Guarding Against Porch Pirates: Strategies to Protect Your Holiday Deliveries

Porch pirates are once again causing concerns as they potentially navigate through your neighborhood. With almost all Americans (94%) expecting package deliveries during this holiday season, the risk of theft is significant.

The gravity of the situation becomes apparent when half of these consumers acknowledge knowing someone who has fallen victim to porch pirates, fearing they might be targeted as well. This is especially alarming given that 44 million Americans have experienced porch piracy in the last three months.

The financial implications are substantial, with the average value of stolen packages amounting to $219. The issue is not confined to specific regions, although certain areas like North Dakota, Rhode Island, and Delaware have seen peculiar spikes, while the Southern regions exhibit comparatively lower risks. Surprisingly, the threat is equally pervasive west of the Rockies as in the wealthier Northeastern U.S.

Not only homeowners but also package delivery personnel are grappling with the challenges. The nation is grappling with a hit-and-run culture that many are not fully aware of. Since May, law enforcement officials have arrested over 600 individuals who targeted mail carriers not for their cash but for the universal keys that open communal mailboxes containing payment checks and gift cards.

Delivery drivers are also feeling the heat. A recent report from Lance Surety Bonds reveals that one in five delivery drivers has witnessed porch pirates in action. More than 15% admit to being trailed by porch pirates during their routes, and two in five have reported such incidents to their supervisors and awaiting consumers.

Concerned about the escalating threat? There are measures you can take to mitigate the risk of package theft. Respondents in the Lombardo Homes porch theft study believe that delivery companies need to do more. However, you, as a consumer, can also play a role. Consider the following precautions based on suggestions from experts:

1. Install security cameras, especially those overlooking your porch areas.

2. Choose a delivery time window if the option is available. Ensure you're at home to receive the package during that designated time.

3. Embrace smart technology by using a smart doorbell or security system to receive alerts about package deliveries.

4. Utilize tracking notifications to stay informed about delivery times.

5. Have packages delivered to your workplace or a secure location, such as an Amazon locker, if you won't be home.

The U.S. Postal Inspection Service (USPIS) provides additional recommendations:

1. Keep your mailbox empty to avoid leaving letters and packages unattended.

2. Inquire about overdue mail and contact the sender if you don't receive expected valuable mail.

3. Arrange for prompt pickup or use the "Hold for Pickup" option if you cannot be home to receive a package.

4. Consider requesting signature confirmation for important orders.

If you're an avid Amazon shopper, the company offers extensive protection measures, including delivery photos, map tracking, one-time passwords, and signature-required delivery. Alternatively, consider using Amazon's collection points, such as lockers and pickup locations, for a more secure delivery option. While it may not be as convenient as having packages delivered to your doorstep, it significantly reduces the risk of theft.

CFPB Proposes Stricter Oversight for Digital Payment Apps Amid Rising Consumer Complaints

The Consumer Financial Protection Bureau (CFPB) is addressing the growing concerns surrounding digital payment and wallet apps, such as Zelle and Venmo, by proposing increased supervision and regulatory oversight for companies in this sector. The proposed rule would extend CFPB supervisory examinations to nonbank financial companies handling more than five million transactions annually, placing them under similar rules as large banks and other regulated financial institutions. CFPB Director Rohit Chopra emphasized the critical role payment systems play in the economy and highlighted the need for appropriate oversight of large technology firms and nonbank payment companies to prevent regulatory arbitrage.

Complaints against digital payment applications and their operating companies have surged in recent years, with tens of thousands of grievances listed in the CFPB's complaint database. Users have expressed dissatisfaction with various issues, such as customer service problems, account freezes, and difficulty accessing funds. For example, Venmo users have reported frustration with account suspensions without clear reasons, extended holding periods for funds, and challenges in executing transactions. The proposed rule aims to create a level playing field for consumers in the financial services sector, challenging Big Tech companies' practices that have raised concerns about data harvesting and monetization of user relationships.

