Tag: Consumer protection

BEWARE! SCAMS ARE COMING YOUR WAY! PART 2

Consumers beware; you’ll need to up your vigilance to avoid scams. The Trump administration is weakening consumer protections. From the cryptocurrency industry to cyber security to Social Security and health care, weak oversight and regulation will lead to consumer rip-offs and outright fraud.

Consumers beware; scams of all sorts are coming your way. The Trump administration is weakening or eliminating agencies and regulations that protect consumers. From the cryptocurrency industry to cyber security to Social Security and health care, weak oversight and regulation will lead to consumer rip-offs and outright fraud. You will need to up your level of vigilance to avoid getting scammed.

(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)

(Note: Please follow me and get notices of my blog posts on Bluesky at: @jalippitt.bsky.social. Thanks!)

Consumers beware; scams of all sorts are coming your way. The Trump administration is weakening or eliminating agencies and regulations that protect consumers, so it’s an open field for unscrupulous behavior by businesses and fraudsters. From the cryptocurrency industry to cyber security to Social Security and health care, weak oversight and regulation will lead to consumer rip-offs and outright fraud. (See this previous post focused on financial and other corporate scamming.)

The cryptocurrency industry is trying to transform its image from that of a scandal-ridden and crime-enabling financial technology (aka fintech) experiment into that of a mainstream financial and commercial investment and transaction vehicle. Don’t let yourself be fooled. For example, Coinbase, founded in 2012 and now the largest U.S.-based cryptocurrency exchange as well as the world’s biggest bitcoin custodian, has had over 8,000 consumer complaints filed against it with the Consumer Financial Protection Bureau (CFPB). [1]

The crypto industry spent well over $100 million in the last elections, including donations to Trump-affiliated entities, to elect pro-crypto politicians and to instill fear into others who might oppose the industry. It has also spent millions on a lobbying campaign to build bipartisan support for the Republican-led pro-crypto bills and to obtain a favorable regulatory environment.

Despite the crypto industry’s record of fraud, facilitating criminal activity, and extreme volatility, the Trump administration, through an executive order, is allowing investments in it by retirement plans, corporations (including banks!), and the government itself. [2] Furthermore, the Trump administration has eliminated crypto crime units at the Securities and Exchange Commission (SEC), the Department of Justice (DOJ), and in other government agencies. It has ended numerous investigations and criminal prosecutions of crypto industry entities. These actions effectively facilitate money laundering and criminal activity. [3]

Three bills have been introduced in Congress ostensibly to regulate the industry but appear more focused on giving it legitimacy and a government seal of approval. One of the three bills, the so-called Genius Act has passed and become law. It established a regulatory framework for a piece of the crypto industry called stablecoins. This type of cryptocurrency is linked to the value of the U.S. dollar which is supposed to prevent the volatility that occurs with other cryptocurrencies. Most, but not all, Democrats opposed this bill due to concerns that it lacked strong provisions to prevent fraud and money laundering. Furthermore, it does nothing to stop President Trump, his family, and his associates from profiting from cryptocurrency activities that allow other people and entities to effectively put money in Trump’s and his affiliates’ pockets. [4]

One of the other bills, the so-called Clarity Act would create a broader crypto regulatory framework. The third bill would ban the Federal Reserve from creating its own cryptocurrency that would compete with private cryptocurrencies and presumably reduce the profitability of the private crypto industry. So, beware of anything crypto industry related that comes your way.

In a variety of other arenas, the Trump administration is also weakening consumer protections.

Having effectively eliminated the Consumer Financial Protection Bureau (CFPB), the Trump administration is now considering weakening the Consumer Product Safety Commission (CPSC) that protects consumers from dangerous non-financial products.

The Trump administration has dramatically weakened some of the federal government’s cyber security agencies. So, be ever more alert for cyber crime and cyber scams. It is taking FBI agents away from their specialties such as combating hackers (as well as terrorism, espionage, public corruption, white-collar crime, civil rights, child sex crime, etc.) to have them patrol the streets of D.C. where crime is at its lowest level in years. Moreover, a map of where FBI agents and troops have been deployed makes it very clear they are not really there to combat crime; they are there to be seen and to make a statement. [5]

The Trump administration is cutting staffing and services at the Social Security Administration, while having it send out misleading information. (See this previous post for more detail.) This will make it harder for seniors and others to receive the benefits they’re owed and to get accurate information. This will create fertile ground for scammers to step in. Be on your guard.

Similarly, cuts to the health care system and weakened oversight of privatized Medicare Advantage Plans will open the door to scammers. For example, 17% of Americans now report they are using buy now, pay later (BNPL) programs to pay for medical or dental care. [6] BNPL programs not infrequently involve terms and costs that are not well explained to consumers and, therefore, result in financial abuse.

Please contact your members of Congress and tell them you support strong regulation of the crypto industry to protect consumers and to prevent crime and money laundering. Ask them to oppose the two crypto industry bills as they are currently written. Ask them to stand up for strong consumer protections from the CFPB, CPSC, and cyber security agencies. Ask them to protect seniors and others from the undermining of Social Security and our health care system.

You can find contact information for your US Representative at http://www.house.gov/representatives/find/ and for your US Senators at http://www.senate.gov/general/contact_information/senators_cfm.cfm.

By the way, there is lots of good news. See Jess Craven’s latest good news post. It includes California Governor Newsom fighting fire with fire on the gerrymandering front, numerous judges’ decisions, protests all across the country, conservative economists opposing Trump’s nominee to run the Bureau of Labor Statistics, Ohio’s Sherrod Brown deciding to run for U.S. Senate again in 2026, and much more.

