A Free Public Service

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

August 29, 2021

SWEEPSTAKES AND LOTTERY SCAMS

Courtesy AARP

Have you seen this scam?

 Who wouldn’t want to win thousands or even millions of dollars, or the chance to go on a luxury vacation? The idea of winning some fabulous prize can be mighty alluring. Con artists know that, and they exploit your eagerness to score that big check or dream trip.

In 2020, the Federal Trade Commission (FTC) received more than 116,000 reports of fraud involving prizes, sweepstakes and lotteries that swindled the unwary out of $166 million. The median loss was $1,000.

Older people are popular targets: According to an August 2020 Better Business Bureau study, 80 percent of the money lost to sweepstakes scammers comes from people over age 65.

The initial contact in a sweepstakes scam is often a call, an email, a social media notification or a piece of direct mail offering congratulations for winning some big contest. But there’s a catch: You’ll be asked to pay a fee, taxes or customs duties to claim your prize. The scammers may request your bank account information, urge you to send money via a wire transfer, or suggest you purchase gift cards and give them the card numbers.

Regardless of the method, once scammers ensnare someone they’ll keep coming back, calling victims for months or even years, promising the big prize is only one payment away. They may threaten to harm you or a loved one or report you to authorities for no legitimate reason.

Warning Signs:

*You get a call or an online solicitation claiming you were automatically entered in a sweepstakes you’ve never heard of before.

*You’re told you need to make an upfront payment to collect the prize.

*Someone calls you and says they have a winning state lottery ticket but needs help paying a fee to collect on it.

Do’s:

*Do look carefully at the envelopes or purported sweepstakes mailers. If your entry form or congratulations letter was sent bulk rate, it means a lot of other people got the same mailing.

*Do hang up on cold calls claiming to be from well-known contests like the Mega Millions lottery or Publishers Clearing House (PCH) sweepstakes. They will not call you out of the blue to tell you you’ve won.

*Do read the fine print on a contest form and make sure it isn’t missing legally required information such as the start and end dates of the contest, the methods of entry, descriptions of prizes and various legal disclaimers. If that stuff isn’t there, something is funny.

*Do beware your own eagerness. An FTC survey found that those who reported a high willingness to take risks were three times more likely to become victims of fraudulent prize promotions than those with a low willingness.

Don’ts:

*Don’t pay a fee to claim a prize you’ve supposedly won or to improve your chances of winning.

*Don’t wire money to or share gift card numbers with someone claiming to represent a contest or lottery. “Both payment methods are a sure sign of a scam,” the FTC warns.

*Don’t provide personal or financial information to anyone who contacts you about a lottery prize.

*Don’t deposit supposed winnings that come in the form of a partial-payment check, accompanied by instructions to return a portion to the contest sponsors. The check will bounce, and you’ll likely have to repay your bank for any withdrawals from that deposit, including what you sent the scammers.

*Don’t believe social media messages or posts purporting to be from celebrities or business moguls offering a big cash giveaway.

*Don’t call a number with an 876, 809 or 284 area code to confirm that you’ve won a prize. Those codes belong to Caribbean countries (respectively, Jamaica, the Dominican Republic and the British Virgin Islands) that have become hotbeds for contest frauds and other phone scams.

You can call the AARP Fraud Watch Network Helpline 877-908-3360 for guidance.

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A Free Public Service

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

August 26, 2021

DNA TEST FRAUD

Courtesy Scambusters

You may have seen ads online that claim a gene analysis can predict the likelihood of your developing serious health conditions. While there’s no doubt that DNA testing and genetic analysis have been a boon for law enforcement and family history enthusiasts, it has many limitations.

In reality, the most detailed tests can only pinpoint if an individual’s DNA contains a gene that’s common to other sufferers.

The US Department of Health and Human Service (HHS) has issued an alert about Medicare DNA test fraud.

Just because tests are now cheap, at around $59, doesn’t make them any more worthwhile. Start by taking any claims about what analysis can tell you with extreme caution.

Scammers are using fear and ignorance to drive victims into signing up for DNA tests they don’t need. Victims are handing over money and confidential information, and in some cases, suffering distress and even endangering health.

The real concern focuses on two potential scams:

*Tests of people’s genetic makeup that purport to show how much at risk they are for developing certain diseases and disorders.

*Tricking people into either taking tests or buying home kits as part of a Medicare fraud scheme, which also threatens an identity theft sting.

At the same time, a new breed of crooks has popped up that claim to be able to tell you about your personality traits or if you’d make, say, a good football player, a successful lawyer, or even a good spouse.

The same tactics are being used by scammers who tell their targets they’re required to take a test by their health insurance company, most notably Medicare and Medicaid recipients. They sell supposed kits for this or simply take a cheek swab.

