Trump’s Attempt to Nullify State AI Regulations Is a Disaster for Consumers

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829 

Washington, DC – Yesterday, in an Executive Order, President Trump directed his administration to block state-enacted safeguards around artificial intelligence, including the restriction of federal funding to states the White House targets and the creation of a “Litigation Task Force” to challenge states’ consumer protections. NCL wholly opposes these efforts as unregulated AI products create significant risks to the public, from serious issues regarding safety and mental health, to unauthorized uses of consumer data and creative works.    

“States have been leading consumer protection efforts on AI since the federal government has been asleep at the wheel,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “This executive order shows that the administration’s failure to protect the public isn’t an accident—it’s an intentional policy decision. To make matters worse, they are now seeking to punish state leaders that did the right thing and stepped up for their constituents.”  

Congress has repeatedly rejected the White House’s attempt to override state laws governing AI, including a 99-1 vote in the Senate that kept state protections in place. A coalition of 36 bipartisan state attorneys general opposed a federal ban on state AI protections just two weeks ago. 

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About the National Consumers League (NCL)      

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.   

‘Tis the Season for Scammers: National Consumers League Unveils the Top 10 Holiday Shopping Scams of 2025

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From fake deals to phony deliveries, consumers urged to stay alert as holiday fraud surges  

Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829  

Washington, DC — As holiday shopping kicks into high gear, the National Consumers League (NCL) is warning Americans to beware of the wave of scams designed to cash in on the season of giving. “Scammers know the holidays are the perfect storm—consumers are busy and spending more online looking for deals,” said John Breyault, NCL’s Vice President of Telecommunications and Fraud Policy. “They count on you being distracted. Before you click that link or grab that ‘flash deal,’ take a breath and verify it’s real. A few extra seconds of skepticism can save you hundreds—or even thousands—of dollars.”  

Whether it’s counterfeit products on social media, bogus “too good to be true” deals, or texts about fake delivery problems, scammers are working overtime to take your hard-earned dollars.  

To help shoppers protect themselves, NCL has identified 10 Holiday Shopping Scams to watch out for and offers advice to navigate tricky situations.   

Top 10 Holiday Shopping Scams to watch     

  • Fake “Too-Good-To-Be-True” Deals – Deep discounts on luxury brands or electronics that never arrive.  
  • Counterfeit Products on Marketplaces – Fraudsters posing as legitimate sellers with knockoff goods.  
  • Gift Card Grifts – Used or drained cards, or scammers demanding payment via gift card.  
  • Phishing Emails and Texts – Fake order confirmations and delivery alerts that steal personal info.  
  • Charity Scams – Imposters preying on goodwill with fake donation appeals.  
  • Package Delivery Scams – Texts claiming “delivery issues” that link to phony tracking sites.  
  • Subscription Traps – “Free trials” that quietly charge recurring fees.  
  • Social Media Shopping Scams – Fraudulent ads or influencer posts for non-existent stores.  
  • Travel Deal Cons – Bogus vacation rentals or airfare “specials” that disappear after payment.  
  • Buy Now, Pay Later Pitfalls – Fake financing offers or hidden fee traps.  

NCL’s Tips to Stay Scam-Free This Season:  

  • Stick to trusted retailers and check URLs before purchasing.  
  • Don’t click on links in unsolicited texts or emails—go directly to the retailer’s site.  
  • Pay by credit card for better fraud protection.  
  • Verify charities through trusted databases before donating. 

For more tips or to report suspected scams, visit Fraud.org.  

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About the National Consumers League (NCL)       

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.     

DOJ’s Scam Center Strike Force Is a Major Win for Consumers

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829 

Washington, DC — The National Consumers League (NCL) applauded the Justice Department’s creation of a new federal Scam Center Strike Force to crack down on cryptocurrency-related fraud. NCL, through its Fraud.org campaign, has long urged stronger action to hold both scammers—and the communication and financial networks they use—accountable for the hundreds of billions lost to fraud each year.

