Current Events in April 2023

At least eight deaths and numerous injuries and property damage have prompted attorneys general from 17 states and the District of Columbia to call on the National Highway Traffic Safety Administration (NHTSA) to recall model year 2011 through 2022 Hyundai and Kia vehicles.

In a letter to the agency the officials, led by California Attorney General Rob Bonta, say easily-bypassed ignition switches and lack of engine immobilizers make the vehicles particularly vulnerable to theft.

The letter notes that videos uploaded to the social media platform TikTok show how easy it is to steal the vehicles.

Using only a USB cable and a screwdriver, thieves bypassed the keyed ignition by prying off the steering wheel column, accessing the ignition switch, and starting the vehicle without a key in as little as 20 to 30 seconds.

In addition to Bonta, the letter was signed by attorneys general from Arizona, Colorado, Connecticut, Illinois, Massachusetts, Maryland, Michigan, Minnesota, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Washington and the District of Columbia.

Not all agree

Among those who did not sign the letter was Georgia Attorney General Chris Carr. In a statement released last week and reported by Fox 5 Atlanta, he puts the blame on criminals, not the consumers or corporations.

"This approach is completely backward,” Car said. “The State of Georgia will not blame companies for the actions of criminals. We also refuse to put additional burden on companies in order to coddle criminals, as we are seeing being done in far too many cities and states around the country."

Fix or no fix?

Hyundai spokesman Ira Gabriel says the automaker has taken "comprehensive action" to assist its customers.

These actions, he told ConsumerAffairs, include making engine immobilizers standard on all vehicles produced as of November 2021 and reimbursing customers for their purchase of steering wheel locks.

But, as far as the AGs are concerned, the response doesn't go far enough and “ does not adequately remedy the safety concerns facing vehicle owners and the public.”

In short, they say, the starting systems are not in compliance with federal standards and pose an unreasonable risk to public safety.

The preferred solution, according to the letter, is for NHTSA to “exercise its authority to order a mandatory recall or ensure Hyundai and Kia institute a voluntary recall.”

HBO Max is trimming off its old branding deadwood and relaunching as just plain ‘ol “Max.” Starting May 23, the streaming service will roll out an updated app alongside its updated name, and one that includes a sizable bonus – the full Discovery+ catalog.

HBO has a strong resume when it comes to delivering unique and critically acclaimed content. However, Dan Goman, CEO & founder of Ateliere, told ConsumerAffairs that its 30-year history also comes with some negative perceptions.

For some viewers, HBO is nearly synonymous with adult-themed shows/programming – “which can be a problem if you are trying to reach a very broad audience that cuts across age groups, demographics, etc.” The Discovery library, he says, addresses that.

Will the price go up, too?

Good news: HBO’s change does not affect prices. Base prices will remain steady at $10 a month with ads and $16 without ads. However, if you’re a 4K HDR aficionado, you’ll have to pay $20 a month for the “Ultimate” plan which also includes four simultaneous streams. Existing subscribers are lucky because they’ll get six months of Ultimate for free.

Max’s new plan for new subscribers breaks down like this: 

• Max Ad-Lite: $9.99 a month or $99.99 a year (16% savings); is ad-supported; and subscribers can stream in full HD on two devices at the same time.

• Max Ad Free: $15.99 a month or $149.99 a year (over 20% savings); comes with no ads;  and subscribers can stream in full HD on two devices simultaneously plus do as many as 30 offline downloads.

• Max Ultimate Ad Free: $19.99 a month or $199.99 a year (over 16% savings); no ads; and users can stream in 4K UHD on four devices simultaneously, plus download up to 100 shows offline. 

Goman thinks Max’s pricing is right in the pocket.

“I don’t believe the product will be an issue for consumers,” he said, adding that he really likes the fact that consumers are getting several options on prices and are not forced to take-or-leave-it pricing.

