Protecting Nevadans from COVID-19 Scams: A Virtual Panel Event with NV Attorney General Aaron D. Ford and Fraud Experts

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC – This Thursday, October 22, the National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, will host a virtual fireside chat with Nevada Attorney General Aaron D. Ford and a panel of consumer protection experts on the growing threat of scams linked to the COVID-19 pandemic. The consumer watchdog organization aims to raise awareness in Nevada about the risk of COVID-19 related fraud and arm consumers with information they can use to spot and avoid these scams.

Since the pandemic began, NCL, which operates the website Fraud.org, has seen an uptick in complaints about a variety of scams preying on increasingly vulnerable, financially strapped, and fearful consumers. Scammers running phishing schemes, stimulus check fraud, unemployment benefits scams, and immigration scams have all been working overtime to use the COVID-19 pandemic as a way to defraud consumers. The experts at NCL have watched these scams emerge, forecast they will continue to increase, and are eager to work with AG Ford to get the word out about how Nevadans can protect themselves.

WHAT

Virtual “fireside chat” featuring Nevada AG Aaron D. Ford and NCL, followed by a panel discussion on resources and tips to avoid COVID-19 fraud and scams.

WHEN

Thursday, October 22, 2020
2:00 PM – 3:00 PM Pacific Daylight Time

WHO

Nevada Attorney General Aaron D. Ford
John Breyault, Vice President, National Consumers League

State Senator Dallas Harris, Consumer Rights Attorney, Legal Aid Center of Southern Nevada
Maria Moore, State Director, AARP Nevada
Assemblyman Edgar Flores, Immigration, Family, and Personal Injury, Gonzalez & Flores Law

HOW TO WATCH

YouTube Live link will be provided following registration via Eventbrite.

*** Members of the media are welcome to attend but must RSVP to Carol McKay, National Consumers League, carolm@nclnet.org. If you are unable to attend, a recording of the interview and panel can be provided upon request after the event concludes ***

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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.

How you should respond to the security threat likely inside your computer

Nearly two years ago, researchers revealed flaws in the chips of virtually every computer made since the mid-1990’s. The flaws—primarily found in Intel’s chips—create a vulnerability that can be exploited by allowing hackers to obtain unauthorized access to privileged information.


Since the initial exploits were first exposed, new versions have continued to be discovered—the most recent of which was found this past November. While software “fixes” have been released, they tend to reduce the speed and performance of computers—as much as 40 percent, according to some reports. In addition, since the flaw is hardware-based, the “fix” is only good until the next exploit is discovered.

At the time of the discovery of one of the “worst CPU bugs ever found,” there was significant alarm expressed in the news as well as across the cybersecurity community. Since that time, public attention has waned. Unfortunately, the problem has only grown worse. And while there has been considerable discussion of the impact these flaws have on businesses, the impact on consumers has been somewhat overlooked.

That’s why NCL’s #DataInsecurity Project recently released a paper detailing the threat that these bugs—with scary names like Meltdown, Spectre, and Zombieload—pose to consumers, their data, and the performance of their computers.

Every organization or individual running a server or computer with affected hardware should take action to protect themselves. Unfortunately, consumers are less likely to know what to do or have the resources to do it, leaving them more exposed.

For example, consumers are more likely to be running older or outdated software. Consumers are also likely to keep their computers much longer than a business, making their hardware older as well. The way these flaws work, older hardware generally sees a greater slowdown when the security patches are applied.

Additionally, the small businesses that consumers interact with may also be running “legacy” hardware or software. These businesses may not be able to afford the high cost of additional servers to offset the speed loss from the patches or of entirely replacing old systems. This difficult choice for small businesses could mean that some decide against applying patches – with potentially severe consequences for consumers’ data security.

Google has taken preemptive steps to protect consumers, but it also warned that as a result of these security measures, “some users may notice slower performance with some apps and games.” Apple, conversely, has offered software patches but left other security measures as an “opt-in” for consumers.

