Current Events in March 2023

Okay, here we go again. Sunday at 2 am, clocks “spring” forward by one hour for the start of Daylight Savings Time (DST). Sometime in early November, clocks will gain an hour in a return to Standard Time.

Increasingly, people are asking why. In 2021 the Senate unanimously passed a bill that would do away with the twice-a-year time change and keep the country on the same time all year round. Despite the bipartisan support, the House killed the bill.

Sleep experts generally agree that playing around with the clock is counterproductive. Dr. Pedram Navab, a Los Angeles board-certified neurologist and sleep medicine specialist, says there are many health issues connected to the biannual time shift, in particular moving to DST.

“Not only does DST not comport with our natural circadian rhythm, which regulates our wake and sleep cycle, it can cause behavioral and mood disorders, cardiovascular mortality, and increased motor vehicle crashes and other accidents several days after the time change,” Navab told ConsumerAffairs. “Because DST is less aligned with human circadian biology, its delay of natural light increases the risk of cardiovascular disorders and metabolic syndrome.”

Dr. Danielle Kelvas is the chief medical advisor at Sleepline, a website that provides sleep improvement resources. She agrees that when time advances or retreats an hour at a time it’s hard on the human body. 

She says there are obvious benefits to staying on one time all year round. However, she says there could also be some drawbacks, including disruptions of circadian rhythms.

“It could also create problems for people who work outdoors, as the amount of daylight would not change with the seasons,” she told us. “Additionally, it would likely disrupt the traditional school and work calendars, as well as other activities that are traditionally associated with specific times of the year.”

Tips for coping

 Dr. Peter Polos, sleep medicine specialist at Sleep Number, says the time change is very difficult for many people, citing increases in auto accidents and even more cardiac events. But he offers tips to help people cope when the clocks change.

“These include going to bed 20 to 30 minutes earlier several days in advance of the day of the time change,” he told us. “Similarly, waking up about 20 to 30 minutes earlier helps with this adjustment. I also recommend exposure to daylight as soon as you awaken as this can help reset your internal clock. When you achieve the new schedule, it is best to maintain a regular bedtime and wake time.”

The 2021 Senate bill that would have ended the biannual time change would have kept the U.S. permanently on DST all year round. All three of the sleep experts we consulted suggested that if the country stays on one time, it would be healthier to stay on Standard Time.

With just over a month until the April 18 tax filing deadline, it’s the perfect time for consumers to make a plan for filing. 

However, what about the plan for those who may not be required by law to file? The Internal Revenue Service (IRS) is suggesting that these Americans may want to consider filing anyway. 

The agency says filing may be beneficial to many people who may not have been planning to do so. To avoid missing out on potential tax credits or a refund, the IRS encourages everyone to file a tax return for 2022. 

How do you know if you should file?

For people who are contemplating whether or not to file this year, the IRS first recommends utilizing the Interactive Tax Assistant. They can input specific information that pertains to their filing situation, and get their questions answered, while also keeping their personal details anonymous. 

Claiming tax credits

The IRS detailed four primary tax credits that consumers may be eligible for – even when they aren’t legally required to file their taxes: Education credits, Child Tax Credit, Earned Income Tax Credit, and Credit for Other Dependents. 

In terms of education credits, you may qualify for either the Lifetime Learning Credits or the American Opportunity Tax Credit. The former can be used to cover tuition and other expenses for any undergraduate, graduate, and professional degree courses, and there is no limit to how many times you can claim this credit; this can equate to a credit that tops out at $2,000. 

The American Opportunity Tax Credit is only available for undergraduate students during their first four years of study. Taxpayers can claim a maximum of $2,500 per year per eligible student. 

You may be eligible for the Child Tax Credit if you have children and make under $200,000 (or $400,000 combined with a spouse on a joint return). The child must be under the age of 17 and can be a child, foster child, sibling, step sibling, half sibling, grandchild, niece, or nephew that is your dependent. 

The Earned Income Tax Credit (EITC) is designed to give a tax break to Americans who earned $59,187 or less in the previous year. This year, the maximum EITC credit is nearly $7,000, and people who have children and are married are likely to get the most back. 

Lastly, the Credit for Other Dependents is for those who have parents or other individuals they support or dependents who are over the age of 18. Filers who don’t qualify for the Child Tax Credit are likely to be eligible for the Credit for Other Dependents. 

Taxpayers can claim the Credit for Other Dependents, in addition to both the Earned Income Tax Credit and the Child and Dependent Care Credit. 

The IRS hopes that consumers consider these various tax credit options before deciding whether or not to file this year. 

Over the last few months, hackers have had to step up their game, finding new targets and developing even harder-to-detect attacks. That’s because defenses have improved.

A new report from Cybersecurity firm Trend Micro found a huge 55% increase in overall threat detections in 2022 and a 242% surge in blocked malicious files, as threat actors indiscriminately targeted consumers and organizations across all sectors.

But the bad guys don’t just accept a drop in “business.” The report illustrates how hackers have adjusted, putting even more people and organizations at risk.

