Financial Fraud Victims Receive $11.45 Billion
Scams in cyberspace have been a prevalent issue for quite some time, but the US government is taking measures to help cybercrime victims.
According to data presented by the Atlas VPN research team, the Federal Trade Commission (FTC) refunded $11.45 billion to US financial fraud victims. As many as 7.04 million individuals received a refund from the FTC since its inception.
The FTC’s main mission is to protect US consumers by halting unfair, deceptive, or fraudulent practices in the marketplace. This independent agency of the United States government conducts investigations, sues companies and people that violate the law.
Rachel Welch, COO of Atlas VPN shares her thoughts on the FTC’s performance:
“In short, it appears that the Federal Trade Commission is sticking to its word and helping scam victims. On the other hand, fraudulent schemes are still a painful and growing issue for US consumers.”
Once an FTC lawsuit or settlement is final and the defendants have paid the money, the Bureau’s Office of Claims and Refunds creates a plan for returning that money to the victims.
By far, the most significant case involving fraudulent practices was carried out by AMG Services. After the settlement, the Federal Trade Commission issued $956.26 million refund checks to over 1.18 million recipients.
The second biggest fraud case in which the FTC sent out refund checks is the settlement with Herbalife. The case resulted in $199.51 million refund checks to 260 thousand victims and Herbalife’s restructuring.
The lawsuit alleged that Herbalife deceived consumers into believing they could earn significant profits from selling the company’s products. However, after investigating the business model, it became apparent that “it’s virtually impossible to make money selling Herbalife products.” The FTC said in a press release.
FY 2019 – a record year
In total, from the fiscal year 2016 to the fiscal year 2019, the Federal Trade Commission, or companies and individuals that were a part of fraudulent schemes, refunded more than $10.5 billion to scam victims.
In some cases, the FTC sends out the refunds by themselves. The FTC directly sent out $977.5 million in refunds since the fiscal year 2016. Over 9.1 million people cashed out these checks. The administrative costs of distributing the money reach $22.1 million.
Interswitch is the Most Valuable African Startup
Interswitch, the leading payment processing company headquartered in Lagos, Nigeria, is Africa’s most valuable start-up at a US$ 1 billion valuation.
Founded in 2002, Interswitch uses switching infrastructure to connect different banks in Nigeria and powered banks’ ATM cards. Presently, the company has over 11,000 ATMs on its network.
In 2010, Helios Investment Partners bought two-thirds of the company and in the following year, Interswitch bought a 60 percent stake in Bankom in Uganda.
Interswitch owns Verve, Nigeria’s most used payment card, and accounted for 18 million of 25 million cards in circulation in Nigeria. The company also owns Quickteller and recently purchased VANSO, a mobile-focused technology provider to banks.
Like Interswitch, Stripe, the company that acquired Nigeria’s Paystack for over US$200 million, is the most valuable startup in the USA at over US$70 billion valuation.
Klarna, Nubank, Paytm and Grab leads in Europe, Latin America, India and Southeast Asia with valuations of US$10.65 billion, US$10 billion, US$16 billion and US$14 billion, respectively.
E-commerce Black Friday Sales Estimated to Surge by 40% to 10.2 Billion
The 2020 holiday shopping season will be unique, as the pandemic shifted consumer behavior from retail stores to online shopping. In response, many retailers moved their services online to not miss out on this year’s profits. Atlas VPN team decided to look into how e-commerce sales are set to perform in the upcoming long weekend.
Researchers predict that the US e-commerce revenue will exceed last year’s earnings by 49.5% on Thanksgiving day, totaling $6.18 billion in revenue. Black Friday is calculated to reach $10.2 billion in sales, exceeding last years numbers by 39.4%
Rachel Welch, COO of Atlas VPN, shares her tips on how to stay safe when shopping online during the holiday season:
“Watch out for too-good-to-be-true deals from unknown sellers, as cybercriminals will also expect to turn a profit during the holiday season, even though they are not selling anything, except maybe a bag full of disappointment.”
Finally, analysis shows that on the last day of the long and full of special offers Thanksgiving weekend, consumers will go all out to bring record sales for e-commerce businesses, adding up to $12.89 billion.
To look at these five days from a wider perspective, e-commerce companies can expect to earn around 39.72% more than they did last year.
Alibaba Merchants Sell $40B in First Half Hour of Singles Day 2020, More than 2019 Event Full Sales
Singles Day 2020 was a roaring success, cementing its position as the world’s biggest shopping holiday. Sales across Alibaba’s platforms during the event totaled $74.1 billion, up from $38 billion in 2019.
According to the research data analyzed and published by Stock Apps, within the first 30 minutes of the event, the gross merchandise volume (GMV) surpassed 2019’s full-event sales, reaching $40.87 billion.
Moreover, instead of live events, Alibaba had 400 company executives and 30 celebrities hosting livestreams. Based on a study by Coresight, the Chinese livestream market is set to rack in sales worth $125 billion in 2020, compared to $63 billion in 2019. The US livestream market is a small fraction of that, valued at $5 billion.
China’s Tech Heavyweights Lose $280 Billion in Market Cap
Alibaba Singles Day 2020 dwarfed other major shopping holidays as has been the trend in previous years.
According to Practical eCommerce, Amazon Prime Day 2020 sales totaled $10.4 billion up from $7.16 billion in 2019. Cyber Monday sales in the US amounted to $7.9 billion in 2020 according to Statista. Black Friday and Thanksgiving added $9.7 billion to the figure to make $17.6 billion for the weekend.
Similarly, in 2018, Singles Day sold $30.8 billion while Prime Day sold $4.19 billion and Thanksgiving weekend got $14.2 billion.
However, the 2020 Singles Day event came in the wake of Ant Group’s suspension of a $37 billion listing. The suspension resulted in a $76 billion drop in Alibaba’s market cap, as the tech giant owns a two-thirds stake in Ant Group. Moreover, China’s regulators released anti-trust draft rules prior to the event, aimed at controlling monopolistic behavior.
Following the release, Alibaba shares plunged by 9.8%, as JD.com shed off 9.2%. Tencent similarly saw a 7.39% drop and Xiaomi fell by 8.18%. For the five companies, there was a combined loss of $280 billion in market capitalization.
Nigeria’s Annual Remittance Inflow Estimated at $24 Billion -CBN
Nigerians to Start Receiving Remittance Inflows in Foreign Currency Today
Buhari Doubles Npower Beneficiaries to 1 Million, Increase GEEP by 1 Million, School Feeding by 5 Million
Business2 months ago
Npower News on Permanency for Batch A, B
Business2 months ago
Buhari Budgets N420 Billion for Npower, Other Social Investment Programmes in 2021 Budget
Forex2 months ago
Naira Improves Against Global Counterparts on Black Market
Forex3 months ago
Zenith Bank Joins Other Banks to Cap International Spend Limit at $100/Month
Cryptocurrency3 months ago
Bitcoin Gains 1.67 Percent to $11,050 Per Coin Amid Liquidity Issue
Business3 months ago
FG to Absorb Exited N-power Beneficiaries into New Program
Business3 months ago
FG Approves Stipends for Exited N-Power Beneficiaries
Stock Market3 months ago
Zenith Bank Declares 30 Kobo Interim Dividend for H1 2020