SEC Proposes New Rule To Enhance Private Fund Investor Protection
On February 9, 2022, the SEC announced that it voted to propose new rules and amendments under the Investment Advisers Act of 1940 (“Advisers Act”) to enhance the regulation of private fund advisers and to protect private fund investors by increasing transparency, competition, and efficiency in the $18-trillion marketplace.
Among other things, the proposed rules would increase transparency by requiring registered private fund advisers to provide investors with quarterly statements detailing certain information regarding fund fees, expenses, and performance.
SEC Proposes Cybersecurity Risk Management Rules And Amendments For Registered Investment Advisers And Funds
On February 9, 2022, the SEC announced that it voted to propose rules related to cybersecurity risk management for registered investment advisers, and registered investment companies and business development companies (funds), as well as amendments to certain rules that govern investment adviser and fund disclosures.
The proposed rules, among other things, would require advisers and funds to adopt and implement written cybersecurity policies and procedures designed to address cybersecurity risks that could harm advisory clients and fund investors. The proposed rules also would require advisers to report significant cybersecurity incidents affecting the adviser or its fund or private fund clients to the SEC on a new confidential form.
SEC Issues Proposal to Reduce Risks in Clearance and Settlement
On February 9, 2022, the SEC announced that it voted to propose rule changes to reduce risks in the clearance and settlement of securities, including by shortening the standard settlement cycle for most broker-dealer transactions in securities from two business days after the trade date (T+2) to one business day after the trade date (T+1). The proposed changes are designed to reduce the credit, market, and liquidity risks in securities transactions faced by market participants and U.S. investors.
In addition to shortening the standard settlement cycle, the proposal includes rules directed at broker-dealers and registered investment advisers to shorten the process of confirming and affirming the trade information necessary to prepare a transaction for settlement so that it can be completed by the end of trade date. Further, the proposal includes a new requirement to facilitate straight-through processing, which would apply to certain types of clearing agencies that provide central matching services. Central matching service providers help facilitate the processing of institutional trades between broker-dealers and their institutional customers. The proposed rule would require new policies and procedures directed to straight-through processing and require an annual report on progress with the process.
Investigation On Behalf of Owners Of Beretta Firearms, Including Beretta Shotguns, Beretta Rifles, and Beretta Pistols, Assembled With a Synthetic Stock or Pistol Grip
Kehoe Law Firm, P.C. is investigating potential consumer class action claims on behalf of individuals in the United States who purchased a Beretta firearm with a synthetic stock or pistol grip anytime from 1999 through January 31, 2022.
The investigation concerns whether, after several years of normal and expected use, the rubberized inserts on the synthetic stocks degrade to become extremely sticky or tacky to the touch, thereby impeding and diminishing the ability of Beretta owners to use their Beretta firearms in a manner reasonably expected. Beretta owners of these degraded stocks and fore-ends generally refer to this degradation as “Beretta sticky stock.”
U.S. Purchasers Of Beretta Firearms, Including Beretta Shotguns, Beretta Rifles, and Beretta Pistols
If you purchased a Beretta firearm with a synthetic stock or pistol grip anytime from 1999 through January 31, 2022, you are encouraged to contact Kehoe Law Firm, P.C. for a no-obligation evaluation of potential legal claims by completing the form above on the right or via e-mail to [email protected].
A Summary Of Major Consumer Rights Under The Fair Credit Reporting Act*
The federal Fair Credit Reporting Act (“FCRA”) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies, such as agencies that sell information about check writing histories, medical records, and rental history records.
You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name, address, and phone number of the agency that provided the information.
You have the right to know what is in your file. You may request and obtain all the information about you in the files of a consumer reporting agency (your “file disclosure”). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free.
You are entitled to a free file disclosure if:
a person has taken adverse action against you because of information in your credit report;
you are the victim of identity theft and place a fraud alert in your file;
your file contains inaccurate information as a result of fraud;
you are on public assistance;
you are unemployed but expect to apply for employment within 60 days.
