Current Events in October 2017

Consumers are targeted by scams every day, but the Internal Revenue Service (IRS) warns that recent tragedies have unfortunately created an uptick in scams seeking to exploit Americans’ desire to help victims.

The IRS points out the country has experienced a series of major disasters and a mass shooting in quick succession, so donors need to be particularly vigilant to look for signs of a scam before sending money.

“These scams evolve over time and adjust to reflect events in the news, but they all typically are variations on a familiar theme,” said IRS Commissioner John Koskinen. “Recognizing these schemes and taking some simple steps can protect taxpayers against these con artists.”

Beware of unfamiliar charities

Consumers should look out for appeals for donations from unfamiliar charities, or organizations that have names similar to a legitimate charitable organization. They should also be highly suspicious of appeals that come in the form of an email, text, or telephone call since legitimate charities usually stick to mass advertising like television commercials to solicit donations.

Consumers who want to donate to any charitable cause should initiate the search for a group themselves, not respond to direct contact that may not be legitimate. The American Red Cross, Salvation Army, and United Way are three groups that are involved in providing help to victims of wildfires, hurricanes, and mass shootings.

The IRS, meanwhile, is also trying to help victims of the California wildfires. It's extending the deadline to file certain individual and business tax returns and make certain tax payments until Jan. 31, 2018. The extension postpones deadlines beginning October 8 and applies to residents of seven California counties.

Impersonating IRS agents

The tax agency spends a good deal of its time countering the efforts of scammers, who often pose as IRS agents to fool consumers. Most recently, it has warned about scammers using a phishing scheme to steal client email addresses from tax professionals to access insurance and annuity accounts.

The IRS reminds consumers that it does not call and leave pre-recorded, urgent messages demanding a call back. If you get one of these calls, it's from a scammer who hopes to scare you into thinking you will be arrested if you do not respond.

There are legitimate IRS functions that scammers may also try to exploit. The agency has sent letters to taxpayers whose overdue accounts have been assigned to one of four private sector collection agencies. Scammers are already trying to take advantage of this by calling and threatening taxpayers if they do not pay the overdue amount quickly.

What to do

If you receive one of these calls but are not aware that you have an overdue bill, it's a scam. The IRS says all of the taxpayers receiving calls about their overdue accounts are well aware of the issue, since they have been corresponding with the IRS about it for years.

Legitimate contact with the IRS almost always begins with a letter through the U.S. Mail. In rare cases, an IRS official may show up at your home or business, but they will always first establish the time and reason in a letter.

Any consumers with a question about whether a contact from the IRS is real should go online, look up the number for the closest IRS office, and call the agency directly to inquire.

The Federal Trade Commission and eleven state attorneys general are launching a coordinated attack on student loan debt relief services, alleging they have fraudulently collected roughly $95 million in fees.

“Winter is coming for debt relief scams that prey on hardworking Americans struggling to pay back their student loans,” said Maureen K. Ohlhausen, FTC Acting Chairman. “The FTC is proud to work with state partners to protect consumers from these scams, help them learn how to spot a scam, and let them know where to go for legitimate help.”

Florida Attorney General Pam Bondi has filed two of 36 total lawsuits, charging two Florida-based companies misled student loan borrowers into believing they would be enrolled in a loan forgiveness program, making unkept promises.

She says the students would have been much better off using the money they paid in upfront fees to make payments on their loan balances. Illinois Attorney General Lisa Madigan also filed two separate actions against firms in her state.

Borrowers not getting the right information

“Student loan debt relief scams are successful because borrowers are not receiving the information they need to repay their loans,” Madigan said. “They rob borrowers of the money they could be using to pay down their student loan debt.”

With approximately 42 million borrowers owing more than $1.4 trillion in student loans, some firms have targeted this debt-burdened group with promises of relief. Similar scams targeted homeowners facing foreclosure following the 2008 housing market crash

Consumers were charged upfront fees and, in many cases, ended up in worse shape than before.

While the government has established some ways for student loan debt to be forgiven, borrowers should understand that it is very difficult to walk away from a student loan. This debt is so iron-clad it cannot even be discharged in bankruptcy.

Don't fall for big promises

Madigan says student loan borrowers should not believe sales pitches that claim to have expertise in navigating the debt relief process. Some of these firms have names that make them sound like a government agency when they clearly are not.

These companies often employ high-pressure sales tactics, providing erroneous information in order to scare borrowers into signing up. People who do sign up are often charged upfront fees as much as $700.

The service they provide is available to any consumer at no charge if they contact government agencies like the Department of Education and the Consumer Financial Protection Bureau (CFPB).

Under federal law, there are a few cases in which a student loan may be forgiven, such as when a for-profit school goes out of business or the borrower takes certain public service jobs. The Department of Education lists them here.

A growing number of employers now offer some help in repaying student loan debt as an employee benefit. Earlier this year, outplacement firm Challenger, Gray & Christmas reported nearly 73 percent of the firms it surveyed either currently offer or plan to offer a student loan assistance package.

Northern California’s record-breaking wildfires have already claimed more than 20 lives and razed a landscape encompassing thousands of homes and businesses, and long-term effects of this disaster–particularly in agricultural industries–are just beginning to take shape.

