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User Tracking
Data DEA FBI FTC Location Privacy surveillance User Tracking

FTC Stops Data Brokers from Unlawful User Location Tracking

FTC Stops Data Brokers from Unlawful User Location Tracking


Data Brokers Accused of Illegal User Tracking

The US Federal Trade Commission (FTC) has filed actions against two US-based data brokers for allegedly engaging in illegal tracking of users' location data. The data was reportedly used to trace individuals in sensitive locations such as hospitals, churches, military bases, and other protected areas. It was then sold for purposes including advertising, political campaigns, immigration enforcement, and government use.

Mobilewalla's Allegations

The Georgia-based data broker, Mobilewalla, has been accused of tracking residents of domestic abuse shelters and protestors during the George Floyd demonstrations in 2020. According to the FTC, Mobilewalla allegedly attempted to identify protestors’ racial identities by tracing their smartphones. The company’s actions raise serious privacy and ethical concerns.

Gravy Analytics and Venntel's Accusations

The FTC also suspects Gravy Analytics and its subsidiary Venntel of misusing customer location data without consent. Reports indicate they used this data to “unfairly infer health decisions and religious beliefs,” as highlighted by TechCrunch. These actions have drawn criticism for their potential to exploit sensitive personal information.

Unlawful Data Collection Practices

The FTC revealed that Gravy Analytics collected over 17 billion location signals from more than 1 billion smartphones daily. The data was allegedly sold to federal law enforcement agencies such as the Drug Enforcement Agency (DEA), the Department of Homeland Security (DHS), and the Federal Bureau of Investigation (FBI).

Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, stated, “Surreptitious surveillance by data brokers undermines our civil liberties and puts servicemembers, union workers, religious minorities, and others at risk. This is the FTC’s fourth action this year challenging the sale of sensitive location data, and it’s past time for the industry to get serious about protecting Americans’ privacy.”

FTC's Settlements

As part of two settlements announced by the FTC, Mobilewalla and Gravy Analytics will cease collecting sensitive location data from customers. They are also required to delete the historical data they have amassed about millions of Americans over time.

The settlements mandate that the companies establish a sensitive location data program to identify and restrict tracking and disclosing customer information from specific locations. These protected areas include religious organizations, medical facilities, schools, and other sensitive sites.

Additionally, the FTC’s order requires the companies to maintain a supplier assessment program to ensure consumers have provided consent for the collection and use of data that reveals their precise location or mobile device information.

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Phishing Attack
Bitcoin Cyber Attacks data security Email Phishing Email scam FTC Phishing Attack

Protect Yourself from Phishing Scams Involving Personal Data and Bitcoin Demands

 

A new phishing scam is emerging, where hackers send threatening emails to people with personal details like images of their homes and addresses. This scam tricks recipients into believing their privacy is compromised, urging them to pay money or Bitcoin to avoid exposure. According to cyber expert Al Iverson, scammers often use public sources like Google Maps and data from previous breaches to craft these threatening messages. He recommends confirming any images on Google Maps and checking email legitimacy to ensure the message isn’t a scam. 

One victim, Jamie Beckland, shared his experience, revealing that the scammers falsely claimed to have video evidence from spyware on his computer. Beckland, like others, was targeted with demands for Bitcoin in exchange for silence. Fortunately, by cross-referencing the address and photo in the email with Google Maps, he realized the threat wasn’t credible. To avoid falling for such scams, it’s critical to scrutinize email addresses and domains. Iverson advises checking SPF, DKIM, and DMARC results, which help verify the sender’s legitimacy. Scammers often spoof email addresses, making them appear familiar, but most don’t actually have access to sensitive data—they’re simply trying to scare people into paying. 

Zarik Megerdichian, founder of Loop8, strongly warns against clicking any unfamiliar links in these emails, especially those related to payments. Bitcoin and similar transactions are irreversible, making it crucial to avoid engaging with scammers. If you suspect financial information is at risk, Megerdichian advises reporting the incident to the Federal Trade Commission (FTC) and closely monitoring your accounts. Yashin Manraj, CEO of Pvotal Technologies, recommends changing passwords immediately if you suspect your data has been compromised. Moving sensitive accounts to a new email address can provide added protection. He also suggests notifying local authorities like the FBI, while ensuring that family members are informed of the scam to prevent further risks. 

