NAHB, Other Organizations Urge FTC to Act on Government and Business Imposters
NAHB, other trade associations and organizations with business events have sent a letter to the Federal Trade Commission (FTC) to urge the agency to finalize its proposed rule targeting government and business imposters.
Comments were submitted more than three months ago to the FTC’s Notice of Proposed Rulemaking on Government and Business Impersonation Fraud, and the initial Advance Notice of Proposed Rulemaking was published in December 2021.
In that time, impersonation scams impacting organizations, including trade shows such as the International Builders’ Show (IBS), have continued to increase. These increasingly sophisticated impersonation scams often use trademarked event names, logos and fake email signatures to create the illusion that the efforts of the scammers are conducted with the approval of the event organizers and service providers.
The FTC itself noted in a recent blog post that impersonator scams were the most reported type of scam in 2022, with an estimated $2.6 billion in losses. Unlike many other forms of fraud that primarily target consumers, these impersonation scams have serious economic consequences for businesses, including nonprofits. Reported losses from scammers impersonating businesses grew nearly 50% compared to 2021.
The coalition is requesting the FTC adopt a final rule as soon as possible. Read the full letter here.
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