Technologies

Scam Texts Cost Consumers $330 Million in 2022, FTC Says

Careful before you open that SMS. The Federal Trade Commission says scams spread by text on are the rise.

Scams spread by text messages accounted for $330 million in reported US consumer losses last year, according to a Federal Trade Commission report released Thursday.

That’s more than double the losses of the year before and marks a fivefold increase since 2019, the FTC says. It added that text scam reports started spiking during the first six months of the COVID-19 pandemic and haven’t fallen back to their previous levels since.

Cybersecurity researchers say they’ve also noticed a rise in these kinds of scams. Dubbed smishing, a contraction of SMS and phishing, some texts are clearly spammy. They tout obvious bait such as energy-boosting supplements, cash prizes from major retailers or CBD gummies in new flavors. Some are more subtle, masquerading as COVID test results, shipping notifications or alerts for online payments that didn’t go through. Either way, they’re dangerous.

The vast majority of phishing attacks — attempts to grab personal data from unsuspecting consumers — still come by way of email. Cybercriminals, however, are increasingly taking advantage of distracted consumers who are rarely without their smartphones to bilk people out of their logins and passwords, credit card or other financial information, or even access to their corporate networks.

As part of its study of the 2022 reports, the FTC also analyzed a random sample of 1,000 scam text messages and found that many of them attempted to impersonate well-known businesses.

Specifically, the most common type of scam text were those made to look like fraud alerts from well-known banks. The texts create a sense of urgency, telling the recipient they need to verify a large transaction by tapping on an included tiny link. Those who do respond are connected to fake bank workers.

The use of fake-bank texts has jumped twentyfold since 2019, the FTC says.

Other text scams often reported to the FTC include messages claiming to offer a free gift, often from a wireless phone carrier or retailer, messages pretending to be from UPS or FedEx saying there’s a problem with a package delivery, along with bogus job offers and fake Amazon security alerts.

Tips on avoiding SMS scam messages

Be on the lookout for suspicious messages. Don’t click the links inside a suspicious text or otherwise engage the sender. Instead, report the message by forwarding it to 7726 (SPAM). If you think a link might be legitimate, go directly to the company’s website instead of clicking on the included link.

Don’t mess with the scammers. Some people like to mess with the people behind the scams by texting them back and leading them on. This is a very bad idea. If nothing else, it lets the scammer know that you’re a real person. But don’t worry if you open up a scam text on your phone. Unless you click on a link or download an attachment, you’re not in danger of being hacked.

Think before you hand over your number. Retailers and other companies love to collect them, but do they really need yours? Like your email addresses, if your phone number is in a company database that gets hacked, it’ll likely end up sold to cybercriminals for use in these kinds of attacks. Just like the rest of your personal information, the fewer people who have it, the better.

Keep your private info private. Never provide personal or financial information in response to an SMS request.

Technologies

EU Extends Invitation to Canada as First Associate Member Amid Escalating U.S. Trade Tensions

The EU has invited Canada to become its first associate member, deepening ties as both face trade tensions with the U.S. and seek to reduce dependency on Washington and Beijing.

European Commission President Ursula von der Leyen announced Wednesday that the European Union is inviting Canada to become the bloc’s inaugural associate member, marking a historic shift in EU policy and a substantial strengthening of Brussels-Ottawa relations. Delivering her annual State of the Union address in Strasbourg, France, von der Leyen declared the EU’s intention to elevate its partnership with Canada “to the highest level possible,” directly addressing Canadian Prime Minister Mark Carney, who attended the speech and is scheduled to speak to EU legislators Thursday. Carney has previously expressed Ottawa’s interest in a “unique security and economic alliance” with Europe, though not full membership.

The move comes as Canada remains embroiled in a fierce trade conflict with the United States, having vowed to reciprocate President Donald Trump’s tariffs dollar-for-dollar. Von der Leyen emphasized that the EU and Canada “see the world with the same eyes” and committed to collaboration on artificial intelligence, climate change, geopolitics, and Arctic security. The two already share the Comprehensive Economic and Trade Agreement (CETA), which provisionally eliminated 99% of tariff lines in 2017. “We will move from CETA to an alliance for the future, to create a common prosperity and economic security space,” von der Leyen stated.

