Consumer Alert
Did someone insist you pay them with cryptocurrency?
By
Kira Krown
Consumer Education Specialist, FTC
August 28, 2023
(View or share the YouTube version of this video).
What’s one of the best ways to spot a scam? Know how scammers tell you to pay. Scammers want you to pay them in ways that are hard to trace and hard to get your money back: like through a gift card, wire transfer, payment app, or cryptocurrency. Here, we’ll focus on that last one — cryptocurrency — and how to avoid cryptocurrency-related scams.
Let’s start at the beginning: cryptocurrency is digital currency you get through an app on your phone, a website, or at a cryptocurrency ATM. Bitcoin and Ether are some of the most well-known, but there are lots of others. Scammers like to use cryptocurrencies because they don’t have the same legal protections as credit or debit cards, and payments usually can’t be reversed.
So, what do scams that involve cryptocurrency typically look like? Scammers may call, pretend to be from a government agency and say you need to pay a fine — using cryptocurrency. Or they may pose as an online love interest who needs you to send money for an expensive medical procedure — using cryptocurrency. Or the scammer may offer you a job, but say you need to pay a fee before you get hired — using, you guessed it, cryptocurrency.
To avoid these and other scams, know that:
- Only scammers demand payment in cryptocurrency. No legitimate business or government agency is going to demand you pay with cryptocurrency — not to buy something, pay taxes or fines, and not to “protect” your money. That’s always a scam.
- Never pay a fee to get a job. If someone asks you to pay upfront for a job — with cryptocurrency or any other type of payment — or says to buy cryptocurrency to get a job, it’s a scam.
- Never mix cryptocurrency and online dating. If you meet someone through online dating who asks you to send them cryptocurrency or wants to “help” you invest in crypto, that’s a scam.
Spot a cryptocurrency scam? Report it to the FTC: ReportFraud.ftc.gov.
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ÑF W Young
August 29, 2023
Yes this has happened to me and now trying to get my funds back has been a nightmare !! It started by someone showing you how to invest online. I reported my case to the FTC here and nobody has tried to help or contact me .
Garcia Rossanna
August 29, 2023
I payed cripto currency $600 for a deposit for apartment application I never received no receipt and the second was $100 for medical expenses, but I was understanding late that all this was scam
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For Release
FTC, State Partners Secure Proposed Order Banning Roomster and Owners from Using Deceptive Reviews
Roomster used fake reviews, phony listings to lure consumers to its platform, according to FTC, states
August 28, 2023
Tags:
- Consumer Protection
- Regional Offices
- Southeast Region
- Bureau of Consumer Protection
- housing
- deceptive/misleading conduct
- Advertising and Marketing
- Endorsements, Influencers, and Reviews
- Online Advertising and Marketing
The Federal Trade Commission will permanently ban Roomster Corp. and its owners, John Shriber and Roman Zaks, from buying or incentivizing consumer reviews as part of a settlement over charges that they bought fake reviews to entice consumers to pay for access to living arrangement listings that they claimed were verified, authentic, and available but often turned out to be fake.
In a complaint first announced in August 2022, the FTC, joined by attorneys general from New York, California, Colorado, Florida, Illinois and Massachusetts, also charged that Roomster and its owners, either directly or through affiliate marketers, used phony listings on other sites like Craigslist to drive consumers to Roomster’s platform, where they paid fees only to discover the listings didn’t exist.
“Today’s settlement bans Roomster and its owners from buying or incentivizing reviews, cuts off their ability to blame phony listings on their affiliate marketers, and requires them to pay monetary judgments to our six state partners,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Baiting renters with fake reviews and bogus listings harms those trying to find an affordable place to live and cheats honest competitors, undermining the online marketplace.”
The FTC says New York-based Roomster saturated the internet with tens of thousands of four- and five-star fake reviews that it largely bought from Jonathan Martinez, doing business as AppWinn, who already agreed to settle the FTC’s charges. Consumers who paid for Roomster’s service complained that many of the company’s listings for living arrangements were fake and that, contrary to its promises, Roomster failed to verify that its listings were legitimate and authentic, according to the FTC.
The proposed orderwill permanently ban Roomster, Shriber, and Zaks from paying or otherwise providing incentives for consumer reviews, and from using or disseminating reviews where they have a relationship with the reviewer that might affect the review’s weight or credibility.
In addition, the proposed order includes a monetary judgment of $36.2 million and civil penalties totaling $10.9 million payable to the states. These amounts will be suspended after Roomster and its owners pay $1.6 million to the six states based upon the defendants’ inability to pay the full amount. If Roomster and its owners are found to have misrepresented their financial status or to have violated the terms of the order, the full amounts would immediately become due.
The order also prohibits them from misrepresenting: that any review is truthful or represents a real user; that any rental listing is verified, authentic, or available; or any other material fact. It also requires Roomster to take steps to monitor its affiliate marketers. This includes routinely reviewing their marketing materials without notice; investigating consumer complaints about affiliates; providing refunds to consumers who were impacted by affiliate conduct that violated the order; and halting payments and terminating affiliates who pose as consumers or misrepresent their status in other ways.