The CFPB's move follows its previous warnings and actions against Big Tech firms involved in consumer financial products and services. In 2021, the bureau raised concerns about potential data harvesting and monetization by these companies. A year ago, Big Tech firms were instructed to adhere to federal consumer financial protection laws after employing sophisticated behavioral targeting techniques for marketing financial products. The proposed rule represents the sixth in a series of CFPB initiatives, focusing on defining how "larger participants" in the consumer financial market conduct business. Previous rules covered non-bank entities in areas such as consumer reporting, debt collection, student loan servicing, international money transfers, and automobile financing.

Proposed Rule Aims to Safeguard Retirement Savings and Cut Costs

When individuals retire, they typically experience workplace celebrations, perhaps receive a gift from their employer, and proceed to transfer their 401(k) retirement funds into an individual retirement account (IRA).

However, this transition to an IRA often comes with substantial fees, prompting the U.S. Department of Labor to scrutinize the extent of these charges and their underlying purposes. In response, a proposed regulation seeks to impose the fiduciary standard on fund managers, financial advisors, brokers, and insurance agents, mandating that they act solely in the best interests of their clients.

Under current federal law, companies responsible for managing employee retirement accounts must adhere to the fiduciary standard in overseeing these accounts. Nevertheless, this same requirement does not extend to IRAs or rollovers.

The updated definition of an investment advice fiduciary would take effect when financial service providers offer investment advice for a fee to retirement plan participants, IRA holders, and other individuals. The Labor Department contends that this rule aims to rein in financial advisors who prioritize their personal interests over those of their clients.

According to department officials, self-serving advice and the imposition of "junk fees" can detrimentally impact the performance of retirees' accounts. They point to an evaluation of a single investment product, fixed index annuities, which suggests that conflicted advice could cost savers up to $5 billion annually for this product alone.

Acting Secretary of Labor Julie Su emphasized the necessity of this rule, stating, "For too many workers, the road to lifelong financial security is unnecessarily paved with uncertainty. This rule ensures that savers of all income levels can confidently collaborate with investment professionals to grow their nest egg and prepare for the retirement they deserve."

Additionally, the Labor Department is proposing adjustments to the list of related existing administrative prohibited transaction exemptions to safeguard investors' rights.

The government asserts that these changes have the potential to enhance retirement investors' financial growth by up to 1.2% annually. While this may not appear significant at first glance, over the course of a lifetime, it could increase the value of an account by as much as 20%.

Holiday Shoppers Face Rising Credit Card Balances as Interest Rates Climb

Shoppers are gearing up for holiday spending, but underneath the festive atmosphere, retailers may face a growing challenge as credit card balances rise. The Federal Reserve's recent interest rate hikes have made borrowing on credit cards more expensive, particularly for those who carry balances from month to month. This increase in borrowing costs is driven by a rise in credit card delinquencies, though they are still below levels seen during the Great Recession. Additionally, student loan payments have resumed, adding to Americans' debt burdens.

Retailers are uncertain about how these factors will impact their bottom line until January or February. Retailers have expressed concerns about credit card payments, with some citing higher delinquencies. Rising interest rates have also affected consumer debt, including student loans, auto loans, and mortgages. Despite these challenges, consumers have continued to spend, fueled by pent-up demand after the COVID-19 pandemic.

Average interest rates on U.S. credit cards have reached around 21%, up from 16% a year ago, and retailer-issued cards have an average interest rate of nearly 30%, a record high. While holiday forecasts suggest consumers are planning to spend more this season, there is a segment planning to spend less, with many remaining cautious about their budgets.

Some consumers may engage in riskier financial behavior during the holiday season, such as accumulating high credit card balances they can't afford or using buy now, pay later services that can come with fees. A growing number of Americans are considering these buy now, pay later options. Balances are becoming harder to pay down due to accumulating interest. Credit card delinquencies, rather than total debt, are a better measure of consumer financial health, and a robust labor market is key to consumer spending.

Despite potential challenges, a strong labor market gives reason for optimism about the holiday season. Some shoppers are taking precautions, like paying in cash or with debit cards, to stay within their budget and avoid accruing more credit card debt.

