A Free Public Service

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

May 28, 2023

JOB SCAMS

Attribution: Federal Trade Commission

Scammers are taking outdated ads from real employers, changing them, and posting them on employment websites and career-oriented platforms like Indeed or LinkedIn. The modified ads seem to be real job offers with legitimate companies. They’re not. In fact, their goal is to trick you into sharing personal information. So how do you know if you’re dealing with a scammer?

Know that some of the hijacked job postings are offers to work from home as a personal assistant or customer service representative. Then, they’ll ask you for information like your Social Security and your bank account number so they can (supposedly) deposit your salary. Sometimes, they say you got the job and send you a check to buy equipment that you have to cash (and send money to them). But these are scams.

Here are more ways to spot and avoid phony job postings:

Verify job openings before you apply. Visit the official website for the organization or company you’re applying for. Most include a “career opportunities” or “jobs” section.

See what others are saying. Look up the name of the company along with words like “scam,” “review,” or “complaint.” The results may include the experiences of others who’ve lost money.

Never deposit a check from someone you don’t know. An honest employer will never send you a check and then tell you to send them part of the money. That’s a scam.

See a suspicious posting? Tell the FTC at ReportFraud.ftc.gov and check out more information to stay clear of job scams.

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A Free Public Service

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

May 22, 2022

FAKE STAMPS

Attribution scambusters.org

A government agency has warned about a flood of counterfeit postage stamps being offered at massive price cuts of up to 50 percent.

Scam websites, seemingly from China, have been advertising bulk, low-cost stamp deals. The timing is perfect, since the US Postal Service (USPS) announced last month that it has filed to increase the price of first-class stamps from 63 to 66 cents.

“The number of counterfeit stamps being sold from online platforms has escalated,” the USPIS said. The sites may look official with USPS logos and photos of mail trucks. But don’t be fooled.

A spokesperson for the US Postal Inspection Service (USPIS) said that genuine stamps are never offered at big discounts. The fakes may look realistic, but you can’t use them. It’s illegal.

“Scammers peddle fake stamps on social media marketplaces, e-commerce sites via third party vendors, and other websites. Counterfeit stamps are often sold in bulk quantities at a significant discount – anywhere from 20 to 50 percent of their face value. That’s a tell-tale sign they’re bogus.”

If you need stamps, you should either get them from the USPS or one of the reputable “approved postal providers” such as  

warehousing retailers who often offer a small discount.

Report scammers to US Federal Trade Commission: http://www.ftc.gov.

A Free Public Service

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

May 10, 2023

BANK FAILURE SCAMS

Attribution: scambusters.com

The threat of more bank failures after recent collapses has prompted crooks to get in on the act by sending bogus alerts to customers. They are after your money and personal identity.

One tactic used by the crooks is to impersonate officials from the Federal Deposit Insurance Corporation (FDIC) – the organization that effectively guarantees individual deposits of up to $250,000 and acts as the receiver, responsible for sorting out the aftermath of bank collapses.

The FDIC simply does not contact consumers and businesses to request this information. So, if you receive a message asking for personal information it’s a scam.

Many financial institutions have issued warnings to their customers. For example, online bank CapitalOne says: “Scammers are using this moment of change to take advantage of unsuspecting customers. By preying on common anxieties, fraudsters can trick you into sending money to a phony bank account or providing your personal banking information.”

The America’s cyber defense agency, the CISA, has issued a strong warning to businesses and consumers:

“Exercise caution in handling emails with bank-related subject lines, attachments, or links,” the agency said. “In addition, be wary of social media pleas, texts, or door-to-door solicitations relating to any failed bank.”

Fraudsters posing as the FDIC, or even banks themselves, might also ask for a payment to secure your bank deposits or, supposedly, to increase your protection beyond the standard $250,000. Their trick is easily exposed – they usually ask for payment in cybercurrency, money wires, or even gift cards.

Legitimate financial organizations don’t do this. If you bank with an FDIC-backed institution, which most banks do – plus the equivalent for credit unions – you don’t have to pay any type of premium to protect your savings.

Another trick, particularly targeting businesses, is to pose as a product or service supplier, saying they’ve switched their account to another bank for safety. They ask victims to send their money to this new account, which they would drain immediately.

Businesses and consumers should be wary of any type of contact that uses scare tactics to try to make you panic into following their instructions. Never act on this type of contact without independently verifying the supposed issue.

