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

December 28, 2020

INVESTMENT COACHING SCAMS 

Courtesy US Federal Trade Commission

Investment scams lure you in with promises of teaching you how to make a lot of money quickly, easily, and with low risk — usually by investing in the financial or real estate markets. If your respond to the promises, scammers later will charge you a hefty fee for their “proven” investment tricks.

Scammers get your attention with infomercials or online ads, encouraging you to attend free events or to watch free introductory videos. But later you find out that you must pay a hefty fee to get the coaching they promise. They’ll show you phony success stories of people who have used their coaching program. But you have no way of confirming that their stories are true.

In an investment coaching scam, the scammer will tell you that their “patented,” “tested,” or “proven” strategy (or something similar) will teach you how to make money investing in stocks, bonds, foreign currency, or tax liens. They promise that their investment approach will set you up for life — and even let you stop working. They sometimes starting by offering a free seminar and lunch in which you will be given a misleading sales pitch.

What to know

The truth is that the promoters of investment coaching scams exaggerate the money you can make with their system. They also fail to give you the step-by-step guide they as promised. They lie about other people’s success. It’s all part of a marketing scheme to get you to pay many dollars for what turns out to be empty promises.

What to watch for

*The promotional materials and sales pitches used for real estate investment seminars often make over-the-top claims.

*Scammers say you can earn big money fast, regardless of your experience or training. But that’s not true.

*Scammers promise their deal is a “sure thing” that will give you security for years to come. It won’t.

*Scammers say you’ll rake in money by working part-time or at home. But most people don’t.

*Scammers promise you’ll be coached to success each step of the way. But there’s often little coaching, and no success.

*Scammers claim the program worked for other participants — including the organizers. And it might have, for a few people, but most people never make their investment back.

Don’t be convinced by ads with success stories of people saying how much money they made with little time, effort, and risk. Or ads that feature celebrities praising the program. Those kinds of claims aren’t reliable and don’t mean the program works. Investment scams often use fake testimonials and pay people to endorse their programs.

Where to Report Investment Scams:

If you suspect an investment scam, report it to the Federal Trade Commission at ReportFraud.ftc.gov.

Report possible securities fraud to the Securities and Exchange Commission online. For tips on investing wisely and avoiding fraud, visit the SEC’s website for individual investors, Investor.gov.

If your personal information has been misused in an investment scam, visit IdentityTheft.gov for steps you can take to deal with problems that may arise.

ATTRIBUTION: http://www.ftc.gov

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

December 25, 2020

CONSUMER STIMULUS PAYMENT SCAMS

Courtesy US Federal Trade Commission

Here’s what you need to know about the stimulus payments and how to avoid scams related to these payments.

Who will get money?

Adult U.S. residents that meet established income limits are eligible to receive money from the government. This includes:

Taxpayers – people who filed a federal tax return for 2018 or 2019.

Retirees – people who get Social Security, Railroad, or other retirement benefits.

Beneficiaries – people who get public benefits like SSDI, disability, or veterans’ benefits.

Non-filers – people who do not have to file a federal tax return, including people who made no income or made less than $12,200 (or $24,400 for married couples).

If you get Social Security or Railroad Retirement benefits, have a qualifying child, and didn’t file a return in 2018 or 2019, you have to take action by noon ET on Wednesday, April 22 to add the $500 per eligible child to your payment. See details from the IRS.

What to do

Most people don’t have to do anything to get their money because the IRS will use the same payment method – direct deposit, Direct Express debit card, or paper check – used to send you your tax refund, Social Security, retirement, or other government benefits money. If the IRS doesn’t have your direct deposit information, you can go to the “Get My Payment” feature at irs.gov/coronavirus and let them know where to send your direct deposit.

If you don’t usually file a tax return, go to irs.gov/coronavirus to access the “Non-filer” portal and to figure out what, if anything, you have to do to claim your money.

To check on the status of your payment, you can now use the “Get My Payment” feature at irs.gov/coronavirus.

Avoiding stimulus payment scams:

Scammers are using these stimulus payments to try to rip people off. They might try to get you to pay a fee to get your stimulus payment. Or they might try to convince you to give them your Social Security number, bank account, or government benefits debit card account number.

4 tips for avoiding a Coronavirus stimulus payment scam:

*Only use irs.gov/coronavirus to submit information to the IRS – and never in response to a call, text, or email.

*The IRS won’t contact you by phone, email, text message, or social media with information about your stimulus payment, or to ask you for your Social Security number, bank account, or government benefits debit card account number. Anyone who does is a scammer phishing for your information.

*You don’t have to pay to get your stimulus money.

*The IRS won’t tell you to deposit your stimulus check then send them money back because they paid you more than they owed you. If that happens it is a fake check scam.

Report scams to the Federal Trade Commission at ftc.gov/complaint.

To keep up with the latest scams, you can sign up for the FTC’s consumer alerts.