The following statement is attributable to John Breyault, NCL’s Vice President of Public Policy, Telecommunications, and Fraud:

“These criminals don’t just drain bank accounts—they destroy lives. This Strike Force is a major step toward putting global fraudsters on notice. For too long, overseas crypto-investment scammers have been operating with impunity, stealing billions from Americans. This new coordinated approach sends a clear message: the U.S. is fighting back.

Crypto scams are the new face of global fraud. They’re high-tech, transnational, and devastating for victims. By treating these operations as the national-security threat they are, DOJ is showing real leadership. The announcement that law enforcement has already seized over $400 million in cryptocurrency is a powerful sign that these criminals can—and will—be caught. But it’s not just about arrests; it’s about getting money back into the hands of victims.

We urge policymakers not to stop here. Consumers need stronger education, more accountability from the platforms and telecom networks that enable scams, and better systems for restitution. This is a fight we can win—but only if we work together.”

Consumer who have been targeted by scammers should not be silent. By filing a complaint via Fraud.org’s secure online complaint form, we can share your story with our network of law enforcement and consumer protection agency partners.

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About the National Consumers League (NCL)      

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.   

CFPB layoffs significantly raise consumers’ risk of fraud 

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829    

Washington, DC – The National Consumers League (NCL) is calling on the Trump Administration to immediately stop the sweeping layoffs announced at the Consumer Financial Protection Bureau (CFPB). Reports that the Administration plans to lay off 1,500 positions across the CFPB’s enforcement and supervision divisions will drastically reduce the agency’s ability to fulfill its core mission of protecting consumers.    

“This is a reckless move that will leave millions of Americans more vulnerable to financial fraud and abuse,” said NCL VP of Public Policy John Breyault. “With only about 200 personnel left to oversee the financial marketplace, the Bureau’s effectiveness will be severely compromised at a time when scams, identity theft, and predatory lending are on the rise. This is yet another attempt by this administration to dismantle one of the most effective consumer protection watchdogs in the federal government.” 

The move to narrow the CFPB’s focus to only the most “tangible” harms and retreat from regulating nonbank financial actors—such as payday lenders, peer-to-peer platforms, and digital payment services—ignores the rapidly evolving threats consumers face in the financial marketplace. Many of these sectors are precisely where fraud and abuse thrive due to a lack of oversight.   

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About the National Consumers League (NCL)  

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org. 

NCL warns: DOGE’s FTC infiltration puts consumer privacy at risk

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829
Washington, DC – The National Consumers League (NCL) is outraged by the recent actions of Elon Musk’s “Department of Government Efficiency” (DOGE), which has reportedly infiltrated the Federal Trade Commission (FTC). These actions pose a direct and immediate threat to consumers and parents nationwide. By interfering with the FTC’s ability to protect the public—especially children’s data—from harmful privacy violations, fraud, and anti-competitive practices, DOGE has crossed the line.
“The infiltration of the FTC by DOGE, an entity driven by the interests of a few powerful billionaires, is a dangerous step toward dismantling vital consumer protections and furthering the corporate capture of government agencies,” said NCL VP of Public Policy, Telecommunications, and Fraud, John Breyault. “The public’s safety and privacy are already under constant threat from corporate surveillance, and DOGE’s actions simply give even more power to those who prioritize profit over people. Consumers stand to lose the most from DOGE’s interference, and parents should be alarmed, especially since the FTC plays a critical role in safeguarding children’s digital privacy.”
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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

U.S. House vote exposes more families to fraud  

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829       

Washington, DC – The National Consumers League (NCL) is outraged by today’s partisan vote by the U.S. House of Representatives to repeal the Consumer Financial Protection Bureau’s (CFPB) Larger Participants Rule. The vote approving S.J. Res 28 solidifies a gaping regulatory loophole that will allow Big Tech payment apps like PayPal, Venmo, and CashApp to evade accountability for their use by criminals to defraud millions of Americans.  

“Peer-to-peer payment app operators know that their platforms are being used by criminals to enable hundreds of millions, if not billions, of dollars in fraud against American families,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “Instead of giving the CFPB the ability to crack down on this fraud, Elon Musk and his allies Congress have instead given a green light to scammers to raid the life savings of vulnerable Americans.”  

