If you own or operate a business, it’s important to be aware of the various types of payment fraud and how they can affect your bottom line. Payment fraud is defined as any type of illegal activity that results in the unauthorized use of another person’s or entity’s payment information—such as credit card numbers, bank account information, or Social Security numbers—to make a purchase or withdraw funds.
The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) was passed in 2008 in response to the housing market crash. The act created new requirements for mortgage originators, which includes anyone who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan. Basically, it helps protect consumers from fraudulent lenders.
Many business owners are not aware of Regulation E and what it means for them and their customers. Regulation E is a federal regulation that provides consumer protections in electronic transactions. This includes transactions conducted through the use of credit cards, debit cards, and prepaid cards.
In May 2022, the FTC’s updated guidance provides insight into how businesses can avoid deception when collecting or using consumer reviews. The newly released guidance also explains how businesses can use consumer reviews in a way that complies with the FTC’s existing rules.
In September 2022, Deputy Attorney General Lisa Monaco gave a speech detailing the Department of Justice’s new corporate crime guidance. This guidance is meant to crack down on white-collar crime and holding corporations accountable for their actions. Monaco emphasized new procedures for corporate criminal enforcement to the Department of Justice, which included specific suggestions for when prosecutors should consider both individual and corporate accountability, as well as to whether they should enforce a monitor in any future corporate criminal cases. She also reiterated that the principle focus for the DOJ is “individual accountability.”
The Federal Trade Commission (FTC) has launched a ‘Junk Fees’ crackdown by currently seeking public comment regarding the negative impact of junk fees, as well as any companies that use underhanded methods to charge these hidden costs. The FTC announced that it will be seeking a rule that would bar against unfair and deceptive practices companies use to impose on their customers. From airlines and hotels, to banks and cell phone services, the list is not exhaustive and includes any fees added in fine print through hidden fees, recurring billings, deceptive overpricing or by deploying “digital dark patterns” and other “tricks” to deceive customers.
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