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Some plaintiffs could receive up to $3,500

By Mark Huffman of ConsumerAffairs

• Krispy Kreme has agreed to a proposed $1.6 million settlement tied to a 2024 data breach that exposed sensitive personal information.

• Eligible consumers can file claims for up to $3,500 in documented losses or receive an estimated $75 cash payment without documentation.

• Claims must be submitted online or postmarked by June 22, 2026.

Krispy Kreme customers affected by a 2024 data breach may now be eligible for compensation under a proposed class-action settlement.

The doughnut chain has agreed to a $1.6 million settlement to resolve claims stemming from a cybersecurity incident disclosed in November 2024. The breach allegedly exposed personal information, including names, dates of birth, Social Security numbers and financial account information.

Krispy Kreme denies wrongdoing, and the settlement still requires final court approval.

Estimated payouts range from $75 to $3,500

Under the proposed agreement, eligible class members can receive up to $3,500 for documented losses tied to identity theft or fraud connected to the breach. Consumers who did not suffer measurable financial losses can instead choose an estimated $75 cash payment without submitting supporting documentation.

The settlement also provides one year of free credit monitoring for affected individuals. According to the settlement website, class members do not need to file a claim to receive the credit-monitoring benefit.

How to qualify

To qualify, consumers must have received notice from Krispy Kreme indicating that their personal information may have been compromised in the breach. The settlement excludes company executives, government entities and individuals who choose to opt out of the agreement.

Consumers can file a claim online through the official settlement website or submit a paper claim by mail. The settlement administrator says claim forms submitted by mail must be postmarked no later than June 22, 2026.

Those filing for reimbursement of documented losses may need to provide records such as receipts, bank statements, emails or other proof showing expenses related to fraud or identity theft.

A final approval hearing is scheduled for July 6, 2026, in federal court in Charlotte, North Carolina. Payments would be distributed after the settlement receives final approval and any appeals are resolved.

Cybercriminals are using fake Microsoft login requests to bypass multi-factor security

By Mark Huffman of ConsumerAffairs

• The FBI warned on May 21 that cybercriminals are increasingly targeting Microsoft 365 users with sophisticated phishing .

• The scam uses a tool called Kali365 to steal account access tokens and bypass multi-factor authentication protections.

• Officials say the attacks rely on fake Microsoft login requests and social engineering tactics designed to trick users into handing over access.

The FBI is warning Microsoft users to be on alert after identifying a fast-growing phishing campaign that allows scammers to bypass common account security protections and gain access to sensitive information.

In a public service alert, the FBI said cybercriminals are using a phishing-as-a-service platform called Kali365 to target Microsoft 365 accounts. The tool enables attackers to steal OAuth access tokens, giving them persistent access to accounts without needing passwords or repeatedly triggering multi-factor authentication (MFA).

According to the FBI, the service first appeared in April and is being distributed through Telegram channels. The agency said the platform lowers the barrier for cybercrime by offering automated phishing templates, AI-generated scam emails, and dashboards that track victims in real time.

It starts with an email

The typically begin with an email that appears to come from a trusted cloud service or document-sharing platform. Victims are instructed to visit a legitimate Microsoft verification page and enter a device code supplied in the email. Once the code is entered, attackers can capture authentication tokens and gain access to services such as Outlook, Teams, and OneDrive.

Because the attacks exploit Microsofts legitimate authentication workflow, they can be difficult for users and security systems to detect. Cybersecurity experts say the method is especially dangerous because it bypasses MFA protections that many users rely on to secure their accounts.

The potential damage

The FBI warned that compromised accounts can expose sensitive business information, personal data, and financial records. Attackers may also use stolen access to launch additional phishing attacks from legitimate accounts, making future appear more credible.

Microsoft recently reported a separate sophisticated phishing campaign that targeted more than 35,000 users across 13,000 organizations in 26 countries, with most victims located in the United States. Researchers said attackers used polished corporate-style emails and fake internal communications to trick recipients into surrendering credentials and authentication tokens.

Federal authorities are urging users to avoid clicking links in unsolicited emails, verify login requests independently, and never enter device codes unless they initiated the request themselves. The FBI also recommends enabling phishing-resistant MFA methods, monitoring account activity, and reporting suspicious messages to the FBIs Internet Crime Complaint Center.

