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.gov/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.

 

New National Consumers League podcast We Can Do This! explores current, historic socioeconomic reform in America

January 16, 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), the nation’s pioneering worker and consumer advocacy organization, has launched a podcast called We Can Do This!, produced by District Productive and hosted by NCL Executive Director Sally Greenberg and other members of NCL policy staff. 

In We Can Do This!, NCL and justice-minded, expert guests explore current socioeconomic issues at the heart of American political and cultural battles before a backdrop of the historic and ongoing advocacy and activism that help pave the way for meaningful policy reform. 

We Can Do This! episodes span the breadth of NCL’s wide mission and issues, including; healthcare, data and privacy, food and nutrition, labor, finance, and other topics. 

A first batch of episodes featuring individuals who are helping to shape the nation’s social and economic reforms have been released:   

E1-2: Crashing through the glass ceiling with two dynamos of women’s rights law—parts 1-2 

With Judith Lichtman, president emeritus and senior advisor of the National Partnership for Women and Families and Marcia Greenberger, founder and co-president of the National Women’s Law Center 

E3: Ending the scourge of child labor 

With Kailash Satyarthi, anti-child labor crusader and Nobel Laureate 

E4: Measles, it ain’t over until it’s over 

With Dr. Linda Fu, general pediatrician at Children’s National Health System 

E5: Sorry, fair pay and a safe workplace aren’t on the menu 

With Diana Ramirez, federal senior policy advocate at Restaurant Opportunities Center (ROC United) 

These five episodes are available now on Apple Podcasts and Google Podcasts, and the remainder of the 11-episode series will be released in early 2020. 

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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 applauds House passage of safety bills

December 17, 2019

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 applauds the passage by the House of Representatives of three bills to protect consumers, all of which came from the Energy and Commerce Committee.

“We are grateful for the leadership of Chairman Pallone and Subcommittee Chair Schakowsky in getting these bills through the Committee and to the House floor for passage,” said NCL Executive Director Sally Greenberg. “The House is taking an important in protecting Americans—especially our children—from dangerous products and protecting consumers from overseas scams.  Children are the most vulnerable consumers, and they need our advocacy. Products that prove dangerous to their health and wellbeing – like inclined sleepers and crib bumpers – should no longer be on the market, and we hope the Senate takes up these bills immediately. Thanks once again to the bipartisan efforts through the Commerce Committee and full House leadership for these important consumer protection measures.”

The House passed the following bills:

H.R. 4779, a bill to extend the Undertaking Spam, Spyware, And Fraud Enforcement With Enforcers Beyond Borders Act of 2006, reauthorizes the U.S. SAFE WEB Act, which improved the Federal Trade Commission’s (FTC) ability to combat unfair or deceptive acts or practices that are international in scope, through Fiscal Year 2027 and requires the FTC to issue a report to Congress describing the Commission’s use of and experience with the authority granted by the Act. 

H.R. 2647, the “Safer Occupancy Furniture Flammability Act” or “SOFFA,” adopts the California upholstered furniture flammability standard as a national flammability standard for upholstered furniture to limit exposure to toxic flame retardant chemicals. 

H.R. 3172, the “Safe Sleep for Babies Act of 2019,” designates inclined sleepers for infants as banned hazardous products under the Consumer Product Safety Act. The bill was amended to include the text of H.R. 3170, the “Safe Cribs Act of 2019,” which also designates crib bumpers as banned hazardous products.

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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 announces new action center to help patients steer clear of deadly counterfeit drug websites

December 5, 2019

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), America’s pioneering consumer advocacy organization, today launched Fraud.org/FakeRx, a new digital consumer education campaign to address the growing global crisis of harmful counterfeit medications. The World Health Organization estimates that one in every 10 medical products circulating in developed countries is either substandard or fake, and nearly $83 billion in counterfeit drugs are sold annually. Counterfeit drugs can be, at best, a waste of money and, at worst, fatal.  The Partnership for Safe Medicines has found counterfeit pills made with fentanyl in 48 states, with deaths attributed in 33.

“Counterfeit drugs are everywhere, and they are dangerous. Going to the Internet to buy medicines is a bad idea if you don’t know how to protect yourself from illegal pharmacies selling counterfeit drugs. Consumers do not realize how common counterfeits are; our campaign aims to provide the tools and resources to help consumers steer clear of illegal products and protect themselves and their families,” said NCL Executive Director Sally Greenberg. “NCL is launching Fraud.org/FakeRx to serve as a hub for reliable information for consumers and law enforcement.  Our action center helps consumers learn how to spot the red flags of counterfeit drugs and report issues to law enforcement.”