The state's wine and cannabis industries face devastating repercussions. Each represents hundreds of thousands of jobs and billions in revenue, but only the former has access to insurance on their crops. Supply chains for both will likely remain stable for the time being, but without insurance, many growers may never fully recover.

"[No cannabis grower] right now has insurance," Nikki Lastreto, with the Mendocino Cannabis Industry Association, told CNN. "They might have insurance on their house, but not on their crop." While a small number of firms advertise cannabis crop insurance, industry experts say that the field is extremely limited due to the risk providers face under conflicting state and federal regulations.

Mark Sektnan of the Property Casualty Insurers Association says his trade group does have members who represent marijuana dispensaries, but none who protect the actual crops and growers.

"What we have to figure out is, who's going to provide these guys insurance?" he tells ConsumerAffairs.

Federal and state laws that don't mesh

Businesses have typically been deterred from accommodating marijuana users or businesses -- even in so-called “420-friendly” states -- because cannabis is still considered a controlled substance under federal law. In fact, disabled people who legally use cannabis as medicine can still be fired if they fail a drug test, and workers’ compensation insurance can deny coverage to employees with cannabis in their system.

However, property insurance is typically regulated under state law, which has brought some smaller insurance companies to the market. Both High Times and The Insurance Journal point to a niche market of insurers willing to offer coverage to cannabis businesses.

Restrictions include crop value being capped at $500 per plant and a mandate that all of the property is equipped with video cameras.

Shoppers shouldn't notice a change

California lawmakers have asked major, commercial insurers to consider covering the marijuana industry, but it will take some work getting name-brand insurers to protect crops or dispensaries.

"It's hard to quantify what the risk is when you have this disconnect between the federal government and the state government," Sektnan said. "The current administration has come out to be much more aggressive on marijuana enforcement."

For now, business at dispensaries likely won’t be affected by the fires. An industry representative told VICE news that they do not expect the supply chain to be disrupted due to the huge amount of crop being grown in the region.

Cruises are popular vacation getaways, but if you have more time to travel, a repositioning cruise offers both an adventure and a bargain.

Many of the world's cruise liners spend the summer season sailing the Mediterranean and North Seas and the winter season cruising the Caribbean. In the lull between them, ships sail from one region to another, and cruise lines offset these costly relocations by inviting travelers to join them for something a little different.

The transition takes place twice a year – in April and November. Next month, dozens of ships will cross the Atlantic from Europe to the Caribbean, offering passengers a longer-than-usual cruise with upgrade options at a discounted fare; sometimes as much as 50 percent less.

There are several ways a repositioning cruise is different. For starters, it's a one way trip. A traditional cruise returns to its port of departure. American consumers who want to take a repositioning cruise next month will need to get to the departure port across the Atlantic.

Some seasoned travelers often make getting to the departure port part of their travel experience. They might take a cheap flight to Ireland, spending a couple of days there. Then they might take another cheap flight to Southhampton, where they would board a cruise liner headed west across the Atlantic.

More time at sea

Another difference is the length of the cruise. A traditional cruise might take six or seven days, stopping at a different port every day. A repositioning cruise is longer, with up to half of that time spent at sea.

The ship might stop at a few ports, especially in the Mediterranean region, but there are generally fewer stops than a traditional cruise. Transatlantic cruise passengers should expect six to seven days at sea.

A third difference is value for the passenger. In addition to paying a lower fare, food and beverage upgrades that might be costly on a traditional cruise are often complimentary. This can include unlimited drinks, pre-paid gratuities, and hundreds of dollars in shipboard credit.

While they tend to be very good values, repositioning cruises aren't for every traveler. You must be willing to devote two weeks or more to your overall journey.

You also must enjoy an extended time a sea. The fact is that some people do and some don't. But for those who love shipboard life and a good bargain, an extended cruise could be a vacation to remember.
A 15-night repositioning cruise recently offered by Celebrity begins in Rome, with stops in Florence, Provence, Barcelona, Palma De Mallorca, the Canary Islands, and then seven days at sea.

Points to consider

You should also carefully consider costs. It's true that the fare is less, but you have to pay to get to your departure port, then get home after docking at your arrival port, which in the U.S. is normally Fort Lauderdale, Fla.

You can find a repositioning cruise by going to individual cruise line websites and searching for deals. People who tend to favor one particular line may like that option.

Another option is to use an aggregator, such as Crucon Cruise Outlet, which displays deals from many popular cruise lines.

There's a dangerous new scam the Internal Revenue Service (IRS) says can victimize tax professionals and their clients.

The agency says scammers are circulating a fake tax form in hopes of gaining access to annuity and life insurance clients. The scheme has a number of variations that can cause serious trouble.

In one iteration, cybercriminals impersonate a cloud-based storage provider and assume the name of a real company in the cloud storage industry.

The scammers then send out emails to tax professionals asking for credentials to access files, including usernames and passwords. Tax professionals who think they are dealing with a real cloud storage company comply.

