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FTC Targets Scams

FTC lawsuit exposes subscription scam networks evading app store enforcement

FTC Targets Scams

The Federal Trade Commission has launched a series of crackdowns on scams targeting vulnerable consumers, with a recent lawsuit revealing the tactics used by subscription scam networks to evade app store enforcement. On June 17, 2026, the FTC filed a lawsuit against Genesis Tech, a company accused of operating a scammy subscription app that made it easy to sign up but hard to cancel. The lawsuit alleges that Genesis Tech continually created new accounts to avoid fraud monitoring programs, allowing the company to operate undetected for years.

In a similar vein, the FTC has also been targeting companies that prey on students with outstanding loans. These companies often claim to be able to pause or reduce loan payments, but in reality, they are simply charging upfront fees for services that can be done for free at studentaid.gov. The FTC has been actively shutting down these operations, warning consumers that anyone charging an upfront fee or asking for their FSA ID login is a red flag. For example, a recent complaint filed with the FTC alleged that a company had charged a student $1,000 in fees to pause their loan payments, only to discover that the balance had actually increased.

In another notable case, the FTC has sued the World Professional Association for Transgender Health, a leading transgender health group, over allegations of deceptive business practices. The lawsuit, filed on June 15, 2026, asks a federal judge to block WPATH from future violations of the FTC Act and other laws, and to award civil penalties and other financial awards to each of the states. The FTC is seeking $1.5 million in civil penalties, as well as reimbursement for consumers who were allegedly misled by WPATH's practices. As the FTC continues to target scams and deceptive business practices, consumers are being warned to be vigilant and to report any suspicious activity to the authorities. With millions of dollars in potential losses at stake, the FTC's efforts are a crucial step in protecting consumers from exploitation.

Diana Reeves
The Diana Reeves Take
Corporate Watchdog & Money & Markets

As I reflect on the FTC's efforts to target scams, I firmly believe that more needs to be done to protect consumers. My thesis is that the current measures are insufficient and a more comprehensive approach is required to combat these deceitful practices. If nothing changes, the scammers will continue to win, reaping millions of dollars from unsuspecting victims. The perpetrators of these scams will remain at large, exploiting vulnerable individuals and undermining trust in the marketplace. It is imperative that we take a more proactive stance to prevent these scams and hold those responsible accountable, rather than simply reacting to them after the damage has been done.

Primary source: TechCrunch
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