Lastly, Manraj emphasizes that you should never engage with scammers. Responding to emails only increases your vulnerability, adding your information to target databases. To further protect yourself, isolating your home network, using a VPN, and avoiding public forums for help are essential steps in safeguarding your information from potential future attacks. These phishing scams, though threatening, rely on fear and manipulation. By taking steps to verify email legitimacy, securing your accounts, and staying cautious, you can avoid falling victim to these tactics.
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Payment Fraud
Cyber Security FBI Financial crime Fraud Detection FTC GDPR Online Payment Fraud Payment Fraud

The Rising Threat of Payment Fraud: How It Impacts Businesses and Ways to Counter It

 

Payment fraud continues to be a significant and evolving threat to businesses, undermining their profitability and long-term sustainability. The FBI reports that between 2013 and 2022, companies lost around $50 billion to business email compromise, showing how prevalent this issue is. In 2022 alone, 80% of enterprises faced at least one payment fraud attempt, with 30% of affected businesses unable to recover their losses. These attacks can take various forms, from email interception to more advanced methods like deep fakes and impersonation scams. 

Cybercriminals exploit vulnerabilities, manipulating legitimate transactions to steal funds, often without immediate detection. Financial losses from payment fraud can be devastating, impacting a company’s ability to pay suppliers, employees, or even invest in growth opportunities. Investigating such incidents can be time-consuming and costly, further straining resources and leading to operational disruptions. Departments like finance, IT, and legal must shift focus to tackle the issue, slowing down core business activities. For example, time spent addressing fraud issues can cause delays in projects, damage employee morale, and disrupt customer services, affecting overall business performance. 

Beyond financial impact, payment fraud can severely damage a company’s reputation. Customers and partners may lose trust if they feel their financial information isn’t secure, leading to lost sales, canceled contracts, or difficulty attracting new clients. Even a single fraud incident can have long-lasting effects, making it difficult to regain public confidence. Businesses also face legal and regulatory consequences when payment fraud occurs, especially if they have not implemented adequate protective measures. Non-compliance with data protection regulations like the General Data Protection Regulation (GDPR) or penalties from the Federal Trade Commission (FTC) can lead to fines and legal actions, causing additional financial strain. Payment fraud not only disrupts daily operations but also poses a threat to a company’s future. 

End-to-end visibility across payment processes, AI-driven fraud detection systems, and regular security audits are essential to prevent attacks and build resilience. Companies that invest in these technologies and foster a culture of vigilance are more likely to avoid significant losses. Staff training on recognizing potential threats and improving security measures can help businesses stay one step ahead of cybercriminals. Mitigating payment fraud requires a proactive approach, ensuring businesses are prepared to respond effectively if an attack occurs. 

By investing in advanced fraud detection systems, conducting frequent audits, and adopting comprehensive security measures, organizations can minimize risks and safeguard their financial health. This preparation helps prevent financial loss, operational disruption, reputational damage, and legal consequences, thereby ensuring long-term resilience and sustainability in today’s increasingly digital economy.
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X
AI Algorithm Chatbot copyright Data FTC Grok Linkedin personalization Privacy Snapchat Social Media Technology training user content X

Social Media Content Fueling AI: How Platforms Are Using Your Data for Training

 

OpenAI has admitted that developing ChatGPT would not have been feasible without the use of copyrighted content to train its algorithms. It is widely known that artificial intelligence (AI) systems heavily rely on social media content for their development. In fact, AI has become an essential tool for many social media platforms.

For instance, LinkedIn is now using its users’ resumes to fine-tune its AI models, while Snapchat has indicated that if users engage with certain AI features, their content might appear in advertisements. Despite this, many users remain unaware that their social media posts and photos are being used to train AI systems.

Social Media: A Prime Resource for AI Training

AI companies aim to make their models as natural and conversational as possible, with social media serving as an ideal training ground. The content generated by users on these platforms offers an extensive and varied source of human interaction. Social media posts reflect everyday speech and provide up-to-date information on global events, which is vital for producing reliable AI systems.

However, it's important to recognize that AI companies are utilizing user-generated content for free. Your vacation pictures, birthday selfies, and personal posts are being exploited for profit. While users can opt out of certain services, the process varies across platforms, and there is no assurance that your content will be fully protected, as third parties may still have access to it.

How Social Platforms Are Using Your Data

Recently, the United States Federal Trade Commission (FTC) revealed that social media platforms are not effectively regulating how they use user data. Major platforms have been found to use personal data for AI training purposes without proper oversight.

For example, LinkedIn has stated that user content can be utilized by the platform or its partners, though they aim to redact or remove personal details from AI training data sets. Users can opt out by navigating to their "Settings and Privacy" under the "Data Privacy" section. However, opting out won’t affect data already collected.