All consumers are entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies.
You have the right to ask for a credit score.Credit scores are numerical summaries of your credit-worthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender.
Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information.Inaccurate, incomplete, or unverifiable information must be removed or corrected, usually within 30 days. A consumer reporting agency, however, may continue to report information it has verified as accurate.
Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.
Access to your file is limited. A consumer reporting agency may provide information about you only to people with a valid need – usually to consider an application with a creditor, insurer, employer, landlord, or other business.
You must give your consent for reports to be provided to employers. A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer. Written consent generally is not required in the trucking industry.
You may limit “prescreened” offers of credit and insurance you get based on information in your credit report. Unsolicited “prescreened” offers for credit and insurance must include a toll-free phone number you can call if you choose to remove your name and address form the lists these offers are based on. You may opt out with the nationwide credit bureaus at 1-888-5-OPTOUT (1-888-567-8688).
An FCRA Right With Respect To Nationwide Consumer Reporting Agencies – Consumers Have The Right To Obtain A Security Freeze
You have a right to place a “security freeze” on your credit report, which will prohibit a consumer reporting agency from releasing information in your credit report without your express authorization.
The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. You, however, should be aware that using a security freeze to take control over who gets access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, or any other account involving the extension of credit.
As an alternative to a security freeze, you have the right to place an initial or extended fraud alert on your credit file at no cost. An initial fraud alert is a one-year alert that is placed on a consumer’s credit file. Upon seeing a fraud alert display on a consumer’s credit file, a business is required to take steps to verify the consumer’s identity before extending new credit. If you are a victim of identity theft, you are entitled to an extended fraud alert, which is a fraud alert lasting 7 years.
A security freeze does not apply to a person or entity, or its affiliates, or collection agencies acting on behalf of the person or entity, with which you have an existing account that requests information in your credit report for the purposes of reviewing or collecting the account. Reviewing the account includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.
Common Errors You Should Look For On Your Credit Report
Identity Errors
Errors made to your identity information (e.g., wrong name, phone number, address)
Accounts belonging to another person with the same or a similar name as yours (known as a “mixed file”)
Incorrect accounts resulting from identity theft
Incorrect Reporting Of Account Status
Closed accounts reported as open
You are reported as the owner of the account, when you are actually just an authorized user
Accounts that are incorrectly reported as late or delinquent
Incorrect date of last payment, date opened, or date of first delinquency
Same debt listed more than once (possibly with different names)
Data Management Errors
Reinsertion of incorrect information after it was corrected
Accounts that appear multiple times with different creditors listed, especially in the case of delinquent accounts or accounts in collections
Can I Take Legal Action If I Have Been Harmed By Violations Of The Fair Credit Reporting Act?
Yes, you may seek damages from violators.If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court. States also may enforce the FCRA, and many states have their own consumer reporting laws. In some cases, you may have more rights under state law.
Have You Been The Victim Of Fair Credit Reporting Act Violations?
Individuals who believe they have been harmed by violations of the Fair Credit Reporting Act are encouraged to contact Kehoe Law Firm, P.C. for a free, no-obligation evaluation of potential legal claims by completing the form above on the right or via e-mail to [email protected]
Guidance From The Consumer Financial Protection Bureau For Consumers Who Want To Dispute Errors On Their Credit Report
What is a credit report?
A credit report is a statement that has information about your credit activity and current credit situation, such as loan paying history and the status of your credit accounts.
Most people have more than one credit report.Credit reporting companies, also known as credit bureaus or consumer reporting agencies, collect and store financial data about you that is submitted to them by creditors, such as lenders, credit card companies, and other financial companies. Creditors are not required to report to every credit reporting company.
Lenders use these reports to help them decide if they will loan you money or what interest rates they will offer you.
Lenders also use your credit report to determine whether you continue to meet the terms of an existing credit account.
