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U.S. FTC votes to begin creating rule to ban government, business impersonation fraud -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: This sign can be seen in Washington, D.C., U.S., on August 29, 2020. REUTERS/Andrew Kelly/File photo

WASHINGTON (Reuters] – On Thursday, the U.S. Federal Trade Commission voted unanimously in favor of a rule prohibiting scammers from using government agencies and well-known businesses to bilk Americans.

Four commissioners, two Democrats, and two Republicans voted for an approval of an advance notice to proposed rulemaking in order to prohibit this type of impersonation.

Lina Khan, FTC Chair, stated that impersonation fraud has risen during the epidemic with fraudsters ripping off Americans of approximately $2 billion. This is an increase of 85% year-over-year.

Fraudsters who pretend to be from government agencies sometimes threaten their victims with arrest or the loss of benefits, according the FTC. The frauds were the biggest source of consumer financial losses reported by consumers.

A Supreme Court decision made it harder for the agency’s to collect money from victims of frauds. This led to rulemaking. In April, the court ruled that the agency was not within its legal authority to seek court orders for fraudsters to return funds they have wrongly received from victims of scams in disgorgement or restitution.

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