The CFPB’s Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications regulation (Larger Participant Rule) last year leveled the playing field between banks and Big Tech companies by establishing much-needed CFPB oversight over operators of digital wallets and payment apps. Should S.J. Res 28 become law, the operators of these apps will also have free rein to collect vast quantities of data about individual’s transactions with few, if any guardrails.   

NCL similarly criticized the House’s vote to overturn the CFPB’s overdraft fee rule (S.J. Res 18). The rule closed an outdated loophole that allows major banks to generate billions from excessive overdraft fees. Overdraft fees generate $5 billion in junk fee profits each year,  costing households hit with such fees approximately $225 annually. The CFPB’s overdraft fee rule lowered overdraft fees from $35 to $5 per overdraft.  

“The overdraft fee rule sent a clear message that banks should work for everyday Americans, not nickel-and-dime them with outrageous fees,” Breyault continued. “Instead of protecting this commonsense consumer protection, Republicans in Congress chose to stand with big banks and to let them continue padding their bottom lines with billions in junk fees.”  

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About the National Consumers League (NCL)       

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.    

New legislation to protect fraud victims from tax penalties 

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829
Washington, DC – The National Consumers League (NCL) is appreciative of Representative Haley Stevens’s (D-MI) proposed legislation designed to protect fraud victims from being unfairly taxed when they are forced to tap into their 401(k)s early due to fraudulent schemes. Fraud prevention and consumer protection are central to NCL’s mission, and we strongly support this critical step in ensuring that fraud victims are not penalized further.
“Fraud victims are harmed enough when criminals steal their life savings,” said John Breyault, NCL Vice President of Public Policy, Telecommunications, and Fraud. “The last thing victims should worry about after being scammed is a bill from the IRS. NCL is thankful for Representative Stevens’ efforts to reduce the burdens fraud victims face after a crime has occurred.”
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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL supports new legislation to combat crypto ATM fraud  

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829     

Washington, DC – The National Consumer League (NCL) expresses strong support for the Crypto ATM Fraud Prevention Act introduced by Senator Dick Durbin (D-IL). This critical legislation aims to protect consumers from rising scams involving cryptocurrency ATMs. The minimal regulation of these machines, combined with the anonymity and irreversibility of cryptocurrency transactions, makes crypto ATMs a preferred tool for scammers.   

  “This legislation is a vital step in protecting everyday consumers from the growing threat of crypto ATM fraud,” said John Breyault, NCL VP of Public Policy, Telecommunications, and Fraud. “The Crypto ATM Fraud Prevention Act will provide necessary safeguards to stop scammers from exploiting cryptocurrency ATMs to steal hard-earned savings. We applaud Senator Durbin’s leadership in addressing this urgent issue.”   

  NCL’s Top Ten Scams report for 2024 found staggering losses from cryptocurrency scams. The median loss reported to NCL’s Fraud.org reached a new peak of $30,000 for the complaint category, including crypto fraud. Additionally, according to the Federal Trade Commission (FTC), Americans lost $66 million to crypto ATM fraud in the first half of 2024. The bill would require crypto ATM operators to inform consumers about scams, implement safeguards to prevent fraud and give law enforcement new tools to investigate and stop these crimes.     

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About the National Consumers League (NCL)      

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.    

NCL releases Top Ten Scams Report of 2024

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Sweepstakes and prizes are #1, while cryptocurrency scams are most expensive

Media Contact – Lisa McDonald, Vice President of Communications, (202) 207-2829

Washington, DC – Today, the National Consumers League (NCL) announces our Top Ten Scams report of 2024. The number one scam of 2024 was Prizes, Sweepstakes, and Free Gifting accounting for 38% of reported scams. However, the most expensive scam causing the most amount of financial loss was Cryptocurrency and Investment schemes. The reported median loss for cryptocurrency scams was $30,000, up from $20,000 in 2023.

2024 is the second year in a row where Phishing/Spoofing and Internet Merchandise cams joined sweepstakes scams to round out the top three fraud categories.

Scammers look to get victims to send them money via methods that lack strong consumer protections. For scams involving a financial loss, Bank Account Debit and Wire Transfer made up 33.1% and 12.9% of complaints respectively.