“I believe they’re thinking about pricing in the right way - in that they are offering multiple options, including an ‘Ad Lite’ version that’s $9.99 per month, which is certainly in the range in terms of the consumer's perceived value, which a recent study indicated is somewhere in the $7.50 per month."

As far as what subscribers will get, ConsumerAffairs found a lot of worthwhile stuff in the come-hither content of the “Ultimate” tier. On top of the 4K quality, there’ll be full libraries of “Harry Potter,” “Game of Thrones,” “The Last of Us,” “The Lord of the Rings,” “The Dark Knight Trilogy” and more. Also included are 4K UHD versions of all Warner Bros. movies released this year and in the future.

Max won’t just be a TV-only thing, either. Subscribers can access it online at Max.com, on phones, tablets, streaming players, and game consoles. 

The National Association of Realtors (NAR) is out with its March existing home sales report and it’s mostly good news for people who want to buy a home. But how good remains to be seen.

Sales of existing homes fell sharply – by 2.4% – in March, mostly because of higher mortgage rates. Compared to March 2022 sales were down 22%. With fewer buyers in the marketplace, there was less competition, meaning it was good for buyers.

With the decline in sales, the median home price also fell. But here, the news wasn’t quite as good. The March median home price was down only 0.9% from a year ago at $375,700.

The third piece of good news for home shoppers was the March inventory level. Even though the supply of available homes remains near all-time lows, the situation improved last month. The inventory of unsold existing homes rose 1% from the prior month to 980,000.

Less competition, lower prices, and more choices. However, those factors are simply the national average. Where home prices went down tended to be markets where homes were, and still are very expensive. Inventory levels and prices may also vary widely, depending on the type of home you’re looking for.

"Home sales are trying to recover and are highly sensitive to changes in mortgage rates," said NAR Chief Economist Lawrence Yun. "Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It's a unique housing market."

A few more first-time buyers

First-time buyers were responsible for 28% of sales in March, up from 27% in February but down from 30% in March 2022. NAR's 2022 Profile of Home Buyers and Sellers – released in November 2022 – found that the annual share of first-time buyers was 26%, the lowest since NAR began tracking the data.

Despite the decline in home sales and the increase in inventory levels, homes still sold quickly in March. The NAR reports showed homes typically remained on the market for 29 days last month, down from 34 days in February but up from 17 days in March 2022. Sixty-five percent of homes sold in March were on the market for less than a month.

The wild card in this housing market is interest rates. According to Freddie Mac, the average 30-year fixed-rate mortgage was 6.27% as of April 13. One year ago it was 5% but on its way up.

Many longtime internet users may remember the “Nigerian prince scam.” In the early 2000s, millions of Americans received emails from someone claiming to be a Nigerian prince who was “overthrown in a coup” and needed to move several million dollars out of his country.

He pleaded with the email recipients to help, asking to transfer the money into their bank accounts. In return, he promised a reward of several hundred thousand dollars. Of course, he needed their bank account information to do that.

Today that scam is so well-known that it’s considered something of a joke. But the scam has been updated as the “rich grandma scam.” And police across the U.S. say it’s claiming victims. 

It works like this:

Someone posing as an elderly woman sends a message through Facebook Messenger. She claims to be an elderly grandmother who wants to give her wealth away. In one version of the scam, she offers a complete stranger $1.5 million and the deed to a new house.

The catch

But here comes the catch. In order to make the gift, the “rich grandma” must receive $15,000 upfront to pay the taxes. Oh yes, the payment must be made with gift cards.

Some people are actually doing it. In Georgia, the Athens Banner-Herald reported that a woman from Braselton, Ga., was victimized. She told police that she talked with two men, who claimed to be the grandmother’s son and his lawyer, who told her the elderly woman had won $343 million in the Powerball lottery. 

The victim said that the way the two men explained it, it seemed believable, even though it was a major scam red flag  – “If it seems too good to be true, it probably is.”