The crooks may use this information to file fraudulent reimbursement claims.

If Medicare denies the claim, the victim could be responsible for the entire cost of the test, which could be thousands of dollars.

How to Avoid a DNA Test Scam:

*Don’t take a DNA test without consulting your own health professional.

*If you’re told a test is required by your insurer, check with them.

*Understand that a DNA test can’t tell you anything about your personality.

*Don’t give your Medicare number to anyone other than your doctor’s office.

*If you receive a test kit you didn’t order, don’t use it. Refuse delivery if you can.

*Don’t accept free or paid-for testing at public events, your front door, or even, as has been reported, in a parking lot!

If you do suspect Medicare fraud, contact the HHS Inspector General’s office — https://tinyurl.com/Scambusters-210815-1

You can also contact your local Senior Medicare Patrol (SMP) representative with any concerns or questions. Find your state SMP contacts here: https://tinyurl.com/Scambusters-210815-2

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A Free Public Service

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

August 19, 2021

ONLINE BANK FRAUD

Courtesy AARP

The COVID-19 pandemic has spurred many older adults to rely more on digital banking, using computers and smartphones to move money across accounts, pay bills or deposit checks.

Online banking scammers may target older people for several reasons. After decades of work, older adults are more likely to have higher incomes and greater assets. They are often perceived, fairly or not, to be less tech savvy and more inclined to answer the phone.

The first defense against banking scams is knowing that a reputable bank will not contact you out of the blue and ask for your Social Security number, online account password or other personal information.

A scammer might direct you to call a supposed customer service line (where you’ll be pressed for personal information like a Social Security number), or to click on a link that takes you to a fake banking website. That could be a trap to infect your device with malware that allows crooks to track your keystrokes and capture account credentials.

Scammer signs can include misspellings and poor grammar; email or web addresses that resemble but don’t quite match the real domain (look for a switched letter or extra punctuation mark); or generic greetings like “Dear Valued Customer.”

Scammers may come armed with information about you, gleaned from social media or a prior data breach. They’ll mention personal details like your birth date, where you work or the last four digits of your Social Security number to make their claim to be from your bank more convincing.

Know to whom you’re talking:

*If you receive a call like that, hang up immediately. Similarly, don’t reply to an email or text that seems at all suspicious, and don’t call a phone number listed in one.

*Nor should you necessarily trust a number found via Google search, chat room or social media. For the same reason, don’t ask Alexa on a smart speaker to connect you.

*To find out if there’s an actual issue with your account, contact the bank via a channel you know to be legitimate, like the customer service number printed on your bank statement or the back of a debit card.

Ways to bank online safely and avoid scams:

*Choose a unique account password. Don’t use the same or similar passwords across multiple websites.

*Make sure you’re on your bank’s genuine website — especially if you reached it via search, which scammers can game to usher you to a phony site. Check that the web address contains your bank’s true domain, with no extra or substituted characters.

*Read the security and privacy sections of your bank’s site. Get to know about alerts and other protections the bank makes available for online customers.

*Regularly review your bank statements and activity, and report anything that looks questionable to the bank, immediately.

AARP’s Fraud Watch Network can help you spot and avoid scams. Sign up for free Watchdog Alerts, review our scam-tracking map, or call our toll-free fraud helpline at 877-908-3360 if you or a loved one suspect you’ve been a victim.

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A Free Public Service

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

August 5, 2021

BACK TO SCHOOL SCAMS

Courtesy Fraud.org

Fraudsters target students during back-to-school season.

Fraudsters know that young people are always on the lookout for discounts, particularly during the frenetic back-to-school season, and they’re all too eager to give you a “good deal.”

According to the Federal Trade Commission (FTC), younger people aged 20 to 30 lose money to fraud more frequently than older consumers. According to the Better Business Bureau’s annual Scam Tracker Risk Report, adults aged 18 to 24 are frequent victims.

 Here are some of the most common types of fraud impacting college students and tips on how to avoid falling victim: 

*Credit card scams. College students often fall for scams involving credit cards, from otherwise legitimate credit cards that hit card holders with unfavorable terms, fees, or interest fees to completely bogus credit card solicitations. Consumers can reduce their risk of these scams by applying for a card through their bank if possible and avoid filling out unsolicited credit card offers.

*Property rental scams. College students are often the target of property rental scams where thieves pose as an individual selling or renting a property. The scammers solicit potential renters with promises that the homes will be rented to them once the payment is received. Once the potential renters pay the deposit, the scammer disappears.

*Laptop and cell phone scams. Misleading and false advertisements for free and discounted merchandise often lead young adults to predatory websites offering free or deeply discounted electronics like iPhones, iPads, and other high-dollar hardware. Protect yourself by ordering through official sites instead of clicking on ads on social media. 