Other businesses might use your credit reports to determine whether to offer you insurance; rent a house or apartment to you; provide you with cable TV, internet, utility, or cell phone service. If you agree to let an employer look at your credit report, it may also be used to make employment decisions about you.
Credit reports often contain the following information:
Personal information (e.g., Your name and any name you may have used in the past in connection with a credit account, including nicknames; current and former addresses; birth date; Social Security Account Number; telephone numbers)
Credit accounts (e.g.,Current and historical credit accounts, including the type of account – mortgage, installment, revolving, etc.;credit limit or amount; account balance; account payment history; date the account was opened and closed; name of the creditor)
A credit report may include information on overdue child support provided by a state or local child support agency or verified by any local, state, or federal government agency.
What are common credit report errors that I should look for on my credit report?
Identity errors (e.g.,Errors made to your identity information, such as wrong name, phone number, address; accounts belonging to another person with the same or a similar name as yours; incorrect accounts resulting from identity theft)
Incorrect reporting of account status (e.g.,Closed accounts reported as open; you are reported as the owner of the account, when you are actually just an authorized user; accounts that are incorrectly reported as late or delinquent; incorrect date of last payment, date opened, or date of first delinquency; same debt listed more than once, possibly with different names)
Data management errors (e.g., Reinsertion of incorrect information after it was corrected; accounts that appear multiple times with different creditors listed, especially in the case of delinquent accounts or accounts in collections)
Balance Errors (e.g., Accounts with an incorrect current balance; accounts with an incorrect credit limit)
If you find errors, you should contact the credit reporting company who sent you the report, and the creditor or company that provided the information (known as the “furnisher” of the information).
If you identify an error on your credit report, you should start by disputing that information with the credit reportingcompany(Experian, Equifax, and/or Transunion). You should explain in writing what you think is wrong, why, and include copies of documents that support your dispute. You can also use the CFPB’sinstructions and template letter as a guide.
If you mail a dispute, your dispute letter should include:
Contact information for you including complete name, address, and telephone number
Report confirmation number, if available
Clearly identify each mistake, such as an account number for any account you may be disputing
Explain why you are disputing the information
Request that the information be removed or corrected
Enclose a copy of the portion of your credit reportthat contains the disputed items and circle or highlight the disputed items. You should include copies (not originals) of documents that support your position.
You may choose to send your letter of dispute to credit reporting companies by certified mail and ask for a return receipt, so that you will have a record that your letter was received.
Contact the nationwide credit reporting companies online, by mail, or by phone
Experian:Online at www.experian.com/disputes/main.html; mail to the address provided on your credit report or mail your letter to Experian, P.O. Box 4500, Allen, TX 75013; or contact the phone number provided on the credit report or (888) 397-3742.
TransUnion: Online at https://dispute.transunion.com; mail the dispute formwith your letter to TransUnion LLC, Consumer Dispute Center, P.O. Box 2000, Chester, PA 19016; or contact telephone (800) 916-8800.
Be sure to keep copies of your dispute letter and enclosures.
Dispute the information with the company who provided the information (also known as the furnisher)
If you would like to submit a dispute regarding the information a company provided to the credit reporting company, use our instructions, along with a template letter as a guide (examples of information furnishers are your bank, your apartment landlord, or your credit card company).
What happens after you dispute information on your credit report?
Credit reporting companies must investigate your dispute, forward all documents to the furnisher, and report the results back to you unless they determine your claim is frivolous. If the consumer reporting company or furnisher determines that your dispute is frivolous, it can choose not to investigate the dispute so long as it sends you a notice within five days saying that it has made such a determination.
If the furnisher corrects your information after your dispute, it must notify all of the credit reporting companies it sent the inaccurate information to, so they can update their reports with the correct information.
If the furnisher determines that the information is accurate and does not update or remove the information, you can request the credit reporting company to include a statement explaining the dispute in your credit file. This statement will be included in future reports and provided to whoever requests your credit report.
What if my dispute is ignored or I disagree with the results of a credit report dispute?