So, while consumers may not face the same type of risk as businesses, they do face a lot of challenges when it comes to addressing these exploits. Consumers already live in a heightened threat environment, filled with phishing emails and computer viruses. They shouldn’t have to choose between the security of their data or the performance of their computers.

To learn more about these issues and the best way to protect yourself, you can find NCL’s white paper here.

Price gouging and usury and fraud, oh my!

Ben Wiseman, director of the Office of Consumer Protection at the Office….

Sign up for the #DataInsecurity Digest

Welcome to The #DataInsecurity Digest, a publication of the National Consumers League, which has been advocating for Congress and the Administration to pass comprehensive data security protections for years.

Since 2015, The #DataInsecurity Digest has delivered important, consumer-focused data security news, policy analysis, and information about upcoming events directly to subscribers’ inbox biweekly.

Curated by NCL’s Vice President of Public Policy, Telecommunications, and Fraud John Breyault, the publication is a collection of the latest coverage and analysis of data security issues by trusted authors, with commentary offered by Breyault.

We’d love your feedback! Drop author John Breyault a line at johnb@nclnet.org to tell him what you think!

Protecting consumers from COVID-19 Scams: A virtual panel event with Pennsylvania Attorney General Josh Shapiro and fraud experts

May 8, 2020

Watch recording here


Contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

 

Washington, DC –Washington, DC / Harrisburg, PA—Next Monday, May 11, the National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, will host a virtual fireside chat with Pennsylvania Attorney General Josh Shapiro and a panel of consumer protection experts on the growing threat of scams linked to the COVID-19 pandemic. The consumer watchdog organization aims to raise awareness in Pennsylvania about the risk of COVID-19 related fraud and arm consumers with information they can use to spot and avoid these scams.

 

Since the pandemic began, NCL, which operates the website Fraud.org, has seen an uptick in complaints about a variety of scams preying on increasingly vulnerable, financially strapped, and fearful consumers. Scammers running phishing schemes, stimulus check fraud, and even pet adoption scams have all been working overtime to use the COVID-19 pandemic as a way to defraud consumers. The experts at NCL forecast these scams will continue to increase and evolve and are eager to work with AG Shapiro to get the word out about how Pennsylvanians can protect themselves.

 

WHAT
Virtual “fireside chat” featuring Pennsylvania AG Josh Shapiro and NCL, followed by a panel discussion on resources and tips to avoid COVID-19 fraud and scams

 

WHEN
Monday, May 11, 2020
11:00 AM – 11:45 AM EDT

 

WHO
Pennsylvania Attorney General Josh Shapiro
John Breyault, Vice President, National Consumers League

 

Lorrie Cranor, Professor, Carnegie Mellon University
Mary Bach, Chair, AARP Pennsylvania Consumer Issues Task Force
Andrew Goode, Esq., Vice President, Metro Philadelphia Better Business Bureau

 

HOW TO WATCH
YouTube Live Link will be provided following registration via Eventbrite

 

*** Members of the media are welcome to attend but must RSVP to Carol McKay, National Consumers League, carolm@nclnet.org. If you are unable to attend, a recording of the interview and panel can be provided upon request after the event concludes ***

 

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About the National Consumers League

 

The National Consumers League, founded in 1899, is America’s pioneering 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 urges Administration to take action to combat COVID-themed fraud, patient harms online

April 10, 2020

Contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC – April 10, 2020 – The National Consumers League (NCL), in partnership with 42 patient and provider advocacy, public health, industry, and research groups, has issued joint letters to Vice President Mike Pence, the U.S. Department of Justice (DOJ), U.S. Federal Trade Commission (FTC), U.S. Food and Drug Administration (FDA), and other state and federal leaders calling for swift action to protect consumers against COVID-19 misinformation, scams, and fraud online.