Stealing email addresses

Once the scammers gain access to the cloud, they steal the email addresses of the tax professional's clients. They then impersonate a particular tax professional by sending an email to clients with the subject line “urgent information.” The text of the message goes something like this:

“Dear Life Insurance Policy Owner

Kindly fill the form attached for your Life insurance or Annuity contract details and fax back to us for processing in order to avoid multiple (sic) tax bill (sic).”

Note the clumsy wording, which is often a tell-tale sign of a scam. If the victim complies with the request, the scammer has all the information he needs to impersonate the victim.

After assuming a stolen identity, the scammer can contact the victim's insurance company and attempt to make a loan against their policy, or even make a withdrawal.

Complicated but highly effective

The IRS says the scheme is complicated, but it’s also highly effective and marks a departure from how many scams are carried out.

Instead of sending out millions of spam emails, the scammers target a specific, smaller number of tax professionals. If they compromise one individual, it is then much easier to compromise their clients, and the payoff can be enormous.

The IRS says tax professionals and their clients need to be on guard against this scam, noting that tax professionals should always directly verify any request for information from their cloud storage vendor.

Clients should also contact their tax professional directly to verify any request for information or to make sure any tax form that has been sent is legitimate.

The IRS says tax professionals who have fallen victim to this scheme should contact the IRS immediately through their Stakeholder Liaison. The agency has provided more information for tax professionals here.

Real estate listings website Zillow says it will soon offer easy 3D house tour creation and viewing via a new app called Zillow Group Home Capture.

Zillow created the app with the goal of expediting the home renting and buying process, enabling house hunters to virtually walk through a property before seeing it in person. The app is currently in testing with an anticipated rollout in 2018.

The new technology may be especially well-received by millennials, as Zillow research shows more than 70 percent of first-time home buyers are millennials who consider 3D media to be as important as open houses.

360-degree views

Sellers and agents may also benefit from 3D tours; Zillow’s research shows 44 percent of home buyers and 46 percent of renters look for a new home remotely.  

“Rich media, like these new 3D Homes, will help buyers and renters more easily visualize themselves living in the home, no matter how far away they happened to be,” said Jeremy Wacksman, Zillow Group chief marketing officer.  

The app allows users to shoot 360-degree panoramic photos of all the rooms in a home, which are then uploaded to the app. Zillow Group then stitches together the uploaded photos to form an interactive house tour in a few hours.

No expensive equipment required

All photos can be shot directly from an iPhone using the free app, says the company, noting that a 3,000 square foot home can be captured in about 30 minutes.

“Photos have always been vital to the home search process and now 3D tours can give buyers and renters a realistic understanding of what it would be like to live in the home,” Wacksman said.

Similar services rely on expensive equipment, but Zillow says it is the only mobile solution capable of capturing 3D tours at no cost.

“By integrating directly with the iPhone, a device many people are already using, agents can just pull out their phone, and capture a panoramic photo. By removing the hardware barrier, more real estate pros can add 3D Homes to their listings, giving them a new way to market all of their listings, and improving the search experience for buyers and renters,” Wacksman said.

Check out one of Zillow’s 3D tours here.

The Equifax data breach, and the possibility of yet another one, may have consumers a little on edge.

Credit monitoring service Lifelock said its business soared in the days after the Equifax breach was disclosed, and prudent computer users have made sure their antivirus software is up to date.

However, a new study from ReportLinker finds that only a small majority (54 percent) of consumers still feel safe when they are connected to the internet. The findings show that 82 percent of people are more concerned about cyberattacks now than they were five years ago.

When it comes to their personal devices, 59 percent of consumers think their PCs, either a desktop of laptop, is their weakest link in the security chain. Twenty-five percent cited a smartphone as their weakest link, while only nine percent worried that smart devices were undermining their security.

Smart devices

But despite the numbers, it is smart devices -- the so-called Internet of Things (IoT) -- that keep security experts up at night. A year ago, hackers exploited the nearly non-existent security found on many smart devices found in homes and offices to launch a massive denial-of-service (DOS) attack on major websites such as Amazon and Netflix.

The websites received access requests from tens of millions of IP addresses. Hackers had infected electronic devices – things like printers, thermostats, and other ordinary devices that now connect to the internet -- with a unique IP address. Investigators found that many of the devices had been infected with the Mirai malware, a botnet that coordinated the attack.

To protect your smart devices from attack, you first have to be able to recognize them. It isn't always obvious. Things like garage door openers and thermostats can be smart devices. The way to know for sure is to determine if you can manipulate it using your smartphone.

Secure passwords and updated security

The best way to defend smart devices is to establish a secure password. Security experts say that very often, consumers simply continue using the default passwords set at the factory, which tend to be extremely weak.

Increasingly, cars and trucks are incorporating smart devices that control many functions of the vehicle. Though cars didn't show up much in the ReportLinker study as a consumer concern, that could change in the future.

Two years ago, a hacker, as an experiment for a technology publication, took control of a Jeep while it was being driven. The incident was the trigger for a recall of 1.4 million Jeeps.

Consumers in the ReportLinker survey are correct that desktops and laptops are vulnerable to attack. One only has to remember the incident in May of this year when hackers unleashed the WannaCry ransomware attack on computer networks around the world.

The malware in this case exploited a weakness in Microsoft Windows. Microsoft released a patch, but many computer users – particularly businesses – had not install it.