Michael Cohen, vice president of Global Operations at MyChargeBack, has dealt with many similar scams. He says scammers are skilled at talking their victims into abandoning any initial objections, overcoming their hesitations and then taking out their credit cards. 

‘Manipulating victims’

“They know how to manipulate anyone into doing what they want them to do,” Cohen recently told ConsumerAffairs. “That’s why scam victims fall victim. Not because they’re especially naive or gullible or foolish, but because they were mesmerized into it against their will and better judgment."

The biggest hurdle for scammers is to persuade their victims they need to pay using gift cards, when any reasonable person would wonder why Grandma won’t take a check. But the scammers always seem to have a good explanation and – when they stress the urgency to act immediately, which is another red flag – victims often act against their better judgment.

We all know that what we eat and drink can have significant impacts on our heart health. While alcohol has been proven to come with heart health risks, things like potassium or eggs have been found to come with heart health benefits. 

Now, researchers from the University of Barcelona have found that peanuts may be the next thing consumers – especially young adults – may want to consume to improve their heart health. A new study found that eating peanuts and peanut butter was linked with better heart health outcomes, including overall vascular health, inflammation, and atherosclerosis. 

“The bottom line finding is that peanuts can play an important role in promoting heart health by preventing atherosclerosis, reducing inflammation, and improving vascular health,” said Dr. Samara Sterling, research director for The Peanut Institute. “It’s encouraging because this is the first study of its kind to show this kind of protection in young people simply by eating peanuts.” 

One serving of peanuts can make a difference

The study included 65 healthy adults between the ages of 18 and 33. The participants were divided into three groups. Over the course of six months, the groups either added 32 grams of peanut butter to their diets every day, 25 grams of skin-roasted peanuts, or 32 grams of butter. 

All three options equated to adding one serving of peanuts/peanut butter to their regular diets. For peanut butter, this is about two tablespoons, and for regular peanuts, this is equivalent to about a handful. 

At the end of the six months, the researchers looked to see whether specific biomarkers that are linked with different types of heart disease were affected by the increase in peanuts and peanut butter. Ultimately, the food was found to be effective at boosting heart health outcomes, and it serves as a frugal way for young adults to improve their heart health now and into the future. 

“There’s an urgent need to focus cardiovascular disease education and prevention efforts on young adults,” Sterling said. “The increases in high blood pressure and obesity are impacting the hearts of young people and leading to serious conditions that are usually seen in those who are decades older.” 

If you get an email from Walmart, tread lightly! Check Point Research’s latest Brand Phishing Report reveals the retailer is at the top of the latest chart for most imitated brands. 

Walmart accounted for 16% of all scam attempts and climbed from 13th place in the fourth quarter of 2022, mostly due to an immense phishing campaign built around the come-on of a “supply chain collapse” that urged victims to click on a malicious survey link. 

That particular Walmart phishing attempt isn’t the only one the company has suffered through. Scammers also send sham emails pretending to be from Walmart, asking for participation in a survey.

There’s typically a link inside those emails that takes a person to a fraudulent website where the scammer either tries to nab their personal information or infects their device with malware.

Walmart says that, yes, it does surveys, but warns consumers that they do not give away gift cards through Twitter, Facebook, or text messages.

“If you receive a notice through one of these channels, it is likely a scam. Do not click on any links in these messages,” the company said.

Here come the finance scams!

While the technology sector was the most imitated industry in the last quarter, followed by shipping and retail, Check Point researchers say they’re seeing people getting hit with a lot of finance-related scams. Like every other finance scam on the planet, there’s only one thing these scammers want – someone’s account details. 

Bank Raiffeisen made the Top 10 for the first time. Even though it’s an Austrian bank, scammers are likely to do the same thing in the U.S. given their success. 

Researchers caution people to be vigilant about any email or message that encourages recipients to click on a malicious link and to ensure the accounts' security against any fraudulent activity. Once submitted, those details could be stolen by an attacker.