ATTRIBUTION:  http://www.ftc.gov

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

December 17, 2020

SECRET SISTER GIVING SCAM 

Giving and receiving gifts during the holidays is a popular practice.  Sharing presents with friends and family is one of the highlights of the season.

Unfortunately, scammers are once again looking to take advantage of our love of gifting—and receiving—with the “secret sister” scam. 

Pyramid Scheme

The “secret sister” scam is a type of pyramid scheme. Pyramid schemes are illegal because they are based on efforts to recruit new people into the scheme, not actually sell or exchange anything of value. Eventually, all pyramid schemes collapse when they run out of new recruits, leaving the vast majority of those who joined with nothing in return. These schemes may also violate state anti-gambling laws since they can resemble illegal chain letters. 

The scheme usually begins with a festive Facebook post or a text message, or email encouraging friends to join in on the giving by sending “just one” gift (often a book, bottle of wine, or a gift card) to a “secret sister.” The friendly message guarantees that participants will receive at least one (and maybe dozens) of gifts in return. These messages may also have phrases like “happy mail,” “for the good of the sisterhood,” “holiday gift exchange,” or similar wording. 

To keep the “secret sister” chain going, the message invites the recipient to share the invitation with friends and family by entering their personal information (e.g., name, mailing address, email address) and the contact information of the people you hope to recruit into a list online. People who send you these messages may not even know it’s a scam.

In truth, the only people receiving a gift in this scheme are scammers. If you personal information, even information as seemingly innocuous as name and mailing address, you could increase your risk of identity fraud. And if you mail a gift to someone you don’t know, chances are that it will just go to a scammer looking to enrich themselves, not someone you know.

While it may seem like you’re just doing something friendly with people you know and trust, by circulating these messages you may be helping to perpetuate an illegal scheme. If you or someone you know receives a “secret sister” message, here are some tips to stay safe and avoid being a victim:

*Ignore the message. The “secret sister” scam works because people engage with it and share it with friends and family. Don’t be another link in the chain. If someone you know sent you the invitation, let them know that it’s a scam.

*Flag the message. Certain social media platforms allow users to report suspicious messages. On Facebook and Instagram, for example, there is usually a button with three dots at the top of messages that allow for a post to be reported as suspicious.

*Don’t share personal information. Providing personal information to someone you do not know can increase the risk of identity fraud, even if it’s something as seemingly trivial as a name and email address.

*If you suspect that you or someone you know has become a victim of the “secret sister” scam or any other fraud, report it at once. You can file a complaint at Fraud.org via their online complaint form. They will share your complaint with their network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars.

ATTRIBUTON: fraud.org

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

December 11, 2020

5G PHONE SCAM 

5G is the new cellular phone technology that is currently being rolled out across the US. The aim of 5G is to make cellular communications, clearer, faster, and more reliable.

But 5G Phone confusion opens scam floodgates. Scammers use tricks when they spot the opportunity that flows from rumors and differences of opinion. Fake news has been mixed into the debate, So, it is no surprise that some people are genuinely scared.

The controversy has increased because some people believe the 5G towers, which handle the advanced communications, or even the phones that use them, emit dangerous levels of radiation. Scammers prey on concerned people whose fear and uncertainty make them vulnerable.

A recent 5G scam is a spurious claim that a new available device can eliminate or shield the electromagnetic waves emitted from cellular towers. There are reports crooks have been selling them for up to $400 apiece.

The most common of these devices plug into USB ports on computers, laptops, and all manner of mobile devices. The sellers claim it can neutralize electromagnetic emissions.

The scammers use fancy names and jargon words like “quantum” and “hologram” to try to convince victims of the device’s tech pedigree. In fact, says tech reporting site The Verge, it is just a cheapo, regular USB memory stick.

The Verge advises: “Please don’t waste your money on this piece of junk and remember: Radio waves can only spread computer viruses, not human ones.”

ATTRIBUTION: scambusters.org

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

December 7, 2020

FAKE CALLS FROM APPLE AND AMAZON

Courtesy US Federal Trade Commission

December 7, 2020

Scammers are calling people and using the names of two well-known companies, Apple and Amazon, to rip people off.

Here is what you need to know about these calls.

In one version of the scam, you receive a call and a recorded message that says it is Amazon. The message says there’s something wrong with your account. It could be an alleged suspicious purchase, a lost package, or an order they can’t fulfill.

In another twist on the scam, you receive a recorded message that says there’s been suspicious activity in your Apple iCloud account. They may falsely say your account has been breached.

In both scenarios, the scammers say you can conveniently press 1 to speak with someone. Or they give you a phone number to call. Do not do either.

It’s a scam. They’re trying to steal your personal information, like your account password or your credit card number.

If you receive an unexpected call or message about a problem with any of your accounts, hang up.

Do not press 1 to speak with customer support

Do not call a phone number they gave you

Do not give out your personal information

If you think there may be a problem with one of your accounts, contact the company using a phone number or website you know is real.

If you receive a call you think is a scam, report it at ReportFraud.ftc.gov.

ATTRIBUTION: ftc.gov