“NCL commends the White House Coronavirus Task Force and other officials for their dedication in responding to the coronavirus crisis,” said NCL Executive Director Sally Greenberg. “The COVID-19 pandemic makes your work against healthcare and financial fraud more important now than ever. However to further flatten the curve and save lives, we urge the Administration to quickly implement increased evidence-based actions and to help protect consumers from predatory attempts to take advantage of our new economy.”

Since the start of the pandemic, criminals launched thousands of COVID-specific global scams and phishing attacks, using the coronavirus crisis to profit at patients’ expense. “Criminals have exploited the fear and confusion caused by the coronavirus for their own personal profits. More must be done to mitigate the health and financial harms experienced by consumers nationwide,” said Greenberg. In the past few weeks alone, more than 100,000 website domain names have been registered containing terms like “covid,” and “corona,” most of which have been found to be outright dangerous. The Federal Trade Commission indicated receipt of nearly 14,000 coronavirus-related complaints totaling fraudulent losses nearly $10 million.

NCL has long called for increased regulation and enforcement against illegal online acts that result in public health and economic harm. The joint letter encourages the Administration to move swiftly to enact and enforce existing no-cost solutions to better protect consumers. Additionally, it calls on the Administration to  ground their efforts in science, address systemic internet policy problems and prepare for an ongoing wave of COVID-19 related scams during the economic downturn.

Co-signers of the letters include Alliance for Safe Online Pharmacies, BIO, Coalition for a Safe and Transparent Internet, Consumer Brands Association, Kroll, Lilly, LegitScript, and USP. The full letter can be read here.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneering 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.

 

Kudos to merchants fighting price gouging

By Sally Greenberg, NCL Executive Director

There I was, searching for hand sanitizer to help keep reducing my risk of infection. I had scoured my local stores for hand sanitizer, to no avail. At last, desperate, I found a tiny bottle of sanitizer on the shelf at my local gas station. A bottle that usually retails for around a dollar was marked up to $3.99. What choice did I have? I paid the money and walked out of the store.

Like moths to the flame, profiteers cannot resist the allure of easy money. In this time of national emergency, it should perhaps come as little surprise that those who wish to make a quick buck off the desperation of consumers are finding few obstacles in their way.

In past natural and man-made disasters, whether in the aftermath of Hurricane Katrina or the 2008-09 financial crisis, there were always crooks who sought to deprive those in need of their last penny. Unfortunately, the COVID-19 crisis seems to be little different in this respect.

Price gouging is perhaps the most immediate threat. Most of us are aware of being asked to pay $5.00 for a bottled water in an airport or amusement park. In a time of crisis, however, the consequences of hiking prices outrageously is more than just a matter of a parched throat. For consumers in desperate need, it can come down to a choice between avoiding infection or paying the rent.

At a time when health care workers and first responders are putting their lives on the line to care for coronavirus patients, it is outrageous to see stories of unscrupulous sellers marking up the price on masks, hand sanitizer, disinfectant and, yes, even toilet paper.

Price gouging in times of crisis is illegal in most states. For example, Maryland’s anti-gouging statute prohibits raising the price of many consumer goods and services that increase the seller’s profit by more than 10 percent while the COVID-19 emergency declared by Governor Larry Hogan is in effect. California has a similar statute, punishable by up to a year in jail and a $10,000 fine. Price gouging is also illegal where I live, in the District of Columbia.

While state laws are important, enforcement alone won’t solve this problem. Reputable businesses must also play their part to keep price gouging off their shelves. This is one reason I was especially encouraged to see that that the biggest seller of consumer items on the planet, Amazon.com, stepped out so decisively against price gouging.

Last month, the company issued a policy that clearly states: “Amazon has zero tolerance for price gouging and longstanding policies to prevent this harmful practice.” In practice, this means the company is working overtime to remove price gougers from its marketplace, forwarding reports of price gouging to law enforcement, and making it clear to their sellers that price gouging is not allowed.

Amazon has removed more than half a million products and suspended more than 3,900 seller accounts in the United States.