“To combat waning ransomware revenues — a staggering 38% decrease from 2021 to 2022 — active ransomware actors have increased their level of professionalism to ensure higher ransomware payouts,” the report’s authors write. “In the past year, we’ve seen them take a page out of the corporate handbook to diversify, rebrand, and even offer professional services such as technical support, with the goal of keeping their attacks potent.”

Emerging trends

The report identified a number of emerging trends in cyberattacks, including these:

• The top three MITRE ATT&CK techniques show that threat actors are gaining initial access through remote services, then expanding their footprint within the environment through credential dumping to utilize valid accounts.

• An 86% increase in backdoor malware detections reveals threat actors are trying to maintain their presence inside networks for a future attack. 

• The number of critical vulnerabilities doubled in 2022. 

• The Zero Day Initiatives (ZDI) observed an increase in failed patches and confusing advisories.

• Webshells were the top-detected malware of the year, surging 103% on 2021 figures. LockBit and BlackCat were the top ransomware families of 2022.

Hackers are operating like a business

The researchers say ransomware groups rebranded and diversified in a bid to address declining profits. In the future, Trend Micro expects these groups to move into adjacent areas that monetize initial access, such as stock fraud, business email compromise (BEC), money laundering, and cryptocurrency theft.

Jon Clay, vice president of threat intelligence at Trend Micro, says hackers’ attempts to boost their profits pose a threat to everyone.

“A surge in backdoor detections is particularly concerning in showing us their success in making landfall inside networks,” Clay said. “To manage risk effectively across a rapidly expanding attack surface, stretched security teams need a more streamlined, platform-based approach."

After scams and privacy issues, ConsumerAffairs probably wrote about Buy Now Pay Later (BNPL) more than anything else last year. Prompting our coverage was the Consumer Financial Protection Bureau’s (CFPB) ongoing concerns about a borrower’s attraction to the bright, shiny, and new financing option and the parade of states that are sounding their own alarm.

The CFPB was at it again last week when it issued a report on its analysis of who’s signing up for BNPL. The conclusion? People who use BNPL probably shouldn’t be taking on any more debt than they already have. 

The report called them “consumers in distress” and said those borrowers were “more likely to be highly indebted, revolve on their credit cards, have delinquencies in traditional credit products and use high-interest financial services such as payday, pawn, and overdraft compared to non-BNPL borrowers.”

What a BNPL expert wants consumers to know

ConsumerAffairs asked Howard Dvorkin, CPA and chairman of Debt.com, for the ugly truth anyone considering BNPL needs to know.

“All BNPL providers are not the same. They offer very different terms, and you need to closely review the agreement,” Dvorkin said, noting that like credit cards, BNPL arrangements have varying terms on payback, interest rates, and fees. “This definitely isn't like paper towels, where both Bounty and Brawny will wipe up a spill.” 

Those "terms and conditions" can be loaded with gotchas -- boring minutiae that may be glossed over by someone who bought into a social media influencer's pitch about a BNPL product. One big gotcha is the interest rate -- as much as 36% interest, almost double the average -- that kicks in if someone is late on a payment. 

These concerns have snowballed into a mountain of complaints for the CFPB. According to its database, the number of BNPL-related complaints doubled in the last year.

Issues vary greatly, ranging from discrimination brought about by one company's automated "soft credit check" system, to attempts to collect debt not owed, problems when making payments, and 197 complaints about identity theft.

Heads, you lose – tails and no one cares

Part of Dvorkin’s truth serum is if you don’t pay off the BNPL balance in full, you’ll face a financial nightmare down the road.

“Even if you just miss a payment, the Big Three credit bureaus – Equifax, Experian, and TransUnion – will hear about it,” he said, bluntly adding that those missteps get added to your credit report, dragging down your credit score. 

“While that also happens with credit cards, at least you can build credit by making timely payments. Not so with BNPLs. If you make all the payments on time, that doesn't go on your credit score. It's quite literally, ‘Heads you lose, tails no one cares.’"

A gateway to impulse purchases and overspending?

BNPL doesn’t exactly qualify as a drug, but it can be a gateway to someone spending more than they have the ability to pay for, suggests Jana Lynch, who heads ConsumerAffairs' research team and oversees our guide on Buy Now, Pay Later.

“Short-term installment loans like buy now, pay later apps seem quick and easy to finance a purchase, particularly if you can afford the payments and meet the terms,"  Lynch said. "However, there’s enormous potential to overspend, the deferred interest can add up and you can do some serious damage to your credit if you miss a payment.”

Used car prices, which began falling from their record highs last fall, are going up again – at least for dealers.

Cox Automotive reports the wholesale price dealers pay for used vehicles at auction jumped 4.3% from January to February, a significant one-month increase. Compared to February 2022’s inflated prices, however, used car values were down 7% last month.

Still, it’s not good news for consumers priced out of the new car market – those prices have risen consistently over the last few months. Rising interest rates make financing either a new or used car more expensive.

