In the wake of the major hurricanes that recently unleashed a trail of destruction across large sections of Florida and other parts of the southeast, federal agencies warn of opportunistic scammers and price gouging schemes that take advantage of unsuspecting victims in their most vulnerable moments.
While Hurricane Helene and Hurricane Milton caused devastation to property and large areas of land, the latest damaging movement taking hold in the nation is linked to financial fraud. The Federal Trade Commission (FTC) along with the Department of Justice and the Consumer Financial Protection Bureau (CFPB) are warning consumers about scammers that exploit disaster victims and target them in everything from rescue impersonation schemes to charities that promise aid.
The agencies warn that some of the specific schemes include:
“As Americans seek safety from natural disasters, we’re hearing troubling reports of price gouging for essentials that are necessary for people to get out of harm’s way—from hotels to groceries to gas,” said FTC chair Lina M. Khan. “No American should have to worry about being ripped off when fleeing a hurricane. In partnership with state enforcers, the FTC will keep fighting to ensure that Americans can get the relief they need without being preyed on by bad actors exploiting a crisis.”
As a reference guide to avoid scams, the FTC has published information for consumers, while the CFPB has released a disaster and emergencies toolkit specific to handling finances.
How Standards Safeguard Against Fraudulent Activities, from Spoof Calls to Phishing
Did you know that work in the standards realm helps to counter different types of fraudulent activity? As an example, ASC X9 TR 48-2018, Card-Not-Present (CNP) Fraud Mitigation in the United States: Strategies for Preventing, Detecting, and Responding to a Growing Threat, summarizes CNP fraud mitigation tools used in the U.S. It identifies the primary types of CNP fraud attack trends currently impacting the payments industry, and outlines the types of CNP fraud mitigation tools and strategies employed by industry stakeholders such as merchants, merchant acquirers, issuers, processors, payment gateways, and payment card networks. The technical report was prepared by ANSI member Accredited Standards Committee X9, Incorporated Financial Industry Standards (ASC X9).
As the impact of illegitimate uses of Caller ID spoofing and robocalling creates unique challenges for the industry in addressing consumer concerns with unwanted and fraudulent calls, ATIS-I-0000051, Calling Party Spoofing Mechanisms and Mitigation Techniques, outlines practical mitigation techniques. It also emphasizes that Caller ID spoofing is not a static problem that can be solved with a single solution. It was published by ANSI-accredited standards developer Alliance for Telecommunications Industry Solutions (ATIS).
Finally, beware of phishing, defined as “the fraudulent practice of sending emails or other messages purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card numbers.”
The standard ANSI X9.122-2020, Financial Services - Secure Customer Authentication for Internet Payments, defines requirements for secure authentication methods for internet-based payment transactions–critical when considering scams such as counterfeit websites and system intrusions, including malware, spyware, screen scraping, key stroke loggers, mouse monitors, and man-in-the-browser attacks. The standard was developed by ASC X9.
There are also a number of other standards—including ASTM F3286-17, Standard Guide for Cybersecurity and Cyberattack Mitigation—developed by ANSI member and audited designator ASTM International, that support cybersecurity at home, in the workplace, and elsewhere, in light of Cybersecurity Awareness Month in October.
Read more about how to stay vigilant against scammers via the Federal Trade Commission.