Current Events in October 2022

If you have a prepaid or post-paid wireless phone, law enforcement officials warn you could become a victim of the so-call “SIM swap” scam. You could not only lose your phone number but money as well.

What makes this fraud particularly scary is the fact that the scammer can steal your phone without ever touching it.

CTIA, a wireless industry trade group, says a criminal only needs to gather some personally identifying information about the victim – things like name, physical address, email address, and mobile phone number. Unfortunately, much of that information is available on the internet.

“Once the fraudster has this information, they may call your wireless provider and pretend to be you in order to transfer your phone number to a new SIM card and device,” the group warns.

A SIM card is a small memory card that fits into a mobile phone. It contains all the information about the mobile account, including the telephone number. Once a thief successfully transfers the phone number to a new device, the victim’s phone goes dead and the fraudster has access to a host of sensitive information.

A victim’s story

A report by WHBQ-TV in Memphis told the story of a local resident who said she contacted Cricket Wireless after getting a text about changes to her account. After that, her phone went dead.

Upon investigation, she discovered that another name had been added to her mobile phone account. After that, she learned that someone had taken $3,500 from her bank account. Days later, she found that someone had opened new credit cards in her name.

“I understand, if I lost my phone, but they just took the number right out of the phone, like through the air,” the victim, identified only as Jenna, told the station.

How to protect yourself

According to CTIA, there are some ways that mobile phone users can protect themselves. For starters, consumers should establish a PIN on the account that is required for account access. Just like passwords, PINS should not be based on other identifiers, such as birthdays and anniversaries.

Downloading the mobile provider’s mobile app can help consumers stay up to date on security updates and alerts. If you stop receiving any calls or texts, and you don’t know why, contact your wireless provider immediately. Even if you don’t use your mobile device often, you should check regularly for provider and account alerts.

Limit sharing your phone number in situations where it might be widely posted or distributed.

Follow your provider’s security advisories and leverage tools such as multi-factor authentication.

Finally, keep personally identifying information – no matter how seemingly insignificant – off of social media. Beware of pretexting or “phishing” attempts. 

If you receive a call, email or text message asking you for your social security number or a portion of your social security number, your bank account number, your driver’s license number, or other identifiers or financial details, do not provide them even if the call, email, or text appears to be from a trusted entity. Instead, contact the trusted entity separately and directly.

People with federal student loan debt can now apply for forgiveness of a portion of their loans. The White House has announced the application form is now available online.

It's easy, it's fast," President Biden said in announcing the launch. "This is a game changer for millions of Americans to get moving."

The debt relief plan will wipe away up to $10,000 in federal student loan debt for borrowers who earn less than $125,000 per year. It will eliminate up to $20,000 for those borrowers who received Pell Grants.

In making the announcement, Biden noted that it only takes about five minutes to fill out the application. Required information includes the applicant’s name, date of birth, and Social Security number. The form is provided in both English and Spanish on desktop and mobile sites. It will be open through Dec. 31, 2023.

According to White House estimates, more than 40 million Americans may be eligible for some student loan debt forgiveness. Total student loan debt is estimated to be more than $1.5 trillion, with some economists saying it hurts the economy because it limits what young consumers can spend on other things.

Warning about scams

In advance of launching the forgiveness application, the White House warned borrowers to be vigilant against an expected barrage of student loan debt forgiveness scams. Signs of a scam include:

• Offering to assist borrowers for an upfront fee. There is NO charge to participate in the debt forgiveness program.

• Someone contacts a borrower and claims to be from the government. Government employees will not contact borrowers until AFTER they have applied.

• Someone offering help to secure loan forgiveness creates a sense of urgency, claiming the borrower will miss out if they don’t act immediately. 

• A website or email claiming to be affiliated with the program that DOES NOT have a .gov URL is not legitimate.

Might as well start with the bad news. In the last year, the cost of heating your home with gas has gone up 33.5%; with electricity, 15.9%.

But, with a colder-than-average winter forecast for much of the country and the impact of the Ukraine-Russia conflict on the cost of energy, the winter 2022-23 outlook is raising the temperature on consumers’ wallets. 

