchdog director and report author, emphasized the absence of streamlined solutions, signaling the need for concerted pressure on companies, the Consumer Product Safety Commission (CPSC), and Congress to simplify the process. Murray advocates for online forms, one-stop submissions, and cash refunds, decrying the current complexities.
In 2023, amidst 323 recalls, only 141 companies extended refunds for their recalled products, with nearly half presenting formidable obstacles to consumers. Six primary hurdles obstruct consumers seeking refunds, including mandatory product returns, cumbersome customer service protocols, and incomplete submission processes. The lack of transparent instructions and dysfunctional web links exacerbate the challenge, with some companies offering mere vouchers rather than cash refunds, further impeding consumer recourse.
Furthermore, disparities exist among retailers, with some exacerbating refund complexities, potentially driven by profit motives. Murray suggests that heightened difficulty dissuades consumers, bolstering retailers' profits, albeit at consumers' expense. Despite claims of fraud prevention, the refund process remains arduous, deterring even legitimate claims.
Murray offers practical advice to consumers navigating recall refunds, urging proactive measures such as completing warranty registrations, regularly monitoring recall lists, and reporting difficulties to the CPSC. She emphasizes consumer entitlement and the importance of advocacy, noting that change arises from consumer activism and vocal opposition to unfair practices.
Ultimately, the report underscores systemic flaws in the recall refund process and the imperative for consumer empowerment and regulatory reform. Simplified procedures, transparent communication, and responsive customer service are essential for safeguarding consumer rights and fostering trust in product safety mechanisms.
Embracing Biometric Authentication: Revolutionizing Digital Security
Goodbye passwords, hello biometrics. The era might have arrived when the security measures tech experts advocate, such as multi-factor authentication (MFA), take a backseat to biometric authentication. Instead of passwords or codes, a new offering from Mastercard will utilize your fingerprint, iris, or face to verify your identity. Undoubtedly, there will be some apprehension about this shift, considering the recent challenges biometric technology has faced.
Dennis Gamiello, an executive vice president leading Identity Products and Innovation at Mastercard, argues that it's time to move beyond passwords, including one-time passwords used in multi-factor authentication, and transition to biometric authentication. Gamiello contends that biometric authentication is secure, fast, and compatible with both devices and websites, promising to simplify and fortify online interactions for everyone.
For consumers, the benefits of biometric authentication are manifold. Biometrics are inherently more challenging to steal than passwords, eliminating the need to remember or type passwords. Moreover, biometric authentication functions universally across devices and geographical locations, promising a seamless experience. Gamiello suggests that merchants stand to gain from reduced fraud and improved customer satisfaction through the adoption of this technology.
Mastercard asserts that biometric authentication enhances security without adding friction to consumer transactions. With encrypted keys stored on personal devices, only biometric authentication can unlock them, streamlining the authentication process. For instance, Mastercard envisions scenarios where purchases are confirmed using facial recognition or fingerprints, enhancing security without inconveniencing consumers.
The widespread adoption of biometric authentication is on the horizon, with over 4 billion devices and the majority of web browsers supporting this technology. Major players in the industry, including Bank of America, Google, Microsoft, and Visa, have expressed support for biometric authentication, signaling a significant shift towards a password-free future. As biometric authentication becomes increasingly ubiquitous, it promises to revolutionize digital security and authentication practices across various sectors.
Cancer Care Crunch: Navigating Upfront Healthcare Payments
In the challenging scenario of being a cancer patient, the expectation of receiving necessary medical care with health insurance in hand can be shattered when confronted with demands for upfront payments. Marshall Allen, the author of "Never Pay the First Bill: And Other Ways to Fight the Health Care System and Win," highlights the alarming frequency of patients with health insurance being told to pay the full cost of procedures before receiving any treatment. This "your money or your life" situation, as described by Deb Ault, founder of Ault International Medical Management, involves varying upfront payment demands, ranging from routine visits to surgeries, putting patients under pressure to pay on the spot.
Allen argues that the American healthcare system faces a moral dilemma, exploiting people's sickness for profit and preventing access to care by demanding payment at the time of scheduled appointments. Despite its ethical concerns, the "pay up or go home" approach is not illegal in most cases. Doctors, facing economic challenges and rising insurance costs, seek upfront payments to maintain financial stability. The Academy of Healthcare Revenue indicates that providers requesting payment at the time of service have a higher chance of receiving it, emphasizing the financial pressures on medical practices.
While the Consumer Financial Protection Bureau (CFPB) currently has limitations in addressing this issue, Allen suggests ways for patients to protect themselves. These include understanding health insurance plans, checking if the plan prohibits upfront payments, consulting with health plan navigators, sharing complete insurance information when scheduling appointments, confirming financial details with the health plan in advance, and having a backup plan. In case of complications, contacting the HR department for employer-sponsored plans is recommended, while cautioning against accepting payment plans from physicians due to high interest rates.
In essence, the plight of cancer patients facing upfront payment demands unveils ethical concerns within the healthcare system, urging individuals to be proactive in safeguarding their interests and exploring alternative options when needed.