The best way to guard against these types of malware attacks is to keep operating systems updated and install robust security software that is updated often to meet emerging threats.

Massachusetts-based Nashoba Brook Bakery was issued a public warning by the Food and Drug Administration last week, citing a litany of violations that co-owner John Gates says don’t necessarily protect consumers.

“The federal government starts to pay attention to businesses when they sell more than five million dollars a year and have more than 50 employees," says Gates. At 75 employees, approximately $5 million in sales, and New England Whole Foods stores among its clientele, his twenty year-old bakery is somewhat new to this bracket. 

Gates is quick to point out the value in being a stickler for details when it comes to food safety. “You want that out of a health inspector,” he says. Still, there are a few points he’s asking the FDA to reconsider, such as an admonishment for listing “love” as an ingredient in Nashoba’s granola, and a long list of “insanitary conditions.” 

The kerfuffle (and subsequent unwanted media attention characterizing the bakery as a new age filth-fest) demonstrates the challenges that small- to mid-size food companies can face as they expand their operations and get placed in large grocery store chains. 

Ultimately, what got Nashoba Bakery the public lashing rather than a private rebuke from the FDA was the bakery’s failure to respond to an initial FDA warning detailing the same problems. Gates admits he dropped the ball on a timely response.

Separating allergens and cross-contamination warnings

Nashoba specializes in slow-rise sourdough bread, and other top-sellers are a harvest bread made with pecans and a bread that contains pepper jack cheese, both of which require careful separation due to their nut and dairy allergens.

Large corporations can afford to build a separate production line for breads that contain allergens, but the Nashoba Bakery has just one production line and doesn’t plan to add a second anytime soon. 

To prevent any allergic reactions, bakery workers carefully clean equipment between batches and place a familiar warning label on its products,“Made in a facility that also produces tree nuts, egg, and dairy.” 

Despite these measures, the FDA says that Nashoba Bakery placed that warning in the wrong spot of its wrapper. "Literally, it's placed too close to the ingredients list,” Gates tells ConsumerAffairs.

Why the allergen cross-contamination warning cannot be placed too close to the ingredients list is where things get complicated. 

Food producers are actually not required to warn consumers about allergens used in the same facility. The cross-contamination warning is thus deemed  “intervening material” by the FDA, and under the agency’s rules, this intervening material cannot be placed in the middle of any “required labeling,” such as an ingredients list.

At the same time, the FDA also chastised Nashoba for “remnants of Pepper Jack dough” that were left behind in the bakery’s mixing bowl, potentially exposing dairy-allergic consumers to cross-contamination. Such a finding is exactly why Gates argues that cross-contamination warnings should be required. 

"The question I have is, what’s the most effective way to protect the consumer?" he asks.  "I wish the FDA would say, ‘I want you to put a warning on your bread.” 

Debris and pests

Elsewhere, the FDA noted the bakery ceiling was “stained” and “discolored,” and found presence of “debris” and residue on vents, bread peels, and other equipment. 

Gates says that the debris the FDA complained about was merely flour dust.

More troubling are the FDA’s findings of a 1 inch long crawling insect “underneath exposed ready-to-eat foods in the pastry area,” as well as five flies in areas “near or on food.” Gates downplays the FDA’s concerns on this front, noting that they didn’t uncover a large infestation.

"My biggest fear is that there are people now taking the story as we are running a dirty facility,” he says. The bakery subsequently sent ConsumerAffairs a copy of their contract with a professional cleaning company, indicating that Nashoba pays a cleaning service $8,000 a month to scrub the bakery every day.

He says he plans to fix and address the problems that the FDA caught but will request the chance to keep “Love” on the ingredients list. If the agency rejects the request, he'll move on. "We're going to continue to put passion, care, attention in everything we do, whether it says ‘love’ on the label or not.”

Equifax has reportedly disabled a customer help page on its website and is investigating whether hackers used it to recently breach its network.

Tech site Ars Technica broke the story, quoting a security analyst as saying he noticed the Equifax site was redirecting visitors to another page and instructing them to download a fake software update. It's unknown how long the fake page had been up or how many people had followed the fraudulent directions.

At this stage of the investigation, it is unknown whether any sensitive data was compromised or how many people may have been affected.

"We are aware of the situation," a spokesman told CNBC. "Our IT and Security teams are looking into this matter, and out of an abundance of caution have temporarily taken this page offline."

Another breach?

The news follows a disclosure made by Equifax on September 7 over a breach uncovered in late July that potentially exposed the credit files of more than 145 million consumers, making them vulnerable to identity theft. However, the credit bureau confirmed that the current problem lies in its credit report assistance link.

After the major breach was announced in September, Equifax said it would provide its premier credit monitoring service to affected consumers at no charge. Consumers can determine if their file was compromised here and sign up for the service.

Consumers who think they may have been exposed may want to review our earlier coverage of the issue, including “How to protect yourself from identity theft” and “Exposed in the Equifax data breach? Here's what to do.”

Health-conscious millennials are reshaping how Americans eat, causing a spike in the popularity of foods that are both eco-friendly and nutritious.

Products such cage-free eggs, “free-from” foods and organic products appearing in more grocery stores (not just specialty organic grocers) can be attributed to the influence of millennials.