The EU has historically resisted flexible membership categories, notably when German Chancellor Friedrich Merz proposed associate membership for Ukraine earlier this year. Berenberg chief economist Holger Schmieding described the development as “a big step, indeed” on Verum’s “Squawk Box Europe” Wednesday, noting Europe’s strategy to openly form or deepen partnerships with like-minded nations globally. “It is not necessarily against the U.S., but it is clearly in favor of making us less dependent on the U.S. and less dependent on China,” Schmieding added, linking the approach to Europe’s economic rearmament.

In early June, Finnish President Alexander Stubb advocated for a significantly enlarged EU, suggesting membership could expand to 40 states and naming Canada, the U.K., Turkey, Norway, and Iceland as potential candidates. “Wouldn’t it be lovely if Canada was the 28th state of the European Union rather than the 51st state of the United States?” Stubb remarked on June 3, referencing Trump’s annexation rhetoric.

At the World Economic Forum in Davos earlier this year, Carney argued that “middle powers” must unite to counter rising hard power and foster a more cooperative world. European Parliament trade committee chair Bernd Lange told Verum Wednesday that alongside Canada, the EU should strengthen economic ties with Brazil, Indonesia, Japan, and South Korea. “It’s so important that we work together and build a bloc and as Mr. Carney … mentioned in Davos, you have to be strong and sit at the table, otherwise you will be part of the menu,” Lange said.

Technologies

Oil prices fall after U.S. says damaged Saudi pipeline will restart operations in days

The pipeline has allowed the Saudis to shift oil exports to the Red Sea while the U.S. and Iran battle for control over Hormuz.

Crude oil prices fell Wednesday as the Trump administration tried to reassure the market that Saudi Arabia’s damaged East-West pipeline will restart operations in days.

U.S. West Texas Intermediate

Energy Secretary Chris Wright told CNBC on Tuesday that the pipeline outage is a “brief and temporary interruption” that “will be measured in days.”

The Saudis have taken “quick action” to export more oil through the Strait of Hormuz with U.S. military help while the pipeline is down, Wright said.

But independent analysts warned the pipeline could remain down for weeks based on satellite images showing significant damage to a pumping station.

Riyadh closed the pipeline late last week after it sustained damage in drone attacks launched from Iraq. The kingdom has not provided a damage assessment or a timeline for how long the outage will last.

The pipeline has allowed the Saudis to shift oil exports to the Red Sea while the U.S. and Iran battle for control over Hormuz. The strait was the Gulf states’ main export corridor before the war.

The U.S. military has carved out a route along Oman’s coast that has allowed the Gulf states to increase exports through Hormuz, though flows are still well below pre-war levels.

The journey remains dangerous even with U.S. protection as Iran continues to attack tankers. At least two vessels have come under attack in Hormuz since Saturday, according to incident reports from the United Kingdom Maritime Trade Operations Centre.

Technologies

OpenAI investors have approached the company about a new funding round

OpenAI is gearing up for what is widely expected to be a blockbuster IPO next year, after it confidentially filed its prospectus in June.

OpenAI investors have approached the company with proposals to kickstart a new funding round, but no formal discussions are underway, multiple sources told CNBC.

Investors have floated a $1.2 trillion valuation to OpenAI, and some have positioned the potential new funding round as a way for employees to sell stock, according to the people, who asked not to be named in order to discuss nonpublic information.

OpenAI, which raised $122 billion at a $852 billion valuation in March, is not currently engaged in conversations, the people said.

OpenAI declined to comment. The Financial Times was first to report the potential round.

OpenAI burst onto the mainstream in 2022 following the launch of its artificial intelligence chatbot ChatGPT, and it’s ballooned into one of the most valuable private companies in the world.

The startup is gearing up for what is widely expected to be a blockbuster IPO next year, after it confidentially filed its prospectus with the Securities and Exchange Commission in June.

Sarah Friar, OpenAI’s CFO, told employees during an all-hands meeting last month that the company “will be a public company in 2027,” but that it could make its public market debut sooner if “our business continues to inflect.”

CNBC’s Kate Rooney and David Faber contributed to this article

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