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Consumer Daily Reports

Details: Written by Consumer Affairs News; Category: Consumer Daily Reports; Published: 04 September 2024; Created: 04 September 2024; Last Updated: 04 September 2024

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Deepfakes being used to separate consumers from their money

By Truman Lewis

of ConsumerAffairs

September 4, 2024

Deepfakes are big business. And one of the biggest is defrauding investors. Forget politics for a minute: scam artists are using artificial intelligence to create deepfake ads featuring Elon Musk, Jeff Bezos and other billionaires to separate you from your money.

Most of this is happening on -- you guessed it -- social media.

Manipulated videos advertising phony investment scams are spreading like wildfire on social media, and New Yorkers should know how to avoid falling victim to these schemes," said New York Attorney General Letitia James.

The deepfakesappear in social media feeds, digital ads, and messaging apps and are expected to fuel billions of dollars in fraud every year.

Scammers use AI tools to manipulate existing videos to change the voice and mouth movements of the individuals to create seemingly genuine endorsements for their frauds. These videos are then served to social media users as advertisements or broadcast as fake livestreams on platforms like YouTube.

Scammers may also pose as government officials or other people in order to gain victims trust. It can be difficult to tell from the video alone if it is a deepfake.

Private messaging services used

Once their intended victims show interest in the supposed investment, scammers may try to move the conversation off of public social media into encrypted private messaging services such as Whatsapp or Signal.

After the victims have made an initial investment on the fraudulent platforms, scammers will often create fake websites showing the investment increasing in value and encourage victims to send more money. After making more investments, sometimes totaling hundreds of thousands of dollars, victims will be unable to withdraw their funds or will be asked to pay more in withdrawal fees or taxes.

Eventually, the scammers will cut off contact, having pocketed the victims money from the first investment. Even worse, victims may be later contacted by services that suggest they can retrieve their funds, only to end up draining more of the victims net worth.

What to do

James recommends the following steps to avoid becoming the victim of a deepfake investment scam:

When considering investing, look out for the following red flags:
- Promises of guaranteed returns on your investment.
- Demands to invest immediately or warning that you will miss out on the opportunity.
- Requests to invest by celebrities or other famous people.
- Demands that you send cryptocurrency to a non-bitlicensed platform or a private wallet.
- Requests to move public conversations to encrypted private messaging platforms.
Conduct your own due diligence by searching the internet for reviews about the salesperson and by verifying any physical address provided by the salesperson.
- You can check investment professional registration at FINRAs BrokerCheck.
Be wary of livestreams or other video/audio messages you receive that are trying to persuade you to make any investments. Even if it appears to be a livestream, this could in fact still be a deepfake.
- To do a reverse search of the footage used, check reliable sources for previous interviews of the speaker. Fraudsters will often utilize footage from an existing public video or audio.
Do not provide any personal information, financial information, log in credentials, etc., to individuals that you have only met online.
If a solicitation comes from one of your known contacts, verify that it is your actual contact by reviewing their profile and contacting them through an alternate form of communication, such as a phone call.
- To prevent fraudsters from impersonating your contacts, change your profile settings to keep your friends list, photos, videos, posts, and even comments private.
Do not click on any links in emails or direct messages unless you have confirmed the identity of the sender.
Be wary of unsolicited investment opportunities, especially those that come via email, social media, or phone calls. Legitimate firms do not aggressively push potential investors to make quick decisions or disclose sensitive information through these channels.
Enable Multi-Factor Authentication (MFA) on all your accounts, particularly those related to finance and email. MFA requires more than one method of verification, making it much harder for scammers to access your accountseven if they use sophisticated techniques like deepfakes.
Please keep in mind that these transactions are almost always irreversible. If you decide to invest, keep all your paperwork and preserve your communications.

Photo Credit: Consumer Affairs News Department Images

Posted: 2024-09-04 16:26:08

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Many seniors are already cutting cut back on essentials like groceries and medications.

By James R. Hood of ConsumerAffairs

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Social Security benefits are expected to rise by about 2.7% in 2026, equating to roughly a $54 monthly boostbut rising Medicare costs threaten to eat most of it.
Medicare PartB premiums are projected to climb 11.6%, from $185 to about $206.50/month, which alone could consume nearly 40% of the COLA increase.
Broader healthcare expense hikesincluding rising PartD costs, deductibles, and outofpocket expensesare already pushing many seniors to cut back on essentials like groceries and medications.