Similarly, the platform formerly known as Twitter, now X, has been using user posts to train its chatbot, Grok. Elon Musk’s social media company has confirmed that its AI startup, xAI, leverages content from X users and their interactions with Grok to enhance the chatbot’s ability to deliver “accurate, relevant, and engaging” responses. The goal is to give the bot a more human-like sense of humor and wit.

To opt out of this, users need to visit the "Data Sharing and Personalization" tab in the "Privacy and Safety" settings. Under the “Grok” section, they can uncheck the box that permits the platform to use their data for AI purposes.

Regardless of the platform, users need to stay vigilant about how their online content may be repurposed by AI companies for training. Always review your privacy settings to ensure you’re informed and protected from unintended data usage by AI technologies
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Malicious Software
Antitrust Lawsuit antivirus software Cyber Fraud FTC Malicious Software

Fraudulent Antivirus Software Faces FTC Lawsuit After Raking in Millions

 

The US Federal Trade Commission filed a lawsuit alleging that two antivirus software packages, Restoro and Reimage, are counterfeit goods that have defrauded customers out of "ten of millions" of dollars. 

FTC investigators apparently went undercover and purchased the alleged malicious software four times. They discovered that the software consistently lied, telling them that they had a slew of viruses and security issues on their machines when, in fact, they did not. 404Media and Court Watch were the first to report the news.

One Restoro scan reported to the FTC that their test PC had 522 vulnerabilities that needed to be repaired. A Reimage scan discovered 1,244 so-called "issues," which the software classified as "PC privacy issues," "junk files," "crashed programs," and "broken registry issues." According to the complaint, these flaws were part of a larger scheme to offer buyers fraudulent "repair" tools. 

After installation, the software prompted the user to call a phone number to "activate" the software. However, the FTC claims that this is also part of the scheme, as the phone call sends users to a person who attempts to upsell the customer on further computer "repair services" over the phone, the lawsuit alleges. 

The FTC claims that the two software programs, which originate from the same place in Cyprus, have successfully tricked clients out of "tens of millions" of dollars. Reimage was added to a risk-monitoring program in 2019 because so many customers used credit card chargebacks to demand refunds. A large number of people also complained online, claiming the products are a scam.

According to the lawsuit, Visa also claimed in 2020 that the developers of the programme were involved in "fraudulent activities." Due to the large volume of customer chargeback requests, Visa later placed one of the Restoro-affiliated companies on a watch list in 2021. 

Restoro and Reimage are now facing charges from the FTC for allegedly misrepresenting their products and breaking laws pertaining to US telemarketing. Concerning the possibility that the developers of Restoro and Reimage will "continue to injure consumers and harm the public interest" in the absence of action, it expresses concern that the threat actors behind it won't stop.
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Security
$10 billion 2023 Americans Cyber Fraud Fraud FTC record loss Safety Security

FTC Issues Alert: Americans' Fraud Losses Soar to $10 Billion in 2023

 

The U.S. Federal Trade Commission (FTC) has disclosed that in 2023, Americans fell victim to scammers, resulting in losses exceeding $10 billion, indicating a 14% surge compared to the preceding year.

In tandem, Chainalysis has reported that ransomware groups had a lucrative year, with ransom payments surpassing $1.1 billion in 2023.

Approximately 2.6 million consumers submitted fraud complaints to the FTC in the previous year, a figure mirroring that of 2022. Notably, imposter scams dominated the reported fraud cases, with noticeable increases in instances of business and government impersonation. Following closely were online shopping scams, trailed by reports related to prizes, sweepstakes, lotteries, investment scams, and business or job opportunity schemes.

According to the FTC, consumers reported the highest financial losses to investment scams, totaling over $4.6 billion in 2023, representing a 21% hike from 2022. Imposter scams accounted for the second-highest reported loss amount, nearing $2.7 billion. In 2023, consumers cited losing more money to bank transfers and cryptocurrency transactions than through all other methods combined.

The FTC added 5.4 million consumer reports to its secure online database, the Consumer Sentinel Network (Sentinel), in the previous year. Identity theft complaints, exceeding 1.1 million, were received through the agency's IdentityTheft.gov website.

Nevertheless, the FTC's data only scratches the surface of the extensive damage inflicted by scammers in 2023, as many fraud cases go unreported.

Victims of fraud are encouraged to report incidents on ReportFraud.ftc.gov or file identity theft reports on IdentityTheft.gov. These reports, upon inclusion in the FTC's Sentinel database, are accessible to approximately 2,800 law enforcement professionals, aiding in tracking down fraudsters, identifying trends, and raising public awareness to thwart scam attempts.

