The Connecticut Attorney General and FCC warn consumers about increased student loan debt scam robocalls and robotexts following the Supreme Court decision on student loan forgiveness. They provide tips on how to spot scams and advise consumers not to share personal information and to report suspicious calls.
In-house legal teams should review vendor agreements with telemarketing or call center services, customer agreements for student loan servicing, and any data processing agreements involving personal information. Specific clauses to scrutinize include telemarketing and robocall compliance provisions, consent mechanisms for automated calls and texts, data privacy and security terms, fraud detection and reporting obligations, and breach notification clauses. Changes may be needed to enhance consent requirements (e.g., prior express written consent for autodialed calls/texts), implement stricter robocall controls and monitoring, update fraud prevention protocols with real-time detection, ensure alignment with laws like the TCPA and telemarketing sales rules, and include penalties for non-compliance along with regular audit requirements.
Entity
Scammers
Industry
TelemarketingOfficial Press Release
https://portal.ct.gov/ag/press-releases/2023-press-releases/increased-risk-of-student-loan-debt-scam-robocalls-and-robotexts
consumercomplaints.fcc.gov
https://consumercomplaints.fcc.gov
https://www.dir.ct.gov/ag/complaint/
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.
Attorney General William Tong and Consumer Counsel Claire Coleman petitioned PURA to review how Connecticut public utilities use artificial intelligence, citing potential data privacy and cybersecurity risks, algorithmic errors, and misleading outputs. The petition asks PURA to examine utility AI systems, safeguards, vendors, and data security practices; it does not report a finding of violation or an imposed penalty.
$2.0M
Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.
$13.7M
Connecticut joined a coalition of states and the federal government in settling allegations that Takeda paid healthcare providers speaker honoraria and provided meals to induce prescriptions of Trintellix, leading to allegedly false claims to government healthcare programs. Takeda agreed to pay $13,670,921 plus accrued interest, with portions allocated to federal and state programs.