*Online textbook scams. These occur when fraudulent fraudsters create fake websites offering attractive discounts on expensive textbooks. The consumer often never receives the textbook and suffers from being ill-prepared for class and out of the money they spent on the textbook. Protect yourself by purchasing or renting textbooks through your university, college or bookstore or publishing companies and utilizing buy-back programs. 

*Scholarship scams. Scholarship scams lure in students looking for help paying for school tuition. These scams ask students to provide personal information or pay upfront fees for non-existent scholarships or for scholarship information that is already available for free. Protect yourself by visiting the Department of Education’s StudentAid.gov website to obtain free resources about scholarships and other financial assistance.

If you or a student you know has been a victim of one of these scams or any other type of fraud, we urge you to file a complaint at http://www.Fraud.org via the online complaint form.

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A Free Public Service

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

August 2, 2021

HEALTH INSURANCE SCAMS

Courtesy AARP

Searching for the right health insurance plan can feel like navigating a maze, with bewildering coverage and cost choices around every turn. Shady operators count on that confusion to sell insurance products and health services that deliver far fewer benefits than promised — or none at all.

These schemes proliferate when health care is in the news and on our minds. The coronavirus pandemic has brought robocalls and phishing emails peddling bogus “corona insurance” supposedly covering COVID-19 treatment.

 Scammers get busy during the annual open enrollment periods for Medicare and Affordable Care Act (ACA) plans. (Medicare open enrollment is Oct. 15 to Dec. 7. The ACA period is Nov. 1 to Dec. 15 in most states; a few have expanded sign-up options during the pandemic.)

Fraudsters try to convince you they have a simple solution to the complexity and expense of obtaining coverage. They cold-call potential marks or generate leads through websites, using paid advertising to get to the top of search results, and claim to offer “comprehensive” health plans that meet “Obamacare” or “Trumpcare” requirements.

The resulting policies turn out to be, at best, far skimpier than advertised and at worst outright fakes. Often, victims really are buying substitute medical discount plans, in which consumers pay a monthly fee to get reduced prices on specific services and products from participating health care providers. Some discount programs are legitimate, but as the Federal Trade Commission (FTC) warns, they are not a substitute for health insurance.

During ACA enrollment, scammers impersonate representatives of the government-run health insurance marketplace. They’ll tell you they need personal information to verify an application or that they can help you choose the right plan — for a fee. Treat such solicitations and any offers of deep-discount coverage with skepticism.

Warning Signs:

*High-pressure sales pitches that push low-cost plans or offer special rates if you sign up right away.

*Claims that a plan is licensed under ERISA, the federal Employee Retirement Income Security Act. Insurance companies are licensed by the states, not by any federal body.

*A plan requires you to join an “association” or “union” to get covered. These may be fake organizations designed to create the illusion that you are buying group health insurance.

*Someone contacting you about health coverage claims to be from the government. No government representative will ever try to sell you insurance.

Do’s:

Do compare rates. Premiums for comprehensive coverage that are far lower than what you see elsewhere are probably not valid.

Do confirm with your state insurance commissioner that a plan provider is licensed.

Do insist on seeing a statement of benefits or a complete copy of the policy.

Do learn the difference between medical discount plans and health insurance. The FTC offers guidance. Before signing anything ask specific questions to make sure you know what you’re getting.

Do research an association or union named in an insurance pitch. Look for a US street address and phone number, and for evidence of activity other than selling health insurance.

Do check out an unfamiliar company that says it sells plans through a major insurer such as BlueCross/BlueShield. The affiliation should be confirmed with the big-name insurer.

 Don’ts:

Don’t enter personal information on a website in exchange for a price quote. You would likely be setting yourself up for identity theft or a barrage of sales calls.

Don’t keep talking to a sales agent who gives vague or evasive answers to coverage questions or tells you the details are “in the brochure.”

Don’t sign up for a plan if the bar for acceptance seems too low — for example, if you are not required to get a physical or provide a medical history. Some scam sites claim you can get insurance just through filling out a form.

Don’t give bank, credit card or personal information, or make a payment, in exchange for assistance in getting ACA coverage. Help navigating the health insurance marketplace is available free. Go to HealthCare.gov and click “Find Local Help.” Real health insurance marketplace representatives will not ask you for personal or financial data.

More Resources:

HealthCare.gov, the official Affordable Care Act website, has information on preventing and reporting suspected Health Insurance Marketplace scams.

If you suspect a health insurance scam, file a complaint with the FTC, http://www.ftc.gov online, or by telephone at 877-382-4357, or call the AARP Fraud Watch Network Helpline: 877-908-3360