Consumers ages 19 to 35 wield a large amount of power in the food industry, so it’s no surprise that they are often catered to by brands and businesses. 

Earning the favor of millennials can yield a big profit, since millennials are often willing to pay more for products that align with their personal values and to advocate for them on social media.

Cooking at home

Dining out takes a big bite out of millennials’ wallets -- an estimated 44 percent of millennials’ food dollars is spent eating out at restaurants, according to a 2016 analysis. But that may change.

According to a survey commissioned by the online grocer Peapod, a third of Americans said they wanted to cook dinner at home more in 2017. Millennials were twice as likely as baby boomers to say they were planning to cook at home more this year.

Food that looks good on social media

Social media savvy millennials are fueling the trend toward seeking out food that looks good on social media. A recent study by Maru/Matchbox found that a whopping 69 percent of millennials snap a picture of their food before eating it.

Consequently, restaurants are becoming more aware of how their food will look when photographed -- and with good reason. Brands and businesses that are favored by millennials get free advertising by way of their social media advocacy.

Growing trust in small brands

Millennials are also more likely to trust small brands to deliver features like nsustainably sourced ingredients and no artificial preservatives.

Over a third of millennials (35 percent) who participated in the Maru/Matchbox study said they trust small local brands more than they used to, compared to 25 percent of those age 35 to 54. 

Millennials' blooming trust in small brands stands to reason, as millennials are more likely than older generations to say they value authenticity and transparency in brands and products.

Probiotics

According to a recent survey by Packaged Facts, roughly a quarter of adults seek out foods and beverages with high amounts of probiotics or prebiotics, such as yogurt, kefir, and kombucha. These days, probiotics can even be found in soda, coffee, tea, soups, and beer. 

“Probiotics have emerged as a driving trend in the industry," said David Sprinkle, research director, Packaged Facts. 

"And given the core importance of gut health, this suggests continued potential for growth of probiotic- and prebiotic-containing foods, as consumers continue to learn more about them and next-generation products make their case in the market."

Millennials embrace probiotic and prebiotic products because they are associated with the hottest wellness trends, from superfoods and ancient grains to sports nutrition.

The Food and Drug Administration (FDA) has approved a new treatment option for sufferers of moderate to severe central sleep apnea.

The Remedē System consists of a battery pack surgically placed under the skin in the upper chest area and small, thin wires that are inserted into the blood vessels in the chest near the phrenic nerve. The system monitors patients’ respiratory signals during sleep and stimulates the nerve when necessary to move the diaphragm and restore normal breathing.

Dr. Tina Kiang, an acting director under the FDA’s Center for Devices and Radiological Health, says the system is a viable option for treating the sleeping condition.

“This implantable device offers patients another treatment option for central sleep apnea,” Kiang said. “Patients should speak with their health care providers about the benefits and risks of this new treatment compared to other available treatments.”

Central sleep apnea

Central sleep apnea occurs when the brain fails to send signals to the diaphragm to breathe, which can cause an individual to stop breathing for a period of 10 seconds or more before restarting again.

The National Institute of Health’s National Center on Sleep Disorders Research says that this can lead to poor sleep quality and may result in serious health issues, including an increased risk for high blood pressure, heart attack, heart failure, stroke, obesity, and diabetes.

Prior to the Remedē System’s approval, common treatment options included medication, positive airway pressure devices (e.g., continuous positive airway pressure machine), or surgery.

“Central sleep apnea is often difficult to treat. This is an exciting new option to provide patients to improve breathing during sleep and quality of life,” said Dr. M. Safwan Badr, chairman of the Wayne State University School of Medicine’s Department of Internal Medicine.

Rate of success

While the device has won approval from the FDA, questions still remain about whether the Remedē System will be covered by health insurers. However, Kristine Growe – America’s Health Insurance Plans Senior Vice President – tells ConsumerAffairs that each insurance company will examine clinical evidence before making a coverage decision.

Thus far, there have been positive clinical implications. Clinical data from 141 patients was used by the FDA to assess the effectiveness of the system in reducing hypopnea index (AHI) – a measure of the frequency and severity of apnea episodes.

The agency found that within six months, AHI was reduced by 50 percent or more in 51 percent of patients with an active Remedē System implanted. AHI was only reduced by 11 percent in patients without an active Remedē System implanted.

Not intended for every case

There are some adverse events connected to use of the system, including concomitant device interaction, implant site infection, and swelling and local tissue damage or pocket erosion.

The Remedē System should also not be used by patients with an active infection or by patients who are known to require magnetic resonance imaging (MRI).

The system is also not intended for use in patients with obstructive sleep apnea, a condition in which the patient attempts to breathe, but the upper airway is partially or completely blocked.

Phishing scams have moved to social media sites, security experts warn, requiring consumers to think before they click.

The 2016 presidential campaign was rife with content labeled “fake news,” designed to sway a voter one way or the other. But scammers have adopted similar tactics, seeking access to your bank account, or even your identity, rather than your vote.

Symantec, the company behind security products like Norton, warns that scammers are posting sensational news stories (almost always made-up), hoping people on social media will click on them to learn more.