The warning reflects a broader trend toward increasingly sophisticated phishing operations that rely more on social engineering than traditional malware. Security researchers say these are becoming more convincing through the use of AI-generated messages, professional-looking templates, and legitimate cloud infrastructure.

SKS Copack reports that a supplier warned of a tainted ingredient

By Mark Huffman of ConsumerAffairs

• SKS Copack has recalled dozens of specialty beverage powders because they may be contaminated with Salmonella.

• The affected products were sold under brands including Angel Specialty Products, Royal Gold, Boba Time, Fanale, and Denda in 25 states.

• Consumers are urged not to consume the recalled products and may return them for a full refund.

SKS Copack, a California-based beverage manufacturer, is recalling a wide range of specialty beverage powders after a supplier warned that an ingredient may be contaminated with Salmonella, according to the Food and Drug Administration (FDA).

The Cerritos, Calif., company said the recall affects powdered beverage mixes sold under several brands, including Angel Specialty Products, Royal Gold, Boba Time, Fanale, and Denda. The products were distributed through cafes, restaurants, and direct online sales in 25 states, including California, Texas, Florida, Illinois, New York, and Virginia.

The recall was initiated after SKS Copack received notice from supplier California Dairies Inc. that a lot of low-heat nonfat dry milk powder tested positive for Salmonella during routine testing.

No illnesses had been reported as of the FDA announcement.

Salmonella can cause serious and sometimes fatal infections, particularly in young children, older adults, and people with weakened immune systems. Symptoms can include fever, diarrhea, nausea, vomiting, and abdominal pain. In rare cases, the infection can spread into the bloodstream and cause more severe complications.

What to do

Among the recalled products are matcha green tea powder, taro drink mix, horchata mix, milk tea powder, vanilla smoothie base, cappuccino mixes, yogurt powder, and ice cream mix. Affected lot codes and best-by dates are listed on the FDA recall notice.

Consumers are advised to stop using the recalled products immediately and return them to the place of purchase for a refund. SKS Copack said it has halted distribution of the affected products and is cooperating with the FDA during the investigation.

Consumers with questions can contact SKS Copack at (562) 404-8158 weekdays between 8 a.m. and 4 p.m. Pacific time.

Here are some ways to keep those bills in check

By Mark Huffman of ConsumerAffairs

• U.S. households are expected to pay an average of $778 for summer cooling this year, up 8.5% from 2025 and nearly 37% higher than in 2020.

• Southern states are projected to see the steepest increases, with cooling bills in the South Atlantic region rising more than 13%.

• NEADA says one in six households is already behind on utility bills, with total energy debt reaching about $25 billion.

Now that we are at the unofficial start of summer, its time to start thinking about how to tame air conditioningbills, because electric utility rates are climbing.

The National Energy Assistance Directors Association (NEADA) projects the average household will spend about $778 on electricity for home cooling during the summer months, an increase of 8.5% from last years estimated $717. The organization said cooling costs are now nearly 37% higher than they were in 2020.

Families are squeezed from both directions, said Mark Wolfe, executive director of NEADA. They are paying more for electricity, and they need more of it to stay safe during increasingly hot summers.

The report attributes the increase to two primary factors: electricity prices continuing to rise faster than inflation and higher summer temperatures driving greater air-conditioning use. NEADA said households are not only paying more per kilowatt-hour but are also consuming more electricity because air conditioners are running longer and more frequently.

Southern households may feel the most pain

The largest increases are expected in Southern states, where air-conditioning use is widespread and summer temperatures are typically highest. NEADA projects cooling costs in the South Atlantic region will rise by more than $100, or about 13.5%, this summer. The West South Central region is expected to see an 11.5% increase, while the East South Central region could face an 8.5% jump.

Midwestern households are expected to experience smaller increases of roughly 4.8%, while New England and Mid-Atlantic states are projected to see increases ranging from about 6.7% to 7.8%.

NEADA said the rising costs come as many consumers are already struggling to keep up with utility payments. The organization estimates that one in six U.S. households is behind on energy bills, with total utility debt reaching approximately $25 billion.

Cutting electric bills without sacrificing comfort

Consumers can lower summer cooling costs without sacrificing comfort by combining low-cost home improvements, smarter thermostat use, and changes in daily habits. Energy experts say even small adjustments can add up during periods of extreme heat.