Consumers sometimes file multiple disputes, and even bring lawsuits, to get inaccurate information corrected in their credit reports. When consumers make a dispute, they often fail to get an adequate answer, or any answer at all, from the credit reporting company.You have rights under federal law if this happens to you.
The Fair Credit Reporting Act (“FCRA”)is the federal law that, among other rights, gives you the right to dispute incomplete or inaccurate information.The credit reporting company must take certain steps when you notify them of an error. Once notified of an error, FCRA requires the credit reporting companies to do a reinvestigation after you dispute the accuracy or completeness of the information, unless your dispute is “frivolous.”
If a credit reporting company does not respond to your dispute or does not respond adequately, you have certain rights.
You have the right to add a statement to your credit file.If an investigation does not resolve your dispute with the credit reporting company, you can ask that a brief statement of the dispute be included in your file and included or summarized in future credit reports. Your right to include a statement in your file only applies to disputes you have submitted to a credit reporting company, not to disputes that you have submitted directly to companies that provided the wrong information to the credit reporting company.
You have the right to bring a lawsuit.If the credit reporting company violates the FCRA, they can be held liable for actual damages and attorney fees. In the case of a willful failure to comply with FCRA requirements, the company can be liable for actual or statutory damages and punitive damages. There are time limits on when you would have to bring a lawsuit, so make sure you are aware of any deadlines by discussing your circumstances with a licensed attorney.
You can also submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372). A complaint can also be submitted to your state attorney general . Your state may have additional protections for consumers beyond the FCRA.
Many companies promise to “repair” or “fix” your credit for an upfront fee. Importantly, however, no one can remove negative information, such as late payments, from a credit report if it is accurate. You can only get your credit report fixed if it contains errors, and you can do that on your own at no cost.
How do I get a copy of my credit reports?
You are entitled to a free credit report every 12 months from each of the three major consumer reporting companies (Equifax, Experian and TransUnion).
You can request and review your free report through one of the following ways:
Mail: Download and complete the Annual Credit Report Request form . Mail the completed form to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281
You can request all three reports at once or you can order one report at a time. By requesting the reports separately (for example, one every four months) you can monitor your credit report throughout the year. Once you have received your annual free credit report, you can still request additional reports. By law, a credit reporting company can charge no more than $13.50 for a credit report.
You are also eligible for reports fromspecialty consumer reporting companies. We put together a list of several of these companies, so you can see which ones might be important to you. You have to request the reports individually from each of these companies. Many of the companies in this list will provide a report for free every 12 months. Other companies may charge you a fee for your report.
You can get additional free reports, if any of the following apply to you:
You received a notice that you were denied credit, insurance, or employment or experienced another “adverse action” based on a credit report, you have a right to a free report from the credit reporting company identified in the notice. To get the free report you must request it within 60 days after you receive the notice. Other types of “adverse action” notices you might receive include notice of an unfavorable change in the terms or amount of your credit or insurance coverage, or unfavorable changes in the terms of your employment or of a license or other government benefit.
You believe your file is inaccurate due to fraud.
You have requested a credit report from a nationwide credit reporting company in connection with the placing of an initial fraud alert (you may request two free copies for an extended fraud alert).
You are unemployed and intend to apply for employment within 60 days from the date of your request.
You are a recipient of public welfare assistance.
Your state law provides for a free credit report.
Be cautious of websites that claim to offer free credit reports. Some of these websites will only give you a free report if you buy other products or services. Other websites give you a free report and then bill you for services you have to cancel. To get the free credit report authorized by law, go to AnnualCreditReport.com or call (877) 322-8228.
Will requesting my credit report hurt my credit score?
No, requesting your credit report will not hurt your credit score.
Checking your own credit report is not an inquiry about new credit, so it has no effect on your score. In fact, reviewing your credit report regularlycan help you to ensure that the information the credit reporting companies share with lenders is accurate and up-to-date.