Current projections indicate that Social Security recipients could receive a 2.7% cost-of-living adjustment (COLA) in 2026, slightly up from last years 2.5 %a modest gain that may nonetheless prove insufficient in the face of surging healthcare costs.

That projected increase would translate to approximately $54 more per month for an average beneficiary. However, as Medicare PartB premiums are set to rise 11.6%, increasing by $21.50/month to $206.50, Social Security checks may only gain $3233 neterasing nearly 40% of that new income.

And PartB premiums arent the only concern. Medicare PartD costs are also expected to increasearound 6% in premiumsand deductibles and other outofpocket costs, such as those for medications or services, are also on the rise. Moreover, the PartB deductible is projected to jump from $257 to $288, an 11.2% increase in itself, according toInvestopedia.

Effects are being felt

The rising burden is already having real effects: A recent nationwide survey found over half of retirees are cutting discretionary spending, and notably, more than one-third are forced to trim essentials like groceries and medical careall while COLA increases lag behind rising inflation and healthcare costs.

Experts warn that the disconnect between broad inflation measures (like the CPIW, which drives COLA) and the actual spending patterns of retireesespecially on healthcaremeans that many seniors will see little to no real improvement in their budgets in 2026, Barron'srecently reported.

Whats at stake?

Even with a COLA bump, rising medical costsespecially those automatically deducted from benefitsmean that many retirees will struggle to feel any real financial benefit next year. As the mismatch between inflation measures and seniors actual spending grows, advocates are pushing for a revision of how COLA is calculated or better indexing to retirees cost burdensparticularly healthcare.

Senior advocacy groups say none of this should surprise anyone.
Social Security checks arent keeping up with inflation. If four in five seniors think inflation was higher than the government reported in 2024, maybe we should stop questioning their experiences and start questioning why the COLA is failing to measure them, saidShannon Benton, executive director of the Senior Citizens League.

Consumer News: Blanket restrictions not the answer to keeping kids safe online, group says

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Age verification, other restrictive tools can block worthwhile content

By James R. Hood of ConsumerAffairs

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Public Knowledge says child safety bills across the U.S. are well-intentioned but overly broad, threatening privacy and free expression.
A new white paper calls for tech companies to design safer products by default and apply age checks only where risks warrant them.
The group warns that sweeping verification lawslike those in Texas, Mississippi, and the U.K.set troubling precedents that may harm both kids and adults.

As lawmakers race to pass child safety laws aimed at protecting kids online, a study warns that the cure may be worse than the disease. The non-profit research organization Public Knowledge argues in a white paper released earlier this yearthat blunt-force age verification mandates risk undermining privacy, free expression, and access to beneficial online content.

Instead of treating all internet use as equally dangerous, the group advocatesa risk-based framework that places responsibility squarely on tech companies to design safer platforms by default. Well-intentioned efforts to protect young users too often miss the point, the report concludes, noting that compulsive design features, predatory interactions, and poor privacy protections drive the most serious harmsnot mere access to controversial content.

Verification vs. assurance

Central to the debate is the difference between age verificationchecking a government ID to confirm exact ageand age assurance, a spectrum of less invasive methods such as behavioral analysis, account history, or machine learning age estimates. Public Knowledge argues for scaling these approaches: lighter touch for low-risk activities like browsing educational material, but stronger safeguards for high-risk features such as livestreaming or stranger-to-stranger messaging.

Courts, states, and the coming federal push

Momentum for strict laws is already building. The U.S. Supreme Court this summer upheld Texass requirement for age checks to access pornography, a ruling that lowers constitutional scrutiny for online restrictions. Soon after, it declined to block Mississippis social media verification law. At least two dozen states now mandate or are advancing similar rules, raising fears that adults could soon have to prove they are old enough to use the internet at all.

Public Knowledge warns of the privacy fallout, citing recent hackslike the leak of government IDs from a dating app that required women to submit proof of identityas evidence that mandatory ID submission is a data breach waiting to happen.

The report points to the U.K.s Online Safety Act, in effect since July, as a cautionary tale. While intended to protect children from harmful material, its rollout has triggered chaos: platforms blocking everything from protest videos to support groups for quitting smoking or drinking, and millions of users turning to VPNs to skirt restrictions.

