February 6, 2018

Contact: NCL Communications, Carol McKay carolm@nclnet.org, (202) 207-2831

Washington, DC–Consumers should be extremely troubled by reports that Mick Mulvaney, acting director of the Consumer Financial Protection Bureau (CFPB), has stopped investigating the Equifax breach, which affected 143 million consumers’ accounts. Equifax’s mishandling of consumers’ most personal data increased the risk of identity fraud for millions of consumers.

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

“The mission of the CFPB is simple: to protect consumers. In the wake of one of America’s most damaging data breach, 143 million Americans are now at increased risk for becoming a victim of identity fraud. Victims of such crime can have their ability to borrow, get a job, or rent a home damaged for years. The idea that protecting consumers from data breaches and identity fraud is somehow beyond the scope of the CFPB is ridiculous. It’s time for the acting director of the CFPB to stop protecting businesses that harm Americans and fulfill the mission of its Congressionally-mandated mission. The CFPB must continue its investigation to make sure that a data breach like Equifax’s never happens again.”

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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 https://nclnet.org.

February 1, 2018

Contact: NCL Communications, Carol McKay carolm@nclnet.org, (202) 207-2831

Washington, DC—The National Consumers League (NCL), the nation’s pioneering consumer advocacy organization, has released its annual compilation of the top ten scams reported to Fraud.org, NCL’s flagship project for fraud prevention and education. Based on an analysis of nearly 5,000 fraud complaints submitted by consumers to Fraud.org in 2017, NCL is warning consumers to beware Internet merchandise sales scams.

For the fifth year in a row, Internet merchandise scams topped the list of complaints reported to Fraud.org. The way many consumers first come into contact with these scams is via a “too good to be true” ad on a website, social media platform, or Internet forum. Popular ways scammers catch consumers’ eyes is with deep discounts on goods like iPhones, sneakers, luxury apparel, video game systems and even pets.

“The convenience of online shopping is simply unbeatable for many consumers,” said John Breyault, who directs Fraud.org. “Obviously there are plenty of legitimate companies online, but there are also fraudulent sellers out to cheat consumers—and they are very good at what they do.”

While the top scam didn’t change in 2017, other forms of fraud made sizeable gains. Year-over-year, complaints about fake check scams increased 12.55 percent and phishing/spoofing scams increased by 27.28 percent, respectively. The growth of fake check scam complaints is particularly worrisome, given that the 12.55 percent increase in 2017 followed a 15.16 percent increase in 2016.

In fake check scam scenarios, consumers are paid with realistic looking phony checks for work or for items they’re trying to sell and then are instructed to wire proceeds from the check back to buyer. Ultimately, the consumer is left responsible when their bank tells them the check is worthless. In phishing scams, emails appearing to be from a well-known, trusted source ask consumers to enter or confirm their personal information. Links or attachments lead consumers to equally trustworthy-looking websites that capture their data and use it to commit credit fraud and ID theft.

The increase in phishing and spoofing scams is raising advocates’ concerns that the proliferation of data breaches in recent years could be fueling the fraud.

“With each major data breach—think Yahoo!, Equifax, Uber, and others—our fear that the information criminals glean from such breaches will help them craft convincing phishing and spoofing campaigns rises,” said Breyault. “It’s probably too soon to make a definitive link, but complaints involving phishing and spoofing scams appear to on the rise, and this is a flag for those of us concerned about the long-term effects of data breaches.”

Another trend among 2017 consumer reports to Fraud.org was that Internet and email-based communication are overtaking the phone as scammers’ preferred method of initial contact. The telephone marginally beat out the Internet as the method of first contact for scammers (34.29 percent vs. 34.11 percent), but another 15 percent of consumers said they first heard from a scammer via email. Both web- and email-based methods of contact increased this year.

 “The fight against fraud is constantly evolving, as criminals refine their tactics for separating consumers from their hard-earned cash,” said NCL Executive Director Sally Greenberg. “We hope our annual list of top scams helps consumers know what to watch out for and avoid falling victim, especially since falling victim for one of these scams is apparently getting more costly.”

Read the full 2017 top ten scams report.

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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 https://nclnet.org.