Scammers often take advantage of high-profile news stories, such as the recent hurricanes and Las Vegas shooting deaths, to ensnare curious web users.

According to Norton, the post might tell users they must share the content before it can be viewed. After sharing, users are taken to a page where they are asked to complete a survey.

Gathering personal information

“The survey will gather sensitive personal information that can be used in phishing attacks,” Norton warns on its website. “In addition to collecting sensitive data, the scammers will also earn money per completed survey and in turn, will sell that information to other scammers.”

Because seniors are often targets of scams, AARP has launched a campaign to warn its members about the dangers of social media scams.

Among the latest threats is the coupon scam, which promises too-good-to-be-true discounts on popular consumer products. The real purpose is to steal your credit card information or collect personal identifying information for identity theft.

A genealogy scam has also been showing up a lot on social media. It often mimics the name of a real genealogy site and tries to gather consumers' credit card and Social Security numbers.

Advice from a pro

Frank Abagnale, a former master conman portrayed by Leonardo De Caprio in the movie “Catch Me If You Can,” is advising AARP's Fraud Watch program. He says consumers should never post any personal information on social media – including birthdays.

He also says you should never post a front-facing photograph of yourself on social media, since a scammer could use it to create a photo ID that could be used to steal your identity.

Even though seniors have long been the group most likely to fall for scams, new research suggests younger consumers are just as vulnerable, if not more so.

Vulnerable millennials

First Orion, a data provider, released a study earlier this year showing that millennials are more likely than other generations to reveal personal information.

In this specific case, it found that millennials received fewer scam telemarketing calls than either gen X or baby boomers, but were six times more likely to give away their credit card information and twice as likely to reveal their Social Security number to someone on the phone.

The study found that scams involving cruise and vacation discounts were particularly effective with millennials, as well as those involving credit card scams. But the biggest scams targeting millennials, the company said, are those that impersonate the Internal Revenue Service (IRS).

Foreclosure activity hit an 11-year low in this year's third quarter, as an improving economy and stricter mortgage standards helped stabilize the housing market to pre-2008 levels.

The Third Quarter 2017 U.S. Foreclosure Market Report, compiled by ATTOM Data Solutions, shows there were 191,824 properties subject to foreclosure filings, which include default notices, scheduled auctions or bank repossessions.

The number is down 13 percent from the second quarter and 35 percent lower from a year ago. It's the lowest level since the second quarter of 2006, at the height of the housing bubble.

This does not appear to be a one-off occurrence. The drop in foreclosure activity in the last quarter was the fourth straight quarter in which it has tracked below the pre-recession average.

“Legacy foreclosures from the high-risk loans originating between 2004 and 2008 have largely been cleared out of the distressed market pipeline,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.

Tougher lending standards

New post-crash mortgages must adhere to stricter standards and are subsequently performing much better, Blomquist says. The exception is FHA loans made in 2014.

Blomquist says those loans aren't performing nearly as well, with a foreclosure rate higher than any year since 2009. He explains it by noting there was a gradual loosening of credit that year.

Lenient lending standards in the early 2000s, along with a large number of subprime mortgages, created a “foreclosure tsunami” that was out of control by 2007. A year later, one in every 538 U.S. households received a foreclosure filing during March 2008, a five percent rise over the previous month and a shocking 57 percent increase over March 2007.

Now, applicants are required to have two solid years of employment history at the same company or in the same industry, have a good credit score, and a debt to income ratio of no more than 43 percent.

According to the Consumer Financial Protection Bureau (CFPB), studies have shown that mortgage applicants with a higher debt-to-income are more likely to have trouble making their monthly mortgage payments.

Benefits for homeowners

At the height of the foreclosure crisis, buyers had a lot more homes to choose from than they do today. However, the decline in foreclosures has produced major benefits for homeowners. The housing market is now more stable and home prices have risen back to their pre-crash levels in many housing markets.

Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market, says foreclosure activity there is at a record low.

“As long as the regional economy continues to flourish, I do not expect to see foreclosures rise,” Gardner said.

The current threat to the housing market, he says, is price growth, which is good for homeowners but has started to negatively affect affordability, and according to Gardner, “is becoming troublesome.”

Diono is recalling 519,052 Radian R100, Radian R120, Radian RXT, Olympia, Pacifica, and Rainier All-In-One Car Seats sold in the U.S.

Forward-facing occupants utilizing the 5-point harness and vehicle lap-belt only (without top tether) are at increased safety risk. In this configuration there is an increased risk of head or chest injury during a crash, but there have been no reported injuries or deaths thus far.

The child seats fail to conform to the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 213, "Child Restraint Systems."

What to do

Diono will notify owners and provide a free remedy kit with an updated instruction manual, an energy absorbing pad, as well as a new chest clip, free of charge. The recall is expected to begin November 22, 2017.

Owners may contact Diono customer service at 1-855-215-4951.

When shoppers search for used vehicles on CarMax.com, they are greeted with a sleek website, the promise of a “Carmax Quality” certification on the entire inventory, and upfront pricing -- no haggling necessary or allowed.