How long does negative information remain on my credit report?
A credit reporting company generally can report most negative information for seven years.
Information about a lawsuit or a judgmentagainst you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Bankruptcies can stay on your report for up to ten years.
Even though the credit reporting companies usually won’t report this negative information after the seven year limit, they still may keep your information on file.
There are certain instances where they will report it. These time limits on reporting negative information do not apply if the credit report will be used in connection with:
Your application for a job that pays more than $75,000 a year
Your application for more than $150,000 worth of credit or life insurance
Have You Been A Victim Of Fair Credit Reporting Act Violations?
Individuals who believe they have been harmed by violations of the Fair Credit Reporting Act are encouraged to contact Kehoe Law Firm, P.C. for a free, no-obligation evaluation of potential legal claims by completing the form above on the right or via e-mail to [email protected]
CFPB Identifies Consumer Reporting Companies The Public Can Hold Accountable
The Consumer Financial Protection Bureau (“CFPB”) released its annual list of consumer reporting companies. The list identifies dozens of specialty reporting companies that collect and sell access to people’s data, including individuals’ finances, employment, check writing histories, or rental history records, often without their knowledge.
Using the list, individuals can exercise their right to see what information these firms have, dispute inaccuracies, and file lawsuits if the firms are violating the Fair Credit Reporting Act (“FCRA”).
Three nationwide consumer reporting companies, Equifax, TransUnion, and Experian, allow people to check their reports for free once a week through December 2022.
Many of the specialty companies, however, charge people a fee to access this data.The list published by the CFPB allows people to see which companies provide this information for free, as well as search for those that provide specialized reporting by specific markets, including employment, tenant, insurance, and medical.
PEOPLE ARE FREQUENTLY IN THE BEST POSITION TO KNOW IF THEIR INFORMATION IS ACCURATE. IF AN INDIVIDUAL FINDS INFORMATION IN THEIR CONSUMER REPORTS THAT APPEARS TO BE INACCURATE, THEY HAVE THE RIGHT TO FILE A DISPUTE AND THE CONSUMER REPORTING COMPANY IS REQUIRED TO CONDUCT A REASONABLE INVESTIGATION.
The CFPB also issued an advisory opinion in November 2021 affirming that all consumer reporting companies, including tenant and employment screening companies, have an obligation to use reasonable procedures to assure maximum possible accuracy.
People who have a problem with credit or consumer reporting, such as tenant screening or background checks, can submit a complaint to the CFPB onlineor by calling (855) 411-CFPB (2372).
The List Of Consumer Reporting Companies
Consumer reporting companies collect information and provide reports to other companies about you. These companies use these reports to inform decisions about providing you with credit, employment, residential rental housing, insurance, and in other decision-making situations.
You have a meaningful role to play to ensure the data about you maintained by consumer reporting companies is accurate and complete.
You know your credit report is important, but the three nationwide consumer reporting companies, Equifax, TransUnion, and Experian, are not the only companies that collect information about you.
Other companies collect information and prepare consumer reports about you, and you have a right to see those reports.
This list includes the three nationwide consumer reporting companies as well as other companies that focus on certain market areas and consumer segments. Use this list to help you take advantage of your right to review the information in your consumer reports, and dispute possible inaccuracies with companies as needed. The list includes the three nationwide consumer reporting companies, Equifax, TransUnion, and Experian, and several other reporting companies that focus on creating consumer reports for certain industries.
TO VIEW THE LIST OF CONSUMER REPORTING COMPANIES IN PDF FORMAT, PLEASE CLICKHERE.
Market Areas Included On The List
NATIONWIDE CONSUMER REPORTING COMPANIES- There are three big nationwide providers of consumer reports: Equifax, TransUnion, and Experian. Their reports contain information about your payment history, how much credit you have and use, and other inquiries and information.
EMPLOYMENT SCREENING – Employment screening companies provide verification information such as credit history, employment, salary and education and professional license verification to employers and others.
