BEWARE! SCAMS ARE COMING YOUR WAY! PART 2
Consumers beware; scams of all sorts are coming your way. The Trump administration is weakening or eliminating agencies and regulations that protect consumers. From the cryptocurrency industry to cyber security to Social Security and health care, weak oversight and regulation will lead to consumer rip-offs and outright fraud. You will need to up your level of vigilance to avoid getting scammed.
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Consumers beware; scams of all sorts are coming your way. The Trump administration is weakening or eliminating agencies and regulations that protect consumers, so it’s an open field for unscrupulous behavior by businesses and fraudsters. From the cryptocurrency industry to cyber security to Social Security and health care, weak oversight and regulation will lead to consumer rip-offs and outright fraud. (See this previous post focused on financial and other corporate scamming.)
The cryptocurrency industry is trying to transform its image from that of a scandal-ridden and crime-enabling financial technology (aka fintech) experiment into that of a mainstream financial and commercial investment and transaction vehicle. Don’t let yourself be fooled. For example, Coinbase, founded in 2012 and now the largest U.S.-based cryptocurrency exchange as well as the world's biggest bitcoin custodian, has had over 8,000 consumer complaints filed against it with the Consumer Financial Protection Bureau (CFPB). [1]
The crypto industry spent well over $100 million in the last elections, including donations to Trump-affiliated entities, to elect pro-crypto politicians and to instill fear into others who might oppose the industry. It has also spent millions on a lobbying campaign to build bipartisan support for the Republican-led pro-crypto bills and to obtain a favorable regulatory environment.
Despite the crypto industry’s record of fraud, facilitating criminal activity, and extreme volatility, the Trump administration, through an executive order, is allowing investments in it by retirement plans, corporations (including banks!), and the government itself. [2] Furthermore, the Trump administration has eliminated crypto crime units at the Securities and Exchange Commission (SEC), the Department of Justice (DOJ), and in other government agencies. It has ended numerous investigations and criminal prosecutions of crypto industry entities. These actions effectively facilitate money laundering and criminal activity. [3]
Three bills have been introduced in Congress ostensibly to regulate the industry but appear more focused on giving it legitimacy and a government seal of approval. One of the three bills, the so-called Genius Act has passed and become law. It established a regulatory framework for a piece of the crypto industry called stablecoins. This type of cryptocurrency is linked to the value of the U.S. dollar which is supposed to prevent the volatility that occurs with other cryptocurrencies. Most, but not all, Democrats opposed this bill due to concerns that it lacked strong provisions to prevent fraud and money laundering. Furthermore, it does nothing to stop President Trump, his family, and his associates from profiting from cryptocurrency activities that allow other people and entities to effectively put money in Trump’s and his affiliates’ pockets. [4]
One of the other bills, the so-called Clarity Act would create a broader crypto regulatory framework. The third bill would ban the Federal Reserve from creating its own cryptocurrency that would compete with private cryptocurrencies and presumably reduce the profitability of the private crypto industry. So, beware of anything crypto industry related that comes your way.
In a variety of other arenas, the Trump administration is also weakening consumer protections.
Having effectively eliminated the Consumer Financial Protection Bureau (CFPB), the Trump administration is now considering weakening the Consumer Product Safety Commission (CPSC) that protects consumers from dangerous non-financial products.
The Trump administration has dramatically weakened some of the federal government’s cyber security agencies. So, be ever more alert for cyber crime and cyber scams. It is taking FBI agents away from their specialties such as combating hackers (as well as terrorism, espionage, public corruption, white-collar crime, civil rights, child sex crime, etc.) to have them patrol the streets of D.C. where crime is at its lowest level in years. Moreover, a map of where FBI agents and troops have been deployed makes it very clear they are not really there to combat crime; they are there to be seen and to make a statement. [5]
The Trump administration is cutting staffing and services at the Social Security Administration, while having it send out misleading information. (See this previous post for more detail.) This will make it harder for seniors and others to receive the benefits they’re owed and to get accurate information. This will create fertile ground for scammers to step in. Be on your guard.
Similarly, cuts to the health care system and weakened oversight of privatized Medicare Advantage Plans will open the door to scammers. For example, 17% of Americans now report they are using buy now, pay later (BNPL) programs to pay for medical or dental care. [6] BNPL programs not infrequently involve terms and costs that are not well explained to consumers and, therefore, result in financial abuse.
Please contact your members of Congress and tell them you support strong regulation of the crypto industry to protect consumers and to prevent crime and money laundering. Ask them to oppose the two crypto industry bills as they are currently written. Ask them to stand up for strong consumer protections from the CFPB, CPSC, and cyber security agencies. Ask them to protect seniors and others from the undermining of Social Security and our health care system.
You can find contact information for your US Representative at http://www.house.gov/representatives/find/ and for your US Senators at http://www.senate.gov/general/contact_information/senators_cfm.cfm.
By the way, there is lots of good news. See Jess Craven’s latest good news post. It includes California Governor Newsom fighting fire with fire on the gerrymandering front, numerous judges’ decisions, protests all across the country, conservative economists opposing Trump’s nominee to run the Bureau of Labor Statistics, Ohio’s Sherrod Brown deciding to run for U.S. Senate again in 2026, and much more.
[1] Silverman, J., 5/27/25, “Three coin monte,” The American Prospect (https://prospect.org/power/2025-05-27-three-coin-monte-crypto-regulation/)
[2] Johnson, J., 8/7/25, “‘Disaster in the making’: Trump to open 401(k)s to crypto, private equity vultures,” Common Dreams (https://www.commondreams.org/news/trump-private-equity-401k)
[3] Silverman, J., 5/27/25, see above
[4] Gold, M., 7/18/25, “Here’s how Congress is wading into crypto regulation,” The Boston Globe from the New York Times
[5] Cox Richardson, H., 8/19/25, “Letters from an American,” (https://heathercoxrichardson.substack.com/p/august-19-2025)
[6] Corbett, J., 8/6/25, “‘Gouging’: US health insurance giants raked in over $71 billion in profits last year,” Common Dreams (https://www.commondreams.org/news/health-insurance-profits)