January 22, 2018

Contact: Carol McKay, National Consumers League, (202) 207-2831, carolm@nclnet.org

Washington, DC—Today the National Consumers League (NCL) has announced two scholarship recipients, honored for their involvement in a community service and leadership initiative made possible through its consumer literacy program, LifeSmarts (LifeSmarts.org). The students were awarded $1,000 academic scholarships for their winning entries based on their experiences serving as Safety Smart® Ambassadors, a partnership between LifeSmarts and UL that pairs high school students with elementary classrooms to teach lessons about health, safety, and the environment.

The scholarship winners are:

• Takia Holsey, a freshman from UPO P.O.W.E.R Program in Anacostia neighborhood of Washington, DC
• Rachel Dunnell, a junior from Douglas County 4-H in Georgia

Since 2013, when the LifeSmarts UL partnership began, hundreds of LifeSmarts students have become Safety Smart Ambassadors. Working in teams, high school students have made more than 1,000 interactive 30-minute presentations, sharing empowering, educational safety messages with thousands of younger children throughout their communities. LifeSmarts is a national program that competitively tests high school students’ knowledge of consumer awareness, with subjects including personal finance, health and safety, consumer rights and responsibility, technology, and the environment.

“We are so proud of our students who participated in the Safety Smart Ambassador program and the positive impact they made on their communities, and especially these two stand-outs,” said Lisa Hertzberg, LifeSmarts program director. “We truly appreciate this partnership with UL. It has been extremely gratifying to see LifeSmarts students embrace the Safety Smart Ambassador program, provide education and mentoring to younger children, and learn about themselves in the process.”

The LifeSmarts-UL partnership has underwritten the Safety Smart Ambassador program and provided LifeSmarts with access to the vast knowledge base of UL, including resources for LifeSmarts to bolster its science and environment curriculum, resources, and competitive opportunities.

For more information, please visit LifeSmarts.org/SafetySmart.

January 2018 Safety Smart Ambassador award winners – in their own words 

“Students really loved the video, even the older students, and they liked hearing the new vocabulary words and by the end of the session they were singing the Going Green song and using the vocabulary words.” – Takia Holsey

“I appreciated the opportunity to teach in front of children and to help them learn useful skills they will need as they grow older. They loved giving examples and reasons to conserve and protect our water.” – Rachel Dunnel

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About LifeSmarts and the National Consumers League

LifeSmarts is a program of the National Consumers League. State coordinators run the programs on a volunteer basis. LifeSmarts educational resources are available online throughout the year at LifeSmarts.org. Competition begins again in September. For more information, visit: LifeSmarts.org.

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.

January 9, 2018

Contact: Carol McKay, (202) 207-2831 or carolm@nclnet.org

Washington, DC – The National Consumers League (NCL) is pleased that the Federal Trade Commission’s (FTC) new guidance to the multi-level marketing (MLM) industry broadly reflects the priorities and concerns expressed by a broad coalition of advocacy organizations focused on fighting pyramid schemes. NCL also welcomed the Commission’s message that the benefit of relying on its existing authority under Section 5 of the FTC Act, as interpreted by decades of case law, rather than legislative action, is the best way to protect consumers from pyramid schemes. NCL, along with other national consumer advocacy and civil rights groups, pyramid scheme experts, and prominent direct selling companies, has opposed efforts by the MLM industry and its allies in Congress to weaken the FTC’s ability to investigate and prosecute pyramid schemes.

The following statement is attributable to John Breyault, National Consumers League Vice President, Public Policy, Telecommunications, and Fraud:

The FTC’s new guidance is consistent with existing case law and previous Commission guidance. In addition, it addresses topics such as income and product claim substantiation, internal consumption, and inventory loading that the MLM industry has frequently misinterpreted. Indeed, the guidance once again demonstrates that the FTC already has the tools it needs to do its job and protect consumers from pyramid schemes masquerading as legitimate MLMs.

Despite industry claims to the contrary, pending bills in Congress — H.R. 3409 and a House appropriations rider sponsored by Rep. John Moolenaar (R-MI) — would fundamentally weaken the FTC’s ability to hold MLMs accountable when they perpetrate fraud against prospective entrepreneurs. The Commission’s new guidance is clear and sound advice to the MLM industry about where the guardrails should be placed in order to avoid pyramidal behavior, and yet another indication that proposed legislation is unnecessary and, indeed, undermines the FTC’s authority.

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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.