This winter, the Energy Information Administration’s (EIA) outlook estimates that natural gas users could pay 51% more than last year; heating oil users, 37%; propane users, 36%; and electric users, 20%.

The COVID-19 pandemic wasn't good for much, but for heating oil consumers, the pandemic cut down on global oil demand, said Katharina Buchholz, in Statista’s calculation of the impact. But the pandemic's gone and it's Russia taking its place. 

“As the invasion of Ukraine and embargoes against Russian energy products have caused turmoil on global markets, oil price fluctuations are being more immediately passed on to consumers, for example through gasoline or heating oil prices rising quickly,” Buchholz said.

Ways to cut your utility bills

ConsumerAffairs did a bit of research to see what the energy-saving options in 2022 look like. Here’s what we found:

Wouldn't you know it?

Is there a way you can fend off the chill that energy prices could put on your budget? According to EfficiencyMaine’s cost of energy calculator, firewood is the least expensive way to go. 

Based on the current price of a cord of wood ($296), the calculator estimates it would cost an average $1,259 per year to use firewood to heat your home. That’s about $700 less than using a geothermal heat pump; $400 less than a conventional heat pump; and about $1,300 less than a natural gas furnace.

Get “smart”

If you don't have a fireplace but you love technology, the newest utility-saving idea comes from all the “smart devices” and “smart plugs” that consumers can buy to control the utility-sucking items in their home. 

And they’re fairly inexpensive, too. For example, ConsumerAffairs found plenty of smart plugs on Amazon for as little as $25 for a pack of two with two outlets each. That would cover a coffee maker and toaster in the kitchen, and a table light or two in the bedroom. 

There are also smart water leak and freeze detectors, thermostats, light bulbs, appliances, sprinkler systems, and garage door openers – all of which can be operated remotely via a smartphone app.

Time-based utility rates enter the picture

One way that consumers might be able to curb their utility cost is by signing up for time-based utility rates.

The Department of Energy (DOE) says that many utilities are introducing innovative programs to encourage customers to use electricity during off-peak hours – usually ranging from 8 a.m. to 5 p.m. when the kids are at school and people are at work, times when electricity demand is at its lowest.

“Smart meters and home energy management systems allow customers to program how and when their home uses energy. If you are able to shift your power use to off-peak times -- such as running your dishwasher late in the evening -- these programs can save you money,” the DOE says.

Time-based utility rates aren’t everywhere, but the list of states where they’re available is growing. Local utilities in California, Arizona, Massachusetts, and other states have adopted the pricing alternative. It may be worth some Googling to find out if your state or local utility company offers the same.

In 2022, when inflation is near 40-year highs, consumers who are selecting an internet service say price is more important than ever.

The J.D. Power 2022 U.S. Residential Internet Service Provider Satisfaction Study found that the monthly cost of service now trumps performance and reliability, although all continue to be strong factors.

“More than half – 58% –  of a customer’s satisfaction is driven by the quality and consistency of the internet connection, and how the customer perceives the value of that connection,” said Ian Greenblatt, managing director at J.D. Power. “With customers being least satisfied with cost of service, a consistent experience at a reasonable price is table stakes for providers. Each outage or other problem causes a customer to review that price-driven choice for real value.”

The major internet service providers (ISP) ranking highest with consumers include Verizon, Midco, AT&T, Centurylink, and Xfinity. Verizon ranks highest in the East region for the 10th consecutive year with a score of 758, the only provider besting the regional average of 707.  Xfinity was second with a score of 706.

‘It just works’

“I quit Optimum Internet and went back to Verizon for my home wifi,” Naresh, of Madison, N.J., wrote in a ConsumerAffairs review. “The reason was very simple, they offered a much better price ($75 vs. $125), and the service is a workhorse, it just works.”

AT&T made a strong showing throughout the rest of the U.S. It was second to Midco in the North Central Region and ranked highest in the South region for the fifth straight year.

“This is a very concise and well-done internet experience,” Chace, an AT&T customer in Hinton, Tex., told us. “The other internets were expensive and failed miserably all the time! I have never had a failure or problem with this internet experience and I am very pleased with the service.”

AT&T also ranked highest in the West region with a score of 729, followed by Xfinity. 