Samuel Levine, Director of the FTC's Bureau of Consumer Protection, emphasized the growing threat facilitated by digital tools, underscoring the importance of the released data in understanding and combating fraudulent activities targeting hard-working Americans.
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URLs
Cyber Fraud Data Theft FTC Mallicious URLs Online Scams Personal Data QR code Scammers Scams URLs

FTC Warns: QR Codes May Result in Identity Theft


One might want to reconsider before scanning QR codes.

The codes, which are a digital jumble of white and black squares that are frequently used to record URLs, are apparently commonplace; they may as well be seen, for example, on menus at restaurants and retail establishments. The Federal Trade Commission cautioned on Thursday that they could be dangerous for those who aren't cautious.

According to a report by eMarketer, around 94 million US consumers have used QR scanner this year. The number is only increasing, with around 102.6 million anticipated by 2026. 

As per Alvaro Puig, a consumer education specialist with the FTC, QRs are quite popular since there are endless ways to use them.

“Unfortunately, scammers hide harmful links in QR codes to steal personal information,” Puig said.

Why is Stolen Personal Data a Threat? 

The stolen data can be misused by threat actors in a number of ways: According to a separate report by FTC, the identity thieves can use victim’s personal data to illicitly file tax returns in their names and obtain tax refunds, drain their bank accounts, charge their credit cards, open new utility accounts, get medical treatment on their health insurance, and open new utility accounts.

In some cases, criminals cover the legitimate QR codes with their own, in places like parking meters, or even send codes via text messages or emails, luring victims into scanning their codes. 

One of the infamous tactic used by scammers is by creating a sense of urgency in their victims. For example, they might suggest that a product could not  be delivered and you need to reschedule or that you need to change your account password because of suspicious activity.

“A scammer’s QR code could take you to a spoofed site that looks real but isn’t,” Puig wrote. “And if you log in to the spoofed site, the scammers could steal any information you enter. Or the QR code could install malware that steals your information before you realize it.”

How can User Protect Themselves?

According to FTC, some of the measures one can follow to protect themselves from scams are:

  • Inspect URLs before clicking: Even if a URL looks familiar, it is advisable to check for any misspelling or switched letters in order to ensure it is legit. 
  • Do not scan a QR code in a suspicious/unexpected message: This is particularly valid when the text or email demands a quick response. If a user believe this to be a genuine message, it is advisable to get in touch with the business using a reliable channel, such as a working phone number or website. 
  • Protect devices and online accounts: Users are advised to use strong passwords and multifactor authentication and keep their phones’ OS in their latest versions.  

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Security Policies
Cyber Security Federal Government Financial Institutions FTC Security incidents Security Policies

The FTC’s new Amendment Requires Financial Institutions to Report Security Breaches Within 30 Days


The Federal Trade Commission has recently enacted an amendment that mandates non-banking entities to notify the Federal Trade Commission of specific data breaches along with other security incidents.

This mandate requires the creation, execution, and upkeep of an extensive security policy to protect consumer data, and it applies to businesses including payday lenders, auto dealers, and mortgage brokers.

The Safeguards Rule, which required financial institutions to report security breaches found in their systems as soon as they occur, was recently amended by the federal government. Organizations must notify the Federal Trade Commission (FTC) "as soon as possible," but no later than 30 days, of any security issue involving the information of 500 or more customers. 

It has been made mandatory for organizations to report the FTC in case any malicious or unauthorized entity gains illicit access to unencrypted customer data. However, this requirement is only applicable if the data is encrypted and hackers have obtained access to the encryption keys.

From April 2024, the new regulation will go into effect 180 days after it is published in the Federal Register.

FTC further informs that following the discovery of a security incident, non-banking financial institutions will have to use the FTC's online site to report pertinent information to the commission. The identity and contact details of the reporting institution, the number of customers affected, a description of the data disclosed, the date of exposure, and the length of the incident should all be included in a thorough breach report.

Moreover, the amendment will also enable firms to notify the FTC in case the public disclosure of the breach jeopardizes their investigation or national security. An official from law enforcement may as well ask for an additional 60-day delay before making the information public. 

The FTC's Bureau of Consumer Protection head, Samuel Levine, stressed that businesses that are entrusted with private financial data must be open and honest "if that information has been compromised." These businesses should be given "additional incentive" by the new disclosure obligation to actually protect the data of their customers.

In October 2021, the FTC released revised guidelines to improve data security while also inviting public feedback on a proposed supplemental amendment to the data breach reporting standards. The new amendment was ultimately accepted by a unanimous vote of three to one.  

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