November 22, 2017

Contact: Cindy Hoang, (202) 207-2832 or cindyh@nclnet.org

Washington, DC–As families prepare for their annual Thanksgiving traditions, many, too, are getting ready to put their credit cards and hard-earned cash to work this Black Friday (or even earlier at some retailers). While “Cyber Monday” used to be considered the biggest online shopping day of the year, the holiday shopping rush seems to start earlier and earlier each year. With more and more consumers opting to avoid the mall, online spending over the Thanksgiving weekend through Cyber Monday is expected to be in the billions.

Forbes reported last month that this holiday shopping season is expected to be “robust.” Whether consumers do their shopping online at the workplace or at home, advocates are reminding them to practice safe e-shopping habits in the coming weeks and year-round.

“The Internet can make your shopping faster and easier, but there can also be pitfalls if you’re not careful,” said Sally Greenberg, executive director of the National Consumers League, which today released its top ten tips for avoiding cyber grinches and scams this holiday season. “There are ways to ensure you have a safe online shopping experience, so that gift-giving is a joyous occasion, not an opportunity for cyber thieves.”

1. Don’t shop online on an unencrypted or open wireless network. As convenient as they seem, an airport or coffee shop’s wireless network is not an appropriate place to conduct financial transactions. Entering personal financial information over an unsecured connection may leave your computer open the to hackers and thieves to capture your financial information. Home Wi-Fi networks can also be compromised, so consumers should find out how to secure their connections.
2. Secure your own computer before shopping online. Before connecting to the Internet or shopping online, take the following three core protections: 1) Install anti-virus and anti-spyware programs and keep them up to date; 2) Install a personal firewall; 3) Regularly update operating system and anti-virus programs to current protections.
3. Know who you’re dealing with. Before shopping online with an unknown e-store, check out the seller and be sure to get the name and physical address of the vendor in case something goes wrong. If you’re buying gifts on an online auction site, check the track record of the seller before you bid.
4. Pay the safest way – by credit card, especially when you’re purchasing something that will be delivered later. Under federal law you can dispute the charges if you don’t get what you were promised. You may also dispute unauthorized charges on your credit card. Consider using a “virtual” credit card number.  These numbers replace your plastic credit card number with a new number that is linked to your real account number.  When you’re prompted to enter your credit card number at checkout, you enter the virtual number instead of the real number.  These “virtual” numbers can be set to have a low credit limit, to only work at certain Web sites, or to expire after a certain period of time (two months from date of purchase is a good rule of thumb).  This way, if the Web site you’re shopping at is compromised, the crooks likely won’t be able to run up charges on your real credit account since the virtual number.  A note of caution, however: think twice before using a virtual credit card number for services where you will be billed repeatedly or for things like rental car reservations, since the card may not be billed until you pick up the car.
5. Only shop on safe sites. When providing payment information, the Web site URL address should change from “http” to “https,” (or, less frequently, “shttp”) indicating that the purchase is encrypted or secured. Look for an icon on the browser (generally in the bottom right of the window), such as an image of a padlock closing, to indicate that the page is secure.
6. Don’t fall for a phishing email or pop-up. Legitimate companies don’t send unsolicited email messages asking for your password, login name, or your financial information. But scammers do, and it’s called “phishing.” Crooks often send emails that look like they’re from legitimate companies – but direct you to click on a link, where they ask for your personal information. Delete these emails.
7. Be careful when shopping for a gift in an online auction. Consumers sometimes turn to auctions for harder-to-find collectibles or expensive electronics. Understand how the auction works, and check out the seller’s reputation before you bid. Use safe ways to pay, like a credit card. If you use a 3rd party payment system, read the terms carefully to understand what protection, if any, it offers if you don’t receive what you were promised. Always ask about terms of delivery and return options. Be especially wary of auctions that ask for payment via wire transfer.
8. Turn your computer off when you’re finished shopping. Many people leave their computers running 24/7, the dream scenario for scammers who want to install malicious software—“malware”—on your machine and then control it remotely to enable them to commit cyber crime. To be extra safe, switch off your computer when you are not using it.
9. Don’t be tempted by offers of free money. Con artists take advantage of cash-strapped consumers during the holidays to offer personal loans or credit cards for a fee upfront. These scammers simply take the money and run. Beware of emails offering loans or credit, especially if you have credit problems.
10. Visit www.fraud.org to learn more about protecting yourself from online scams year-round and to report suspicious sites, sellers, or scams. You don’t have to be a victim to report a scam, and your information will help law enforcement go after cyber grinches.

Above all, look into the business or individual with whom you are doing business before making the transaction. For more information on avoiding scams throughout the year, visit www.fraud.org.

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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.