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consumer fraud 214 articles

Wells Fargo Customers Reporting Unauthorized Amazon Charges

Scores of Wells Fargo customers are reporting unauthorized Amazon Prime charges on their debit cards even when they aren’t a Prime member. So far, the fraudulent charges, which are initiated by an unknown source, appear to be clustered in the Richmond, Virginia area, according to Richmond’s WWBT NBC12. Several other cases have been reported in North Carolina and Kentucky. An Amazon spokesperson said it is aware of the fraudulent charges and says that Wells Fargo customers should take the issue up with the bank. However, if the fraudulent charges continue to appear after alerting Wells Fargo, then consumers are advised ... Read More

FTC Shuts Down Military Copycat Websites

The Federal Trade Commission (FTC) said it has resolved civil charges against two Alabama-based companies that ran copycat military websites to trick potential recruits into submitting their personal information, which they then sold to post-secondary schools for profit. According to the FTC, Sunkey Publishing Inc. and Fanmail.com LLC have agreed to surrender Army.com, Armyenlist.com, Navyenlist.com, and other domain names. The agency said the companies used the websites to generate admissions leads, which they sold to post-secondary schools for $15-$40 per lead. The FTC’s complaint alleged that the companies created the copycat websites to appear to be official recruiting websites affiliated ... Read More

Another Tesla Whistleblower Files SEC complaint

A second Tesla whistleblower has filed a formal complaint with the U.S. Securities and Exchange Commission (SEC), alleging a Mexican drug cartel operated within the automaker’s Nevada Gigafactory, while others stole $37 million in copper and other raw materials. Instead of properly notifying investors and regulators, Tesla CEO Elon Musk responded to the predicaments by illegally wiretapping and hacking employee cell phones and computers, whistleblower Karl Hansen alleges. Mr. Hansen, who worked for Tesla’s internal security department and investigations division, says he voiced his concerns internally, urging Tesla to take proper action in responding to the issues. But instead of ... Read More

CFPB Head Mulvaney Dissolves Consumer Advisory Board

Mick Mulvaney, Acting Director of the Consumer Financial Protection Bureau (CFPB), has dissolved the agency’s Consumer Advisory Board, a panel of consumer advocates, financial industry professionals, community leaders, and other representatives formed after the housing crisis to protect consumers from corporate fraud and abuse. The measure sends another clear signal that Mulvaney is working to undermine the powers of the agency he was appointed to lead, consumer advocates say, with rollbacks that chip away at the regulatory oversight of banks and other financial institutions. Mulvaney fired the board June 6, just days after its 25-member panel criticized his leadership of ... Read More

Altaba To Pay $35 Million for Yahoo’s Mishandling of Data Breach

Altaba, the name given to Yahoo! Inc. after Verizon acquired the company, will pay a penalty of $35 million to settle charges that it misled investors by concealing a massive data breach that exposed the sensitive information of hundreds of millions of users to Russian hackers, the U.S. Securities and Exchange Commission (SEC) announced. Within days of the Dec. 14 data breach, Yahoo’s cybersecurity team discovered that the hackers had accessed what the company called internally its “crown jewels – the most sensitive user-account data consisting of usernames, email addresses, phone numbers, birthdates, encrypted passwords, and security questions and answers ... Read More

Bed Bug Pesticide Maker Barred From Fraudulent Marketing Claims

The manufacturer of a line of bed bug products it touted as effective in stopping and preventing bed bug infestation has settled Federal Trade Commission (FTC) charges that it violated a previous FTC order barring it from making scientifically unsupported claims. According to the FTC, under the settlement, Chemical Free Solutions LLC, the maker and seller of Best Yet! Cedarcide Original cedar-oil based bed bug products, is required to admit that it violated a 2013 FTC order barring it from deceptive marketing practices, must agree to stop making and selling bed bug eradication products, and pay $224,356 in consumer refunds. The FTC’s previous ... Read More

Jason’s Deli Data Breach Affects 2 Million Credit and Debit Cards

Jason’s Deli is advising its customers to check for suspicious activity in their banking and credit card accounts after it discovered a data breach affecting about two million accounts. The Beaumont, Texas-based company, which operates 275 restaurants in 28 states, says that hackers installed “RAM-scraping” malware at several point-of-sale (POS) terminals in various corporate-owned Jason’s Deli restaurants starting on June 8. Jason’s Deli headquarters said that the data breach came to its attention on Dec. 22 after it was notified by payment processors that credit card security personnel had discovered a large quantity of credit and debit card information appearing ... Read More

Wells Fargo CEO pilloried before Senate Banking Committee

Wells Fargo chief Timothy J. Sloan fell under blistering criticism Tuesday from members of the Senate Banking Committee who attacked the banking giant’s fraudulent business practices, customer treatment, corporate culture, and Mr. Sloan’s role in the misconduct. For years, Wells Fargo’s community banking division instituted aggressive sales goals that encouraged its employees to open unauthorized deposit and credit accounts under customers’ names and then charge them for the unwanted accounts. In that scheme, Wells Fargo bankers preyed upon as many as 3.5 million Wells Fargo customers. In another more recently revealed scheme, Wells Fargo enrolled about 600,000 of its auto ... Read More

Wells Fargo customers enrolled in unauthorized auto Insurance

Wells Fargo & Co woke up Thursday morning staring another major scandal in the face, this time over revelations that it enrolled hundreds of thousands of its auto-loan customers in car insurance policies without their consent and then charged them for the unneeded coverage. On July 27, The New York Times reported that the bank engaged in its auto insurance scam starting in 2012 until July of last year, roping in at least 800,000 of its auto-loan borrowers. The audacity of Wells Fargo’s insurance scheme is further compounded by the bank’s admission that it attempted to keep the scandal under ... Read More

Volkswagen’s $1.22 Billion Repair and Buyback Plan Gets Preliminary Approval

A federal judge granted preliminary approval Feb. 14 to a $1.22 billion plan for German automaker Volkswagen to repair or buy back about 80,000 3.0-liter diesel vehicles in the U.S. that are equipped with an emissions cheat that allows them to spew illegal levels of pollution. The deal follows an earlier agreement requiring Volkswagen to spend as much as $10.3 billion to fix or buy back nearly half a million 2.0-liter diesel vehicles equipped with the same emissions-cheating software that allows them to emit as much as 40 times the allowable limits of toxic air pollutants. U.S. Judge Charles Breyer ... Read More