Karl Brauer, executive analyst at iSeeCars.com, says the February increase is not all that surprising, noting consumers receiving early tax refunds may be responsible for increasing demand and therefore, prices.

‘Is it sustainable?’

“The real question is, how sustainable is this shift in pricing?” Brauer told ConsumerAffairs. “In a normal year used car prices consistently rise from February through November, then fall sharply until the next February. I don’t expect the consistent rise to happen this year. It might, but I think tax-return spending will prop up prices for a couple of months before they fall again, particularly if macroeconomic factors like inflation and interest rates reduce consumer spending.”

Consumers who are planning on buying a used car or truck might consider waiting a month or two to see if prices begin to fall again. If Brauer is correct, inventories could rise and prices fall by the middle of this year.

The only caveat is interest rates. Federal Reserve Chairman Jerome Powell this week signaled the need to keep raising interest rates to tamp down stubborn inflation. Every time the Fed hikes rates, auto lenders increase the interest rate on used car loans.

In January the average used vehicle cost $26,510. That was down from $28,000 in January 2022.

The 2023 tax season kicked off on January 23, and many consumers have checked this year’s filing off their to-do lists. Many have even received their refunds already!

However, some taxpayers are left to deal with important tax documents that either never got sent to them, or that have incorrect information. If you’re in this boat, do you know the best way to handle it? 

To help taxpayers make it through the rest of tax season, and ensure that taxes are filed promptly -- at least before the April 18 deadline -- the Internal Revenue Service (IRS) is sharing tips to help remedy this situation for consumers. 

Contact your employer, then the IRS

For taxpayers who are still waiting on their tax documents or received documents with incorrect information, the IRS first suggests reaching out to their employers to try to remedy the situation. If this is unsuccessful, the next step should be contacting the IRS directly. 

Taxpayers should know that when reaching out to the IRS in these instances, they will ask for personal information: Social Security number, address, name, phone number, employer’s name, and dates of employment. From there, the IRS can work to coordinate with the employer to get the correct documents sent as quickly as possible. 

When important tax documents are either missing or incorrect, there are two important things for taxpayers to keep in mind. First, if returns are filed with information that is missing or incorrect, the filing process doesn’t end there. Taxpayers will then have to go on to file an amended return to include any new or updated information once they receive corrected or missing tax documents. 

Secondly, the IRS has two forms – Form 4852 and Form 1099-R – for taxpayers to fill out if they’re still waiting on tax documents or corrected documents. In these instances, either of these forms can help taxpayers get a rough estimate of their income so they can file their taxes on time. 

Resources and tools for tax season 

Whether you’ve already filed your taxes, or have an appointment scheduled in the coming weeks, the IRS has resources for taxpayers to utilize to make the process easier. 

For those who have filed, the “Where’s My Refund” tool can be used to track the progress of the refund. The IRS explained that the service is only updated once a day, and updates are usually available within 24 hours of filing. 

The IRS also has resources available for taxpayers to either find a credible tax professional or have their questions answered with the Interactive Tax Assistant. This tool can help taxpayers who may be struggling with claiming dependents, what kind of income is taxable, eligibility for different tax credits, and more. 

Some video game players stand to benefit from a class action lawsuit settlement. DoubleDown Interactive has agreed to pay $415 million to end litigation that accused the company of violating Washington’s gambling laws.

According to Top Class Actions, the settlement benefits consumers who played DoubleDown Casino, DoubleDown Fort Knox, DoubleDown Classic and or Ellen’s Road to Riches before Nov. 14, 2022.

The plaintiffs sued because the games require the use of in-game “chips.” The chips are free when consumers download the game but the plaintiffs claimed in their suit that they were forced to buy additional chips using actual cash.

“Defendants’ online casino games have thrived and thousands of consumers have spent millions of dollars unwittingly playing Defendants’ unlawful games of chance,” the suit claims.

After the lawyers and court costs are paid, consumers who participate in the class will divide what’s left of the $415 million. There’s a special webpage, found here, where participants can estimate what they will receive.

XTEND powder drinks

Woodbolt has settled a lawsuit by agreeing to pay $3 million to end litigation that accused it of falsely advertising its XTEND workout powder as having zero calories. The settlement will benefit people who paid for some XTEND workout powder products between July 28, 2014, and Jan. 24, 2023. 

Seventy-five products are covered by the settlement. You can find the complete list here. Under the settlement, consumers who are included in the class can receive 50 cents for every package of the product they purchased. Proof of purchase is not required.

Affected consumers who believe they are eligible for compensation must make a claim to join the settlement by April 24. Consumers can file a claim here.

Hospital data breach

Rehoboth McKinley Christian Health Care Services has agreed to pay an undisclosed amount of money to resolve a lawsuit stemming from its 2021 data breach. The company has not admitted to any wrongdoing.

The settlement covers people who were informed of a data breach at the facility around May 2021. The breach was discovered in February of that year.

