WASHINGTON, D.C. — The Federal Trade Commission (FTC) has announced significant enforcement actions in the year following the implementation of the Government and Business Impersonation Rule, which took effect in April 2024. These efforts, aimed at protecting consumers from impersonation scams, addressed fraudulent schemes that cost Americans $2.95 billion in losses last year alone.
“The billions of dollars American consumers lose at the hands of impersonators is staggering,” said Chris Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC will not hesitate to enforce the Impersonation Rule against bad actors.”
The Impersonation Rule strictly prohibits entities from posing as government agencies or officials, as well as businesses or corporate officers, to materially misrepresent affiliations or endorsements. Violators face potential civil penalties of up to $53,088 per violation and may also be required to provide refunds to affected consumers.
Key Enforcement Actions
Since the rule’s enactment, the FTC has taken five legal actions and shut down 13 websites that illegally impersonated the Commission, including:
- ftc.reportfraud.tech;
- myftc.info/reportfraud;
- reporfraud-ftc-gov.online;
- ftc.reportfraud.work;
- ftc.reportfraud.site;
- FTCEUrecovery.com;
- ftc-gov.us;
- ftcfr.org;
- contactftc.com;
- federaltradecommission.org;
- usrecoverysystem.com;
- capitaltraceability.com; and
- ftcgrant.com.
These covered a range of deceptive practices, including e-commerce scams, student loan debt relief fraud, and phantom debt collection schemes.
Actions filed under the rule include cases against Click Profit, Superior Servicing LLC, Panda Benefit Services LLC, and Blackstone Legal. Notably, the complaint against Superior Servicing alleged the company falsely presented itself as affiliated with the U.S. Department of Education. By promising student loan forgiveness, the business collected millions from borrowers before being halted by a federal court in November. Assets were frozen, and the FTC is pursuing a permanent ban on the defendants’ activities.
Tackling Online Impersonation
Additionally, the FTC collaborated with domain registrars to dismantle fraudulent websites posing as the Commission. Letters sent to registrars resulted in the removal of 13 impersonating sites, which included deceptive domains such as ftc.reportfraud.tech and ftcgrant.com. These actions reinforced the FTC’s commitment to addressing online threats to consumers.
Implications and Broader Impact
Impersonation scams remain one of the most widespread forms of fraud reported to the FTC. The Commission’s efforts under the Impersonation Rule highlight its dedication to holding perpetrators accountable and safeguarding public trust. By targeting both digital and offline schemes, the FTC continues to emphasize transparency in commerce and protection for vulnerable consumers.
The agency’s actions underscore the importance of vigilance in identifying misleading practices as it works to deter further violations and ensure compliance across industries.
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