If the scammers follow the Raiffeisen scam model, people should keep an eye out for any email subject similar to “The new SmartToken service is not active” or content claiming that the victim needs to activate the “SmartToken“ service to ensure account security against fraudulent activity. Tucked inside the email is a malicious link that the attacker tries to lure the victim into clicking so he can steal his account.

WhatsApp scams proliferating

Finance scams are headed WhatsApp’s way, too. Reportedly, WhatsApp users are current targets of scammers hoping to drain a bank account or two courtesy of the infamous “friend in need” text message. In that scheme, a scammer professes to be the child of the potential victim, saying that they're in trouble and need money to get out of it. 

An alternate version of the scam is also on the streets, according to Aura. It’s still one that involves fraudsters impersonating a victim's child on WhatsApp and asking unsuspecting parents to transfer funds into a scammer’s bank account. However, in this version, the scammer tries to convince Mom or Dad that their phone was lost or broken to justify this new number. In other variations, the scammer may claim to have been locked out of their mobile banking app.

Either way, the scammer still wants the same thing – the parents’ bank account details so they can transfer the money to buy a new phone. We don’t need to tell you what happens once the victim sends the money, but “poof!” is the operative word. 

The Aura analysts say the most prudent thing to do with any WhatsApp message like this is to first verify your child's supposed updated number by sending a text message or making a phone call to confirm whether they’ve actually lost access to their phone.

It would also be a huge plus if you verbally confirmed any bank account details before initiating a fund transfer. That way, if you recognize your child’s voice, the odds are in your favor.

“Hi! I just made $600,000 thanks to a little-known secret about buying cryptocurrency!” The Federal Trade Commission (FTC) says overtures like that are starting to fill up email in-boxes by the score and that every single one of them is a fake.

Can’t-miss opportunities are just one of the arrows scammers use, but investment scams cost Americans close to $4 billion last year and the agency is doing all it can to stop that number from going higher.

How an investment scam works

Investment scammers don’t waste their time on promising a target they can make $25 or $50. They want to create the impression that someone can “make lots of money" with "little to no risk." Jim Kreidler, a Consumer Education Specialist, at the FTC said that those come-ons often start on social media, online dating apps, or from an unexpected text, email, or call. 

But how do you tell the difference between a legitimate investment — and a scam? For one thing, don’t accept any unsolicited offers.

“If you get an out-of-the-blue call, text, or e-mail about “an amazing investment opportunity,” it’s a scam. Hang up. Delete. Walk away. Especially if they want you to take money out of your 401(k) to invest,” Kriedler said.

“Reject the high-pressure pitch. Scammers try to plant an image in your head of what life will be like when you’re rich. Don’t believe it," Kriedler said. "They’ll say ‘This is a once-in-a-lifetime offer — and it will be gone tomorrow.’ But, if it is a legitimate investment, the person on the other end will let you take the time you need to investigate before spending any money."

Kriedler has two other suggestions, starting with doing your own research.

“Don’t make any investment until you’ve checked it out. Research the investment and the person offering it. Search online for the name of the company plus ‘review,’ ‘complaint,’ or ‘scam.’”

His second? “Don’t believe promises that you’ll make money or earn guaranteed returns. No one can guarantee you’ll make lots of money with little to no risk — anyone who does is a scammer,” he said.

There are also investment coaching scams to worry about

A twist on investment scams is the “investment coaching scam,” where a scammer will pitch you on their “patented,” “tested,” or “proven” strategy (or something similar) they say will teach you how to make money investing in stocks, bonds, foreign currency, or tax liens.

Promises like “Now, you’ll be able to retire without a worry in the world!” are full of problems. So are many real estate investment seminars where you’ll be coached on how to rake in money by working part-time or at home. Sure, it’s possible that someone may have made some money off of a real estate trick, but most people never make their investment back, the FTC said.

