SCAMS BULLETIN Host Jay White is an inactive attorney in San Mateo County, California.

September 27, 2020

PYRAMID SCAMS

Hard financial times are luring more people than usual into money-losing pyramid schemes.

Invitations by names like Blessed Bloom, Gifted Circle or Secret Sister may sound promising.  It could be attractive if you need money.  But it is a get-rich-quickly pyramid scheme.

Pyramid schemes work on the promise investors will receive back a profit on their money.  In fact, money received from later investors is used to pay back money to earlier investors under a false pretense of earned profit. Later investors receive nothing when scammers take the money and the scheme collapses.

The way the scam works is that a person is invited, usually by someone they know, to put in their money and then to find eight other people whom they invite to do the same thing.  They, in turn, must find another eight participants.  And so on.

Each person who “joins” is asked to send money to the person who invited them, usually via an online app, which often makes it nearly impossible for anyone who realizes they’ve been duped to get their money back.

The best way to avoid this scam and other pyramid schemes is to ignore easy-money or get-rich-quick promises, especially those that claim to multiple your money in return for recruiting others to take part.

“Pyramid scheme promoters may go to great lengths to make the program look like a business, such as a   legitimate multi-level marketing (MLM) program,” says the Security Exchange Commission.  But “there’s only one possible mathematical result.”  Financial disaster for all but a few.

You can see the SEC’s general guidance on pyramid schemes here:  https://tinyurl.com/SEC-pyramid

The US Federal Trade Commission advises “Just don’t send money”. http://www.ftc.gov.

ATTRIBUTION:  scambusters.org

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SCAMS BULLETIN Host Jay White is an inactive attorney in San Mateo County, California.

September 19, 2020

DISASTER SCAMMERS

Shameless scammers prey on your kindness during disasters. They want to  help themselves to your money.

People have lost their livelihoods from wildfires, hurricanes, civil unrest and a global pandemic that has claimed its own devastating share of deaths and cost

Scammers are competing with legitimate charities, attempting to take advantage of your generosity. So, as you open your heart and wallet to help people and causes, be sure to consider these tips for safe giving:

*Never let anyone rush you into donating. Pressuring you to act right away is something that scammers do.

*Do not assume the charity appeals you see online or on social media are legitimate, even if someone you know sends them to you. If a group sounds legit, know that some scammers use names that sound like real charities, only they are not.

*Before you donate, research the name of the organization or cause. Search their name online, plus the words “scam,” “fraud,” or “complaint.”

*Find out if the charity or fundraiser is registered in your state. Check with your state’s charity regulator to find out. If the charity is not registered it likely is not legitimate.

To find more tips on how to spot and avoid charity scams go to ftc.gov/charity. And if you think you have spotted a fake charity, report it to the FTC at ftc.gov/complaint.

ATTRIBUTION: Federal Trade Commission

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SCAMS BULLETIN Host Jay White is an inactive attorney in San Mateo County, California.

September 16, 2020

SCAMS PROTECTION TIPS

Courtesy Consumer Financial Protection Board

How can I protect myself and others I care about from fraud and scams?

There are several steps you can take to protect yourself and others.

Criminals and con artists use many scams to target unsuspecting people who have access to money. Consumer scams happen on the phone, through the mail, e-mail, or over the internet. They can occur in person, at home, or at a business.

Here are tips to guard against scams:

*Do not share numbers or passwords for accounts, credit cards, or Social Security.

*Never pay up front for a promised prize. It is a scam if you are told that you must pay fees or taxes to receive a prize or other financial windfall.

*Do not allow yourself to be rushed. After hearing a sales pitch, take time to compare prices. Ask for information in writing and read it carefully. Watch out for deals that are only “good today” and that pressure you to act quickly.

*Avoid high-pressure sales tactics that do not allow you time to read a contract or get legal advice before signing. Also, do not fall for the sales pitch that says you need to pay immediately, for example by wiring the money or sending it by courier.

*Too good to be true? Ask yourself why someone is trying so hard to give you a “great deal”. If it sounds too good to be true, it probably is.

You can enter your phone number on the National Do Not Call Registry. Go to http://www.donotcall.gov  or call (888) 382-1222. If you have been a victim you can file a complaint with the US Federal Trade Commission, www.ftc.gov/complaint.

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SCAMS BULLETIN Host Jay White is an inactive attorney in San Mateo County, California.

September 12, 2020.

FAKE WATCHES SCAM

Crooked watchmakers are making it tougher than ever to spot a fake watch post.

Fake luxury watches from the likes of Rolex, Omega, Cartier, Tag Heuer and Patek Philippe are objects of desire. They are not only stunning pieces of jewelry, some are sound investments.

