Current Events in March 2025

Tax season is officially underway, and while refunds are one of the biggest things on consumers’ minds, scams should also be up there. This time of year is perfect for scammers to steal money, information, and data, all of which can leave consumers vulnerable. 

New research from McAfee found that nearly a quarter of Americans have either been involved in a tax scam or know someone who has. On top of that, more than half of all tax scam victims lose over $1,000. And as artificial intelligence (AI) gets stronger, so do scammers. 

Abhishek Karnik, Head of Threat Research at McAfee, shared with ConsumerAffairs about the biggest red flags to look out for, what to do if you fall victim to a scam, and everything consumers should know to stay safe this tax season – and beyond. 

What are the signs of a tax scam? 

According to Karnik, urgency is one of the biggest indicators that consumers are being targeted by scammers. 

“If a message demands quick action, use caution before interacting with it,” he said. “It’s best to avoid engaging with any unsolicited messages – do not click any links provided and go directly to the source for more information, whether that’s the IRS or your tax provider’s official website. 

“Consumers should ignore any unexpected messages demanding payment from the IRS. The IRS will typically contact you first by mail and will not reach out via phone call, text, email, or social media about your taxes. Any messages claiming otherwise are likely scams.”

Additionally, the rise of AI has made scammers harder to detect. This means consumers need to be more vigilant when interacting with unknown emails, texts, calls, websites, etc. 

“One of the most common methods scammers exploit is creating fake messages that mimic trusted sources, including the IRS and well-known tax service providers like TurboTax or H&R Block,” Karnik said. 

“Scammers use a range of tools to carry out their schemes, and AI is becoming an increasingly common part of their toolkit. They use it to craft convincing emails, texts, and even voice messages that sound or read just like the real deal. According to our latest report, nearly half (48%) of Americans have received fraudulent IRS communications, while 33% have received scam messages pretending to be from well-known tax preparation companies.”

What to do if you’re involved in a tax scam  

If you happen to find yourself involved in a tax scam, immediately report it to the IRS. 

“If someone’s Social Security Number or Tax Number has been stolen, they should immediately report the incident to IdentityTheft.gov,” Karnik advised. “Additionally, there are many valuable resources consumers can turn to for support, such as the IRS’ identity theft victim assistance program – or the Taxpayer Advocate service, which helps taxpayers protect their rights. 

“Consumers should take further steps to secure their information, such as changing passwords, using unique passwords for every account, enabling two-factor authentication, and monitoring financial accounts for suspicious activity. Victims can place a fraud alert on their credit reports and even consider a credit freeze, which restricts access to their credit and makes it difficult for identity thieves to open new accounts.” 

Is this a threat beyond tax season? 

The short answer to that question: yes. Karnik said that scammers’ efforts are heightened during tax season; however, in the weeks and months following tax season, many scammers try to take advantage of consumers looking for refunds or falsely accuse them of owing money to the IRS. 

“Consumers should remain vigilant and watch for unusual or unsolicited messages, even if they appear to come from a trusted source,” he said. “Be especially cautious after tax filing season, as scammers may send fake refund notices or PDFs as part of phishing schemes. 

“Criminals often reuse personal data gathered during tax scams for future schemes, such as phishing attacks or financial fraud. Staying cautious year-round is essential to avoid falling victim to evolving tactics, including fake IRS messages, refund scams, and impersonations of trusted tax services.”

A federal court has temporarily shut down the operations of Growth Cave, a business opportunity and credit repair scheme accused of defrauding consumers out of $50 million. The decision comes after the Federal Trade Commission (FTC) filed a lawsuit against the company and its executives, alleging deceptive practices and false income promises.

The lawsuit, filed in the U.S. District Court for the Central District of California, names Growth Cave’s founder Lucas Lee-Tyson, along with Osmany Batte, also known as “Ozzie Blessed,” and Jordan Marksberry, as key figures in the scheme. The FTC claims they misled consumers into purchasing expensive programs with guarantees of earning thousands of dollars, only to leave them with empty promises and mounting debt.

​“The FTC has its eye on business opportunity schemes like this one and will take decisive action to stop them,” said Chris Mufarrige, Director of the FTC’s Bureau of Consumer Protection.

False promises, lavish lifestyles

Growth Cave’s primary business model revolved around selling a program called Knowledge Business Accelerator (KBA), which was promoted through YouTube ads. The program falsely claimed that consumers could earn between $20,000 and $50,000 in passive income by developing and selling digital education courses, the FTC said.

In promotional videos, Lee-Tyson portrayed himself as a marketing expert and self-made millionaire, while Batte claimed to have expertise in mindset coaching and hypnosis.