Recent U.S. Housing Market Trends: A Challenge for Buyers

In a glimmer of hope for prospective homebuyers, there has been a slight dip in home prices on a national scale. However, a sobering reality check emerges from a recent report by real estate brokerage Redfin, indicating that the income necessary to afford a median-priced home is on the rise, and it's doing so rapidly.

According to Redfin's findings, the typical U.S. home sold for approximately $420,000 in August, reflecting a 3% year-over-year increase and coming within $12,000 of the all-time high recorded in mid-2022. To comfortably afford a home at current mortgage rates, an annual income of $114,627 is required. This represents a 15% increase from just a year ago and a whopping 50% surge since the onset of the pandemic.

"In an ideal scenario for prospective homebuyers, rising mortgage rates would curb demand and lead to lower home prices, offsetting the impact of higher interest payments," explained Redfin Economics Research Lead, Chen Zhao. "However, that is not the current trend. While new listings are gradually increasing, housing inventory remains at record lows due to homeowners holding onto their low mortgage rates, effectively propping up prices."

Even though the sale of existing homes experienced the steepest decline in September, the most substantial drop in 13 years, this decline has had minimal impact on prices. A key reason for the decrease in sales is the scarcity of available homes.

This shortage of homes for sale can be attributed to two main factors. Firstly, since 2008, builders have significantly reduced production. Secondly, existing homeowners, benefiting from their 3% mortgages, are reluctant to put their properties on the market. Chen Zhao emphasizes that individuals aspiring to become homeowners, particularly first-time buyers, need to think creatively to navigate this challenging market.

"Consider exploring options such as condominiums or townhouses, which tend to be more affordable than single-family homes, or contemplate relocating to more budget-friendly regions or suburbs," Zhao suggested.

How did home prices escalate to this level? The explanation is straightforward. When mortgage rates stood at 3% in 2020 and 2021, many homebuyers could afford to pay more for a property. A budget of $325,000 suddenly became manageable at $400,000, and sellers raised their prices accordingly. Now, with mortgage rates having surged to 7%, there are fewer qualified buyers, but there are still enough to keep prices from plummeting.

Scams Rising on Social Media

Fraudsters are increasingly exploiting the vast expanse of social media platforms, as revealed by recent data from the FTC's Consumer Sentinel Network. Approximately one in four individuals who reported financial losses due to fraud in the past two years stated that their troubles originated on social media. The staggering amount of money lost through social media scams reached $2.7 billion, surpassing losses from website scams, app scams, phone calls, emails, or texts. The actual sum lost is likely much higher, given the underreporting of such cases.

Social media provides scammers with ample opportunities. With the advent of generative AI, they can swiftly create fake identities or compromise genuine-looking profiles to impersonate individuals and deceive their connections. Furthermore, scammers can tailor their deceptive strategies by leveraging the information users openly share on social media, such as age, interests, or past purchases.

One common scheme plaguing social media users involves fraudulent friend requests. Once accepted, scammers engage users in seemingly friendly conversations based on information from their profiles. Eventually, they may propose "good deals," investment opportunities, or even romance, only to later request money. To safeguard against such scams, Kira Krown, a Consumer Education Specialist at the FTC, recommends adjusting privacy settings to limit the visibility of personal information and posts.

Facebook Marketplace, a popular platform for buying and selling, is not immune to scams. Scammers are increasingly drawn to the platform, with one prevalent issue being fake merchandise. Users may encounter counterfeit high-end brands like Gucci or Prada, which later prove to be knock-offs. To identify potential scams on Facebook Marketplace, consumers should watch for suspiciously low prices on high-end items, sellers who avoid in-person meetings, and any attempts to move conversations outside of Facebook Messenger. Additional red flags include buyers sending prepaid shipping labels, overpayment, requests for personal phone numbers, missing profile photos, or requests for payment with gift cards. As a rule of thumb, if something appears too good to be true, it likely is a scam, warns Patrick Kopins, COO of OvalEdge.

Credit Repair Services

COVID-19 brought about a silver lining for consumers as it curtailed our credit card spending, but as we emerged from the pandemic, we embarked on a debt accumulation spree, pushing the balances on credit cards and other revolving credit products well beyond the $1 trillion mark.