ConsumerAffairs reviewers not that high on Verizon

Consumers posting ISP reviews at ConsumerAffairs don’t view Verizon as the best, actually ranking it dead last with an overall 1-star rating. Reviewers tend to downgrade Verizon over customer service issues.

AT&T secured the top spot among our reviewers with an overall 4-star rating. Xfinity and CenturyLink tied with a 3.9-star rating while Optimum scored 3.7 stars.

Fall is the time of year rodents tend to seek shelter inside buildings and it’s also the time of year Orkin ranks U.S. cities with the worst mouse and rat problem.

Chicago is ranked number one for the eighth straight year. New York has moved into second place, pushing Los Angeles to number three on the list. 

It’s not that Orkin has actually counted the number of furry pests in these cities. Its annual list is based on the number of rodent abatement treatments it has conducted between Sept. 1 and Aug. 31.

Here are the top 25 cities from the 2021-22 list:

1.    Chicago

2.    New York (+1)

3.    Los Angeles (-1)

4.    Washington, D.C.

5.    San Francisco

6.    Philadelphia (+1)

7.    Baltimore (-1)

8.    Cleveland, Ohio. (+2)

9.    Detroit (-1)

10.  Denver (-1)

11.  Seattle

12.  Minneapolis

13.  Boston

14.  Atlanta (+1)

15.  Indianapolis (-1)

16.  Pittsburgh

17.  Cincinnati (+2)

18.  San Diego (-1)

19.  Hartford (+2)

20.  Miami

21.  Milwaukee (+1)

22.  Houston (-4)

23.  Dallas (-3)

24.  Portland, OR

25.  Columbus, OH (+1)

‘Among the top pest issues'

"Rodent infestations are among the top pest issues of the fall and winter seasons," said Ben Hottel, an Orkin entomologist. "Not only are mice and rats a nuisance, but they are known to spread a variety of dangerous diseases, including Salmonella and Hantavirus."

According to Orkin, mice and other rodents invade an estimated 21 million homes in the U.S. each year. They find their way inside between October and February looking for food, water, and shelter from the cold. 

Orkin says the situation got worse during the pandemic because of the sharp increase in outdoor dining structures. The company says rodents were able to find the perfect place to eat, live, and multiply.

Lax food storage is an attraction for rodents but Orkin says other attractions include tall grass and shelters, such as woodpiles next to the house, which can be ideal habitats for rodents. Tree branches in contact with homes can also offer rodents easy access to the upper levels of your home where they may find a way into the attic.

If you can put up with a few ads, Netflix has a new deal for you.

As forecast in July, the mother of all streaming services is rolling out “Basic with Ads” beginning November 3. The new tier is priced at $6.99 a month and available in the U.S. and 11 other countries.

Subscribers who pay for other packages can rest easy, too. They will not be impacted in any way, shape, or form, and still have the Basic $9.99/month, Standard $15.49/month, and Premium $19.99/month

The difference between Basic and Basic with Ads

The company says that Basic with Ads comes with the same features as the current Basic plan, but just a few shades different. 

Still the same: Netflix says that the ad-supported tier will have a wide variety of great TV shows and movies; a personalized viewing experience; and will be available on a wide range of TV and mobile devices.

One plus is that where some subscription services make consumers pay for a whole year to get a big discount, Netflix isn’t. It says subscribers can change or cancel their plan at any time.

New and different: Where is Netflix cutting back? Video quality up to 720p/HD (the same as its Basic plan); a limited number of movies and TV shows won't be available due to licensing restrictions, which the company says it’s working with rights holders to turn around; and there’s no ability to download titles so you can watch something on-the-go.

Now, about the ads: When it comes to ads, Netflix said the new package will have an average of four to five minutes of ads per hour. That's a tad more than the likes of HBO Max and Peacock which reportedly cap ads at under five minutes per hour.

How will those ads play out? To begin with, ads will be 15 or 30 seconds in length and play both before and during shows and films. For parents who want to shield their children from adult’ish ads that might contain sex, nudity, or graphic violence, not to worry – at least, not too much. Netflix said that advertisers have the “ability” to prevent ads from appearing on content that might be inconsistent with their brand. Whether that “ability” comes with agreements from advertisers is too early to tell. 