According to the FTC’s complaint, Lee-Tyson and Batte used videos showcasing luxury lifestyles to convince potential buyers of their programs’ success. However, the agency alleges that these lavish displays were funded by the money they took from unsuspecting consumers.

A costly investment with no returns

Consumers who expressed interest in KBA were subjected to aggressive email marketing and sales tactics, culminating in a “strategy call” where they were pressured to invest thousands of dollars in the program. Growth Cave even offered a $10,000 profit guarantee, leading many to believe their investment was safe.

However, once consumers purchased KBA, they struggled to receive the promised support and were left with generic advertising scripts requiring substantial revision. Many also faced undisclosed requirements before launching their courses, only to find that they could not generate any income.

The company also sold an “upgraded” version of KBA, called Digital Freedom Mastermind (DFM), for an additional $30,000 to $50,000, claiming it would provide a fully automated business solution. Consumers who purchased the upgrade reported that the promised services were never delivered.

The complaint also highlights another Growth Cave venture, Cashflow Consultant Academy (CCA), which falsely promised to connect participants with wealthy business owners for high-paying sales jobs. Instead, many found themselves working for other Growth Cave customers or were never placed with a client at all.

In 2023, Growth Cave launched Buffalo Bridge, a bogus credit repair service charging consumers $6,800 upfront for supposed credit repair and business loan services. Instead, the company simply signed consumers up for multiple business credit cards.

Rebranding and new schemes

Despite facing private lawsuits from defrauded consumers, the FTC alleges that Lee-Tyson and Batte continued to launch new scams under different names. In March 2024, Lee-Tyson introduced PassiveApps, an AI-powered business opportunity that followed the same deceptive blueprint as KBA—even using recycled testimonials from past schemes.Meanwhile, Batte launched ApexMind, mirroring the CCA scheme.

Consumers who have fallen victim to similar scams are encouraged to report fraud at ReportFraud.ftc.gov.

A federal judge has ruled that the Federal Trade Commission (FTC) can move forward with its high-profile antitrust lawsuit against Amazon, dealing a significant blow to the e-commerce giant. However, the judge dismissed a handful of claims made by individual states involved in the legal battle, offering Amazon a minor reprieve.

The ruling, issued last week by U.S. District Judge John H. Chun in Washington and unsealed Monday, marks a major defeat for Amazon, which has spent months attempting to have the case thrown out. The trial is scheduled for October 2026, setting the stage for one of the most significant legal battles in the company’s nearly 30-year history.

“We are pleased with the court’s decision and look forward to moving this case forward,” FTC spokesperson Doug Farrar said in a statement. 

Last year, the FTC alleged Amazon.com, which has 1 billion items in its online superstore, was using an algorithm that pushed up prices U.S. households paid by more than $1 billion. Amazon has said in court papers it stopped using the program in 2019.

While Judge Chun allowed federal antitrust and consumer protection claims to move forward, he dismissed some state-level allegations, particularly those brought by New Jersey, Pennsylvania, Oklahoma, and Maryland. The ruling limits certain aspects of the case but leaves the core allegations against Amazon intact.

'FTC must prove its claims'

Amazon, for its part, is stridently denying the claims. It argues that the FTC’s claims misrepresent how consumers and sellers engage in online shopping.

“The ruling at this early stage requires the court to assume all facts alleged in the complaint are true. They are not,” Amazon spokesperson Tim Doyle said. He further claimed that the FTC’s case is built on a flawed premise, arguing that it “falsely” assumes shoppers only consider major sites like Walmart, Target, Amazon, and eBay when making purchases.

“Moving forward, the FTC will have to prove its claims in court, and we’re confident those claims will not hold up when the FTC has to prove them with evidence,” Doyle added, asserting that the agency’s approach could ultimately make online shopping “more difficult and costly.”

A closely-watched forecast of America's economic growth is warning of a recession.

Gross domestic product (GDP) growth is expected to be -2.4% for the first quarter of 2025 after forecasts, which are published every few days, fell into the negative starting on Feb. 28, according to the Federal Reserve Bank of Atlanta.

GDP is a key metric on the pace of the economy's health and two consecutive quarters of negative GDP growth would signal a recession.

The worrying numbers follow economic uncertainty from Trump's tariffs, which are expected to raise prices on numerous goods and services, including cars and home construction.

Price hikes from tariffs could reduce spending, lower production and cause job cuts.

The stock market has also reacted negatively in recent days.

On Thursday, the S&P 500 fell another 1.8% and brought its multiday decline to 7%.