Here are some of the most effective strategies:

• Raise the thermostat slightly: The Department of Energy (DOE) recommends setting the thermostat to 78 degrees when people are home and awake. Raising the temperature by even one to twodegrees can noticeably reduce electricity use while remaining comfortable for most households. Programmable and smart thermostats can automatically adjust temperatures when no one is home, helping avoid unnecessary cooling.
• Use ceiling fans correctly: Ceiling fans can make a room feel about fourdegrees cooler by improving air circulation. Fans use far less electricity than air conditioning, allowing consumers to raise thermostat settings without losing comfort. During summer, ceiling fans should rotate counterclockwise to push cool air downward.
• Block sunlight during the hottest hours: Sunlight streaming through windows can dramatically increase indoor temperatures. Closing blinds, curtains, or shades during the afternoon can reduce heat gain, especially on south- and west-facing windows. Blackout curtains and reflective window films can further cut cooling demands.
• Avoid heat-producing appliances during peak heat: Ovens, clothes dryers, and dishwashers generate additional indoor heat. Running them in the evening or early morning can help keep homes cooler. Outdoor grilling and microwave cooking also reduce heat buildup indoors.
• Seal air leaks: Cool air escaping through gaps around doors, windows, and ductwork forces air conditioners to work harder. Weatherstripping and caulking are relatively inexpensive improvements that can improve efficiency immediately. Adding insulation in attics can also help maintain indoor temperatures.
• Maintain the air conditioner: Dirty filters and clogged outdoor units reduce efficiency. Experts recommend replacing HVAC filters every one to three months during heavy-use periods. Keeping outdoor condenser units free of debris and scheduling annual maintenance can improve performance and lower operating costs.

Reducing cooling costs should never come at the expense of health and safety. Older adults, young children, and people with medical conditions are especially vulnerable to heat-related illness.

On extremely hot days, consumers should stay hydrated, use fans carefully, and seek cooling centers or public air-conditioned spaces if home cooling is inadequate.

Consumers worry about the rising cost of living

By Mark Huffman of ConsumerAffairs

• The University of Michigans consumer sentiment index fell to 44.8 in May, the lowest reading since the survey began in 1952.

• Rising gasoline prices and fears of persistent inflation were major drivers behind the sharp decline in confidence.

• Lower-income Americans and consumers without college degrees reported the steepest deterioration in sentiment.

Americans are feeling more pessimistic about the economy than at any point in more than seven decades, according to the University of Michigans latest Survey of Consumers.

The universitys closely watched Index of Consumer Sentiment dropped to 44.8 in May, down from 49.8 in April and below the preliminary May reading of 48.2. The latest figure marks the lowest level recorded since the survey began in 1952.

The survey found that concerns about the rising cost of living continue to dominate consumers outlook. According to the report, 57% of respondents spontaneously mentioned that high prices were hurting their personal finances, up from 50% a month earlier.

The cost of living continues to be a first-order concern, with 57% of consumers spontaneously mentioning that high prices were eroding their personal finances, up from 50% last month, said survey director Joanne Hsu in commentary accompanying the report.

Lower-income consumers and those without college degrees posted particularly strong sentiment declines; these groups are more sensitive to increases in the cost of gas and other essentials.

Pain at the pump

Higher gasoline prices appeared to be a key factor behind the worsening mood. The survey noted that many consumers cited rising fuel costs and fears that inflation could spread beyond energy prices into other parts of the economy.

The report also showed growing anxiety about inflation expectations. Consumers now expect inflation to run at 4.8% over the next year, up slightly from 4.7% in April. Long-run inflation expectations climbed to 3.9%, well above the range seen throughout 2024.

Lower-income households and consumers without college degrees experienced some of the sharpest declines in confidence, reflecting the disproportionate impact of rising costs for essentials such as gasoline and groceries.

Political and demographic differences

The survey also revealed widening political and demographic differences. Sentiment among independents and Republicans fell to the lowest levels of the current administration, while Democratic sentiment was largely unchanged from April.

Economists say the record-low reading highlights the growing disconnect between how consumers feel and how the economy is performing. While sentiment has deteriorated sharply, consumer spending and employment data have remained relatively resilient in recent months.

Heres the concern: Analysts warn that if consumers eventually pull back on spending, the overall economy could weaken. Consumer spending accounts for roughly two-thirds of U.S. economic activity.