With the growth of Internet sales of medications, the problem of illegal pharmacies hawking counterfeit drugs is a growing risk to consumers. Visitors to Fraud.org/FakeRx can arm themselves with information to:

  • Reduce the chances they’ll encounter counterfeit drugs and shop safely for medications online
  • Learn to spot harmful counterfeit drugs if they do; and
  • Report counterfeit drugs and the websites offering them to the authorities fighting the problem.

“Criminals posing as legitimate online pharmacies are a serious threat to our nation’s drug supply and to unsuspecting consumers who purchase contaminated or potentially deadly counterfeit medications,” said George Karavetsos, former director of the U.S. Food and Drug Administration’s Office of Criminal Investigations. “Policymakers, regulators, and manufacturers have clear roles for doing their part to protect our drug supply, but having informed consumers is essential to shutting down this illegal online market. This campaign gives consumers the tools they need to stay safe and keep criminals from lining their pockets with consumers’ money.”

NCL has worked with victims of suspected and confirmed counterfeit drugs to capture their experiences and report them to authorities. Two mothers who each lost their adult children to tainted counterfeit medications have lent their stories to the new campaign in hopes of helping others avoid falling to the same fate.

“I lost my son, Jerome, himself a loving big brother and father of three beautiful children, to a counterfeit drug laced with fentanyl. It took one single pill to take Jerome away from us,” said Natasha Butler, whose son was one of a wave of victims of counterfeit drug deaths in Sacramento in 2016. “We had no idea that these dangerous drugs, manufactured to look exactly like the real thing, are out there and could be the last drug someone ever takes. Anyone who takes medication or fills prescriptions needs to be aware of the risks of counterfeits, and that where you get drugs is so crucial for your safety and health. Everyone should visit Fraud.org/FakeRx to learn about the risks and how to avoid being the next victim.”

 “On June 11, 2018 my phone rang at 7:24 am. The voice on the other line told me that my beautiful daughter, Ashley, was dead. Ashley had been given a counterfeit pill laced with fentanyl. I was told by the coroner that she probably died instantly,” said Andrea Thomas, a Colorado mother who, since her daughter’s death from a counterfeit drug, co-founded Voices for Awareness Foundation. “The deadly pill Ashley took looked just like her normal medication. This is an epidemic in our country that I previously knew nothing about. It is time to take action. The National Consumers League’s new resources for consumers will help spread awareness and will make a difference to many.”

To hear from additional victims who know the issue firsthand, visit the new Fraud.org/FakeRx. The site also includes tips for consumers about ways to save on prescription drugs without increasing their risks of purchasing counterfeits. 

NCL thanks its partners for providing support for the new campaign: Allergan, Celgene, Eli Lilly, Gilead Sciences, Pfizer, and PhRMA.

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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 consumers must respond to the security threat inside nearly every 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 NovemberWhile software “fixes” have been released, they tend to reduce the speed and performance of computers—as much as 40 percent, according to some reportsIn additionsince 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 communitySince that timepublic attention has waned. Unfortunately, the problem has only grown worse. And while there has been considerable discussion of the impact these flaws have on businessesthe 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 MeltdownSpectre, and Zombieloadpose 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 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.

Consumer group urges District of Columbia to pass critical data security legislation

November 12, 2019

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

Washington, DC—Today, the National Consumers League, the Nation’s pioneering consumer and worker advocacy organization, testified before the Council of the District of Columbia in support of the Security Breach Protection Amendment Act of 2019.

The following is attributable to NCL’s Public Policy Manager Brian Young:

“This consumer protection bill will help stop breaches before they happen by requiring holders of personal data, to take reasonable steps to secure and safeguard the data they have been entrusted with. When breaches happen, it is often because the business did not utilize current best practices to secure data, and yet, it is the consumer that bears the price for the business’ misstep. Consumers cannot and should not be expected to carry the load when it comes to protecting the data they share with businesses and other organizations. NCL believes that each councilmember has a unique opportunity to safeguard District residents’ data through this bill. NCL urges the Council of the District of Columbia to quickly pass and implement this critical consumer protection bill.”