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A Free Public Service

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

May 7, 2023

LOTTERY, SWEETSTAKES WINNER SCAM

Attribution: US Federal Trade Commission

Sweepstakes, prize, and lottery frauds are among the top scams people report to the FTC.

 “You’ve won!” Who wouldn’t be excited to win a prize, sweepstakes, or lottery? But…did you actually win? And how do you know?

These scams usually start with a call or message that says you’re a winner. (A lie.) They say to get the so-called prize you have to send money or click somewhere to give your information. Don’t do it.

The most recent FTC data shows people reported losing $301 million to this type of fraud. That’s an average loss of $907 per person.

But there are also legitimate contests and prizes that follow the law and give real prizes. So how do you know the difference?

One question to consider is: did you enter the sweepstakes or play the lottery? If not, you absolutely didn’t win.

Other ways to avoid prize scams:

*Don’t pay to get a prize. Real prizes are free. Anyone who asks you to pay a fee for “taxes,” “shipping and handling charges,” or “processing fees” to get your prize, is a scammer. Log off and walk away.

*Don’t give your financial information. There is absolutely no reason to ever give your bank account or credit card number to claim a prize. If anyone asks for it, it’s a scam.

*Don’t give your personal information.

 Scammers hope you’ll click on links that will take your personal information or download malware on your device. Delete the message without clicking on the links and don’t respond.

Check out FTCTopFrauds and ftc.gov/data to learn more. Already paid a scammer? Learn how to get your money back and tell the FTC at ReportFraud.ftc.gov.

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A Free Public Service

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

May 1, 2003.

BUSINESS FRANCHISES

Attribution: Federal Trade Commission

A franchise is a business whereby the owner licenses its operations—along with its products, branding, and knowledge–in exchange for a franchise fee.

Buying a franchise involves a major financial outlay and owning one often requires an “all in” lifestyle commitment.

For many people, buying a franchise has proven to be a good choice, but like any other financial decision, there is no one-size-fits-all answer to the question “Is a franchise right for me?”

Here are factors to consider as you investigate franchise opportunities, debunking myths and misconceptions about becoming a franchisee:

Myth #1:  Being a franchisee is the same as owning your own business. Owning a franchise isn’t the same as being a business owner. In fact, the franchisor may control many aspects of your business – for example, your site location, your sales territory, the design of your retail establishment, and the products or services you can (and can’t) sell. Of course, the right franchisor may assist you with training and expertise, but that help comes with a price both in terms of finance and control.

Myth #2:  Buying a franchise will give you “be your own boss” status. After years of earning a salary, many prospective entrepreneurs look to franchise ownership as a way to exercise autonomy. Not so fast. Franchise agreements often give franchisors authority not only over big-picture decisions at the outset, but also over some day-to-day operations – how you can advertise, what your sign must look like, where you buy supplies, etc. If part of your motivation for considering a franchise is to live that “be your own boss” lifestyle, investigate thoroughly first.

Myth #3:  Liking a company’s products is the best indicator that you’ll achieve success as a franchisee. Successful franchisees often say it helps to like the product or service, but being a satisfied customer is no guarantee that a franchise is the right fit for you. Some franchises – say, auto repair or tax preparation – require technical expertise or special training. Are the skills you bring to the table a good fit for the franchise? And has your previous work experience given you the financial and management know-how essential for success?

Myth #4:  Owning a franchise is an excellent source of passive income. Who unlocks the shop several hours before opening, turns off the lights at the end of a very long day, and is there in between to handle payroll, customer service, and maybe even routine maintenance? It’s often the franchisee. Even franchisees who choose to hire day-to-day managers will likely find that owning a franchise involves a major commitment of time, effort, and resources.

Myth #5:  Owning a franchise is a financial “sure thing.” The only sure thing in franchising or any other business model is that there’s no such thing as a sure thing. Spending your nest egg for a national name isn’t a guarantee of success. Certainly, your skills and commitment factor into the equation, but so do a lot of variables beyond your control – demand for the product or service, competition, and local and national economic conditions, to name just a few. What’s more, under your franchise agreement, you may have to pay the franchisor even if you’re losing money. Those are just some of the intangibles to consider if you’re thinking about a franchise.

If you’re thinking about whether your future could be in a franchise, follow the FTC Business Blog for a series we’re calling Franchise Fundamentals.

Read A Consumer’s Guide to Buying a Franchise for more information.

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