A Free Public Service

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

May 24, 2021

CRYPTOCURRENCY INVESTMENT SCAMS

Courtesy US Federal Trade Commission

Cryptocurrency is a type of digital currency that generally only exists electronically. There is no physical coin or bill unless you use a service that allows you to cash in cryptocurrency for a physical token.

Some persons use cryptocurrency for quick payments, to avoid transaction fees that regular banks charge, or because it offers some anonymity. Others hold cryptocurrency as an investment, hoping the value goes up.

 Bitcoin and Ether are well-known cryptocurrencies, but there are many different cryptocurrency brands, and new ones are continuously being created.

You may exchange cryptocurrency with someone online, with your phone or computer, without using an intermediary like a bank.

Cryptocurrency investment scams can happen in many ways, but they’re all full of fake promises and false guarantees. Scammers might post investment sites that look real, but you’ll find you can’t withdraw the money you’ve “invested.” Others pretend to be celebrities — like a would-be Elon Musk — doing giveaways with claims of multiplying any cryptocurrency you send. Scammers also use online dating sites to sweet-talk others into bogus crypto investments in the name of love.

If you’re thinking about investing in cryptocurrency:

Research before you invest. Search online for the company and cryptocurrency name, plus “review,” “scam,” or “complaint.”

Be wary of guarantees and big promises. Scammers often promise you’ll make money quickly, or that you’ll get big payouts or guaranteed returns. Don’t trust them.

Anyone who says you must pay by cryptocurrency, wire transfer, or gift card is a scammer.

MORE ABOUT CRYPTOCURRENCY

Courtesy US Federal Trade Commission

How do you get cryptocurrency?

You can buy cryptocurrency through an online exchange platform. Some people earn cryptocurrency through a complex process called “mining,” which requires advanced computer equipment to solve highly complicated math puzzles.

Where and how do you store cryptocurrency?

Cryptocurrency is stored in a digital wallet, which can be online, on your computer, or on an external hard drive. But if something unexpected happens — your online exchange platform goes out of business, you send cryptocurrency to the wrong person, you lose the password to your digital wallet, or your digital wallet is stolen or compromised — you’re likely to find that no one can step in to help you recover your funds. And, because you typically transfer cryptocurrency directly without an intermediary like a bank, there is often no one to turn to if you encounter a problem.

How is cryptocurrency different from U.S. Dollars?

There are important differences between cryptocurrency and traditional currency.

Cryptocurrency accounts are not backed by a government. Cryptocurrency accounts are not insured by a government like U.S. dollars deposited into a bank account. If you store cryptocurrency with a third-party company, and the company goes out of business or is hacked, the government has no obligation to step in and help get your money back.

Cryptocurrency values change constantly. The value of a cryptocurrency can vary rapidly, even changing by the hour. It depends on many factors, including supply and demand. An investment that’s worth thousands of dollars today might be worth only hundreds tomorrow. And, if the value goes down, there’s no guarantee it will go up again.

Paying with Cryptocurrency

If you’re thinking about paying with cryptocurrency, know that it’s different from paying with a credit card or other traditional payment methods.

Cryptocurrency payments do not come with legal protections. Credit cards and debit cards have legal protections if something goes wrong. For example, if you need to dispute a purchase, your credit card company has a process to help you get your money back. Cryptocurrencies typically do not.

Cryptocurrency payments typically are not reversible. Once you pay with cryptocurrency, you can usually only get your money back if the person you paid sends it back. Before you buy something with cryptocurrency, know the seller’s reputation, where the seller is located, and how to contact someone if there is a problem. Confirm these details by doing some research before you pay.

Some information about your transactions will likely be public. People talk about cryptocurrency transactions as anonymous. But the truth is not that simple. Some cryptocurrencies record some transaction details on a public ledger, called a “blockchain.” That’s a public list of every cryptocurrency transaction — both the payment and receipt sides. Depending on the cryptocurrency, the information added to the blockchain can include details like the transaction amount and the sender’s and recipient’s wallet addresses. A wallet address is a long string of numbers and letters linked to your digital wallet. Even though you can use a fake name to register your digital wallet, it’s possible to use transaction and wallet information to identify the people involved in a specific transaction. And when you buy something from a seller who collects other information about you, like a shipping address, that information can be used to identify you later.

