A Free Public Service

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

October 29, 2021

Courtesy US IRS

The US Internal Revenue Service annually compiles a “Dirty Dozen” list of common scams that taxpayers may encounter anytime. Many of these schemes peak during tax return filing season as people prepare their returns or hire someone to help with their taxes.

The Dirty Dozen represents some of the worst of tax scams.

For a detailed description of certain 2021 scams please refer to the list below:

*IR-2021-144, IRS wraps up its 2021 “Dirty Dozen” scams list with warning about promoted abusive arrangements

*IR-2021-141, IRS “Dirty Dozen” list warns people to watch out for tax-related scams involving fake charities, ghost preparers and other schemes

*IR-2021-137, IRS urges caution with email, social media and phones as part of “Dirty Dozen” series

*IR-2021-135, IRS announces “Dirty Dozen” tax scams for 2021

Complaints can be forwarded to www.irs.gov.

A Free Public Service

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

October 26, 2021

FREE EMERGENCY DEVICE SCAM

Courtesy Federal Communications Commission

Emergency broadband program impersonators

Have you seen ads on social media that offer to “help” you sign up for a government program that will give you a “free” device and internet service in exchange for money or personal information? If so, that’s a scam.

While there is a real government program to help people connect during the pandemic, there’s no payment required to enroll. The real government program is the Emergency Broadband Benefit Program. Aimed at helping households connect during the COVID-19 pandemic, it gives individual persons a one-time discount to help them buy a laptop, desktop computer, or tablet. The program also gives people monthly discounts for internet service. It’s free to sign up for this program.

Government impersonators can look and sound real — using things like government names (in this case, the FCC, Federal Communications Commission) to convince you to open your pockets or share your personal information.

 Here are ways to guard against attempts to impersonate the FCC’s Emergency Broadband Benefit Program:

*Only apply through the FCC and its listed providers. The only way to sign up for the Emergency Broadband Benefits Program is at GetEmergencyBroadband.org. If another company says it can sign you up for this program, check first to see if they’re an approved provider.

*Never pay to sign up to get benefits. The Emergency Broadband Benefit program is free to sign up for those who qualify.

*Don’t give your financial or other personal information to someone who calls, texts, or emails and says they’re with the FCC. If you think a call or message could be real, stop. Call the Emergency Broadband Support Center at 1-833-511-0311 to check.

Did you pay a scammer? If so, act quickly to try to get your money back. If you think someone has gotten into your accounts or has your personal information, visit http://www.IdentityTheft.gov for steps to learn if your identity has been misused, and how to report and recover from identity theft.

This scam can be reported to the FTC at ReportFraud.ftc.gov.

A Free Public Service

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

October 22, 2021

FAKE AMAZON IMPERSONATORS

Courtesy Federal Trade Commission

Has Amazon contacted you to confirm a recent purchase you didn’t make or to tell you that your account has been hacked? According to the FTC’s new Data Spotlight, since July 2020, about one in three people have reported a fake Amazon impersonator scam.

These scams can look a few different ways. In one version, scammers offer to “refund” you for an unauthorized purchase but “accidentally transfer” more than promised. They then ask you to send back the difference. What really happens? The scammer moves your own money from one of your bank accounts to the other (like your Savings to Checking, or vice versa) to make it look like you were refunded. Any money you might send back to “Amazon” is your money (not an overpayment) — and as soon as you send it out of your account, it becomes theirs. In another version of the scam, you’re told that hackers have gotten access to your account — and the only way to supposedly protect it is to buy gift cards and share the gift card number and PIN on the back. Once that information is theirs, the money is, too.

Here are some ways to guard against an Amazon impersonator scam:

*Never call back an unknown number. Use the information on Amazon’s website and not a number listed in an unexpected email or text.

*Don’t pay for anything with a gift card. Gift cards are for gifts. If anyone asks you to pay with a gift card – or buy gift cards for anything other than a gift, it’s a scam.

*Don’t give remote access to someone who contacts you unexpectedly. This gives scammers easy access to your personal and financial information—like access to your bank accounts.

*Have you spotted this scam? Report it at ReportFraud.ftc.gov.

*If you think someone has gotten access to your accounts or personal information, visit IdentityTheft.gov. There, you’ll find steps to take to see if your identity has been misused, and how to report and possibly recover from identity theft.

