A Free Public Service

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

June 9, 2022

NON-FUNGIBLE TOKENS FRAUD

Courtesy Scambusters

Welcome to the world of non-fungible tokens (NFTs) fraud.

What is a non-fungible token?  It is a dark and mysterious place that’s riddled with scammers.

Avoiding being too technical, an NFT has been described as a unique piece of digital code that is linked to something else of potential value. That may be a work of art, actual or digital, or even a song.

If you buy an NFT using cryptocurrency your evidence of ownership will be stored in a digital ledger called a blockchain.

You can buy and sell NFTs on specialized websites, and, because each one is unique, your purchase can become valuable—but not always.

It’s important to know that when you buy an NFT, the digital code is usually all you own — not the item it’s linked to.

How to Avoid an NFT Scam

First, Do your research.

NFTs are clearly not for the fainthearted. There is risk. One piece of advice is to not enter this marketplace unless you understand what it is about.

Once you have enough knowledge and feel ready to dip a toe in the water, make only a small purchase.

Only trade on well-known, established NFT sales sites. The respected Motley Fool financial site has a Top 10 list here: https://tinyurl.com/Scambusters-NFT-markets

Beware of bargains.

 Some NFTs are offered for sale on multiple sites, sometimes at different prices. Check these multiple sites and, if you spot what appears to be a great bargain, it’s probably a scam.

Know your cybercurrency.

 Most NFTs are bought and sold using the cybercurrency Ethereum, priced in ETHs. Be sure you know the value of the currency when you buy or trade, and watch out for scam buyers and sellers who switch the currency to a lower-valued one mid-transaction.

Keep your personal, financial information to yourself.

 Fake sites will ask you to link your cybercurrency account so they can empty it. And never give out the 12-word security string that digital wallet companies give you to reactivate your account.

(Note: Scambusters does not offer financial advice. This information is provided for educational purposes only.)

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A Free Public Service

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

June 1, 2022

BABY FORMULA SCAMS

Courtesy scambusters

Scammers and Price Gougers are cashing In on the Baby Formula Shortage. Desperate parents and caregivers are falling victim to scammers taking advantage of the national shortage of baby formula in the US.

Crooks use hijacked social media accounts or fake profiles to post offers of infant formula, often targeting mom groups on Facebook. And they force victims to pay via cash transfer apps like Venmo by promising overnight delivery. Venmo payments generally can’t be reversed.

The scammers post enticing photos showing stacks of product or store aisles packed with different brands of formula and say shoppers can buy any brand shown in the pictures. Other stolen photos show the supposed seller feeding a baby – a ruse intended to make the scam more convincing.

Hundreds of baby formula scam complaints are pouring into consumer organizations every day as manufacturers step up frantic nationwide efforts to build up stocks of essential supplies.

Meanwhile, greedy opportunists who have secured supplies are price-gouging, offering packs that normally cost $20 for $200 or more.

Price gouging is not always illegal (depending on state laws) but it’s unethical and often targets the people in most need who can least afford high prices.

The US Federal Trade Commission (www.FTC.gov) which has launched an investigation into the shortages, says the crisis is “causing enormous anxiety, fear and financial burden.”

WHAT TO DO

Because they’re so distressed, many victims let their guard down in the rush to find supplies, falling for scams they might otherwise spot.

If you’re a parent of formula-fed infants, or know someone who is, here’s what to do to avoid the scammers.

If you see a website, ad, or social media post that doesn’t provide a verifiable address – that is, one you can confirm in a phone book or a street map search –  it’s probably a scam.

Check the language and grammar in the wording of any offers. Poor English usage is often a sign of a scam.

Research the name of any supposed supplier companies or individuals. Have they been named in complaints or scam reports?

Don’t pay via cash transfer apps, gift cards, money wires, or cryptocurrency (usually Bitcoin). Use a credit card and your payment will be protected by the card company’s scam protection policy. If the seller refuses a credit card because they say they’re a private individual, know that you are probably risking your money and may never receive anything.

If the seller is local, arrange to meet them so you can collect the product before you pay.

If you’re tempted to pay a significantly higher price for your normal brand of baby formula, check with your pediatrician to see if an available alternative might be acceptable.

If you think you’ve been scammed, report it to the FTC (ReportFraud.ftc.gov). If you’ve been price-gouged, report it to your state’s consumer protection department.

FINDING BABY FORMULA

If you’re desperate to track down baby formula, try the following:

Speak to your pediatrician to see if they have any supply samples or know where to obtain some.

Check if you’re eligible for the government’s Special Supplemental Nutrition Program for Women, Infants and Children (WIC) via this link: https://tinyurl.com/Scambusters-WIC. They may be able to help you find formula.

Use established and reputable online community and social media groups to seek baby formula. Local groups dedicated to helping moms find formula are also springing up. But always follow the tips above to avoid being scammed by unscrupulous individuals.

For more suggestions and information, visit the US Department of Health and Human Services (HHS) via: https://tinyurl.com/Scambusters-find-formula.

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