The suit alleged that the breach revealed names, addresses, contact information, Social Security numbers, driver’s license, passport numbers, health insurance data and financial account information.

Attorneys for the plaintiffs say members of the class can receive up to $500 for what are called “ordinary” data breach losses. They include bank fees, communication expenses, credit-related costs and up to four hours of lost time at a rate of $15 per hour. 

The deadline for filing is April 10. You can file it here.

For years, consumers who managed to save a little money had few places to put it. Banks paid next to nothing in interest because of the Federal Reserve’s 0% rate policy.

But if you have managed to squirrel away some cash lately there may be some places to put it other than the stock market, which can move sharply up or down based on the latest remarks from Fed Chairman Jerome Powell.

For the last few years – especially since 2020 – the market mantra has been “cash is trash.” No longer.

Matt Frankel is a certified financial planner (CFP) and contributing analyst at The Motley Fool. Frankel says cash is a lot more attractive as a place to put money but only if savers take advantage of the rising interest rate environment and look in the right places.

“You can find high-yield savings accounts that pay 4% APY or more right now, but many major branch-based banks pay just a small fraction of that,” Frankel told ConsumerAffairs. “If you prefer to keep cash on the sidelines as the market turbulence plays out, it can certainly be a good idea, but make sure you put your cash to work for you.”

Rachel Christian, senior writer at The Penny Hoarder, says keeping money in cash can be attractive, especially for risk-averse investors.

Good for high-risk investors

“Online banks are offering upwards of 4% APY and higher, while six-month Treasury bills are fetching a yield north of 5%,” Christian told us. “That’s crazy high compared to just a year or two ago. Those investments are likely to continue offering attractive returns. The Fed hasn’t indicated it plans to cut interest rates, and it will likely increase them over the next six months.”

That suggests that the current rates could go even higher. For that reason, both Frankel and Christian advise against dumping all of your cash into one bond or CD all at once.

“First and foremost, if interest rates rise later, your money will be earning a below-market return, plus if you have bond investments, their resale value will almost certainly decline if rates rise,” Frankel said.

As an example, Frankel says if you have $10,000, instead of putting it all in a 5-year CD, you might put $2,000 in a 1-year CD, $2,000 in a 2-year CD, and so on – creating an “investment ladder.”

“The idea is that if you need your money, some will come available every year,” he said. “And if you don’t you can reinvest it at the then-current 5-year CD yields.”

Even with higher interest rates, Christian says it’s never a good idea to put all your money in a single asset, even a relatively safe investment like bonds or CDs.

Before making any major investment decision, it’s always a good idea to consult a trusted and objective financial adviser.

With cyberthieves spending more time on plaguing consumers with text messages and the government pushing phone companies to block annoying robocalls, one would think that the number of robocalls should be going down. Unfortunately, that’s not the case.

U.S. consumers received just over 4.3 billion robocalls in February, staying within the range of 4.2 billion and 4.7 billion calls per month since last August and pretty much the same as late 2020.

Over the past 12 months, YouMail says that Americans have received 51.5 billion robocalls. However, the February volume did mark a 4.0% decrease from January's volume. 

"Robocall volumes have been very steady for nearly a year," said YouMail CEO Alex Quilici. "Consumers still need to protect themselves with robocall blocking apps like YouMail, since this problem is remarkably stubborn, despite the efforts of enforcement, carriers, and others."

Hello, Kelly. Goodbye, Mr. Auto Warranty 

The most persistent robocall these days appears to be from companies hawking low-cost health insurance. The calls leave the identical voicemail message from "Kelly from Support First," as in this example:

“Hi, this is Kelly with Support First calling about your free or subsidized Health Insurance. Please call me back toll-free at 844-306-**** to see if you qualify and again that's 844-306-****. Call now.”

Whoever is behind these calls is doing their best to trick consumers by engineering the caller ID to show the calls are coming from different states using different phone numbers each time they call.

According to another robocall-blocking service, Robokiller, certain states get more calls. Texas, California, Florida, Ohio and Georgia were home to the most unwanted calls in 2022. Those states have a large number of retired Americans and older Americans pay more for health insurance.

And, if you were getting tired of all those auto warranty robocalls, they seem to have packed up and headed home. Robokiller’s latest study says that the number of those calls has dropped precipitously.

In 2021, they accounted for 18% of all robocalls (13 billion), but just 10% in 2022 (8 billion) – including fewer than 1% of all robocalls in December.

“[This is] clear evidence that government efforts are making a rapid and significant impact,” Robokiller analysts said. “Expect the government to zero in on other harmful robocalls with great results in 2023.”

Over the weekend New York City firefighters were called to the Bronx where a grocery store was engulfed in flames, injuring seven people.

The cause of the blaze is one fire officials say has become more common in recent months. Investigators quickly traced the origin of the fire to an electric scooter with a lithium-ion battery.

That simple device resulted in a five-alarm blaze, requiring over 50 emergency vehicles and more than 200 firefighters to bring it under control.

