Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Commissioner McSweeny outlines online data scams that put older Americans at risk, (Feb 11, 2015)
By Dan Selcke, J.D.
In order to fight online identity theft scams targeted at older Americans, those Americans need to be educated on how to recognize and avoid suspicious behavior, FTC Commissioner Terrell McSweeny said in a February 10 keynote speech at a conference by Project GOAL at Google’s Washington, D.C. office.
In her remarks, entitled “Internet Safety for older Adults: Challenges and Solutions,” McSweeny emphasized that personal data breaches represented the biggest risk for anyone—older or otherwise—who makes use of the Internet on a regular basis. She noted that the FTC received almost 6,000 breach complaints per week over the past year, and that the financial losses from identity theft and data breaches totaled nearly $25 billion in 2012. To put that in context, the total loss from all property crimes combined during that time was $14 billion.
McSweeny outlined some of most common scams fraudsters are using today. One area of interest is the explosion in “tech support” scams, which usually start when a consumer gets a call from someone claiming to work for Google or Microsoft. The caller will tell the consumer that there is a computer virus on his or her computer, obtain remote access to the computer, manipulate some files, and sign the consumer up for an expensive security monitoring plan. Cases of fraudsters pretending to be IRS agents have also shot up, as have instances where scam artists use someone else’s social security number to apply for a job or file for a tax refund.
Many people do not realize they have been the victims of these kinds of scams until long after they have begun. With many older, analog scams migrating to the Internet, they can be even harder to spot. For example, sweepstakes frauds, which involve phony contests where “winners” have to pay an upfront fee to obtain their prize, now appear as pop-up ads and unsolicited emails rather than as calls from telemarketers or junk mail. Also, fraudulent Medicare and prescription drug discount cards are marketed in online ads, according to McSweeny.
In the case of older Americans, many of these online scams take advantage of their unfamiliarity with the Internet, McSweeny noted. The FTC is taking steps to help older people help themselves. For instance, the agency’s “Pass it On” campaign educates older Americans about scams that may be targeted at their demographic, and directs them to pass the information on to people in their networks. By leveraging the experience of these older people, the campaign avoids “nagging people into action or vigilance,” a problem with some other educational programs.
McSweeney also singled out http://www.consumer.ftc.gov/features/feature-0014-identity-theft as a promising way of keeping consumers informed of their options following an identity theft. The website, which is still under construction, will consolidate all of the government’s breach resources in one place. If all goes according to plan, the people behind the website will work with credit reporting agencies to turn it into a portal where credit alerts, freezes, and the process of credit repair can begin. This will make it easier for people to get the help they need should they ever become the victim of identity theft, a somewhat nebulous crime older Americans can be at a loss over how to address.
McSweeney concluded her speech by calling on Congress to set strong national standards for data security and breach notification, measures that will help all Americans feel comfortable taking advantage of all the conveniences offered by today’s world of interconnected devices. “Helping everyone, including older people, understand the risks of technology so that they can better access—and have faith in—the benefits of technology is incredibly important.”
News: ConsumerProtection FederalTradeCommissionNews