Scams that impersonate businesses and government officials cost Americans $2.95 billion last year, according to the Federal Trade Commission.
The losses occurred despite the implementation of a ‘Government and Business Impersonation Rule’ in April, which aims to address this issue. This rule prohibits the “material and false” impersonation of government or business entities. Individuals or companies found in violation can face penalties of up to $53,088 and may be required to refund victims.
The FTC has taken legal action against five firms so far, including two involved in student loan debt relief schemes and one related to phantom debt collection. Additionally, it has dismantled 13 websites that were impersonating the agency.
“The billions of dollars American consumers lose at the hands of impersonators is staggering,” says Chris Mufarrige, director of the Bureau of Consumer Protection. “The FTC will not hesitate to enforce the Impersonation Rule against bad actors.”