When consumers find themselves in credit trouble, they tend to follow one of two paths. Some opt to hunker down and meticulously chip away at their financial woes, piece by piece. Others, however, choose the alternative route of enlisting the services of a credit repair company to shoulder the burden and restore financial normalcy.

According to the Consumer Financial Protection Bureau (CFPB), consumers who opt for the credit repair route should be fully aware of their rights. The foremost right in this context is the entitlement to witness tangible results before parting with any payment. The CFPB strongly advises consumers to resist the allure of promises made by credit repair services, regardless of the desperation they might be feeling. The agency underscores that individuals seeking to improve their credit situations can often find themselves ensnared by unscrupulous companies that sell the dream of credit repair, only to charge exorbitant fees without delivering on their commitments. Federal law, as delineated by the CFPB, mandates that companies offering credit repair services via telemarketing must meet specific prerequisites before they can charge fees. These prerequisites entail achieving the promised results within the specified timeframe and furnishing a consumer report displaying these results, generated more than six months after the claimed achievements. Only after these conditions are met can the company legitimately charge fees or accept payments.

Credit repair, however, is not always the necessary path to financial recovery. Ashley Eneriz, Senior Finance Writer at ConsumerAffairs, suggests that although many credit repair companies offer free credit counseling, they frequently advocate enrollment in a paid debt management program as the route to enhancing credit and financial stability. Eneriz acknowledges the potential benefits of such programs but cautions that they can be time-consuming, spanning 12 to 36 months and accruing monthly fees. The key consideration lies in assessing whether the cost of credit repair justifies the associated benefits. For many individuals, self-directed credit repair through increased payments towards revolving credit debts, such as credit cards, proves effective. Establishing a history of punctual payments and diligently addressing debt emerges as the primary method to elevate one's credit score, although it is not a swift remedy. Significant improvements may take over a year to materialize for some individuals.

Avoid Home Improvement Traps!

This year has proven to be a boon for consumers looking to embark on home improvement projects such as closet upgrades, solar panel installations, and kitchen and bathroom renovations. However, amid this thriving market, there always exist individuals seeking to exploit the demand for their own gain.

One such story of transition comes from Dmitry Lipinskiy, who, after seven years in the roofing contracting business, chose to divest his company and champion consumer rights. Lipinskiy noted, "Finding a trustworthy contractor can be a daunting task, but it doesn't have to be this way."

Now serving as a consumer advocate, Lipinskiy generously shares insights to help homeowners safeguard themselves against contractors who make grand promises only to leave them hanging. From finding reliable building materials and contractors through diligent research and scrutiny of independent reviews, to understanding the intricacies of working with insurance companies after a weather-related disaster, Lipinskiy imparts invaluable wisdom. Additionally, he emphasizes the importance of exercising caution with warranties that seem too good to be true and offers sound advice on dispute resolution strategies, including avoiding hefty upfront deposits.

In essence, Lipinskiy's journey from contractor to consumer champion brings to light the need for homeowners to be informed, vigilant, and discerning in their dealings with contractors. By following his guidance and heeding his cautionary tales, consumers can navigate the realm of home improvements with greater confidence and security.

The FBI's IC3 division has reported a troubling surge in tech support scams, with a particular focus on exploiting older adults and manipulating them into sending cash through shipping services. This peculiar yet effective con involves scammers instructing victims to conceal cash within magazines and dispatch it through shipping companies. The scam typically begins with scammers initiating contact through various means like phone calls, texts, emails, or pop-up windows, masquerading as legitimate tech support representatives. They inform victims of alleged fraudulent activities or promise refunds for subscription services.

Subsequent communications from the scammers contain a phone number for the victim to call for assistance. Once the victim dials the provided number, the scammer convinces them of an impending refund but insists that the money can only be transferred after gaining access to the victim's computer and bank account. The scammers then manipulate the victim into downloading software that grants remote access. Once connected, the victim is persuaded to log into their bank account. At this stage, the scammer claims to have inadvertently transferred a larger sum than intended and pressures the victim to return the excess amount to prevent the scammer from losing their job.