The city’s fire department reports the number of fires caused by an electric bike or scooter, usually being charged overnight, more than doubled to 216 over the last 12 months. The department says the fires killed two people and injured more than 40.

E-bikes and scooters have proliferated in large urban centers like New York in recent years because they give people who would ordinarily walk or take public transit the ability to cover a couple of miles fairly quickly. But because they have batteries they can become a hazard.

Safety experts say consumers should not leave their bikes and scooters plugged in overnight if they are inside a building. If they are left in a hallway, for example, the resulting fire could trap people inside the dwelling, especially if it occurs in the middle of the night.

Last month New York City Fire Commissioner Laura Kavanagh told reporters that she believes the devices are “incredibly dangerous” if owners don’t follow safety guidelines. She and other safety officials have expressed concerns as the number of these fairly inexpensive devices increases.

Consumers considering the purchase of an electric bike or scooter should be aware of the risks. According to Ion Energy, there are several reasons lithium-ion batteries are prone to overheating and sometimes burst into flames.

Design flaws

Because bikes and scooters are small, the battery must fit in a small space. Designers try to come up with compact designs by putting more power cells into smaller spaces.

In many cases, a flawed design leads to damage to the battery’s components. If the damage causes a short circuit, the battery can overheat and catch fire.

Manufacturing defects

Even when the battery is properly designed, if the manufacturer cuts corners it can reduce safety. For example, if metallic particles get into the lithium-ion cell during the manufacturing process sparks can fly.

While companies manufacturing the batteries need to adhere to industry standards, bike and scooter manufacturers should use only the best quality batteries.

Other factors

Even if the bike and its battery are of high quality, the way the vehicle is used can also affect its safety. If a collision causes the penetration of the battery packs a short circuit could result in a fire. Storing the bike or scooter next to a heat source can also be dangerous.

Just as with a cellphone, using a poorly designed or insulated charger can cause damage to the battery. Safety experts say bike and scooter owners should always use a charger that was designed for the vehicle.

Though Valentine’s Day may be in the rearview mirror, that doesn’t eliminate the looming threat of romance and dating scams that are out there. According to the Federal Trade Commission, consumers lost nearly $550 million to romance scams in 2021 – a figure that was up 80% from the year before. 

For National Consumer Protection Week, ConsumerAffairs is highlighting some of the biggest romance/dating scams, while also offering tips for consumers on how to spot these scams, and most importantly, hopefully avoid them! 

Many romance scams follow the same pattern: a scammer will create a fake profile online, they develop relationships with their victim and advance things very quickly, they ask their new “love interest” for money, and after receiving it, they never speak to the person again. 

Romance scammers can be lurking on dating apps, social media platforms, or other online sites where users can communicate with each other. They also tend to tell the same stories to their victims: they’re located far away, they move the relationship along quickly, they ask for money, they ask for specific payment methods, they break promises, and they generally seem too good to be true. 

What do these scams look like?

There is no shortage of examples of romance scams. ConsumerAffairs has recently reported on several such instances. 

For instance, an elderly woman in Indiana lost nearly $100,000 after matching with a man on a dating app who quickly asked her for checks to help fund his construction business. The victim, Pat Breitkreuz, reported that the man she met, Lewis, had an accent that she had trouble understanding on the phone and was quick to move the conversation off the dating app – one of the telltale signs of a romance scam. 

Though Lewis promised Pat he’d come to visit her, he never did -- another one of the ways that scammers get unsuspecting people to keep interacting with them. However, Pat sent him checks totaling over $98,000. After he sent her a contract asking for $500,000 to invest in his business and Pat discovered the address on the document was fake, she realized she had been scammed. 

Another recent example detailed a 65-year-old woman in Japan who lost about $30,000 to a man who told her he worked for the International Space Station. The two met on Instagram, and after nearly no time at all, the man proposed marriage. The only sticking point: he was in space. 

He asked his new love interest to send him installments of money that would help fund his return trip to earth. While the victim sent him money at first, the more he asked for, the more skeptical she became. Though she ultimately reported the incident, it wasn’t until she lost nearly $30,000. 

How to protect yourself from romance scams

Perhaps the biggest piece of advice if you think you’re involved in a romance scam is to never send money or gifts to anyone you haven’t met in person. This is typically the surefire way to know that someone is scamming, and it’s safest to never send anything. 

The FBI shared several tips for consumers to protect themselves from romance scams: 

• Don’t rush the relationship and don’t be afraid to ask questions 

• Requesting financial or personal information or trying to isolate you from friends and family should be a red flag

• Do your own research on any potential romantic connections

• Consistently blowing off plans or rescheduling – especially after months of talking – can be the sign of a scammer

• Be cautious with any personal information, photos, etc. that are posted online

• Anyone who seems too good to be true, or who immediately wants to communicate off of the dating app or social media platform, may have ulterior motives 

What to do if you’ve been scammed

Many victims of romance scams are embarrassed to report when these things happen, but local and federal authorities should know about these scams. If you suspect you’re involved in a romance or dating scam, the first step is to cut off communication with the person.

