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.