The final step in this elaborate scheme involves instructing the victim to send the money in cash, concealed within magazines or similar disguises, to a specified name and address via a shipping company. In recent cases, scammers have directed victims to ship packages containing money to pharmacies and retail businesses equipped to accept shipments from courier services, further complicating the fraud.

Avoid Flooded Used Cars!

This summer has witnessed extreme weather events, including a major hurricane in Florida and devastating floods in Missouri, Kentucky, and Tennessee. These natural disasters have left numerous vehicles submerged, raising concerns for potential buyers in the used car market.

Used cars have already been in short supply, making it more tempting than ever for consumers to consider vehicles with questionable histories. However, it's crucial to note that selling a flood-damaged car without disclosing its history is illegal in most states, and purchasing one can lead to a slew of issues.

Carfax reports an alarming statistic – over 450,000 flood-damaged vehicles remain on the roads. These vehicles often come with mechanical defects such as corroded metal and engine problems. Additionally, they are prone to electrical short circuits, computer malfunctions, rusted brakes and rotors, and airbag system failures.

To avoid making a costly mistake, potential buyers should be vigilant for red flags when examining used cars. Start by scrutinizing the vehicle's title, checking for recent transfers from flood-prone states and the presence of the word "salvage." Inspect the interior for fading, mildew, or musty odors, and look for signs of mud, rust, or water damage in the trunk and under the seats. Ensure all systems, including lights, air conditioning, wipers, radio, turn signals, and heater, are in working order.

It's advisable to obtain a Carfax Vehicle History Report for a comprehensive overview of the vehicle's past and potential flood damage. Additionally, the National Insurance Crime Bureau (NICB) offers a free database that lists flood damage and related information for insured vehicles. While many states require flood-damaged vehicles to be "branded" with disclosure attached to the title, some states lack such branding, leading to the possibility of "washing" titles. Furthermore, a history of multiple recent registrations in different states should serve as another warning sign for buyers.

Vivint Settles with the FTC

The Federal Trade Commission (FTC) is notifying over 9,000 individuals about potential compensation related to a settlement with Vivint Smart Home, Inc. This settlement arises from allegations that the home security company unlawfully utilized credit reports to facilitate customers' access to financing for its smart home monitoring and security products. The FTC asserted that Vivint violated the Fair Credit Reporting Act (FCRA) by manipulating credit reports to qualify prospective customers for financing.

The FTC's complaint stated that Vivint's sales representatives engaged in deceptive practices when customers were denied initial credit checks. In such cases, the company sometimes gained financing approval for unqualified customers by either utilizing the credit history of an individual with a similar name or enlisting a friend or relative as a cosigner without proper authorization. In situations where customers who qualified through these illicit methods defaulted on their loans, innocent third parties were pursued by debt collectors, leading to potential harm to their credit. This situation resulted in consumer complaints of identity theft to the FTC.

In the settlement, Vivint agreed to pay $20 million in total, encompassing civil penalties and consumer restitution, with more than $4.7 million earmarked for the claims process. Additionally, the settlement mandated Vivint to establish a Customer Service Task Force dedicated to aiding victims of the fraudulent scheme. Affected consumers, predominantly reached by mail, with around 1,400 through email, have until October 9, 2023, to file claims. Further details can be found at www.ftc.gov/Vivint, and inquiries about the claims process can be directed to the claims administrator at admin@vivintrefund.com or 1-833-472-1996. The FTC, through interactive dashboards, provides detailed refund data by state, having returned over $392 million to consumers nationwide in 2022. The FTC's mission centers on safeguarding consumers and promoting fair competition. For additional consumer information, visit consumer.ftc.gov, and report fraudulent activities at ReportFraud.ftc.gov. Stay updated on FTC news and alerts by following their social media channels and reading consumer alerts and business insights.

Scammers Impersonate Lawyers

Scammers have taken their fraudulent tactics to new heights, posing as a legitimate law firm and sending out letters to individuals, offering an unethical scheme involving someone else's life insurance policy. These letters, supposedly from a "lawyer" based in Canada, target various communities, including Latino, Korean, and Vietnamese populations.