If you’ve sent this person money, contact your bank as soon as possible to report the incident and try to get your money back. Then, report it to your local law enforcement. Lastly, report it to the Federal Trade Commission at ReportFraud.ftc.gov.

It may sound unbelievable, if not downright dastardly, but Ford Motor Company has filed for a patent that will give the automaker the technical ability to shut down a vehicle belonging to anyone who’s late on a payment.

And if the owner of the vehicle doesn’t pony up the money to rebalance the account, the technology could enable Ford to flip a switch and have the vehicle drive itself to a repo lot.

A Ford spokesperson said it has yet to install the software, nor would they comment on it, but its patent application laid out the gotcha of all gotchas.

The first thing that could happen is that the purchaser or a lessee of the vehicle would be pinged by the bank or lender holding the loan to tell them that they’re delinquent and asked that they respond. 

If that person does not respond, then that’s where the gloves come off.

“When an acknowledgment is not received within a reasonable period of time, the first computer may disable a functionality of a component of the vehicle or may place the vehicle in a lockout condition,” the company said.

And if Ford – or the lender – doesn’t get their payment, then they can choose from any number of components it wants to shut down. The first thing it’ll supposedly go after are “components [that] may cause a certain level of discomfort to a driver and occupants of the vehicle” like cruise control, window controls, seat controls, and components of the infotainment system such as the radio or GPS. 

If that’s not enough pain, then out comes the loss of things like "the air conditioning system, a remote key fob, and an automated door lock/unlock system."

The capper Catch-22 is that an "incessant and unpleasant sound" may be turned on "every time the owner is present in the vehicle… by varying a tone, a timber, a pitch, a cadence, a beat, or a volume of the sound.” The patent application said that audio harassment will continue until the person in charge of paying for the vehicle contacts the lending institution to address the payment delinquency.

“Wait, I’m having a heart attack!”

And the company doesn’t care if you’re in the parking lot of Sam’s with a trunk full of frozen food that could spoil or not. However, the application did say that the lockout condition “may be lifted momentarily in case of an emergency to allow the vehicle to travel to a medical facility.”

Ford seems prepared for all the broken leg, heart attack, and having-a-baby excuses it’s going to get, too. It says the vehicle's camera and a "neural network" could be used to decide if an emergency situation is real or not.

Ford has also thought out scenarios where the car’s owner parks the vehicle in a garage so it can't be repossessed by a person and certainly not a computer. At that point, the application says that the police could be called to come in and “take action.”

But, if it’s a piece of junk…

The only thing that might save a delinquent vehicle owner is if their lender thinks repossessing the vehicle simply isn’t worth the money.

Underpinning that decision will be several factors: the mileage of the vehicle, its market value, what kind of condition it’s in, and how much the lender would have to pay to get the car towed into a lot, store it, file a complaint, and resell it.

However, if the bank thinks it’s just not worth the time and trouble, it’s not going to lay down and roll over. “The repossession system computer may cooperate with the vehicle com­puter to autonomously move the vehicle from the premises of the owner to a junkyard," the application said.

For more than a decade, identity theft has been a growing threat to consumers. In 2022, it topped the Federal Trade Commission’s (FTC) top 10 list of scams victimizing consumers for a second consecutive year.

For National Consumer Protection Week, we’re taking a look at the extent of this threat and how consumers can protect themselves.

When criminals obtain someone’s personally identifiable information (PII) they can take out loans and make credit purchases in the victim’s name, assuming their identity. The victim might not find out until months later, when these unpaid debts have been turned over to collections, decimating their credit score.

The damage is not easily repaired. The victim must show that they did not take out the loans and that can be a long and costly process.

Criminals obtain PII from a variety of sources, often from a network data breach. Recently, the Office of the Maine Attorney General and Cybersecurity Dive reported nearly 35,000 PayPal accounts were accessed via a credential stuffing attack.

In these kinds of attacks, criminals use stolen login credentials to gain access to networks or databases. The PayPal attack reportedly exposed personal information, including names, addresses, Social Security numbers, tax identification numbers and dates of birth. 

How to protect yourself

In a case like that, the consumer might be completely unaware that their PII is at risk. Mon Terry, chief victims officer at the Identity Theft Resource Center (ITRC), says there are two important things you can do to protect yourself.

“To protect your identity online and on accounts with electronic access, start by using a unique 12+ character passphrase for each of your accounts,” Terry told ConsumerAffairs. “They are easier to remember and harder for an identity criminal to crack. Also, use multifactor authentication on your accounts, preferably with an authenticator app. It adds an extra layer of security.”

The second step may be even more crucial. When you freeze access to your credit reports at Equifax, Experian, and TransUnion, even someone with your Social Security number can’t take out a loan or apply for a credit card.

“It is free and an easy way to keep your information from being used to open new financial accounts without your permission,” Terry said. 