The Commission voted 3-0 to authorize the staff to file the stipulated order. The FTC filed the stipulated order in the District Court for the Southern District of New York.
NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.
The lead FTC staffer on this matter is Angeleque Linville from the FTC’s Southeast Region.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
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Contact Information
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Office of Public Affairs
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Business Blog
Franchise Fundamentals: Reducing the risks – and reporting if things go awry
By
Lesley Fair
August 29, 2023
We’ve all heard the adage “Proper preparation prevents poor performance.” It’s been attributed to everyone from Vince Lombardi to Secretary of State James Baker. As we’ve discussed in the first four installments of our Franchise Fundamentals series, proper preparation – including a thorough pre-commitment investigation into the franchise – may help reduce the risk of painful problems later. But what if a franchisee is concerned that a subsequent business breakdown could be due to a franchisor’s precarious promises? Report it to the FTC through a dedicated link just for franchise issues.
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The decision to buy a franchise may be the biggest financial commitment people make in a lifetime. But like a hasty Vegas wedding or a sight unseen home purchase, quick decisions can have devastating consequences. Ponder and pause. If a franchisor puts any pressure on you to rush your decision, that fact alone should be enough to cross them off your list.
Give yourself time to gather information from a wide variety of sources. Contact the Better Business Bureau, your state Attorney General, and the Attorney General in the state where the company is headquartered. Among your most valuable sources of information are existing and former franchisees, but don’t settle for superficial chat. Come to the conversation with a list of questions and probe them for in-depth details about their experience. Even the most successful franchisees experience some business bumps, so make it clear you want the unvarnished truth. If you can’t find current or former franchisees willing to speak candidly with you, that should raise a red flag.
So what if you researched the opportunity thoroughly, signed on the dotted line, and gave it your best effort – but you have evidence that the franchisor didn’t give you the straight story or in some other way engaged in deceptive or unfair practices? Approach the franchisor directly to try to address your concerns. If that doesn’t work, explore your legal options.
Another important step: Report your experience to the FTC. Use this special link to go directly to an FTC page created to collect information related to franchises. Here’s where that link will take you:
You also can visit ReportFraud.FTC.gov and click the dark blue Report Now button.
From there, choose the Job, investment, money-making opportunity, franchiseoption.That will open a menu where you can select Franchise. Click Continue and start by telling us Details about the franchisor and Comments about your experience.
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The FTC can’t conduct individual negotiations between you and the franchisor, but the information you report is important to investigatory efforts by the FTC and law enforcement partners.
Looking for more fundamentals about franchising? Keep A Consumer’s Guide to Buying a Franchise at your fingertips. Franchisors and others in the business should consult compliance resources on the FTC’s Franchises, Business Opportunities, and Investments portal. And read the entire Franchise Fundamentals Business Blog series:
- Franchise Fundamentals #1: Debunking five myths about buying a franchise
- Franchise Fundamentals #2: Researching franchise opportunities
- Franchise Fundamentals #3: Taking a deep dive into the Franchise Disclosure Document
- Franchise Fundamentals #4: Considering, calculating, and consulting
- Franchise Fundamentals #5: Reducing the risks – and reporting if things go awry
Tags:
- Consumer Protection
- Bureau of Consumer Protection
- Franchises, Business Opportunities, and Investments
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For Your Information
FTC Finalizes Order Against Clothing Accessories Company for False Made in USA Claims
August 29, 2023
Tags:
- Consumer Protection
- Bureau of Consumer Protection
- Manufacturing
- Consumer Goods (Non Food & Beverage)
- Advertising and Marketing
- Made in USA
The Federal Trade Commission has finalized its order against a group of Massachusetts- and New Hampshire-based clothing accessories companies, along with their owner, Thomas Bates, for falsely claiming that certain company products were manufactured in the United States. The FTC’s order, first announced in June 2023, stops the company from making deceptive claims about products being “Made in USA” and requires it to pay a monetary judgment.
The FTC’s order against Bates and his companies Chaucer Accessories, Bates Accessories, and Bates Retail Group, which they have agreed to, includes a number of requirements about the claims they make:
- Restriction on unqualified claims: The companies and Bates will be prohibited from making unqualified U.S.-origin claims for any product, unless they can show that the product’s final assembly or processing—and all significant processing—takes place in the U.S., and that all or virtually all ingredients or components of the product are made and sourced in the U.S.
- Requirement for qualified claims: The companies and Bates are required to include in any qualifiedMade in USA claims a clear and conspicuous disclosure about the extent to which the product contains foreign parts, ingredients or components, or processing.
- Requirement for assembly claims: The companies and Bates must also ensure, when claiming a product is assembled in the U.S., that it is last substantially transformed in the U.S., its principal assembly takes place in the U.S., and U.S. assembly operations are substantial.
- Monetary judgment: The order includes a monetary judgment of $191,481, which the companies and Bates will be required to turn over to the FTC.
The Commission vote to finalize the order was 3-0. The lead staff attorney on this matter was Julia Solomon Ensor in the Bureau of Consumer Protection.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
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Contact for Consumers
FTC Consumer Response Center
Media Contact
Office of Public Affairs
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