Deceptive financial relief posts target low-income consumers on Facebook

"Decisive action has been taken to provide relief to households with lower incomes by introducing a support package. As part of these provisions, eligible Americans will receive a substantial $5,200 subsidy to assist with crucial expenses," says a July 13, 2023 Facebook post.

"This may be your last chance to secure free cash to help you pay for essential bills like food, rent or medical expenses. Individuals can apply by using the official links available under this video," says the narration in the video shared alongside it.

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Screenshot of a Facebook post taken July 18, 2023

Similar posts can be found on the platform here, here and here -- some offering $6,400 in benefits.

However, the posts are the latest iteration in a series of deceptive Facebook advertisements that promote supposed stimulus benefits, experts say.

The promotions are unclear about what "decisive action" they are referring to, but the posts do not link to any government agencies and AFP found no credible news reports of such a program existing as of July 19, 2023.

John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League, reviewed the posts and told AFP the ads appear to be at best "a deceptive advertisement for insurance or (worse) an outright scam."

The posts often link to private websites unaffiliated with public health insurance programs such as Medicare or Medicaid, "and if you click through to that website what you're presented with is language that is fairly typical of what we call 'government grant scams,'" he said.

Another red flag, the page that shared the advertisement was created on the same day as the post.

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Screenshot of the page transparency details for a Facebook page taken July 19, 2023

Breyault said these ads are designed to create a false sense of urgency and are typically used to generate leads for insurance agents. He warned that there is no indication as to how they protect the personal information they obtain or if they sell it to third parties.

"There are sort of nuggets of truth in here," as some health subsidy programs were indeed extended by the Inflation Reduction Act, however, these ads do not promote a legitimate program for low-income consumers, he explained. "They are all inserted in with apparently the goal of getting you to part with information that will ultimately lead to more solicitations for health insurance."

David Lipschutz, associate director and senior policy attorney at the non-profit Center for Medicare Advocacy, agreed that they appear to be "illegitimate or at best highly misleading."

"While there are certain premiums and other credits available through the Affordable Care Act exchanges, and certain assistance available through Medicaid (including Medicare Savings Programs available to those with Medicare), these ads seem to try to capture business for agents/brokers," he said.

A spokesperson at the Centers for Medicare & Medicaid Services (CMS) also evaluated the posts and said: "These false social media posts erroneously refer to coverage through the health insurance marketplaces. Medicare and Medicaid are not mentioned."

The CMS encourages consumers to review health insurance fraud prevention tips, which advise against providing health or financial information on social media or unknown websites.

The Federal Trade Commission also warns that such ads should be approached with caution (archived here). "They want to get your Social Security number, financial account numbers, or insurance information," its website says.