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FTC COVID-19 Fraud Testimony Overview:
- Who: The Federal Trade Commission (FTC) went before a Senate subcommittee to discuss the steps it is taking to prevent fraud related to COVID-19.
- Why: Deceptive marketers have been targeting consumers with COVID-19 misinformation in an attempt to make a profit.
- Where: The FTC is an agency that provides oversight to consumers nationwide.
The Federal Trade Commission (FTC) outlined the ways it is working to prevent marketers from defrauding consumers with COVID-19 misinformation during a hearing in front of a Senate subcommittee on Feb. 1.
The FTC has been ramping up its efforts to stop marketers from profiting off of misinformation by falsely claiming they have products that can treat COVID-19.
The agency says it received more than 292,000 reports of fraud related to COVID-19 from January 2020, to Jan. 28, 2022, costing $674 million in losses.
“The Commission will remain vigilant in protecting the public from harms that stem directly and indirectly from the COVID-19 pandemic,” the testimony states. “The FTC is committed to tackling emerging threats, adjusting our strategies wherever necessary, and working in close coordination with our law enforcement partners at the local, state, and federal level.”
The FTC, which was given more authority to target pandemic fraud under the COVID-19 Consumer Protection Act of 2020, says it has begun taking “law enforcement action” to prevent and deter attempts at deception.
The agency was also given additional funding to fight threats as part of last year’s American Rescue Plan.
The FTC says it has gone after more than a dozen alleged COVID-19 fraudsters in addition to issuing cease-and-desist demands to more than 425 companies it determined were making false claims related to COVID-19.
State and local authorities have also been notified of the conduct by the FTC, which says it also has been in contact with online companies which may not be aware their platforms are being used to perpetrate fraud.
“The FTC has issued more than 180 relevant consumer and business alerts on topics including free testing kits and testing scams, vaccine verification methods, economic impact payments, health claims, online shopping, privacy in a virtual environment, contact tracing, government imposter scams and job scams,” the testimony states.
FTC Has Seen A ‘Significant Spike’ In Online Scams And Abuse
The agency says it has seen a “significant spike” in scams and online abuse as the pandemic has required consumers to spend more time and complete more transactions online.
Many reports have come in concerning COVID-19 fraud connected back to undelivered merchandise, business imposters and online shopping, the FTC says.
The FTC says scams involving working from home, fake checks originating from email and deceptive online trading offers have also all increased during the pandemic.
Social media has been a common way fraudsters are targeting consumers with more than one in four individuals who reported losing money last year claiming the fraud started with social media contact, according to the FTC.
The FTC told the subcommittee its general inquiry into the business practices of social media companies should ultimately “provide critical information” to the issue at hand.
“In December 2020, the Commission ordered social media and video streaming companies to provide data on how they collect, use, and present personal information, their advertising and user engagement practices, whether they apply algorithms or data analytics to personal information, and how their practices affect children and teens,” the testimony states.
The testimony comes only days after the FTC released a Data Spotlight which revealed how scammers were largely using social media to find potential victims.
Have you been the victim of fraud related to COVID-19 misinformation? Let us know in the comments!
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3 thoughts onFTC Testifies Before Senate On Preventing Fraud Stemming From COVID-19 Misinformation
Someone applied for a small business loan under my info, and I wasn’t even notified. I discovered it on my credit report!!!
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