Countless people fall victim to impersonation scams every year. Since 2018, the FTC’s Consumer Sentinel Network has received approximately 3 million fake scam reports, resulting in more than $6 billion in losses. Two particularly harmful forms of fraud are perpetrated by scammers who impersonate government officials or representatives of well-known companies. They use a false sense of authenticity to steal consumers’ money or sensitive information. But consumers aren’t their only target.The imitators also have their own businesses and have They are known to steal the names of government agencies or multinational corporations to cover up their illegal activities with a veneer of legitimacy.The Federal Trade Commission has Proposed a trade regulatory rule on impersonation of governments and businesses We want your feedback.
December 2021, Federal Trade Commission Announces Advance Notice of Proposed Rulemaking Seeking public input on a variety of issues related to impersonation fraud. Citing data from Consumer Sentinel Network and the agencyof Based on its enforcement experience, the FTC has concluded that government and business impersonation scams appear to be widespread and increasingly harmful, and comments from ANPR responders confirm this. Some expressed anger and frustration, while others told unique personal stories. “We are disoriented and devastated,” said one consumer targeted by an imposter masquerading as a legitimate business. “I live in fear every day that someone has information about my home, its location, and where I live. It contained sensitive information about my loved ones.”
We also received comments specifically discussing the impact of impersonation scams on businesses. For example, impersonators have come up with specific forms of B2B scams targeting members of certain industries, often cutting out and pasting names and logos to enhance the illusion of legitimacy. It was all fake, but by the time the merchant found out, the scammer had disappeared with the money. Other scammers claim to be working with the IRS, U.S. Patent and Trademark Office, or other government agencies and demand immediate payment of some nonexistent fee.
Additionally, some commenters expressed concern about the harm done to consumers and businesses when spammers and telemarketers impersonate well-known companies such as Amazon, Apple, PayPal, Wells Fargo, and others and claim to need account information, payment details, or other highly sensitive data. . For example, Microsoft notes that consumers often lose hundreds or even thousands of dollars to impostors pretending to be Microsoft technical support.
Based on its record so far, the Federal Trade Commission has voted to approve a proposed rule that would give the agency stronger tools to crack down on impersonators and return funds to people harmed by illegal practices.In other words, the advance notice of proposed rulemaking has moved to the next stage, and the FTC has Proposed a trade regulatory rule on impersonation of governments and businesses. The proposed rule was recently published in the Federal Register, and we are again soliciting public comment on our recommendations. Federal Register Notice explains the simple online process to ensure your voice is heard. Please submit your comments by December 16, 2022.