A smarter alternative

Public Knowledge calls on U.S. lawmakers to resist copy-paste solutions and instead regulate features that drive harm. Infinite scroll, manipulative notifications, and algorithmic recommendations are among the design choices the group says should be age-gated or re-engineered with safety in mind. Meanwhile, less risky functions should remain open, preserving kids ability to learn and explore while protecting adults rights to free expression.

The white paper will be formally presented September 8 at a Washington, D.C. event titled The Kids Arent Alright Online: Building a Safer, Better Internet.

Consumer News: Google warns 2.5 billion Gmail users to change their passwords

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Salesforce data breach has exposed Gmail users' passwords

By Truman Lewis

of ConsumerAffairs

August 29, 2025

Google is warning the 2.5 billion Gmail users to change their passwords or switch to using passkeys after a surge in phony emails that followed a massive data breach at Salesforce.

All Gmail users should be careful browsing through their emails and should be alert to potentially bogus messages, Google warned. The company said there had been a surgery in effective and convincing phishing attacks targeting Gmail and Google Workspace users.

No passwords were leaked in the Salesforce breach but there was enough customer information to enable tricksters to compose convincing-sounding emails. The emails generally impersonate a company's IT support desk and try to convince users to download malicious software.

Some of the phony emails appear to come from Google itself and use phrases like "suspicious sign-in prevented." In another example, one email said that Google had been served with a subpoena that required it to release information contained in the user's email account.

The message: Don't share any information, including account numbers of passwords with anyone who telephones, emails or texts you. Ignore or delete texts or emails and do not click on any links contained in them. Google will never call you unprompted and neither will most government agencies or corporations. Deal only with people you know and trust.

Consumer News: Are you going into credit card debt with back-to-school shopping?

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An expert shares how marketing may be playing a role in extensive shopping

By Kristen Dalli of ConsumerAffairs

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A recent report found that August has become a prime month for consumers taking on extra credit card debt, and back-to-school shopping is the likely culprit.
Many back-to-school ads feature items beyond the traditional supplies and clothes.
Planning your purchases in advance can help shoppers compare prices and save the most money.

While retailers like Target have been sharing back-to-school sales for weeks, the new school year rush is officially in full effect.

That also means its time to stock up on supplies, clothes, shoes, and more.

However, do all these purchases also mean your credit card bills are stacking up?

A recent report from CardRatings.com found that August is becoming a big month of credit card debt for consumers, and back-to-school shopping is likely to blame.

Richard Barrington, a finance expert at CardRatings, broke down what exactly this means for consumers, including how to save money and how to prepare for this extra expense.

Is inflation to blame?

According to Barrington, it could play a role.

Certainly, inflation has been an issue in recent years, and has perked up again recently, he told ConsumerAffairs. So, one factor here is that items are getting more expensive.

However, overspending comes into play when you look at the scope of whats considered back-to-school shopping. A quick look at ads for back-to-school sales revealed that alongside the usual pens, pads, and clothing, such items as kids headphones, water bottles, and make-up items are featured. Even air fryers were included in back-to-school advertising ostensibly for dorm rooms, though they are actually banned by many schools for safety reasons.

So, the definition of back-to-school shopping has expanded over the years, increasing the potential for overspending.

Credit card debt climbs in August

Barrington explained that the companys report highlighted some recent trends related to extra credit card debt.

Historically, August has been an above-average month for consumers taking on credit card debt, he said. This trend has held in recent years. Over the past four years, consumers have taken on an average of 75% more credit card debt than in the average month.

While not all of this can be attributed to back-to-school shopping, when you think about what makes August different from other months, back-to-school shopping features prominently.

Money-saving tips

While no one wants to incur more debt, there are ways to save on back-to-school shopping, and Barrington says that preparation is key.

Do some research in advance, he said. Whether you shop online or in person, doing price comparisons online can help you separate genuine sales from hype. Then you can use that research to set a budget to keep your back-to-school spending in line.

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Consumer News: How to steer clear of Labor Day sale

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An expert shares everything consumers need to know to protect themselves during the sales

By Kristen Dalli of ConsumerAffairs

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have gone hand-in-hand with big shopping holidays and the upcoming Labor Day weekend is no exception.
The same rules for identifying potential remain: a sense of urgency, misspellings, grammatical errors, etc. should all raise alarm bells for consumers.
Experts encourage consumers to trust their instincts and never be scared to double and triple check before making purchases or sharing personal information.