And other streamings are raising prices

Down the streaming street, Netflix’ competitors are going the other way with their prices. Just this week, Hulu raised the price of its ad-supported on-demand service from $7 to $8 per month, and its ad-free tier from $13 to $15 per month. 

CordCutter’s Jared Newman said that Disney is also raising the price of Hulu + Live TV, Disney+, and the Disney bundle, a package that includes Hulu, Disney+, and ESPN+, on December 8. 

In fact, consumers can expect more bundling – which, like cable TV packages, comes with channels you don’t want.

“The main takeaway here is that Disney really just wants you to bundle everything together, hence the major price hikes on all its individual services, and relatively modest hikes on the Disney bundle,” Newman said, adding that streaming lovers better get ready because we may well be entering the era of nickel and diming.

Like cockroaches, it appears that robobandits are hard to kill. A year ago, the Federal Communication Commission (FCC) had a firm grip on robocallers after it put a chokehold on carriers to put a stop to it or else.

Now, a year later “or else” has returned – this time, though, the FCC is giving carriers the stinkeye about allowing scam-oriented robotexts through to Americans’ phones. The agency has a pretty solid reason going for it, too. In the last year, robotexts have jumped from 1 billion to 15.6 billion a month.

The FCC has laid down the law to seven phone companies, telling them that they will be shut down for allowing scam robocalls on their networks if they don’t put a stop to the robotext scourge. This is a big shift for the FCC’s bedside manner – in fact, it’s the first time the FCC has made such a move.

In response to these developments, Teresa Murray, Consumer Watchdog for U.S. PIRG Education Fund praised the FCC's move. “The problem is not going to be solved in a day. But these are real developments.

“Bad guys will continue to go after our information and money. Scams are a chameleon-like problem with no end in sight. Robocalls are slowing while robotexts are skyrocketing. We still see phishing emails, which started more than 20 years ago, while targeted messages through social media are becoming a bigger menace.” 

What companies are included in the FCC’s demand? 

The FCC has put Akabis, Cloud4, Global UC, Horizon Technology Group, Morse Communications, Sharon Telephone Company, and SW Arkansas Telecommunications and Technology on notice.

Those companies have to show cause soon, too. The agency has given them 14 days to explain why it should not remove them from the database.

But what does “removal from the database” actually mean?

When ConsumerAffairs examined the FCC’s letter to Cloud4, it said if the company didn’t straighten up its act by the end of those two weeks, “all calls from Cloud4’s customers would be blocked and therefore no traffic originated by Cloud4 would reach the called party.”

“This is a new era. If a provider doesn’t meet its obligations under the law, it now faces expulsion from America’s phone networks,” FCC Chairwoman Jessica Rosenworcel said in announcing the move.

“Fines alone aren't enough. Providers that don't follow our rules and make it easy to scam consumers will now face swift consequences.”

As the U.S. Department of Education finalizes its student loan forgiveness program, the White House has stepped up efforts to protect borrowers – eager for loan relief – from the growing number of scams that target millions of people who may be eligible for forgiveness.

The debt forgiveness plan, announced in August, would wipe away up to $20,000 in student loan debt – $10,000 for most borrowers. It didn’t take long for scammers to try to exploit the situation.

As we reported last month, a common scheme involves an imposter, claiming to work for the “Biden Student Loan Forgiveness Program.” From there, the scam can move in different directions, with different goals.

In some cases, the scammer may say that you have to pay an upfront fee. Some are even brazen enough to tell victims they must redirect their regular student loan payments to them.

Full-scale offensive

The White House has now launched a full-scale counter-offensive against these scams. A key element is arming student loan borrowers with information.

As a first step, the White House is establishing a single, secure website to dispense facts about the forgiveness program. It will be the one place borrowers can go to receive vetted information.

Step two involves regulators and enforcement agencies. The Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) are working together to identify and take action against student loan scammers.

“Over the course of the last 18 months, the FTC has reached nearly $30 million in settlements that included refunds for tens of thousands of student borrowers who were illegally charged upfront fees and falsely promised reduced or eliminated student loan payments,” the White House said in a statement. “Earlier this year, the FTC won a $7.5 million judgment against Arete Financial Group and permanently banned the company from the student loan business for illegal upfront and monthly fees.”