It’s the exact opposite of what a shopper gets when they visit a run-down used car lot. But a new study suggests that the quality of CarMax Quality Certified cars is about the same as vehicles at that used car lot, and the company’s “no-haggle” policy means that consumers could be paying more for a car with open recalls and safety issues, according to a coalition of consumer safety groups. 

“They're saying we won't even negotiate the price, and we want top dollar for this death trap,” co-author Rosemary Shahan, with the Consumers for Auto Reliably and Safety (CARS) Foundation, tells ConsumerAffairs. 

The report finds that over one in four vehicles for sale at eight CarMax locations are under a recall and have not been repaired, according to a review conducted by the CARS Foundation, the Center for Auto Safety and the MASSPIRG Education Fund.

One car that the groups studied is under recall for six different reasons, including the risk of engine fire and airbag failure. The groups looked at nearly 1700 cars in total and found that 461 had active recalls.

“Those vehicles are potentially hazardous, not only to the people who buy them but also to their passengers and everyone else who shares the roads,” the report says. 

Airbags a major problem

The researchers studied CarMax precisely because of its scale and success in targeting shoppers who are normally turned off by used car lots. As the nation’s largest retailer of used cars, “they target people very aggressively,” Shahan explains. “They know that people are afraid of dealers. They target women in particular, because they know women hate to negotiate.”

The most common defect the researchers found in the CarMax vehicles was recalled airbags, a problem that is unlikely to go away anytime soon.

In the largest recall of its kind, Takata, the automotive industry’s main airbag supplier, has admitted that its airbag inflators are prone to exploding. This defect has resulted in deaths, disfigurements, and a congressional investigation.

Takata agreed to recall over 30 million vehicles, but with a virtual monopoly over the airbag market, no competitor is ready to sell a fix, and car dealerships are now experiencing a huge backlog. Many customers stuck with potentially deadly, explosive airbags have no choice but to wait.  

Name brands also sell recalled cars

While no federal laws prevent businesses from selling cars with open recalls, car companies typically enact policies banning their dealerships from doing so. It’s for that reason that shoppers often favor buying vehicles from dealerships.

However, dealerships have also been documented selling vehicles with serious defects. In fact, the FTC last year issued a ruling allowing General Motors to advertise cars with open recalls as “safe" and rigorously tested. Car safety groups are suing the FTC to overturn that ruling. 

CarMax says they can't fix problem, touts disclosure policy

CarMax’s press team claims that they are unable to repair recalled cars at their stores.

“Manufacturers do not allow CarMax to complete recall repairs and close out recalls at our stores,” CarMax spokesman Catherine Gryp says in an emailed statement.

CarMax also notes that whether a car is recalled is a matter of public record. Included in every online CarMax listing is a link to the National Highway Traffic Safety Administration's website, where the general public can learn a car's recall history by searching the VIN number.

“In addition, customers sign a form acknowledging receipt of the NHTSA recall information prior to signing any sales documents,” Gryp adds.

Safety advocates say that most shoppers don't take the time to search recalled vehicles on the government website. Understanding that fine print that they sign also requires a proficiency in English at a level that shoppers who were born in other countries may not be prepared for.

Ultimately, Shahan argues that CarMax’s advertising is intended to dissuade consumers from even thinking it's necessary to look deeper into their prospective purchase. 

The company's stores "look like a car palace," she says. "That's the image they project.  'Wow we are so squeaky clean. We only have the best cars.' And underneath that veneer they have these horrible practices."

As the U.S. opioid epidemic continues to reach a new level of crisis, a new Yale study suggests a possible answer for regulators to curb the rising tide of opioid prescriptions and, hopefully, mortality rates and treatment costs.

The researchers point out that there are few restrictions currently in place that curb opioid prescriptions for healthcare plans under Medicare. They say that Medicare formularies could help reduce the number of opioids in circulation by closing these gaps.

Dr. Elizabeth Samuels – a postdoctoral fellow in the National Clinical Scholars Program and the study’s first author – points out that some states have already passed legislation limiting opioid prescriptions.

“People are looking for any way to control the increase in opioid-use disorder. This is one strategy,” she said.

Going against guidelines

The researchers say that the lack of restrictions for opioid prescriptions under Medicare have persisted despite federal guidelines recommending increased controls.

To find out how pervasive the problem was, the researchers conducted an observational study that reviewed the Centers for Medicare and Medicaid Services' formulary files from 2006, 2011, and 2015. Information was collected for the Medicare Advantage program and all Part D plans, including data on all prescribed opioid medications except for methadone.

Findings of the study showed that one-third of all drugs prescribed under Medicare in 2015 had no restrictions, such as prior authorization or step therapy. Additionally, dosage recommendations made by the Centers for Disease Control and Prevention (CDC) were only followed for 13 percent of prescriptions during that year.

Samuels notes that there was a modest increase in the coverage of opioids between 2006 and 2015, with many new drugs being added to the formulary list.

Restrictions decrease risk of death

While the 2015 results fall well short of federal recommendations, the researchers say that the number of restrictions actually doubled from 2006 to 2015.

They cite a study by a private insurer showing that increasing restrictions – such as including prior authorization, quantifying limits, and drafting provider-patient agreements – could reduce opioid prescriptions by 15 percent.