The overwhelming majority of sellers on sites like Amazon, eBay, and other online marketplaces are honest. But these e-commerce marketplaces are where millions of consumers are going to find much-needed products. Particularly for consumers who are at high risk, these online services can be a lifeline, enabling them to stay home, avoid going out into public, and decreasing their chances of contracting the virus.

We should be very happy that there are state laws prohibiting price gouging and very grateful that Amazon has taken such a strong stance in protecting consumers by monitoring and prohibiting its sellers from gouging consumers and others during this terrible pandemic.

Special message from NCL’s Fraud.org about coronavirus scams – National Consumers League

Special COVID-19 warnings: Scammers are pouncing on the opportunities presented by fear and uncertainty in our new environment. Don’t be a victim!

Fraud.orgIt’s a stressful time for consumers across the United States, with businesses closed, schools shut down, and more than a hundred million citizens under shelter-in-place orders. Unfortunately, scammers see this emergency as an opportunity to defraud consumers of hard-earned money we will all desperately need in the weeks and months ahead.

We’ve seen disturbing reports of all kinds of scams linked to the coronavirus epidemic, from sham “cures” being hawked on fly-by-night websites to phishing schemes seeking consumers’ mouseclicks with scary messages about economic collapse, and “pump and dump” schemes to get consumers to invest in coronavirus-related stocks.

With the end of the national emergency nowhere in sight, the situation with coronavirus scams is likely to get much worse before it gets better. Here at Fraud.org, we have many years of experience witnessing how scammers prey on citizens in times of disaster and distress, and we foresee challenging months ahead for consumers. But we are on your side, and we’ll be doing our best to bring you information you can use to spot and avoid these scams, as well as resources you can use to help protect your friends and family. For right now, here are some basic tips you can use to reduce your risk of becoming a victim:

  • Trust the experts. If a message you’re seeing is at odds with information being put out by trusted sources like the Centers for Disease Control, Federal Trade Commission, Food and Drug Administration, or your local health officials, there’s a high likelihood it’s a scam.
  • Check out this message from the FDA about Fraudulent Coronavirus Tests, Vaccines and Treatments.
  • You are likely to see messages urging you to act quickly, whether to buy a coronavirus “treatment” or send money for a can’t-miss investment. Remember that fraudsters try to get you to act before you think. Take your time.
  • In a time of social distancing, scammers will likely try to prey on consumers’ isolation to ensnare them in schemes like romance scams, lottery scams, or other scams where the criminals earn their targets’ trust over time.
  • Remember that scammers follow the headlines just like the rest of us. In particular, we expect scams promising COVID-19 stimulus checks to get more prevalent as the government’s coronavirus relief efforts ramp up.
  • The Federal Trade Commission has a wealth of information about coronavirus-related scams. Visit ftc.com/coronavirus for up-to-date information.

 

NCL praises AG Barr for crackdown on COVID-19 scammers

March 25, 2020

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832 

Washington, DC–The National Consumers League (NCL) is applauding efforts by the Department of Justice and U.S. Attorney General William Barr to crack down on a wave of scammers and hackers trying to capitalize on the COVID-19 outbreak by ordering U.S. attorneys offices across the country to investigate and prosecute “all criminal conduct related to the current pandemic.” NCL greatly supports the move to make this a priority.

NCL operates a fraud prevention and education program, Fraud.org, working with law enforcement agencies in the U.S. and Canada to track trends in fraudulent activity. NCL also runs the Alliance Against Fraud, a coalition of nonprofits, government, and businesses dedicated to fraud awareness, prevention, and supporting criminal prosecution of fraudulent business practices. The League also works to advocate for science- and evidence-based claims about healthcare, foods, and dietary supplements.

As Barr noted earlier this week, “[i]n particular, there have been reports of individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud, reports of phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.”

“AG Barr is right; we’re seeing an upsurge in phishing emails purporting to be from public health organizations offering information on the coronavirus outbreak,” said NCL Executive Director Sally Greenberg. “During this time of vulnerability and uncertainty, consumers shouldn’t be left to fend for themselves in determining whether the claims they are seeing are true. We are pleased that the Trump Administration is taking the risks of scammers capitalizing on this global crisis seriously.”