Red flags

The third step involves alerting student loan borrowers to tricks that debt relief scammers have employed so far. They include:

• Offering to assist borrowers for an upfront fee. There is NO charge to participate in the debt forgiveness program.

• Someone contacts a borrower and claims to be from the government. Government employees will not contact borrowers until AFTER they have applied.

• Someone offering help to secure loan forgiveness creates a sense of urgency, claiming the borrower will miss out if they don’t act immediately. 

• A website or email claiming to be affiliated with the program that DOES NOT have a .gov URL is not legitimate.

In short, no one from any government agency will contact a student loan borrower out of the blue. Once the debt relief program opens, borrowers will be encouraged to contact the Department of Education to apply.

The administration plans to use social media platforms to help warn borrowers about scammers. As the program beings accepting applications, the White House said it will engage directly with digital creators and influencers on social media platforms to help spread accurate information about the program and alerts concerning potential scams.

Seniors will get some inflation relief in 2023 when monthly Social Security benefits will increase by 8.7%. The Social Security Administration estimates the average Social Security payment will increase by more than $140 per month starting in January.

The cost of living adjustment (COLA) will benefit more than 65 million Social Security retirement benefit recipients, as well as 7 million SSI beneficiaries. The increase was calculated based on inflation data for July, August, and September.

As an added benefit Social Security recipients won’t see an increase in the amount of money deducted from the monthly payment to cover Medicare premiums. Not only are premiums not going up in 2023, but they’re also falling by 3%.

“Medicare premiums are going down and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room,” said Kilolo Kijakazi, acting commissioner of the Social Security Administration. “This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned.” 

How to calculate the new benefit

Kijakazi released the video below to explain how to sign up for a My Social Security account to calculate the amount of each individual’s new benefit.

Those who don’t register for an account will be informed of their new benefit in early December, with the first increased benefit payment occurring in January.

Another way to determine the new benefit amount is to multiply the current monthly benefit by 1.087%.

Consumers probably won’t be surprised to learn that inflation continued at a hotter-than-expected pace last month.

The Labor Department reports the Consumer Price Index (CPI) rose 0.4% from August to September and is up 8.2% over the last 12 months. Many basic costs consumers pay continued to rise.

For example, food costs rose 0.8% in one month, matching August’s increase. Over the last 12 months, the cost of food has risen 11.2%.

Breaking it down, the cost of food purchased at grocery stores and prepared at home was up 0.7%, also matching August’s increase. Year-over-year, supermarket food costs are up 13%.

The cost of fruits and vegetables was the biggest driver, rising 1.6% in one month. The cost of cereals and bakery products increased by 0.9% in September.

The index for meats, poultry, fish, and eggs rose at a slower pace, gaining 0.4% in the last month. The same is true of dairy products, which rose 0.3%.

Dining out got more expensive

Restaurants are beginning to catch up. The cost of food consumed away from home rose 0.9% in September and is 8.5% higher over the last 12 months.

In the food away-from-home category, the index for full-service meals increased by 0.4% and the index for limited-service meals increased by 0.6% over the month. 

Housing costs remained elevated last month but at least didn’t increase. The cost of shelter rose 0.7% in September, the same as August. The cost of putting a roof over your head is up 6.6% over the last 12 months.

The cost of medical care services – things like doctors' office visits – slowed considerably last month, rising just 0.1%. Those costs were up 0.8% in August and are 6.5% higher on the year.

Used car prices are coming down to earth

While new car prices continued to rise, the price of used cars and trucks continued to fall, dropping another 1.1% last month. For the year, however, used vehicle prices are up 7.2%.

Consumers also paid less for gasoline last month. The cost of gas was down 4.9% in September but is still 18.2% higher than a year ago. 

With winter on the way, other energy costs continue to rise. The cost of electricity gained 0.4% while natural gas costs surged 2.9%.

In the latest romance scam to make news, a man pretending to be a Russian astronaut defrauded a woman in Japan out of $30,000 -- about 4.4 million yen. 