For a full breakdown of all investment scams the FTC has seen, they’re available here.

Southwest Airlines (SWA) had another hiccup, Tuesday -- one that's added to the hacking cough of cancelations and delays the airline has been through this over the last four months.

The company suspended all flights on Tuesday morning to work through data connection issues resulting from a firewall failure, according to the airline. By the end of the day according to FlightAware, 2,414 flights were delayed – 57% of those scheduled -- and 14 canceled completely.

“We ask that travelers use Southwest.com to check flight status or visit a Southwest Airlines Customer Service Agent at the airport for assistance with travel needs. We appreciate the patience of our Customers and Employees during this morning’s brief disruption,” the airline said in a statement.

As for early Thursday, all appears to be good -- for now. When ConsumerAffairs checked Flight Aware disruptions, there were none reported by SWA.

How travel insurance would’ve helped those caught in this situation

Analysts at Squaremouth.com, a travel insurance comparison and quoting engine, shared insight on travel insurance coverage for SWA’s impacted flights and said that those who have a travel insurance policy may be covered if their trip was impacted by the Southwest travel disruption. The most likely benefit to apply is Travel Delay. 

“Many policies can cover ‘any delay of a common carrier’,” the analysts said in an email to ConsumerAffairs. “In this case, the Travel Delay benefit can refund your expenses during a significant delay, including coverage for meals and accommodations. In order for coverage to apply, the delay must last three to 12 hours, depending on the policy.”

Specifically, if a delay forces a traveler to miss their connecting flight, they may also be covered for additional costs needed to catch up to their trip. 

“While today’s disruption did not lead to many outright cancellations, if your original Southwest flight was delayed more than 12 hours and you were forced to cancel your trip, your travel insurance policy’s Trip Cancellation benefit can cover your prepaid and non-refundable trip costs. Travelers whose flights were canceled can also contact Southwest directly for a refund,” Squaremouth said.

It added that if Southwest’s problems continue, it has prepared a special Southwest Travel Disruption Travel Insurance Information Center that breaks down coverage information for travelers and offers updates as the situation unfolds.

The Consumer Product Safety Commission (CPSC) recently warned consumers about two faulty carbon monoxide detectors that were commonly found on Amazon – the GLBSUNION and the CUZMAK detectors. 

Now, the agency is warning against another faulty device that’s designed to keep consumers safe – the OKEAH digital combination smoke and carbon monoxide detector. With carbon monoxide fatalities on the rise, it’s more important than ever to ensure your home is properly protected in the event of an emergency. 

What are the risks?

The CPSC found that the OKEAH combination detectors were faulty at alerting users to both smoke and CO. 

When testing the smoke detection capabilities, the device failed to meet an important safety standard – UL 217. This means that when exposed to certain levels of smoke, the detector didn’t sound the alarm. 

The carbon monoxide side was similarly dysfunctional, the agency said. The test showed that the device failed to react when exposed to 400 pm of carbon monoxide – a violation of safety standard UL 2034.

While the device is supposed to flash lights and sound alarms when it detects certain levels of smoke or CO, neither happened during either test. 

The faulty devices were found on Amazon and sold under ASIN B097B63W44 for between $25 and $75. The CSPC encourages consumers to check their smoke and carbon monoxide detectors and ensure they don’t have faulty devices installed in their homes. 

Should you have one of these detectors in your home, it’s important to dispose of it as soon as possible and install new devices. Any new smoke/CO detector should meet the UL217 and UL2034 safety standards. 

Additionally, consumers can report faulty products to the CPSC at SaferProducts.gov. 

Taylor Swift is a successful pop star with a string of million-selling albums to her credit. But it turns out she has some investor savvy as well.

In 2021 FTX, the now bankrupt and defunct crypto exchange, approached Swift about signing a $100 million endorsement deal. Several other celebrities had already done so.

