First-year actions under Impersonation Rule led to legal cases and website takedowns amid nearly $3 billion in reported losses.
The Federal Trade Commission (FTC) has increased enforcement of the Government and Business Impersonation Rule that took effect in April 2024. The effort addresses scams involving false affiliations with government agencies and private companies, the most reported types of fraud, which accounted for $2.95 billion in consumer losses last year.
The FTC initiated five enforcement actions and worked to shut down 13 fraudulent websites that mimicked the agency. The rule prohibits materially false claims of affiliation with or impersonation of government entities or businesses and carries penalties of up to $53,088 per violation.
“The billions of dollars American consumers lose at the hands of impersonators is staggering,” said Director Chris Mufarrige of the FTC’s Bureau of Consumer Protection. “The FTC will not hesitate to enforce the Impersonation Rule against bad actors.”
Among the enforcement actions, the FTC took legal steps against businesses accused of deceptive schemes such as fake student loan forgiveness and phantom debt collection. In one case, a company allegedly posed as affiliated with the U.S. Department of Education, collecting millions from student loan borrowers. The FTC secured a court order freezing the company’s assets and is seeking a permanent ban on its activities.
As the Lord Leads, Pray with Us…
- For Director Chris Mufarrige to receive God’s wisdom as he heads the Bureau of Consumer Protection.
- For Chair Ferguson to seek the Lord’s wisdom as he oversees the Federal Trade Commission.
- For FTC officials as they work to stop the impersonation of government agencies and private businesses.
Sources: Federal Trade Commission