TENANT SCREENING –Tenant screening companies provide reports to landlords and residential real estate management companies. If you are applying as a tenant for a residential property a tenant screening report with negative information in it, such as past due rent, could result in a rejected lease application or a lease with tough conditions.
CHECK AND BANK SCREENING – Check and bank screening companies collect and report data on checking account applications, openings, and closures as well as check screening services like check verification.
PERSONAL PROPERTY INSURANCE – Personal property insurance reporting companies collect and report information on consumers’ home, auto, and personal property.
MEDICAL – Medical consumer reporting companies share information on your medical data if you authorized the release of your medical records to an insurance company.
LOW-INCOME AND SUBPRIME – Low-income and subprime reporting companies provide consumer information to companies that market and sell products and services specifically to lower-income consumers and credit applicants with impaired credit records.
SUPPLEMENTARY REPORTS –The information that some consumer reporting companies sell is used to supplement other data, such as the credit data the nationwide consumer reporting companies sell about you. This information can include public records and ID verification data to help firms manage credit and fraud risks.
UTILITIES –These companies collect information associated with telecommunications, pay TV, and utility (electric, gas, water) services to help companies in these industries manage customer relations.
RETAIL-These companies collect information related to retail product return and exchange fraud and abuse.
GAMING – These companies share consumer data associated with check cashing settlement services to assist gaming establishments such as casinos and racetracks with risk management.
Who Can See Your Consumer Reports?
Consumer reporting companies must follow legal restrictions, but can generally provide your consumer reportsand credit scores to an array of businesses, including:
Debt buyers and collectors
Lenders (including those that offer credit cards; home; payday; personal; title; auto – including auto leasing; student loans; security deposit financing and lease guarantees on home rentals; and buy-now-pay-later (“BNPL”) products)
Insurance companies
Employers, volunteer organizations, and government agencies to determine eligibility for government assistance
Landlords and residential real estate management companies
Banks, credit unions, payment processors, and retail stores that accept personal checks
Companies that market and sell products and services specifically to lower-income consumers and subprime credit applicants, such as short-term lending and rent-to-own businesses
Communications and utility companies
Retail stores for product return fraud and abuse screening, as well as retail stores that offer financing, such as appliance and rent-to-own businesses
Gaming casinos that extend credit to consumers and/or accept personal checks
When Should You Check A Consumer Report?
With the exception of employment screening, users of your reporting data generally DO NOT warn youin advance when they are about to take an adverse action against you based in whole or in part on your consumer report. Thus, the accuracy and completeness of your consumer reporting data is extremely important.
Check your reports regularly
It is important to review your credit reports from the three nationwide consumer reporting companies, Equifax, TransUnion, and Experian, every twelve months to ensure they are accurate and complete. This is especially important if you intend to purchase a home or car with credit, or otherwise intend to apply for credit in the future.
Check your reports before making financial decisions
If you are applying for a job, an insurance policy, or a lease, you should fact-check your background screening reports to ensure there are no errors.
Check your reports if you think you may be a victim of identity theft
Data breaches are an unfortunate reality. It is important to be aware of your options to take greater control of your consumer reporting data.
Fact-check your reports and consider blocking third-party access to your consumer reporting data through a security “freeze.”
Resources To Take Action
How to request a report
Under the federal Fair Credit Reporting Act (FCRA), ALL consumer reporting companies are required to provide you a copy of the information in your report if you request it.
You are also entitled to a free credit report every 12 months from each of the three nationwide consumer reporting companies, Equifax, TransUnion, and Experian. You can request a copy through AnnualCreditReport.com .
As a result of a 2019 settlement, ALL U.S. consumersmay also request up to six free copies of their Equifax credit report during any twelve-month period through December 2026. These free copies will be provided to you in addition to any free reports to which you are entitled under federal law.
You have the right to dispute the information in your reports
If you find information in your consumer reports that you believe is inaccurate or incomplete, you have the legal right to dispute the report’s content with the consumer reporting company and the company that shared the information with the consumer reporting company, such as your lender.