The scam involves a claim of an unclaimed life insurance policy with millions of dollars in value, previously owned by a deceased client. Exploiting shared last names and nationalities, the scammers suggest adding recipients' names to the policy for a share of the funds, to be divided among them, the supposed law firm, and a charity. Responding to these letters, however, leads to demands for personal information and potentially money.

If you encounter such a letter, experts recommend not responding and refraining from sharing personal information. Sung W. Kim, an FTC attorney, advises against sending money through any means, including cash, gift cards, wire transfers, or cryptocurrency. Raising awareness among friends and reporting the scam to the FTC at ReportFraud.ftc.gov are crucial steps to thwart these fraudulent activities.

Travel Scams Surging Amid Passengers

With more people traveling during spring and summer, travel scams, especially targeting airline passengers, have surged. In one scheme, fake emails promise a $500 Delta Airlines travel credit, requiring recipients to click a link to claim it. Clicking could lead to malware or sharing personal information on a bogus site.

United Airlines is also impersonated in a similar scheme, offering free round-trip tickets through deceptive emails with clickable links.

Jon Clay from Trend Micro warns that scammers are exploiting the summer travel surge, advising caution and verification of such offers with airlines directly.

Be cautious of "too good to be true" offers, like free tickets, which have been used by scammers. Some have bought Google ads, posing as airline help desks, tricking callers into scams.

If you've called airline numbers from Google ads, monitor your credit card statement for potential fraudulent charges. Stay vigilant against these evolving travel scams to protect your personal and financial information.

IRS and Energy Efficient Homes

The IRS has outlined guidelines for home energy audits to support taxpayers seeking the Energy Efficient Home Improvement Credit. This credit aligns with the surge in interest in energy-efficient upgrades, coupled with existing energy-related tax deductions, spurred by the Inflation Reduction Act of 2022.

Various clean energy credits were introduced by this Act, each having specific criteria for eligibility and claiming. Notably, the Energy Efficient Home Improvement Credit is available for those who invest in energy-efficient home improvements.

Taxpayers can claim a non-refundable credit of up to $150, representing 30% of the cost, for home energy audits priced at $500 or below. However, it's important to understand that this credit lowers your tax liability but doesn't create a refund.

The credit value is calculated based on expenditures in three categories:

1. Qualified energy efficiency improvements made within the tax year.

2. Expenditures on residential energy property.

3. Costs associated with home energy audits.

The IRS insists that an audit must pinpoint the most effective energy efficiency enhancements for the residence. The audit report should provide estimates of energy and cost savings for each suggested improvement.

Moreover, a written audit report is mandatory, and as of 2024, it's required that the auditor conducting the home energy audit is certified by a program endorsed by the Department of Energy. This certification should be indicated in the audit report.

Use Those Gift Cards!

Gift cards are popular gifts, but many recipients don't end up using them, resulting in about $3 billion, with an average value of $116 per person, going unused. Although some might believe gift cards have no expiration, the 2009 federal Credit Card Accountability Responsibility and Disclosure (CARD) Act allows them to expire after five years, although some states offer even longer expiration periods.

Unfortunately, some businesses attempt to exploit gift card holders by making it difficult for them to use the cards before their legal expiration date, leading to frustration and wasted money for consumers. However, consumers do have certain rights when it comes to gift cards. The law prohibits gift cards from expiring before five years from the purchase date, and if the card's expiration date is earlier, the remaining balance can be transferred to a replacement card at no cost.

There are some fees associated with gift cards, such as inactivity fees if the card remains unused for a year. Additionally, there might be fees for purchasing the card or replacing a lost or stolen one. To protect consumers, gift cards must clearly disclose their expiration date and any associated fees.

Travel Scams? Check.

A concerning new addition to the growing list of travel scams involves major U.S. airlines being targeted on Google in a clever and deceptive manner. Scammers are capitalizing on the frustration caused by flight delays and cancellations, knowing that travelers often seek help online. They are purchasing ads on Google that pose as the airlines' official help desks, but in reality, the phone numbers listed in these ads lead unsuspecting callers to scammers located in obscure locations, such as India.