Freeze children’s accounts too

Parents of young children should also consider freezing their child’s credit. Since a child is unlikely to take out a loan or credit card, identity fraud involving a child’s Social Security number could go undetected for years. 

“Too often, we hear stories about people trying to rent an apartment in college or open their first credit card, only to find out identity crimes had happened in their name for years,” Terry said. A credit freeze is the best way to restrict access to your child’s credit report.”

Finally, consumers can protect themselves by being very careful about the information about themselves they share. Identity thieves comb social media platforms gathering bits of information. Getting a name, a birthday, a spouse’s name, etc., can give a clever thief an advantage as they try to steal your identity.

Do not click on unexpected pop-ups or links in emails, texts, or social media posts. Instead, go straight to the source when verifying the links provided in an email, text, or social media post.

Earlier this tax season, the Internal Revenue Service (IRS) warned taxpayers to expect an increase in scam calls related to their taxes. The calls were likely to come from people pretending to be the IRS, and they’d call unsuspecting taxpayers asking for personal information or money. 

While these scams certainly still pose a threat to taxpayers, the agency is now issuing warnings about a new scam that has grown in popualrity throughout tax season. 

The IRS explained that scammers are encouraging taxpayers to falsify their W2 forms to make up everything from their employer, to their withholdings, to their income, all in the hopes of getting a bigger refund. Others are encouraged to claim credits that don’t actually apply to their filing situations – also in the hopes of getting more money. 

“We are seeing signs this scam is increasing, and we worry that innocent taxpayers could be at risk of being tempted into falling into a trap that puts them at risk of financial and criminal penalties,” said Doug O’Donnell, acting IRS commissioner. “The IRS and Security Summit partners remind people there is no secret way to get free money or a big refund. People should not make up income and try to submit a fraudulent tax return in hopes of getting a huge refund.” 

What does the scam look like? 

Taxpayers can expect to see this scam making its way around social media. Scammers are pushing the idea that taxpayers will get back bigger tax refunds if they file their taxes electronically and fudge the numbers. 

Altering the W2 form to look like the taxpayer has a high income and is withholding higher amounts is supposedly going to yield five-figure tax refunds. Taxpayers are told to fill out their taxes manually, and also file their returns electronically to receive these bigger refunds. 

The IRS also outlined two other variations of this scam. In one scenario, taxpayers falsely fill out a Schedule H (Form 1040).

The form, and subsequent refund, are supposed to be for taxpayers who hired employees to do work in their homes and had federal taxes withheld from their pay. However, scammers are filing it under false pretenses, making up employees who never did work for them. 

Another situation is falsely claiming Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals. The IRS explained that not only is this form no longer available to taxpayers for the 2022 tax year, but it was designed to give a tax break to self-employed taxpayers during the pandemic. 

There are consequences

Moving forward, the IRS wants taxpayers to know that they should expect repercussions it they falsify their tax documents. 

In an effort to ensure that all information submitted to the IRS is accurate, the agency is working closely with the Security Summit and the Social Security Administration to verify all information on W2s. 

However, for those who follow through with one of these scams, there are consequences. Punishment can range from fines and penalties from the IRS, all the way to criminal prosecution for knowingly filing a false tax return. 

Late last week the average 30-year fixed-rate mortgage interest rate rose past 7% for the first time since October, according to Mortgage News Daily. Though slightly below that now, higher mortgage rates can be expected to present challenges for home buyers since home prices are still at elevated levels.

The one bright spot for buyers is a new report from real estate brokerage Redfin, showing the national median home price has fallen for the first time since 2012. But the decline is only 0.6%, the result of last fall's surge in mortgage rates.  Redfin Deputy Chief Economist Taylor Marr says it's no surprise.

"Home prices skyrocketed so much over the last few years that they were likely to come down once rates rose from historic lows," Marr said. "Mortgage rates rising to the 7% range was the straw that broke the camel’s back, dampening homebuying demand and leading to sellers asking less for their home.”

The average mortgage rate is now almost a full point above where it was in early January when market analysts held out hope that the spring homebuying season would offer better opportunities for buyers. Should rates remain elevated, or move higher, affordability could continue to be an issue.

But would that mean home sales would “crash,” as a few pundits have predicted? Probably not. Even in San Francisco, one of the housing markets where home prices have fallen the most in recent months, homes are still selling.

Ying He, a Realtor with Barb Co Real Estate, has seen little change in demand for the city’s median-priced single-family homes that sell well above $1 million. In fact, she says there is still a shortage of these homes for sale.

“Multiple bids and hundreds of thousands of dollars above asking are still happening,” she told ConsumerAffairs. “There are still lots of qualified buyers out there”

Condos are cooling

Condos are another story, however. He says condos are still sitting on the market for longer and sales should be even slower if mortgage rates continue to rise.

“They will sell at the right price but that might take some time before supply and demand balance out,” she said.

Less expensive markets in the South and Midwest may be most affected by the rise in mortgage rates. Home prices in these cities are still rising and unless there is an abundance of high-wage jobs, fewer buyers may be able to afford them. 