Most of the fakes target the established Rolex-type luxury upper end of the market. Fakery is taking place at the top of the market and is most costly. Three quarters of those 40 million fake watches produced every year are labeled as Rolex models.

If you are planning to buy a luxury watch, especially a pre-owned model, here is a guide:

*If you can, buy only from an established and reputable dealer. If buying from an individual, insist that the watch, including the movement, is inspected by an expert.

*Check the model online. Does the one you are planning to buy match the detailed description and illustrations of other same-model watches?

*Check documentation. Beware if the watch comes without certification that should include a serial number.

*Check the price. Look at auction reports and other online data. Experts say if the price is more than 20% below the going rate, it is probably a fake.

*Check the “feel.” If there are sharp edges or the watch feels lighter than it should, it is a scam. Look for the hallmark if it is gold.

*Check the tick. Luxury watches are barely audible, reflecting the refined quality of moving parts. A loud tick signals a fake.

*Do not be rushed. Be on your guard if the seller is trying to pressure you for a quick deal — a common tactic used by scammers.

Fake Apple Watches and Fitness Trackers:

Scammers are also busy producing knockoffs of smart watches like Apple’s (though some might say the cost of Apple watches puts them in the luxury bracket too!). They may not have Apple branding but in many other respects they look like the genuine item.

It has been reported Apple’s top selling watches are being cloned in China and sold at knockdown prices of $60 to $80.

Here are GeekModo’s suggested actions you can take if you are buying the genuine item:

*Check the thickness. Counterfeiters struggle to match Apple’s 10.5 mm.

*Check that the digital crown control is at the top right of the device.

*Check the heart sensors on the back — they should be circular, arranged in a diamond pattern.

*Check the functionality. Does the device have all the right apps?

*Check the packaging. Apple is known for the quality of its packaging, which tends to be minimalist and mostly white.

Fake Fitness Monitor:

It is not just in the luxury market where watch counterfeiters are at work. They are turning fake wrist-worn digital electronics into a booming business.

Recently arriving from China are cheap fitness monitors with a dangerous fake element — a phony heart rate monitor. Discovered only during the past few weeks, these devices, which sell for $10 or even $5, basically guess at your heart rate based on how much you are moving.

Fake watch or fitness scams can be reported to US Federal Trade Commission. WWW.FTC.GOV.

ATTRIBUTION: http://www.scambusters.org

SCAMS BULLETIN Host Jay White is a volunteer attorney in San Mateo County, California.

September 8, 2020

BACK TO SCHOOL SCAM

“Back to school” means a variety of things: traditional in-person classes, all-virtual classes, or hybrid models of the two. Chances are that getting new clothes for first-day-of-school photos is on the to-do list. Young clothing shoppers are being targeted in a new scam. 

Scammers target Gen Z and Millennial customers with names like Depop, Poshmark, ThreadUp, and LetGo.  These apps typically connect buyers and sellers of secondhand merchandise, especially fashion items or in-demand technology accessories like headphones or cell phone cases.

In a typical scam, scammers posing as legit sellers post deeply discounted merchandise (think luxury fashion, the latest sneakers, or in-demand technology like gaming consoles). As shoppers show interest, the scammer urges the user to complete the transaction outside the platform’s built-in payment system.

Scammers often ask buyers to use P2P payment apps like PayPal’s Friends & Family, Zelle, or CashApp or even less secure payment methods like gift cards or wire transfers. Scammers seek victims willing to complete payment this way because it is harder for a transaction to be disputed when it occurs off the selling platform. 

Whether you are a Gen Z’er shopping for the must-have fashion of the fall, or are just looking for a deal, here are tips you can use to spot and avoid these scams:

*Always pay via the platform’s preferred payment methods. If a seller asks you to pay another way, even if it’s to “avoid fees,” chances are that it’s a scam.

*Check the prices on similar merchandise on the app and on other apps. If that Louis Vuitton handbag or Supreme hoodie you’re interested in is listed at a fraction of the cost of similar items elsewhere, there’s a high likelihood it’s a scam. 

*Beware of sellers who do not have any customer reviewers, or who have only positive feedback. If there is no feedback it could point to a scammer who has created multiple accounts and is churning through them as the older ones get banned. Someone who has only positive feedback could be paying accomplices to write bogus reviews. You can look for balanced reviews and see how sellers have handled negative feedback from customers.

If you are scammed, report it promptly to the platform sponsor. While the platform sponsor may not be able to get your money back for you, reporting the scam can help other users avoid falling victim.

You can file a complaint at Fraud.org via a secure online complaint form. We will share your complaint with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars. ATTRIBUTION: www.fraud.org.