[1]      Silverman, J., 5/27/25, “Three coin monte,” The American Prospect (https://prospect.org/power/2025-05-27-three-coin-monte-crypto-regulation/)

[2]      Johnson, J., 8/7/25, “‘Disaster in the making’: Trump to open 401(k)s to crypto, private equity vultures,” Common Dreams (https://www.commondreams.org/news/trump-private-equity-401k)

[3]      Silverman, J., 5/27/25, see above

[4]      Gold, M., 7/18/25, “Here’s how Congress is wading into crypto regulation,” The Boston Globe from the New York Times

[5]      Cox Richardson, H., 8/19/25, “Letters from an American,” (https://heathercoxrichardson.substack.com/p/august-19-2025)

[6]      Corbett, J., 8/6/25, “‘Gouging’: US health insurance giants raked in over $71 billion in profits last year,” Common Dreams (https://www.commondreams.org/news/health-insurance-profits)

EXAMPLES OF THE SOCIETAL TOLL OF TRUMP ADMINISTRATION ACTIONS

The actions of the Trump administration and Republicans in Congress are inflicting a serious toll on our society. Examples include their efforts to defund foreign aid and public broadcasting, their weakening of our cybersecurity defenses, and their efforts to eliminate the Consumer Financial Protection Bureau, not to mention all the horrible things in the budget bill.

(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)

The actions of the Trump administration and Republicans in Congress are taking a heavy toll on people, on our society, and on our democratic institutions. Here are some examples.(See this previous post for more examples.)

ACTION #1: Republicans in U.S. House recently passed a bill to rescind $9.4 billion of previously approved funding for foreign aid ($8.3 billion) and public broadcasting ($1.1 billion). The good news is that the Trump administration is tacitly acknowledging that it is illegal for it to cut congressionally approved funding through executive orders or actions by the so-called Department of Government Efficiency (DOGE). The vote to pass the bill was 214 to 212 and occurred only after Republican Speaker Johnson had pressured a few Republican representatives to switch their “no” votes and support the bill. [1] Republicans in both the House and the Senate have expressed concerns about this bill.

The bill would rescind funding for foreign aid programs that some of them support, such as President George W. Bush’s emergency AIDS program that has saved over 25 million lives around the globe. These cuts will ultimately harm health and result in deaths here in the U.S. as diseases spread across international borders.

It also would rescind funding that supports 1,500 public TV and radio stations, including many in rural, Republican areas where they are a vital, local resource.

ACTION #2: The Trump administration is weakening America’s cybersecurity defenses at a time when the likelihood of cyberattacks is growing. Trump fired the general who led the National Security Agency and other leaders of our cybersecurity agencies. He has cut staffing and funding for cybersecurity agencies. [2]

This makes no sense because the likelihood of cyber warfare is growing as global tensions and conflicts escalate – in Ukraine, the Middle East, and over Taiwan. U.S. adversaries Russia, Iran, China, and North Korea all have significant cyber warfare capabilities, and there are signs of cyber activity cooperation among them. Cyberattacks can be used for espionage – to steal valuable corporate or government information. Or they can be used to disrupt public infrastructure such as electric power supplies, phone and Internet services, hospitals, banks and financial services, and water supply systems. Recently, Russian hackers disabled the automatic control systems at a rural Texas municipal water plant. This was probably just a test of their capabilities or a warning about what they can do.

ACTION #3: The Trump administration, Republicans in Congress, and their wealthy backers in the financial industry are working hard to eliminate or at least emasculate the Consumer Financial Protection Bureau (CFPB). The CFPB was created in response to the financial industry corruption that caused the 2008 financial collapse and resulted in millions of Americans losing their homes due to abusive and fraudulent mortgages. Since its creation, the CFPB has returned more than $21 billion to consumers through enforcement actions on illegal behavior by financial companies. It has also saved consumers untold additional money through its regulation of the financial industry. [3] For example, it has capped exorbitant fees such as credit card late payment penalties and bank account overdraft charges.

The Trump administration and Elon Musk’s so-called Department of Government Efficiency (DOGE) have been trying to cut CFPB funding, fire its employees, and eliminate the agency. On February 14, a federal judge ordered a halt to these actions. The Trump administration responded by placing most of the CFPB staff on administrative leave and preventing them from performing their jobs.

On June 10, the head of enforcement for the CFPB resigned, writing: “It is clear that the bureau’s current leadership has no intention to enforce the law.” [4] (Russell Vought is the Acting Director of the CFPB and the Director of the White House Office of Management and Budget, as well as a key author of Project 2025.)

To benefit the wealthy executives and corporations in the financial industry, the Trump administration is persistently trying to eliminate the only independent agency protecting consumers from predatory and illegal practices of financial industry companies.

YOUR ACTION: Please contact your members of Congress and ask them to oppose these actions of the Trump administration in every way they can. Urge them to speak out against these actions and to explain to their constituents the toll Trump administration’s actions are taking on them and our society.

You can find contact information for your US Representative at  http://www.house.gov/representatives/find/ and for your US Senators at http://www.senate.gov/general/contact_information/senators_cfm.cfm.

[1]      Edmondson, C., 6/12/25, “House votes to claw back $9 billion for foreign aid and public broadcasting,” The Boston Globe from the New York Times

[2]      Klepper, D., 4/21/25, “Nations ready cybersecurity defenses,” The Boston Globe from the Associated Press

[3]      Economic Policy Institute, 6/12/25, “Trump administration attempts to close the CFPB, block agency’s work,” (https://www.epi.org/policywatch/trump-administration-closes-the-cfpb/)

[4]      Economic Policy Institute, 6/12/25, see above