While many consumers are preparing for barbecues and sales for Labor Day weekend, its also becoming increasingly common for scammers to up the ante during high-volume sales.

Clayton LiaBraaten, Senior Executive Advisor at Truecaller, spoke with ConsumerAffairs to highlight the most popular Labor Day , what consumers should expect, how to avoid falling victim to these , and more.

Labor Day weekend carries with it a peculiar duality, LiaBraaten told ConsumerAffairs.

On one hand, it represents the unofficial end of summer, that bittersweet transition when we collectively acknowledge the turning of seasons and the promise of autumn's arrival. On the other hand, it has become something far more insidious a golden opportunity for those who would exploit our very human tendencies toward optimism and the hunt for a good deal.

Identify the red flags

LiaBraaten warns that scammers are using the latest technology to their advantage, making harder and harder to detect. However, its not impossible to spot a sale-related scam.

The price that seems too good to be true invariably is. That brand-new television at 90% off isn't a doorbuster deal; it's bait, he explained. The URL that contains subtle misspellings or unnecessary additions Bestbuysales.com instead of BestBuy.com betrays the deception beneath the surface. These are not accidents or oversights; they're the unavoidable artifacts of fraudulent infrastructure.

The poorly designed website with missing contact information and grammatical inconsistencies remains a reliable indicator, LiaBraaten continued. Legitimate businesses don't operate from the shadows. They have addresses, phone numbers, return policies, and customer service departments. They exist in the physical world as well as the digital one.

A sense of urgency is a warning sign

One of the biggest things to look for: a sense of urgency.

The high-pressure tactics remain their bread and butter, unchanged despite technological evolution, LiaBraaten said. Requests for Social Security numbers, passwords, or payment details via email or text. Insistence on wire transfers or cryptocurrency payments.

The creation of false urgency act now or lose this opportunity forever. No legitimate retailer operates this way, yet in the heat of the moment, with the clock ticking and the deal seemingly slipping away, we can forget these fundamental truths.

Go to the source

If youre ever unsure if youre being targeted by a scammer, LiaBraatens best piece of advice: go straight to the source.

Those links in unsolicited emails and social media advertisements? Ignore them entirely. Type the retailer's URL directly into your browser, he said. If you've placed an order, log into your account through the official website and check your order status there. This simple practice alone would prevent the vast majority of successful phishing attempts.

Look for "https" rather than merely "http" that 's' represents secure encryption, and its absence should raise immediate red flags. Verify the actual domain name with the care of a proofreader. Amazon.com is legitimate; amazom.com is not. These differences can be subtle, but they're never accidental.

Trust your instincts

At the end of the day, LiaBraaten recommends that consumers trust their guts above all else.

That feeling in your gut when something seems off? It's the product of millions of years of evolution, finely tuned to detect threats, he said. In our digital age, those threats may have changed form, but our intuitive response to danger remains remarkably reliable.

This Labor Day weekend, as you navigate the sales and celebrations, remember that vigilance need not mean paranoia, and skepticism need not prevent participation. It simply means approaching our digital transactions with the same care we would bring to any significant decision. After all, in an age where artificial intelligence can mimic human communication with uncanny accuracy, our very human capacity for critical thinking becomes not just useful but essential.

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Consumer Daily Reports

Consumer News: Elon Musk has free investment advice for you? It's a scam

Deepfakes being used to separate consumers from their money

Private messaging services used

What to do

Listen to this article. Speaker link opens in a new window.Text To Speech BETA Test Version.

More News From This Category

Many seniors are already cutting cut back on essentials like groceries and medications.

Effects are being felt

Whats at stake?

Age verification, other restrictive tools can block worthwhile content

Verification vs. assurance

Courts, states, and the coming federal push

A smarter alternative

Salesforce data breach has exposed Gmail users' passwords

An expert shares how marketing may be playing a role in extensive shopping

Is inflation to blame?

Credit card debt climbs in August

Money-saving tips

An expert shares everything consumers need to know to protect themselves during the sales

Identify the red flags

A sense of urgency is a warning sign

Go to the source

Trust your instincts

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