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A Free Public Service

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

October 20, 2021

MEDICARE ENROLLMENT FRAUD

Courtesy US Federal Trade Commission

Medicare is a national health insurance program in the United States. It primarily provides health insurance for Americans aged 65 and older, but also for some younger persons with disability status as determined by the Social Security Administration including those with end stage renal disease and amyotrophic lateral sclerosis (ALS or Lou Gehrig’s disease).

Scammers might call and pretend to be Medicare representatives or agents to steal your Medicare number or other personal information. They can use a fake CallerID name to impersonate Medicare or another organization you know. Don’t trust the name displayed on your phone’s CallerID screen. If anyone calls and asks for your Medicare, Social Security, or bank or credit card information, don’t respond—hang up. A scammer can use your personal information to file false claims, sign you up for a plan to which you didn’t agree, or even steal your identity.

During Medicare’s Open Enrollment Period (OEP), which begins on October 15 and ends December 7, Medicare beneficiaries can choose the plans that are best for them for 2022. You can get help comparing Medicare plans from your local State Health Insurance Assistance Program (SHIP), available in each U.S. state, territory, and the District of Columbia. Private insurance companies administer, market, and sell Medicare Advantage (MA, Part C) and Medicare Prescription Drug Plans (Part D), so it’s important to understand your rights and some of the limits on marketing. That way you’ll be prepared if an insurance broker or agent tries to enroll you in a Medicare plan that isn’t right for you.

Know your rights:

*If you request an appointment with an agent to visit or call to talk about your Medicare coverage options, remember you have certain rights and agents must follow the law:

*Agents must give you information only about items listed in the scope of appointment form you filled out when you asked for an appointment. They can’t talk about other Medicare or insurance products that you didn’t ask to talk about.

*Agents can’t set their own time limits for you to sign up for a plan. Everyone has until December 7 to enroll, and there aren’t any extra benefits for signing up early.

*They can’t threaten to take away your benefits if you don’t sign up for a plan or offer you gifts if you agree to sign up.

*Agents cannot suggest that Medicare endorses or prefers their plan.

*After you pick the plan that’s right for you, be sure you get all the details in writing before you sign up. Take your time to read all information and verify details. For example, before you sign up, reach out to your doctors to ensure they are in that plan’s network.

Report a marketing violation:

There are limits on how companies and agents selling Medicare plans can contact you and what they can say. For example:

You should never get a phone call from a company you don’t have a relationship with.

A company must not represent itself as Medicare, Social Security, or Medicaid.

You shouldn’t get information — like leaflets, flyers, door hangers, etc. — on your car or at home from a company you don’t have an appointment with.

An agent can’t come back to your home without an invitation.

They can’t mislead you about coverage for prescriptions or services. Always review your Explanation of Benefits (EOB) to be sure your coverage matches what was promised.

They can’t promise that you can keep your Medigap plan (supplemental plan) when you sign up for a Medicare Advantage plan. The truth is, you can’t have both a Medigap plan and a Medicare Advantage plan.

If you notice one of these marketing violations, please tell your local Senior Medicare Patrol or contact the Federal Trade Commission at: www.ReportFraud.ftc.gov.

For more information and help reporting Medicare fraud, errors, or abuse, visit smpresource.org or call 1-877-808-2468. To report an impersonator who pretended to be from Medicare, call 1-800-MEDICARE and visit ReportFraud.ftc.gov. If you think someone misused your personal or financial information, report it at IdentityTheft.gov and start on a recovery plan.

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A Free Public Service

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

October 12, 2021

YOUR ACCOUNT SCAMS

Courtesy AARP

If you use a bank, shop, watch movies or stream music online, you may receive emails from the digital companies you do business with touting new products or alerting you to changes in their terms of service.

The fake email or text might seem genuine at first with familiar corporate branding at the top. But if a message appearing to be from, say, Apple, Netflix, Amazon or PayPal warns of a problem with your account you should proceed with caution: It is likely a phishing scam aiming to hook your personal data.

Legitimate online companies may contact you about a genuine issue with your account — for example, if the credit card you use for payment has expired. But they will not ask in an email or text for your login information, Social Security number or financial data. If you have any reason to believe there is a real problem, contact the company’s customer service department or check your account status on its genuine website or app.

The scammer message may be: You need to “update” or “verify” your login or billing information, which you can post by clicking a link or following the instructions in an attachment. (In a variation on the scam message it might include a phony invoice or receipt and ask you to confirm or dispute a purchase.)

Warning Signs:

*Instead of addressing you by name it may greet you generically (“Dear Amazon Customer,” for example), or not at all. The message will vary: “A payment has failed. There is a problem with your order. We lost your customer data. We’ve detected suspicious activity and locked your account”.