How to Guard Against Cryptocurrency Scams

Scammers are always finding new ways to steal your money using cryptocurrency. One sure sign of a scam is anyone who says you have to pay by cryptocurrency. In fact, anyone who tells you to pay by wire transfer, gift card, or cryptocurrency is a scammer. Of course, if you pay, there’s almost no way to get that money back. Which is what the scammers are counting on. Here are some cryptocurrency scams to watch out for.

Investment and business opportunity scams

Some companies promise that you can earn lots of money in a short time and achieve financial freedom.

Some scammers tell you to pay in cryptocurrency for the right to recruit others into a program. If you do, they say, you’ll get recruitment rewards paid in cryptocurrency. The more cryptocurrency you pay, the more money they promise you’ll make. But these are all fake promises, and false guarantees.

Some scammers start with unsolicited offers from supposed “investment managers.” These scammers say they can help you grow your money if you give them the cryptocurrency you’ve bought. But once you log in to the “investment account” they opened, you’ll find that you can’t withdraw your money unless you pay fees.

Some scammers send unsolicited job offers to help recruit cryptocurrency investors, sell cryptocurrency, mine cryptocurrency, or help with converting cash to bitcoin.

Some scammers list scam jobs on job websites. They’ll promise you a job (for a fee), but end up taking your money or personal information.

Look for claims like these to help you spot the companies and people to avoid:

Scammers guarantee that you’ll make money. If they promise you’ll make a profit, that’s a scam. Even if there’s a celebrity endorsement or testimonials. (Those are easily faked.)

Scammers promise big payouts with guaranteed returns. Nobody can guarantee a set return, say, double your money. Much less in a short time.

Scammers promise free money. They’ll promise it in cash or cryptocurrency, but free money promises are always fake.

Scammers make big claims without details or explanations. Smart business people want to understand how their investment works, and where their money is going. And good investment advisors want to share that information.

Before you invest, check it out. Research online for the name of the company and the cryptocurrency name, plus words like “review,” “scam,” or “complaint.” See what others are saying. And read more about other common investment scams.

Blackmail emails

Scammers will often send emails that say they have embarrassing or compromising photos, videos, or personal information about you. Then, they threaten to make it public unless you pay them in cryptocurrency. Don’t do it. This is blackmail and a criminal extortion attempt. Report it to the FBI immediately.

Social media scams

If you read a tweet, text, email, or get a message on social media that tells you to send cryptocurrency, it’s a scam. That’s true even if the message came from someone you know, or was posted by a celebrity you follow. Their social media accounts might have been hacked. Report the scam immediately to the social media platform, and then tell the FTC at ReportFraud.ftc.gov.

How To Report Cryptocurrency Scams:

Report fraud and other suspicious activity involving cryptocurrency to

the FTC at ReportFraud.ftc.gov

the Commodity Futures Trading Commission (CFTC) at CFTC.gov/complaint

the U.S. Securities and Exchange Commission (SEC) at sec.gov/tcr

the cryptocurrency exchange company you used to send the money

ATTRIBUTION: http://www.ftc.gov.

A Free Public Service

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

May 17, 2021

RANSOMEWARE FRAUD 

Courtesy AARP

Ransomware is a particularly devious type of malicious software, or malware used by criminals to lock up your computer with a demand for money.

Once the program installs itself, it will lock up your computer and communicate a money demand. Payment is required as a condition for unlocking your computer.

The FBI’s Internet Crime Complaint Center (IC3) logged nearly 2,500 complaints of ransomware attacks against individuals, businesses and organizations in 2020.

 You can inadvertently download ransomware onto your computer or device by clicking on an online ad or email link, opening an attachment or, in some cases, simply going to a website where it has been planted (a form of attack called a drive-by download).

Money demand is usually in a cryptocurrency such as Bitcoin, Ethereum or Ripple (although ransomware crooks have been known to demand gift cards).

Be especially vigilant if you own or work for a small business. Fifty-five percent of ransomware attacks in the second quarter of 2020 targeted companies with 100 or fewer employees, according to cybersecurity firm Coveware.  But cybercrooks are increasingly going after bigger fish such as corporations and county or city government systems.

Nasty practice

 Some online scammers have combined ransomware with extortion, employing malware that generates a fake message purportedly from the FBI accusing victims of watching child pornography or downloading illegal files. They freeze computers until they are paid a “fine.”

Warning signs

*An email or instant message that seems phishy. Phishing is the most common method hackers use to spread ransomware, so be wary of messages that appear to come from a trusted source such as a friend or your bank but seem off in some way (for example, the grammar is bad or the sender’s address looks wrong).