“Improving the way opioids are prescribed through clinical practice guidelines can ensure patients have access to safer, more effective chronic pain treatment, while reducing the risk of opioid use disorder, overdose, and death,” the CDC said.

The full study has been published in the Annals of Internal Medicine.

The holiday shopping season looms large, and Amazon is ready with its highly-anticipated 2017 Top 100 Holiday Toys list.

Featuring the retail giant's predicted top 100 best toys and games, this year's list has a notable focus on toys that incorporate Science, Tech, Engineering, and Math (STEM).

Toys that combine coding and creativity are becoming increasingly popular with children, and retailers like Amazon are embracing the trend by putting STEM toys at center stage. 

By focusing on toys that promote learning through play, the online retailer hopes to make it "more convenient than ever for parents to give their kids the gift of having fun while learning," Eva Lorenz, category leader of Toys & Games for Amazon, told FastCompany.

In addition to STEM toys, Amazon's top toys list features toys inspired by popular kids shows and movies, such as “Paw Patrol,” PJ Masks,” and “Cars 3.”

Top 10 toys

• FurReal Roarin’ Tyler, the Playful Tiger. Hasbro’s new Furreal friend can crouch, roar, respond to squeaky toys, and make more than 100 sounds and motions. (Ages 4+)
• LEGO Boost Creative Toolbox. Build and code one of five 800+ piece interactive models using the step-by-step instructions on the free LEGO tablet app. (Ages 7-12)
• Fingerlings Jungle Gym Playset. Fingerlings -- soft, interactive monkeys that babble, giggle, and turn their heads -- are expected to be top sellers this holiday season. (Ages 5+)
• Sphero Ultimate Lightning McQueen Vehicle. An app-enabled toy racing car featuring the details and style of the main character in Pixar’s “Cars 3.” (Ages 8+)
• Melissa and Doug Star Diner Restaurant. A wooden diner playset that includes an oven, stovetop, two-shelf fridge, drink dispenser, milkshake mixer, jukebox, and spinning cake plate on pass-through shelf. (Ages 3+)
• Soggy Doggy Board Game. This board game for the bath involves racing around the board washing Soggy Doggy. If he shakes, a player gets a little wet. (Ages 4+)
• Disney Princess Dance Code Belle. Kids can use an app to enable Belle to perform dances with a touch of her necklace. She says over 100 phrases, plays 7 songs, and can perform 10 dances. (Ages 3+)
• Paw Patrol - My Size Lookout Tower. A Paw Patrol-themed lookout tower that stands more than two feet tall. (Ages 3+)
• Nerf Nitro FlashFury Chaos. Kids can fire foam cars from blasters and perform car stunts. (Ages 5+)
• Cars 3 Ultimate Florida Speedway Playset. Lightning McQueen and rival Jackson Storm can race on this 5-foot-long raised track. (Ages 4+)

See the complete list here. 

College enrollment is down but majors in the fields of science, technology, engineering, and math – the so-called STEM fields – are on the rise.

The trend is unsurprising, as businesses have reported a shortage in qualified candidates for specialized jobs–spurring a response by elementary and high schools of emphasizing STEM in their curricula. 

This trend has accelerated since the financial crisis and Great Recession, when businesses suddenly downsized and recent graduates found they were unprepared for a harsh new job market that favored specific fields. A recent CareerBuilder study found degrees in science technologies and technical fields surged 49 percent between 2010 and 2014.

Degrees in mathematics and statistics rose 35 percent over the same period. Computer sciences saw a 32 percent gain while there was a 26 percent increase in students pursuing engineering degrees.

Humanities falling out of favor

Degrees in the humanities, meanwhile, have subsequently waned. Emsi, a company focused on the student-to-employment path, recently reported that majors in the humanities declined by almost a half percent between 2010 and 2016 while STEM majors grew 43 percent.

But other research suggests that favoring STEM degrees might not solve all of employers' workforce problems, and could even leave some gaps. A report by the World Economic Forum and LinkedIn notes that many of these STEM majors are highly specialized – maybe too specialized.

While a specialized STEM field of study can prepare students for a specific job, these jobs can quickly change with technological advances. The study authors note that employers increasingly value the broad knowledge and critical thinking skills that the humanities can provide.

Need for critical thinking skills

Matt Ferguson, CEO of CareerBuilder, says it's encouraging to see the increased participation in STEM-related studies; at the same time, he's expressed concern over what he sees as a slowdown in overall degree completions tied to development of strong communications and critical-thinking skills.

“Nearly half of employers say they currently have job vacancies but can't find skilled candidates to fill them,” Ferguson said at the time of the CareerBuilder study. “We need to do a better job informing students and workers about which fields are in demand and growing, and provide them with access to affordable education and training, so the journey to a high-skill job is an achievable one regardless of their socioeconomic situation."

Meanwhile, employers are pointing out that not everyone needs a college degree. There is a growing need for personnel with skills in the building trades.

A recent report by Klein Tools found that many older electricians are leaving the industry, citing the physical demands of the job. Meanwhile, not enough new electricians are taking up the trade, indicating there may be an electrician shortage in the next five to 10 years.

To help revive interest in the vocational trades, California is investing millions of dollars to promote vocational education and to make it more accessible for interested students.