The tactics used by these scammers are becoming increasingly sophisticated. One traveler shared their harrowing experience after attempting to call Delta Airlines using a phone number found on Google. The call led to a person with a strong Indian accent who claimed to be from Delta customer service. The situation escalated into a cat-and-mouse chase, with the scammer requesting a credit card payment five times the original ticket price. Other major airlines like American Airlines, Southwest Airlines, Air France, Qantas, ITA Airways, and Turkish Airlines have also fallen victim to this impersonation scam.

Google is aware of the problem and claims not to tolerate such misleading activity. However, the extent of their effectiveness in combating these scams remains uncertain. Phishing tactics, typosquatting, and other deceptive techniques have taken over several top Google ad positions, with only some being flagged by antivirus software.

Until Google manages to eradicate this issue entirely, consumers are advised to take precautions on their own. One option suggested by the FBI is to use an adblocker to prevent rogue ads from showing up in Google searches. Additionally, security analysts recommend verifying website URLs, using bookmarks for frequently visited sites, avoiding clicking on "Ad"/"Sponsored" results in search, employing antivirus software alongside adblockers, and being cautious of suspicious prompts claiming virus detection on browsers. Google also provides a video guide on how to spot, verify, and report fake ads. Staying vigilant and implementing these measures can help safeguard against falling victim to search scams.

FTC and All 50 States Fighting Robocalls Together

The Federal Trade Commission (FTC) has taken significant action against scammy robocalls through their Operation Stop Scam Calls initiative, working with law enforcement authorities from all 50 states. This crackdown has targeted operations responsible for billions of illegal telemarketing calls and the sale of over 700 million telemarketing leads to U.S. consumers.

Robokiller, a company involved in stopping robocalls, commends the FTC's efforts, stating that they have successfully shut down well-known robocalls and their facilitators. Notably, the infamous car warranty robocalls, once the top robocall, now account for less than 2% of such calls. The FTC's actions against student loan robocalls have also reduced harmful scams targeting vulnerable populations.

The FTC has focused on companies that use deceptive tactics to obtain consumers' consent for marketing solicitations. Some companies engaged in quasi-consent farming by obtaining consumers' agreement through a single website click, subjecting them to multiple marketing offers, including robocalls. Others deceived consumers into sharing their contact information in exchange for local job listings, which were later used to justify robocalls.

Four out of five charged companies have settled with the FTC, paying substantial fines. Consequently, consumers may no longer receive calls from these companies, and if they do, the pitches will be more transparent. For instance, Vision Solar and Solar Xchange are now prohibited from making false claims about their association with utilities or government agencies and from engaging in abusive telemarketing practices.

While the FTC's efforts are commendable, consumers must remain vigilant due to the persistent nature of robocall-related companies and the increasing prevalence of robo texts. The FTC and Robokiller recommend the following actions to protect against scams:

1. Know your rights: Robocalls trying to sell products or services without your written permission are illegal.

2. Spot illegal robocall scams: Be wary of robocalls claiming to be from government agencies, tech support, or auto warranty companies, as they are likely scams.

3. Hang up on phone scams: If a caller demands payment for a prize or threatens arrest, hang up immediately and avoid pressing any numbers or calling back.

4. Report scams and illegal robocalls: Help prevent scams by reporting them to ReportFraud.ftc.gov and illegal robocalls to DoNotCall.gov.

5. Avoid pressing "1": Refrain from pressing "1" during calls, as it could be perceived as consent for more telemarketing calls by robo companies.

By remaining informed and proactive, consumers can contribute to the ongoing fight against robocall scams.

Tips for Moving

During this time of year, when many people are moving, there has been a significant increase in moving scams. According to the Better Business Bureau, reports of moving scams have risen by 63% from 2020 to 2021, with a total of 376 reports in 2021 alone. To protect yourself from falling victim to these scams, the Office of Consumer Affairs and Business Regulation offers the following helpful tips:

1. Initiate your change of address through the official USPS website and handle it personally. You can visit www.usps.com/move to begin the process.