“Every year, complaints to Fraud.org paint a heartbreaking picture,” said NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault. “It is apparent the problem of fraud is not going away on its own. Policymakers at all levels should urgently address this issue and take comprehensive action to combat this epidemic.”

The top ten scam categories reported to Fraud.org in 2024 were:

  1. Prizes/Sweepstakes/Free Gifts: 38.27%
  2. Phishing/Spoofing: 18.83%
  3. Internet: General Merchandise: 17.04%
  4. Investments: Other (incl. cryptocurrency): 6.46%
  5. Fake Check Scams: 3.83%
  6. Advance Fee Loans, Credit Arrangers: 2.91%
  7. Friendship & Sweetheart Swindles: 2.04%
  8. Family/ Friend Imposter: 1.64%
  9. Internet: Information/Adult Services: 0.72%
  10. Misc. Other: 0.60%

*Other complaint categories (e.g. scholarship/grant scams, counterfeit drugs, work-at-home scams) outside of the top ten categories make up the remaining 5.69% of complaints.

“Reporting fraud is an essential step for victims,” said NCL Consumer Services Manager James Perry. “When an individual reaches out, we can connect them with the proper resources and begin to walk them through the recovery process. The information they share also helps inform decisions around fighting these scams.”

Online scams can affect anyone, especially in the ever-changing digital world we live in today.

The 2024 Top Ten Scams Report is available here

The National Consumers League Top Ten Scams report analyzed 2,526 complaints submitted by consumers to NCL’s Fraud.org campaign in 2024. This data is self-reported by victims and should not be considered a nationally representative sample. NCL shares complaint data with a network of law enforcement and consumer protection agency partners who combine it with other data sets to identify trends in fraud and build cases.

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About the National Consumers League (NCL)

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit nclnet.org.

Guardians of consumer confidence: Combating fraud and identity theft

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Since its founding in 1899, the National Consumers League (NCL) has fiercely protected vulnerable citizens against predatory financial and other activity. NCL has consistently placed itself on the front lines of defense and has done so effectively.

In today’s digitized and interconnected world, that level of protection is more essential than ever. Consumers are facing clever, stealthy, and constantly evolving scammers and charlatans seeking access to the personal and financial data of consumers, stealing their identities, and swindling them out of money. As my organization knows all too well, they thoroughly disrupt lives in the process. Data breaches are at an all-time high, and reports of identity fraud have soared over the past two years.

That’s why it’s so important that there are organizations working to help victims of these crimes and enable consumers to be better informed and educated so they can better protect themselves. My organization, the Identity Theft Resource Center (ITRC), is very proud to work in partnership with NCL to provide no-cost assistance, support, counseling, and education to those who are targeted by identity thieves and scammers. 

NCL’s Fraud.org website is one of the most valuable and effective tools for consumers. NCL offers victims of scams the opportunity to describe the fraud; NCL then maintains a database and shares data—not names or personal information—with law enforcement agencies throughout the United States and Canada. Fraud.org also provides practical, constantly updated information on how people can protect themselves from bad actors. We were so impressed with the Fraud. org website that in 2022, ITRC integrated its live-chat function on Fraud.org, providing victims with easy access to ITRC’s identity fraud experts and offering a resource to consumers and small businesses on how they can better protect themselves from identity criminals. This alliance delivered immediate dividends, providing victims with yet another communications option to get in touch with a knowledgeable advocate.

I’ve also had the privilege of participating in NCL’s LifeSmarts program, which helps prepare sixth graders through high school seniors to become educated and empowered consumers. LifeSmarts provides an invaluable service by introducing these young people to the threats posed by data breaches, identity theft, and consumer fraud. Young people spend so much of their lives online these days, and it is vital that they understand how to be savvy and aware of online threats when engaging on websites and social media. Laying this educational groundwork at an early age will help us create a new generation of less vulnerable consumers.

I look forward to our continued partnership with NCL. Those who are victims of scams and identity fraud are often led to believe they were at fault somehow. They aren’t. Fraud is a crime that can happen to anyone. Any of us can be targeted at any time by scammers. As has been the case for 125 years, we know that NCL will be on our side.

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Eva Velasquez is President and CEO of the Identity Theft Resource Center (ITRC).