*The sender’s email address does not include the correct corporate domain (for example, @netflix.com or @paypal.com). If there is any variation after the “@,” such as extra characters or words, it’s probably not from the company.

*The email seeks login credentials such as username and password, personal data like your Social Security number, or billing info like bank account or credit card numbers.

*The email includes typos, bad grammar or foreign spellings (for example, “centre” instead of “center”).

*You are urged to act quickly, at the risk of losing your account.

Dos:

*Do hover your cursor over links in the body of the email. This will reveal the true destination URL. If the link is unfamiliar, do not click it.

*Do only use a company’s official website or app to update account information such as passwords or payment methods.

*Do contact the company directly, through an official website or customer service line, if you have concerns about an email or text message you received.

*Do use antivirus software and keep it up to date. Activate firewalls and other settings that block malicious files.

Don’ts:

*Do not open documents or download files from suspicious emails. They could install malware on your device.

*Do not click on links or open attachments to “update,” “unlock” or “verify” an account. Go to the company’s website or app to check your account status.

*Do not click on a link or call a phone number in a text “alert” to verify your identity or account status.

*Do not reveal personal or financial information in response to an unsolicited email. Legitimate companies will not ask you to provide sensitive data in an email.

Call the AARP Fraud Watch Network Helpline: 877-908-3360

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A Free Public Service

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

October 5, 2021

REVERSE MORTGAGE SCAM

Courtesy AARP

A reverse mortgage is a type of loan that’s designed to give people access to the equity they’ve built up in their home — basically, the property’s current value minus any outstanding loans or liens — without having to sell it. The borrower gets what is, in effect, a tax-free advance on their equity, in the form of a line of credit, fixed monthly payments or a lump sum.

For most reverse mortgages, the proceeds must be used to pay off any existing mortgage; the remainder of the loan comes due when the owner moves, sells the house or dies. 

For some older homeowners, a reverse mortgage can be a way to supplement retirement income, consolidate debts or cover expenses like health care. For scam artists, they can be a lucrative tool to fleece people who are age 62 and over out of large sums of money, or even their homes.

Reverse mortgages are complex, and they can be risky. Fraudsters take advantage of that complexity to draw older homeowners into bad or outright bogus deals. Marketing may be in ads and “investment seminars” as a cure-all for financial worries in golden years, providing “free” income or a means to delay filing for Social Security.

It’s often a group effort, with unscrupulous mortgage brokers or financial advisers joining forces with corrupt appraisers, attorneys and loan officers. They’ll finagle an inflated appraisal of a home’s value, thus inflating the equity and the potential loan, and try to persuade the owner to take out a reverse mortgage.

The fraudsters might try to sell a victim on a supposedly can’t-miss investment or financial product. They may charge fees running into the thousands of dollars to provide information about reverse mortgages that’s available for free from the U.S. Department of Housing and Urban Development (HUD).

Warning Signs:

*A broker or lender uses high-pressure tactics to try to talk you into a reverse mortgage.

*They claim the loan is safe because it’s insured by the Federal Housing Administration (FHA). The FHA does insure some reverse mortgages, but that coverage doesn’t protect the borrower; it’s for the lender, in case of default.

*They don’t disclose the fees, conditions and risks that come with taking out a reverse mortgage, including the possible loss of the home, which serves as collateral.

Do’s:

*Do get information on reverse mortgages from reputable sources, such as HUD or the Federal Trade Commission.

*Do talk to a trusted financial adviser or attorney before you sign anything. If the reverse mortgage is a federally insured Home Equity Conversion Mortgage (HECM), as most are, you are required by law to meet with a government-approved counselor before signing.

*Do be wary if someone selling home improvement services suggests taking out a reverse mortgage to pay for renovations or repairs.

*Do be suspicious of claims that a reverse mortgage will get you free income or a free home.

*Do know that you usually have the right to cancel a reverse mortgage within three days after closing.

Don’ts:

*Don’t respond to unsolicited advertisements pushing reverse mortgages.

*Don’t sign any loan paperwork that you don’t completely understand—read the “fine print”.

*Don’t buy other financial products, services or investments to obtain a reverse mortgage.

*Don’t take out a reverse mortgage using just one spouse as the borrower. A reverse mortgage in one borrower’s name comes due when that person dies, and the surviving spouse could face collection proceedings and lose the home.

The AARP Fraud Watch Network Helpline 877-908-3360 is free.