FTC Scam Roundup: 5 Consumer Warnings Borrowers and Homeowners Should Know

Scammers do not need to steal a house to derail a homeowner's finances. One convincing phone call, fake website, misleading advertisement, or urgent demand for payment can drain savings, expose personal information, damage credit, and create serious problems during a mortgage transaction.

The Federal Trade Commission published five consumer warnings between October 13 and October 29, 2026. The situations are different, but the tactics are remarkably similar: impersonate someone trustworthy, create fear or urgency, and push the target to pay or disclose sensitive information before checking the story.

Here is what borrowers, homeowners, and consumers should know.

1. Misleading health-insurance ads can look legitimate

During open enrollment, consumers may see a flood of health-plan advertisements, phone pitches, text messages, sponsored search results, and social-media offers. The FTC warns that some promotions promise comprehensive insurance but actually sell limited-benefit plans or medical discount cards. Others impersonate government agencies or recognizable insurance companies.

The safest starting point for federal Marketplace coverage is HealthCare.gov or the Marketplace Call Center at 1-800-318-2596. Do not assume a plan is legitimate because its advertisement appears first in a search, uses official-looking language, or displays a familiar company name.

Red flags: unsolicited robocalls, pressure to enroll immediately, vague explanations of coverage, or a website that only looks governmental.

FTC source: Seeing lots of ads for health insurance plans during open enrollment? Read this — October 29, 2026.

2. A charity sweepstakes prize should never cost you money

Scammers may impersonate a real charity—or use a name that sounds nearly identical—and claim that a past donation entered you into a sweepstakes. Then comes the catch: you must pay a fee, provide banking information, or disclose your Social Security number to receive the prize.

The FTC's rule is simple: real prizes are free. Legitimate sweepstakes do not require payment to claim a prize, and buying something cannot legally improve your odds of winning.

Research the organization independently, scroll past sponsored search results, and never rely on caller ID as proof. Phone numbers and organization names can be spoofed.

FTC source: Spot scammers impersonating well-known charities and sweepstakes — October 26, 2026.

3. The FTC is not calling to deactivate your phone

In this impersonation scheme, a caller claims to be an FTC official and says a phone registered in your name was used to commit crimes. The caller may provide a fake badge number, transfer you to a fake police officer, threaten arrest or phone disconnection, demand personal information, and insist that you keep the conversation secret.

The FTC says its employees will not threaten to disconnect your phone, demand money, send an employee-ID photo to prove their identity, or order you to keep the call secret.

If you receive a call like this, hang up. Do not follow the caller's instructions to search for or call a supposedly official number—the search result itself may have been manipulated. Find the agency's contact information independently through its official website.

FTC source: The FTC is not calling to deactivate your phone number — October 22, 2026.

4. Buying a franchise? Verify every earnings claim

Not every recent FTC warning involves a stranger demanding gift cards or a wire. Some involve major financial decisions that appear legitimate.

The FTC alleges that the Premier Martial Arts franchisor misrepresented potential earnings and made other claims that were inaccurate or unsupported by its Franchise Disclosure Document. According to the agency, more than 200 people—including veterans—paid to open franchises.

If you are considering a franchise, any claim about sales, income, or profit must appear in Item 19 of the Franchise Disclosure Document. Ask for written substantiation, review the numbers with an accountant or attorney, and speak with multiple current and former franchisees. A familiar brand and polished sales presentation are not guarantees of success.

FTC source: Some franchising basics from the FTC's case against Premier Martial Arts franchisor — October 19, 2026.

5. Sextortion victims can be targeted a second time by deceptive "help" services

Sextortion happens when someone threatens to share intimate images unless the victim pays. The FTC warns that people searching for help may encounter companies promising an immediate solution for thousands of dollars without delivering what they promised.

The FTC advises victims not to pay the blackmailer or give access to devices or financial accounts. Stop communicating, talk with someone you trust, and report the crime to local police and the FBI. If intimate images have already been shared, report them directly to the platform. Paid assistance services should be researched carefully before signing an agreement or paying a fee.

FTC source: How to avoid deceptive sextortion assistance services and find real help — October 13, 2026.

The common pattern: fear, trust, and urgency

These warnings cover very different subjects, but the playbook is consistent:

• The contact is unexpected.
• The caller, ad, or website borrows the identity of a trusted organization.
• The situation is designed to feel urgent, frightening, or unusually rewarding.
• You are pressured to pay, provide personal information, or act before verifying the story.
• You are discouraged from speaking with someone else.

Pause before doing anything. Independently verify the organization using a website or phone number you locate yourself—not one supplied by the person contacting you.

Why this matters during the mortgage process

Mortgage applicants should be especially cautious. A scam can deplete funds intended for a down payment or closing, expose bank information, or lead to unauthorized accounts and credit inquiries. If you believe your identity, credit, bank account, or closing funds may have been compromised while you are applying for a mortgage, contact your financial institution and mortgage professional promptly. Waiting can make the problem harder to contain.

Suspected scams can be reported at ReportFraud.ftc.gov. If someone used your personal information, visit IdentityTheft.gov for a recovery plan.

At SMS Mortgage, we believe informed borrowers are better-protected borrowers. We will continue watching FTC alerts and explaining the warnings that could affect your money, credit, home, and mortgage.

This article is for general educational purposes and is not legal, financial, credit-repair, insurance, or cybersecurity advice. Examples reflect FTC consumer alerts published from October 13 through October 29, 2026. Allegations in enforcement matters are not findings of liability unless and until proven or resolved.