Unveiling the Surge: Sophisticated Financial Mobile Scams Set to Rise in 2024
Financial "mobile abuse" is anticipated to witness significant growth in 2024, particularly in the realm of financial service smishing, a form of phishing through text messages (SMS). At present, smishing ranks third among various cyber threats, trailing behind business/brand impersonation and delivery service scams. Cybersecurity firm Proofpoint has revealed new and sophisticated financial text message scams, highlighting the professionalism of these malicious activities.
Smishers employ tactics to capture the recipient's curiosity or concern. For instance, a seemingly legitimate company named FinancialUp sends innocuous-looking text messages, luring targets with messages like "We thought you might find this interesting." Clicking on the link, however, exposes the target to potential identity theft, unauthorized access to their bank account, or the download of malware onto their phone.
A novel approach involves scammers posing as protectors, claiming to safeguard targets from scams. By impersonating a financial institution like "USAA," scammers inform the target about unauthorized account access, urging them to click a link to block the supposed intruder. This reverse fake-out leads unsuspecting victims to compromise their personal information unwittingly.
The third variant exploits the financial struggles of individuals, targeting those facing inflation, job loss, or financial downturns. Operating under the guise of the "National Financial Hardship Loan Center," this smishing scam preys on vulnerable individuals seeking financial assistance during challenging times.
Another concerning scam involves a text claiming that the target's debit card or account has been blocked. The message provides a phone number for assistance, directing victims to a fake call center operated by scammers. This sophisticated scam uses spoofing techniques to replicate legitimate email addresses, adding to its deceptive nature.
Blair Cohen, founder and president of AuthenticID, expresses concerns about the rise of financial scams in 2024. Spoofing, where fraudsters impersonate identities to build trust, remains a top concern. Cohen notes that leveraging AI enables attackers to create more convincing and targeted scams, emphasizing the need for heightened skepticism when receiving unexpected messages.
In conclusion, the landscape of financial mobile abuse is evolving with increasingly sophisticated tactics, requiring individuals to exercise caution and awareness to mitigate the risks of falling victim to such scams in 2024.
Guarding Against the Surge: Navigating the Growing Threat of QR Code Scams in 2024
Before scanning your next QR code, consider who might be on the other end manipulating it to their advantage. With the rising number of consumers scanning QR codes, reaching almost 16 million, and the expanding areas of application such as menus and advertisements, hackers are finding opportunities to exploit them. ConsumerAffairs discovered that QR codes are remarkably easy to create using various free generators available online. These codes can be designed to execute actions like sending links, emails, making phone calls, or even initiating PayPal requests. However, this simplicity in creation also makes them susceptible to manipulation by hackers, posing a significant threat to the security of users' devices.
When individuals unknowingly scan malicious QR codes, the consequences can be severe. Hackers gain control of the device, leading to potential data breaches, malware installation, or redirection to fake payment portals where scammers exploit banking and credit card information. Retrieving money lost through payments made via scam QR codes proves to be nearly impossible. The FBI has already started receiving reports of QR code scams, and experts predict that 2024 will witness an increase in QR code phishing scams, taking advantage of their widespread use for payments and information sharing.
To protect against QR code hacks, security experts emphasize the importance of common sense. Users are advised not to trust QR codes from suspicious sources, similar to being cautious with emails or instant messages. While QR codes on items like restaurant menus are likely safe, individuals should remain vigilant in places where code scanning has become routine, such as restaurants and bars. Awareness of potential scams involving QR code swapping, where scammers replace legitimate codes with their own to gain access to credit card details, is crucial. Users should also be cautious of urgent or alarming messages prompting them to scan QR codes, as these are often indicators of scams. QR code scanners on smartphones provide a preview of the link, allowing users to verify its legitimacy before proceeding.
Additionally, the FBI advises users not to provide passwords or login information after scanning a QR code. If such requests occur, individuals are urged to halt their actions and refrain from scanning QR codes received in emails or text messages unless their legitimacy is confirmed by directly contacting the sender via phone call or email.
Winter Win: Lower Energy Prices and Smart Strategies Bring Relief to Consumers
Consumers can look forward to a more affordable winter season as both natural gas and heating oil prices are considerably lower compared to the previous year. The unexpected warmth last winter led to a decline in natural gas prices, and this trend has persisted. Despite the low prices, producers continue to increase supply, potentially leading to even lower costs. Electric utilities relying on natural gas may experience reduced electricity costs, or at least stability in pricing.
Lower oil prices also benefit consumers using oil for heating. Weaker demand in the U.S. and other developed nations contributes to the decline in heating oil futures. To make the most of this favorable trend, homeowners can implement energy-saving measures, such as installing smart thermostats that allow temperature adjustments based on occupancy. Additionally, sealing doors and windows with caulk and weatherstripping can enhance comfort and decrease costs by preventing air leaks.
For those seeking financial assistance with heating bills, utility providers offer support programs. Dominion Energy Virginia's EnergyShare program provides up to $600 in bill payment assistance, available from October 1 through May 31. Duke Energy Indiana is allocating over $425,000 through the Share the Light Fund to aid eligible customers facing difficulties with electric bills. These initiatives aim to help individuals, including seniors, military veterans, and people with disabilities, cope with heating expenses during the winter season.