Swift didn’t sign and now we know why. Adam Moskowitz, one of the lawyers handling a class-action suit against several high-profile FTX promotors, says Swift was the only person to ask a very important question.

Moskowitz, appearing on "The Scoop" podcast to discuss the lawsuit, said Taylor turned to the lawyers and asked if the FTX securities were registered. She was told they were not.

At that point Swift backed out of the deal and, in doing so avoided becoming a defendant in the lawsuit. Tom Brady, Shaquille O’Neal, and Larry David signed the deal and now face a lawsuit.

Big losses

Investors in the FTX exchange should probably have asked that question as well. Investors lost an estimated $8 billion and FTX founder Sam Bankman-Fried faces federal fraud charges.

Operating from the Bahamas with little to no regulation, FTX “loaned” investors’ deposits to a sister company, Alameda Research, which made a number of risky investments, resulting in big losses.

A security is defined as a tradable asset that has value, such as a stock or bond. Securities sold in the U.S. must be registered with the Securities and Exchange Commission (SEC). The SEC has accused FTX of selling an unregistered security in the form of FTT, its cryptocurrency.

Swift may have inherited some of her investment smarts from her father. According to Business Insider, he was an investment adviser with Merrill Lynch for 30 years.

The U.S. government has revised its policy on electric vehicle (EV) tax credits and most foreign-made EVs no longer qualify. Consumers who purchase new eligible vehicles can earn a tax credit of up to $7,500.

The revision means fewer EVs qualify for the tax credit than in previous years. Nine models have been phased out, leaving 16 eligible models.

Here’s the list of eligible EVs:

• 2022-2023 Chrysler Pacifica PHEV

• 2022-2023 Jeep Wrangler PHEV 4xe

• 2022-2023 Jeep Grand Cherokee PHEV 4xe

• 2022-2023 Ford F-150 Lightning (standard and extended range)

• 2022 Ford e-Transit

• 2022-2023 Ford Mustang Mach-E (standard and extended range)

• 2022 Ford Escape Plug-in Hybrid

• 2022 Lincoln Corsair Grand Touring

• 2023 Lincoln Aviator Grand Touring

• 2022-2023 Chevrolet Bolt

• 2022-2023 Chevrolet Bolt EUV

• 2023-2024 Cadillac LYRIQ

• 2024 Chevrolet Silverado EV

• 2024 Chevrolet Blazer EV

• 2024 Chevrolet Equinox EV

• 2022-2023 Tesla Model 3 Standard Range RWD

• 2022-2023 Tesla Model 3 Performance

• 2022-2023 Tesla Model Y AWD

• 2022-2023 Tesla Model Y Long Range AWD

• 2022 Tesla Model Y Performance

Some used models also qualify for a credit

Five Tesla models make the list, along with five Ford-Lincoln models and six General Motors cars. Of course, you'll have to spend a lot of money to get that $7,500 tax credit. The Chevy Bolt and Equinox are the two "affordable" cars on the list. 

There is also a tax credit that applies to used EVs. There is less emphasis on battery content or where the vehicle was manufactured. For example, a used Honda EV might qualify even though a new one doesn’t. Buyers will get a smaller tax credit and may have to meet certain income requirements.

For vehicles placed in service from January 1 to April 17, 2023, the base amount of the tax credit is $2,500. Additionally, there is an extra $417 for a vehicle with at least 7-kilowatt hours of battery capacity and an additional $417 for each kilowatt hour of battery capacity beyond 5-kilowatt hours, up to $7,500 total.

For vehicles placed in service April 18, 2023 and after:

Vehicles will have to meet all of the same criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to:

• $3,750 if the vehicle meets the critical minerals requirement only

• $3,750 if the vehicle meets the battery components requirement only

• $7,500 if the vehicle meets both

• A vehicle that doesn't meet either requirement will not be eligible for a credit.

To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return. You will need to provide your vehicle's VIN.