Brian Young’s full testimony can be found here (PDF).

Video footage of Brian Young’s testimony is available here.

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About the National Consumers League

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 applauds FTC action to reign in deceptive marketing in the wireless industry

November 5, 2019

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

Washington, DC—Today, the National Consumers League, the nation’s pioneering consumer and worker advocacy organization applauded the Federal Trade Commission (FTC) for its successful investigation and settlement with AT&T after the wireless provider misled millions of its customers. In 2014, the FTC found that AT&T had secretly slowed down or “throttled” consumers’ Internet speeds on their supposedly “unlimited” plans and then charged consumers early termination fees if they wanted to switch providers to receive better service. As a result of thsettlement, AT&T will create a $60 million dollar settlement fund that will be paid out to current and former users of AT&T’s “unlimited” plan. 

The following statement is attributable to Sally Greenberg, executive director of the National Consumers League: 

“When consumers are promised unlimited data, they should receive unlimited data. AT&T’s policy of slowing down consumers data, to the point where they could no longer stream videos after using as little as two gigabits of data, is a classic example of bait and switch. NCL applauds the FTC’s efforts to protect consumers from false advertising and unscrupulous business practices in the wireless industry. NCL looks forward to seeing the FTC take additional steps to ensure that the marketplace remains fair and honest for all consumers.”

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About the National Consumers League

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.

National Consumers League: Computer chip defects force nearly all consumers to choose between speed and security

October 24, 2019

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

New NCL #DataInsecurity report details threat these flaws pose to consumers—both in terms of the security of their data and the performance of their computers—and how they can protect themselves in the future

Washington, DC—A new report released today by the National Consumers League details how consumers have been impacted by a series of processor exploits announced over the last 22 months that leave nearly every computer and server from the past two decades vulnerable to hacking. With sensitive data at risk, patches have been issued that better secure computers and servers. However, these temporary fixes can result in significant performance problems.

The report, “Data Insecurity: How One of the Worst Computer Defects Ever Sacrificed Security for Speed,” is part of NCL’s #DataInsecurity Project. Timed to coincide with National Cybersecurity Awareness Month, the report is an opportunity to remind consumers about the importance of being safe and secure when online. The report discusses the threat these processor flaws pose to consumers—both in terms of the security of their data and the performance of their computer after the necessary security patches are applied—and how they can protect themselves in the future.

“This paper is a part of NCL’s mission to empower individuals to protect themselves from companies that put their data at risk,” said John Breyault, NCL vice president, public policy, telecommunications and fraud. “The scope and severity of these chip flaws is alarming, undermining both the security and speed of computers. Nearly two years after the flaws first made headlines, it is likely that consumers are still not fully aware of the risks they face if they do not protect themselves.”

The report details seven publicly disclosed exploits, known as “Spectre,” “Meltdown,” “Foreshadow,” “Zombieload,” “RIDL,” “Fallout,” and “SWAPGS,” that take advantage of the flaws found in CPUs manufactured by AMD, ARM, and Intel. While Spectre affects all three major chip manufacturers, all six subsequent exploits largely affect only Intel processors.

The exploits have been discovered on an ongoing basis for nearly two years, with the most recent one found in August 2019. The flaws are a result of a process called speculative execution, a functionality created in the 1990s that allows a processor to predict a user’s next action and perform it in advance, thereby reducing delays and increasing the speed of a computer. Because the flaws are foundational to how a CPU’s hardware is built, each patch is only temporary until the next exploit is discovered. Due to the nature of these flaws, the exploits that take advantage of them may not be traceable.

“Consumers are being forced to choose between the security of their data and the computer speed they were promised,” said Breyault. “We recommend consumers prioritize security, though unfortunately, it comes at a financial and performance cost.” 

The report concludes that the best protection for consumers is to buy a new computer that has a CPU with hardware-level security fixes or is immune from some of the exploits. Unfortunately, the NCL report acknowledges that this may not be practical for many consumers. Therefore, consumers are advised to perform frequent software updates. NCL is also strongly supporting data security bills such as the Consumer Privacy Protection Act of 2017 that would require companies to take preventative steps to defend against cyberattacks and data breaches and to provide consumers with notice and appropriate protection when a data breach occurs.

The full report can be found here.

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About the National Consumers League

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.