Consumer watchdogs warn of increase in government shutdown-related scams as workers worry about pay, benefits
With no deal on the table to end the federal government shutdown as of Friday, consumer watchdogs are issuing a new warning about potential impacts to daily life.
The ongoing stalemate could threaten key consumer protections, and embolden scammers looking to exploit fear and uncertainty as people worry about benefits or when they will receive their next paycheck.
Federal and state officials warn scammers are posing as government agencies and using common tactics like text messages, phone calls and emails to target federal employees and beneficiaries.
As usual, they're after your personal information, according to Eva Velasquez, CEO of the non-profit Identity Theft Resource Center. She said fraudsters might ask you to verify your data or even say you have to pay a fee to ensure your benefits continue.
None of it is legitimate. The government is never to going call, text or email you out of the blue and demand money or information, especially right now, she said.
"With people being on edge being told things like, 'if you don't react your Social Security benefits are going to be withheld, if you don't react you're going to owe this money to the IRS,' I think that's going to work more effectively on people, because we are in such an uncertain time," Velasquez said.
As the shutdown drags on, Velasquez warns beneficiaries and furloughed employees should also be on guard for scammers contacting them with fake offers for grants or financial assistance.
Never confirm your personal information to someone who contacts you unsolicited, she said. Always take the step to contact the business or agency directly to verify.
"If you reach out directly and discover that department is closed, you have gotten your answer," Velasquez said. "They didn't contact you if they're closed."
The Consumer Federation of America warns an ongoing shutdown also threatens to disrupt key consumer protections.
The shutdown halted operations at the Bureau of Labor Statistics, cutting off the publication of key inflation data as the Fed looks at another potential rate cut in a few weeks.
At the Food and Drug Administration routine food safety inspections are suspended. Meanwhile, consumers cannot report fraud to the Federal Trade Commission.
The FTC said it will not take consumers' fraud complaints or help them block spam calls during the government shutdown. The agency's fraud reporting site and its national registry that lets individuals opt out of telemarketing are not available.
However, Velasquez said there are still organizations like ITRC available to help consumers and scam victims.