*A pop-up on your computer or mobile device warns of viruses, promises a prize or redirects you automatically to another site.

*An email with a Microsoft Word document attached asks you to “enable macros” or “enable content.” Opening the attachment or following the “enable” instructions allows the file to download ransomware or other malicious software onto your computer.

Do’s

Do set your computer operating system, web browser and security software to update automatically so you’re always protected against the latest threats.

Do back up all of your important data. You can do so to a portable drive, but consider also signing up for a cloud-based backup service that automatically backs up your files and saves previous versions so can get them back unencrypted.

Do unplug portable drives from your computer when not in use, to lessen the chances that they, too, will be encrypted in a ransomware attack.

Do use an ad blocker program or browser extension to help protect your device from malware planted in web ads.

Do disconnect an infected computer from your home or office network to prevent ransomware from spreading to other devices.

Don’ts

Don’t click links in emails without first checking them out. Hover your cursor over the link, so you can see if the internet address, or URL, looks suspicious.

Don’t open an email attachment unless you’re expecting a file from someone and you know it’s safe.

Don’t click pop-up ads offering free software products that remove malware from your computer. Some ransomware developers use pop-ups to transfer their programs.

Don’t go to websites that contain pornography, pirated movies or other unsavory stuff. Crooks often plant malware in those places.

Don’t take a chance by paying a ransom to online crooks if your computer is attacked. After receiving the money they may just up the price, then destroy your data or leave it encrypted anyway—or attack a second time

You can call AARP at 1-877-908-3360

A Free Public Service

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

May 12, 2021

FAKE CBD SELERS

Courtesy scambusters.org

CBD, – full name cannabidiol – is the non-psychoactive element of marijuana and legal extract of hemp. It is being hailed by scammers as the wonder drug of the 21st century.

The US Food and Drug Administration has warned CBD sellers about making false or unproven treatment claims, but the scams continue. Outrageous claims about the treatment and cure potential of CBD could be putting people’s health at risk.

There’s either limited or no evidence of its effectiveness for an alleged wide range of disorders including insomnia and pain relief. Some sellers also outrageously claim it can be used in the treatment of cancer, AIDS, and multiple sclerosis.

Legal use

CBD, though legal in some forms throughout the US, is not approved for treatment by the US Food and Drug Administration (FDA), except for the seizure control drug Epidiolex.

The drug is usually sold as either a CBD tincture or edible product. In other cases, it may be mixed with other chemicals or herbs. That may be legal, but it’s the false claims some sellers are making that put them on the wrong side of the law.

Using CBD as an intended alternative remedy could mean that a patient is not taking the medication they should be, or it could complicate or defeat the effectiveness of prescribed medication.

The US Federal Trade Commission (FTC) has stepped in with a crackdown in a campaign it has labeled “CBDeceit.” Initially, the Commission has targeted six firms it accuses of using deceptive marketing tactics.

STEPS TO PROTECT YOURSELF

If you’re considering taking CBD or a product containing it, use the following steps to guard against a scam:

*Be skeptical of any claims that a CBD-based product is scientifically proven to cure or treat your symptoms.

*Always talk to your doctor or health specialist about any alternative remedies you are considering using.

*Similarly, don’t stop taking any existing meds without checking with your health professional.

*Don’t fall for ads that claim their product is “guaranteed” to treat your condition or illness. There are no such guarantees, even in the world of most legitimate drugs, so you can safely ignore them.

As early as 2019, the Center for Disease Control said it had specific safety concerns about CBD including possible liver damage, interactions with other drugs, drowsiness, diarrhea, and mood changes. For that reason, it’s important that consumers consult a health care professional about treatment options scientifically proven to be effective.”

ATTRIBUTON: scambusters.org

A free Public Service

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

May 10, 2021

FAKE VACCINATON CARDS 

Courtesy fraud.org

As vaccination efforts continue to ramp up, scammers have found a new way to keep the COVID-fueled fraud going: counterfeit vaccine cards.

Many businesses and organizations are now requiring proof of vaccination, leading to the rise of counterfeit vaccine cards. Online advertisements for fake vaccination cards are popping up on sites like eBay and Etsy, ranging in price from $20 to $60. Demand for fake vaccination cards will likely rise as more organizations require proof of vaccination to do things like travel on an airplane or attend events.