And the tech-heavy Nasdaq 100 index fell into a correction, bringing it down more than 10% from recent highs.

Before Trump's tariffs, there were already fears of a U.S. stock market bubble.

Some 89% of investors said they think stocks are overvalued, according to a February survey by Bank of America.

Bank of America likened the current market scenario, which involves a high concentration in few stocks, to the dot-com crash of the late 1990s.

"If history is any indicator, the current market scenario could lead to a significant downturn, potentially dragging the S&P 500 down by as much as 40%," World Economic Magazine reports.

With daylight saving time just days away, many consumers may not think about some of the unintended risks associated with this bi-yearly event. 

One such risk: an increase in traffic accidents. Several recent studies have highlighted the association between daylight savings time and more traffic accidents. 

To help keep consumers safe this weekend – and beyond – ConsumerAffairs interviewed Katie Ekstrom, the assistant vice president of Auto Product Development for Personal Insurance at Travelers. She shared the biggest risks to consumers on the road, how to stay safe behind the wheel, and the importance of being proactive. 

What are the biggest risks to drivers? 

Though the clocks only shift forward one hour, Ekstrom explained that we’re likely to feel the effects of that one hour. Drowsiness behind the wheel in the wake of daylight savings can be a major factor for drivers. 

“It can take several days to adjust to the time change fully,” Ekstrom told ConsumerAffairs. “Disruptions to sleep schedules can impact reaction times, alertness, and awareness of hazards, increasing the risk of accidents.” 

On top of that, while many consumers won’t complain about having the extra sunlight, it can be a hazard to drivers. 

“Morning sun glare, which is more common after the clocks move forward, can make it difficult to see other vehicles, contributing to crashes. In fact, sun glare is responsible for approximately 9,000 accidents each year, according to the National Highway Traffic Safety Administration,” Ekstrom said. 

How can drivers stay safe? 

With this information, consumers can still stay safe on the roads. Ekstrom’s biggest piece of advice is for consumers to be proactive and prepared when they’re driving this weekend. 

“To protect yourself, plan ahead by adjusting your sleep schedule and going to bed a little earlier each night. If you’re on the road and start to feel drowsy – do not push through, pull over and rest,” Ekstrom advised. 

When it comes to cutting down glare, the solution is simple: sunglasses. 

“Keep a pair of sunglasses in your car and use your sun visor to help cut down on glare,” she said. “Be extra cautious at intersections, as bright sunlight can make it difficult to see traffic lights and harder to spot pedestrians crossing the street.” 

Another way to stay safe on the road: eliminate potential distractions. 

“With focus already impacted by sleep loss, it’s best to keep distractions to a minimum by programming your navigation before you leave, saving meals for your destination, and staying off your phone,” Ekstrom said. 

It takes time to adjust to the time change

Ekstrom explained that it takes time for our bodies to fully adjust to the time change from daylight savings. This means that these impacts are not just immediately present, but can also have lingering effects in the following days.

“Make sure you’re giving yourself time to adjust to the changes,” Ekstrom said. “Drivers around you may also be impacted by the time change, so ensuring that you are following safe driving practices can contribute to improved driving safety overall.” 

Her final piece of advice: patience goes a long way. 

“Since all drivers are in the same boat, practicing patience can go a long way,” Ekstrom said. “Defensive driving, staying alert, and planning ahead can make all the difference.” 

The Federal Trade Commission (FTC) is distributing over $905,000 in refunds to nearly 40,000 consumers who purchased Pure Green Coffee, which it said was a fraudulent weight-loss product falsely marketed with deceptive health claims and fake testimonials.

The alleged scam, run by NPB Advertising, misled consumers by promoting the product on fake news websites, featuring bogus success stories and unproven claims about its weight-loss effects.

The FTC first sued NPB Advertising and its associates in May 2014, alleging that they engaged in false advertising and consumer fraud. In 2015, most of the defendants settled the charges. However, in 2016, the FTC won its case against the ringleader of the operation and has since worked to recover funds to compensate affected consumers.

Now, after years of legal action, the FTC is returning money to those who were tricked into buying Pure Green Coffee.

How refunds will be distributed

• 39,977 consumers will receive payments through checks or PayPal.
• Consumers receiving checks should cash them within 90 days of the issue date.
• PayPal recipients must redeem their refunds within 30 days.
• Anyone with questions about their refund can contact the refund administrator, Epiq Systems, at 877-839-1696 or visit the FTC’s website for more details.

The FTC reminds consumers that it will never ask for money or personal information to issue refunds.