FTC Commissioner Holyoak Warns Against Moving Money to Resolve Problems, Citing Pervasive Scam Tactic

Washington D.C. – Federal Trade Commission (FTC) Commissioner Melissa Holyoak has issued a critical warning to consumers, advising them never to transfer money to resolve a problem, as this is a definitive sign of a scam. The caution, delivered via a video message and official statement, highlights a prevalent fraud tactic where impersonators coerce individuals into moving funds to supposedly "safe" accounts. This guidance is part of the FTC's broader mission to protect consumers from financial fraud and educate the public on common deceptive practices.

Commissioner Holyoak's direct advice emphasizes that legitimate institutions, including government agencies, banks, or tech support companies, will never instruct individuals to transfer money to another account to safeguard their assets. "Don't pay anyone who says you have to move your money to resolve a problem. That’s a scam," Holyoak stated, underscoring the urgency and clarity of the warning. This tactic often preys on fear, convincing victims their accounts are compromised and immediate action is required.

Scammers frequently demand payments through wire transfers or money transfer apps because these methods make it exceptionally difficult for victims to recover their funds. The FTC advises that if anyone encounters such a demand, they should immediately disengage from the communication and report the incident to the agency at ReportFraud.ftc.gov. While the FTC does not resolve individual reports, these submissions are crucial for law enforcement agencies to investigate scams and pursue legal action against fraudsters.

Melissa Holyoak was sworn in as an FTC Commissioner in January 2024, bringing a background in public interest law and consumer protection from her previous role as Solicitor General for the State of Utah. Her focus at the FTC includes reinforcing consumer safeguards against deceptive practices. This recent warning is a continuation of the agency's ongoing efforts to empower consumers with the knowledge needed to identify and avoid sophisticated financial scams.

The FTC consistently issues alerts and provides resources to help consumers protect themselves from a wide array of fraudulent schemes. The agency stresses that vigilance and skepticism are key defenses against these evolving threats, particularly when faced with unexpected requests for money transfers or personal financial information.