In addition to fake vaccination cards, the Federal Trade Commission warns that scammers are doubling their efforts to peddle fake vaccine appointments to defraud people out of money and steal their identity. In reality, neither the COVID-19 vaccine nor appointments to be vaccinated have any cost to consumers. Fraudsters are exploiting the unfamiliar territory of booking a vaccine appointment to extract information from unsuspecting victims, such as Social Security numbers and bank account information.

Use the following tips to guard against being a victim to COVID-19 scams and to help stop scammers:

*Don’t pay for the COVID-19 vaccine or to book an appointment. Regardless of your health insurance status, you do not need to pay to book an appointment or to receive the coronavirus vaccine. The only cost associated with the vaccine is administrative, and the organization administering your vaccine will reach out to your health insurance company directly. If you are uninsured, the Health Resources & Services Administration has programs available to cover the cost of a vaccination. If someone is asking you to pay for a vaccine or an appointment, it is most likely a scam.

*Do not share personal health information with people you don’t know. Legitimate vaccination locations will not ask for personal information like your bank account, credit card information, or Social Security number. If you have questions about what is appropriate, check with your local health department or contact your doctor.

*Don’t share fully legible images of your vaccine card on social media. Card holders are understandably excited to share with their friends and family that they have been vaccinated. But sharing your vaccine card on social media opens the door for fraudsters to steal your identity. If you do plan to share your vaccine card online be sure to cross out sensitive information like your full name, birthday, and dates you received the vaccine.

If you or someone you know has been a victim of a vaccine card scam or any other type of fraud, we urge you to file a complaint at http://www.Fraud.org via our online complaint form.

ATTRIBUTON: fraud.org

Courtesy US Federal Trade Commission

A Free Public Service

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

May 3, 2021

TAX SEASON PHONE SCAMS-ID THEFT

Courtesy US Federal Trade Commission

The 2021 tax filing deadline for US individuals has been extended until May 17, but the Internal Revenue Service (IRS) strongly recommends that taxpayers file as early as possible to avoid taxpayer identity theft. Taxpayer ID theft occurs when a fraudulent return is filed using your name without your knowledge. Any refund to which you are entitled is sent to the scammer impersonating you. You may not find out until you try to file your return.

The IRS says signs of taxpayer ID theft include:

*You receive a letter from the IRS inquiring about a suspicious tax return that you did not file.

*You’re unable to e-file your tax return because of a duplicate Social Security number.

*A tax transcript that you did not request shows up in your mail.

*You receive an IRS notice that an online account has been created in your name, or that your existing online account has been accessed or disabled without your taking any action.

*To help prevent taxpayer ID theft, you should always be wary of phone calls and text messages that request your personal information. Fraudsters often impersonate the IRS or another government agency personnel attempting to verify the additional information they may need to file a tax return in your name.

The Federal Trade Commission and the IRS warn that you should not provide personal information to any unknown caller. Instead hang up and independently verify the caller’s number before calling back. Keep in mind the IRS does not make outgoing calls from its toll-free numbers. If you see a toll-free number identified as the IRS on your caller ID, it’s likely a spoofed call.

More helpful information from the IRS:

The IRS generally contacts people first by mail – not by phone – about unpaid taxes, and never calls taxpayers with threats of lawsuits or arrests.

At your request the IRS may attempt to reach you by telephone. But it will not insist on payment using an iTunes card, gift card, prepaid debit card, money order, or wire transfer.

The IRS will never request personal or financial information – including a taxpayer’s Identity Protection PIN – by e-mail, text, or any social media.

What should you do if you suspect you are a victim of an IRS tax scam?

The IRS advises taxpayers who suspect they may be victims of identity theft to continue to pay their taxes on time and file for a return, even if they must file a paper return.

If you receive a call from someone claiming to be from the IRS and demanding payment, you can take the following action:

If you owe Federal taxes, or think you might owe taxes, just hang up and call the IRS at 1-800-829-1040.

If you do not owe taxes, fill out the “IRS Impersonation Scam” form on the Treasury Inspector General for Tax Administration web site, or call 1-800-366-4484.

Report the call to the Federal Trade Commission, www.ftc.gov/complaint.  You can also file a complaint about phone scams with the Federal Communications Commission,  www.fcc.gov/complaint.

When reporting it, add “IRS Telephone Scam” to the comments in your complaint.

ATTRIBTION: US Federal Trade Commission