2. Ensure that the moving company you choose is properly licensed by checking with the Federal Motor Carrier Safety Administration (FMCSA). You can verify their licenses at www.protectyourmove.gov or by calling (202) 366-9805. It's also advisable to verify their insurance information by calling (866) 637-0635 at the FMCSA.

3. Avoid accepting quotes that are provided without an on-site inspection of your house. Requesting an in-person assessment will give you a more accurate cost estimate for the move.

4. Refrain from signing incomplete or blank contracts. Take note of the pick-up and drop-off dates, as well as any additional fees that may apply.

5. When paying for moving services, it's recommended to use a credit card. In the unfortunate event of a scam, disputing the charge with your credit card company will be easier.

By following these precautions, you can minimize the risk of falling victim to moving scams and ensure a smoother and safer relocation process.

Third-Party Sellers

Online shopping has become an essential part of many of our lives. When shopping at big retailers like Walmart and Amazon, you may have noticed that some products are sold by third-party sellers and not the company themselves. In other words, if you buy these products, they are sold by another retailer and may not have the same terms of sales and return policy. Third-party sellers also have varying levels of credibility. While this can be convenient and offers the consumer more options, some precautions should be taken to protect yourself.

You should always confirm who the seller is before making a purchase. The product details and description should indicate where the item is coming from. If the seller is not the big retailer and simply using their platform, investigate the smaller company via product reviews and websites like the Better Business Bureau. Deals that seem too good to be true usually are!

Finally, make sure you understand the return policy for this company. It’s also a good idea to check if the big retailer has any policies regarding third parties.

Interested in Auto Financing?

Learn more about sources of auto financing

While some consumers are able to pay cash for their new vehicle, most buyers use financing. Understanding your choices and the loan process will help you save money. Banks, credit unions, and nonbank auto finance companies You can get pre-approved for your auto loan before selecting a vehicle. Check out banks, credit unions, and other lenders. You usually don’t have to have an account with the bank or other lenders to get a pre-approval. Generally, you do need to be or become a member of a credit union in order to apply for an auto loan. The pre-approval will give you a loan quote with an interest rate, loan length, and maximum loan amount based on factors such as your creditworthiness, the terms of the loan, and the type of vehicle you have in mind. The rate you are offered may be negotiable. This quote allows you to compare different lenders’ offers against each other, giving you a stronger hand in negotiations. Lenders and dealers are not required to offer the best interest rates available. You may be able to save a lot of money over the life of the loan by negotiating the interest rate. Dealer-arranged financing With dealer-arranged financing, you obtain financing from a lender through a dealership. The dealer collects information from you and forwards that information to one or more prospective auto lenders. If the lender(s) agrees to finance your loan, they may authorize or quote a rate to the dealer, referred to as the “buy rate.” The interest rate that you negotiate with the dealer may be higher than the “buy rate” because it may include an amount that compensates the dealer for handling the financing. Dealers may have the discretion to charge you more than the buy rate they receive from a lender, so you may be able to negotiate the interest rate the dealer quotes to you. Ask or negotiate for a loan with better terms. After the auto purchase is finalized, a dealer-arranged loan may then be sold to a lender who has already indicated a willingness to extend the credit. That lender may own your loan and collect the monthly payments, or transfer those responsibilities and rights to other companies.

Buy Here Pay Here dealership financing

Some types of dealerships finance auto loans “in-house” to borrowers with no credit or poor credit. At Buy Here Pay Here dealerships, you might see signs with messages like “No Credit, No Problem!” The interest rate on these loans can be higher. You may want to consider if the cost of the loan outweighs the benefit of buying the vehicle.

Even if you have poor or no credit, it may be worth seeing if there is a bank, credit union, other lenders, or another dealer that is willing to make a loan to you.

A lender cannot discourage or deny your application for credit, or offer different prices or other terms and conditions of the loan, based on your race, color, religion, national origin, sex, marital status, age, receipt of public assistance income, or good faith exercise of any right under the Consumer Credit Protection Act.