What started out as a virtual meeting on Instagram quickly turned into a marriage proposal and subsequent scam. The 65-year-old woman in Japan told authorities that she began talking with this man in June when he told her he worked for the International Space Station. 

They took the next step in their relationship when the scammer proposed marriage to the woman – and went on to repeatedly profess his love for her. He made plans to start their life together in Japan, but would need her to send him money in order for him to return to Earth.

That's right, he said he was in space! The requested money included fees to both fly the rocket back to Earth and what he dubbed “landing fees” that he’d need to pay upon arrival in Japan.  

Between August and September, the victim sent him installments of money that totaled $30,000 – all with the intention of bringing the “astronaut” back to Earth. However, the more money the scammer asked for, the more alarm bells rang for the victim. She has since contacted local authorities to report the incident. 

How to protect yourself from romance scams

Anyone can be on the receiving end of a romance scam like this one, though maybe not as other-worldly.

“Romance scams are usually initiated online and often prey on vulnerable people,” writes the U.S. Secret Service. “Scammers create fake online profiles and attempt to build phony emotional attachments until a potential victim is comfortable sending them money. 

“Victims can be both men and women. Many times, the criminal targets older people and those who may be struggling in a relationship and/or are emotionally vulnerable. Though most criminals aim for vulnerable targets, affluent and well-educated individuals have also fallen victim to these types of scams.”  

There are certain things to look for or be aware of if you fear you may be on the receiving end of a romance scam. The Los Angeles County Department of Consumer and Business Affairs offers five main tips for consumers to avoid romance scams: 

• Like many other scams, typos, grammatical errors, or misspelled words in posts or messages can signal a lack of legitimacy. 

• Receiving extreme messages of love and adoration after only a few days of talking – without meeting in person – can be a red flag that things aren’t what they seem. 

• Research all the information they give you – pictures, names, and social media profiles. It’s also important to search any images on their social media accounts through Google to ensure they aren’t being used elsewhere. 

• Schedule an in-person meeting in a public place. Scammers aren’t likely to be willing to meet with you – let alone in public. 

• Anyone who asks for money over the internet is more than likely a scammer. Never wire money, send money from your bank account, or buy gift cards, for anyone that isn’t a trusted family member or friend. 

If you think you’re involved in a romance scam, report it to the Federal Trade Commission and the website or app where you met the scammer. 

This month has produced no relief for the declining number of people who are considering the purchase of a home. While it’s true that prices have softened a bit, mortgage rates rose to their highest level since 2006 last week.

In its weekly update, the Mortgage Bankers Association (MBA) reported a 2% drop in mortgage applications in just one week. Rising mortgage rates are likely the reason.

“Mortgage rates moved higher once again during the first week of the fourth quarter of 2022, with the 30-year conforming rate reaching 6.81%, the highest level since 2006,” said Mike Fratantoni, MBA’s senior vice president and chief economist. 

In fact, mortgage rates increased across all product types in MBA’s survey, with the largest, a 20-basis-point increase, for 5-year ARM loans. Adjustable rate mortgages (ARM) have suddenly become more popular because the initial rate is typically lower than the rate on a fixed rate mortgage. The downside is lenders can raise the rate at specific periods over the life of the loan.

Tougher qualification standards

Not only are rising mortgage rates pressing would-be buyers, but it’s also now harder to qualify for a mortgage. Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting, says lenders are making less money available for mortgages and have become more choosy over who gets it.

“With the likelihood of a weakening economy, which would lead to an increase in delinquencies, there was a smaller appetite for lower credit score and high LTV (loan to value) loan programs, along with a reduction in government streamline refinance programs,” Kan said. “As mortgage rates have more than doubled over the past year, resulting in a drop in refinance activity, lenders have worked to reduce excess capacity and costs by eliminating underutilized loan programs.”

Kan also said the government credit availability index has declined in seven of the last eight months to its lowest level since April 2013.

With fewer people able to purchase homes, more have to continue renting. That has pushed average rent prices to record levels this year and has been one of the largest contributors to inflation.

When the Bureau of Labor Statistics releases the September Consumer Price Index (CPI), many economists expect that the data will show that trend is continuing.