Here’s why: if you are buying a home that costs $400,000 and making a 20% down payment, that average 30-year fixed-rate mortgage will cost around $230 more a month than it would have in early February.

Compared to 12 months ago, before rates took off, today's monthly payment is about 50% more.

While all consumers can be misled by deceptive advertising, military veterans may be especially vulnerable. Many are older and often receive military retirement benefits, making them tempting targets.

In an effort to protect veterans, the Consumer Financial Protection Bureau (CFPB) has used its authority under the Consumer Financial Protection Act to permanently bar RMK Financial for what it called "repeat offenses against vets and their families."

In shutting down the company's mortgage loan operations, the CFPB charged it with tricking military families about the government’s role in sending the advertisements or providing the loans, hoodwinking borrowers about interest rates and key terms, falsely misrepresenting loan requirements, and deceiving prospective borrowers about projected savings from refinancing.

The CFPB warned the company about its practices back in 2015 but said the company failed to change its ways.

The Bureau says those Camp Lejeune ads were misleading, too

In an additional warning to veterans, the CFPB is also calling attention to “coaches” or “consultants” who advertise their ability to assist vets with their VA benefits claim but may not be accredited to actually practice before the VA – marketing that the Bureau called “predatory.” 

“We have heard reports that unscrupulous actors have misled some veterans into paying hundreds of thousands of dollars in illegal fees,” the Bureau said. “There have also been advertisements and commercials aimed at Veterans who were stationed at Camp Lejeune seeking to represent them in litigation related to the PACT Act,” which also requires any attorney seeking benefits on behalf of a veteran directly from the VA under the Camp Lejeune Justice Act of 2022 (CLJA) must still be accredited by the VA.

The biggest scams veterans face in 2023

Two problems are bad. Seven are really bad. According to new research from Aura, military veterans face seven different schemes to swindle them out of their well-earned benefits. Those include:

• Investment and military pension fraud

• Offering “secret” government funding

• Demanding security deposits on veteran-discounted properties

• Posing as veteran-friendly employers and schools

• Imposters pretending to be friends

• Phishing scams from fake government agencies

• Charging for free military records

“Being the victim of a scam is traumatic, leaving vets or their families feeling vulnerable and even helpless. But you can fight back and protect yourself by watching for signs of scams and acting quickly,” NextAvenue’s Rachel Leland says.

In her homework on what things veterans can do to protect themselves, she found two that can essentially keep them safe: Be aware of the prevalence of scams, and be leery of anyone who claims to be a “vet” and claims to represent veterans.

To help vets monitor those, AARP has created Operation Protect Veterans, a joint program of AARP's Fraud Watch Network and the U.S. Postal Inspection Service (USPIS). The initiative provides free resources and community programs which give vets tips on how to proactively spot scams and find fraud specialists if a vet has been targeted.

Dollar stores are about to take their double-dog dare up a notch in the food aisle. As forecast by ConsumerAffairs last year, Dollar Tree has announced plans to add $3 and $5 price point items in another 1,800 or more stores this year. 

In a recent earnings call, company chief Rick Dreiling added that the company has quietly been expanding $3, $4 and $5 frozen and refrigerated products across the Dollar Tree store base going from zero to 3,500 stores in 2022.

The chain’s refrigerated/frozen section is focused on the things that it can sell at a discount and that most shoppers want in their cart – things like proteins, pizza, and ice cream, drawing positive consumer response. What Drieling sees has made him very happy, too.

“What we are seeing with Dollar Tree plus and multiple price frozen is that when the customer purchased at least one of these items, the basket size is more than double the basket with no multi-priced items,” he said.

More private brands

Private label brands have, in a word, exploded. Recent research from Attest found that 73% of consumers have taken a shine to private label brands and say that even if the economy gets back to its old self, they’ll stick with those off-brand options.

Dreiling said that the trend has improved its own profitability and going forward, grocery shoppers can expect Dollar Tree’s private label brands to have a new persona with new labels and redefined labels, many of which the company is developing in its test kitchen in Chesapeake, Virginia. 

Dollar General is moving food forward, too

Despite Dollar Tree’s latest chess moves, Dollar General should get credit for starting the discount food war, beginning with $1 food items – a dare that it kept up with even after Dollar Tree raised all of its prices by one quarter, to $1.25.

One move that Dollar General has made that Dollar Tree has yet to match is the addition of perishables – fruits and vegetables. Another just-announced move is partnering with a well-known food magazine to develop meal options for shoppers who are looking for more than just opening up a box of mac and cheese.

Dollar General recently partnered with Delish magazine and Mary Alice Cain, a registered dietician and nutritionist, to create new Better For You recipes with healthier options for breakfast, lunch, and dinner.

Each recipe includes recommendations on how to make the dish “Better For You” – such as slow cooker vegetarian chili and cranberry-walnut chicken salad sandwiches – and the majority of ingredients for all recipes can be found at more than 19,000 Dollar General stores.