Under the FCRA, companies must conduct a reasonable investigation of your dispute, free of charge.
If you have complaints about your consumer reports
The CFPB handles consumer reporting complaints about report accuracy and completeness errors, credit repair services, and other consumer reporting topics. If you are dissatisfied with a company’s investigation of an earlier dispute, if you believe your consumer report was used improperly, or if you have problems getting access to your own consumer reports you may consider submitting a complaint.
Have Your Rights Under The Fair Credit Reporting Act Been Violated?
If you believe your rights under the FCRA have been violated, please contact Kehoe Law Firm, P.C. by completing the form above on the right or by sending an e-mail to [email protected] for a free, no-obligation evaluation of potential legal claims.
Cybercriminals Tampering With Quick Response (“QR”) Codes To Redirect Victims To Malicious Sites That Steal Login & Financial Information
A QR code is a square barcode that a smartphone camera can scan and read to provide quick access to a website, to prompt the download of an application, and to direct payment to an intended recipient. Businesses use QR codes legitimately to provide convenient contactless access and have used them more frequently during the COVID-19 pandemic. Cybercriminals, however, are taking advantage of this technology by directing QR code scans to malicious sites to steal victim data, embedding malware to gain access to the victim’s device, and redirecting payment for cybercriminal use.
Cybercriminals tamper with both digital and physical QR codes to replace legitimate codes with malicious codes. A victim scans what they think to be a legitimate code but the tampered code directs victims to a malicious site, which prompts them to enter login and financial information. Access to this victim information gives the cybercriminal the ability to potentially steal funds through victim accounts.
Malicious QR codes may also contain embedded malware, allowing a criminal to gain access to the victim’s mobile device and steal the victim’s location as well as personal and financial information. The cybercriminal can leverage the stolen financial information to withdraw funds from victim accounts.
Businesses and individuals also use QR codes to facilitate payment. A business provides customers with a QR code directing them to a site where they can complete a payment transaction, but a cybercriminal can replace the intended code with a tampered QR code and redirect the sender’s payment for cybercriminal use.
While QR codes are not malicious in nature, it is important to practice caution when entering financial information as well as providing payment through a site navigated to through a QR code. Law enforcement cannot guarantee the recovery of lost funds after transfer.
FBI Tips To Protect Yourself
Once you scan a QR code, check the URL to make sure it is the intended site and looks authentic. A malicious domain name may be similar to the intended URL but with typos or a misplaced letter.
Practice caution when entering login, personal, or financial information from a site navigated to from a QR code.
If scanning a physical QR code, ensure the code has not been tampered with, such as with a sticker placed on top of the original code.
Do not download an app from a QR code. Use your phone’s app store for a safer download.
If you receive an email stating a payment failed from a company you recently made a purchase with and the company states you can only complete the payment through a QR code, call the company to verify. Locate the company’s phone number through a trusted site rather than a number provided in the email.
Do not download a QR code scanner app. This increases your risk of downloading malware onto your device. Most phones have a built-in scanner through the camera app.
If you receive a QR code that you believe to be from someone you know, reach out to them through a known number or address to verify that the code is from them.
Avoid making payments through a site navigated to from a QR code. Instead, manually enter a known and trusted URL to complete the payment.
The FBI advises that if you believe you have been a victim of stolen funds from a tampered QR code, report the fraud to your local FBI field office atwww.fbi.gov/contact-us/field-offices. The FBI also encourages victims to report fraudulent or suspicious activitiesto theFBI Internet Crime Complaint Center atwww.ic3.gov.
Have You Been Harmed As A Result Of A Data Breach Or Malicious Cyber Activity?
Victims who have been harmed as the result of the illegal or unauthorized use of their personal information due to a data breach or other malicious cyber activity are encouraged to complete the form above on the right or e-mail [email protected]for a free, no-obligation evaluation of potential legal claims.