In his letter, the Attorney General also pointed to recent reports about “malware being inserted onto mobile apps designed to track the spread of the virus.” Last week, an Android app called “COVID-19 Tracker App” surfaced. It’s actually a piece of ransomware designed to lock down access to a consumer’s phone.

“NCL continues to work to fight fraud, protect consumers, and collaborate with law enforcement to track and prosecute those who prey upon our citizens,” said NCL Vice President of Public Policy, Telecommunications and Fraud John Breyault. “Now more than ever, consumers need allies and watchdogs on their side to help protect them from predatory opportunists.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneering 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.

Imposter scams drive big increases in phishing and spoofing complaints in annual top ten scam report

February 27, 2020

At the start of National Consumer Protection Week 2020 (March 1-7), watchdog group issues warning about most common scams plaguing Americans 

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832 

Washington, DC—Consumers on the receiving end of scary calls and emails claiming that the government is coming after them drove a big increase in phishing and spoofing complaints to the National Consumers League’s Fraud.org campaign in 2019, according to the organization’s annual Top Ten Scams report issued today. With National Consumer Protection Week 2020 kicking off this weekend and being observed next week (March 1-7), the national consumer watchdog org is cautioning consumers against imposter frauds and the other most common scams that plagued Americans in 2019. 

In 2019, consumers submitted 5,647 complaints to Fraud.org. Fifty-three percent of complaints reported a monetary loss; the median loss reported was $749. 

In 2019, the percentage of complaints Fraud.org received about scams involving phishing or spoofing nearly tripled versus the previous year. NCL attributes the increase to the high number of imposter scam calls that consumers reported receiving. Scammers reportedly impersonated government agencies such as the IRS, FBI, and USCIS, and some of these criminals even claimed to be representatives of the National Consumers League.  

“Scammers know all too well that impersonating a government agency and threatening consumers is one of the best ways to get victims to pay up, and they depend on authentic-looking emails or spoofing Caller ID to get victims to pay attention to their threats,” said John Breyault, NCL Vice President of Public Policy, Telecommunications, and Fraud and the new report’s author. “The best advice for consumers is to remember that a government agency will never reach out to you via email or telephone to demand money, so hang up or delete. If you’re worried about back-taxes, your immigration status, or a debt you may owe, look up the phone number for the bank or government agency yourself and call to check. Don’t take the word of someone on the phone making threats.” 

Top Ten Scams of 2019

  1. Internet: Gen Merchandise
  2. Fake Check Scams
  3. Advance Fee Loans, Credit Arrangers
  4. Phishing/Spoofing
  5. Friendship & Sweetheart Swindles
  6. Prizes/Sweepstakes/Free Gifts
  7. Investment Related
  8. Computers: Equipment/Software
  9. Employ Agency/Job Counsel/Overseas Work
  10. Internet: Info/Adult Services

Other topline findings from the report include: 

Romance scams and friendship swindles on the rise in 2019. 

The percentage of complaints involving romance scams increased by nearly 50 percent versus 2018. This is especially worrisome considering that romance scams tend to be among the most expensive type of fraud for victims. 

Web remains most common place scammers are finding victims. 

While the telephone was the method of first contact used by scammers in nearly a third of complaints to Fraud.org in 2019, the Internet remains the most likely place for complainants to have encountered a scammer. Almost 45 percent of complaints to Fraud.org in 2019 said that they first encountered a scammer on the Web. 

Wire transfer no longer scammers’ top choice of payment method. 

After many years of wire transfer being the payment method of choice by scammers, credit cards bumped wire transfers as the most frequently-reported method of payment in 2019. More than 44 percent of complainants to Fraud.org reported that their loss occurred because a scammer charged their credit card. 

Read the full 2019 Top Scams report from NCL.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneering 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.