A Free Public Service

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

March 19, 2024

PAYDAY LOAN SCAMS

Attribution: scambusters.org

If you have to borrow from one of the 23,000 loan outlets in the US, you need to know how to check that you’re dealing with a legit firm and won’t get ripped off by crooks.

Short-term money needs are not unusual. The US Federal Reserve Board says more than 40% of Americans don’t have enough ready cash to meet an emergency.

How To guard against Payday Loan Scams:

When you need money fast and you don’t have any until your next paycheck shows up, it may be tempting to get a payday loan. But watch out – scammers are ready to step in. You could end up paying a lot more than the already astronomical fees some lenders charge.

Many borrowers, however, have to repeatedly take out new loans when they’re unable to repay the previous one – with extra charges heaped on top. According to research, more than 80% of payday loans are followed by another loan request within 14 days.

Unscrupulous Payday Loan Tactics:

Some of the most common scams that payday borrowers face and the tactics crooks use to trick their victims.

*Fake loans: Scammers advertise loans online, charge upfront fees, and then disappear. Often, they also collect bank account and credit card details, which they can use for identity theft. They may demand payment via untraceable methods like gift cards and money wires, and they may tell borrowers, after charging an initial fee, that more money is now required to guarantee the loan.

*Sky high interest rates: A typical two-week loan can carry an interest rate equivalent to 400% a year or more, but disreputable lenders never disclose this – just the daily or weekly charge, which, in this case, may be around 15% for a couple of weeks. Some states, but not all, impose a cap on how much interest can be charged. Among those that don’t, an annual rate of 600% and even as high as 1,000% is not unheard of.

*Hidden costs and extras: In addition to the loan, lenders collect fees and then charge for extras like credit insurance or some form of club membership without disclosing these are optional. Borrowers sometimes don’t realize what they’re signing up for.

*Helping themselves: Lenders access borrowers’ bank accounts to collect their money, without getting permission from them. Sometimes, they may continue to take money after the loan has been repaid, claiming the debt has not been settled.

*Repayment threats: Lenders illegally threaten borrowers with criminal charges for bounced checks. They also threaten to, and sometimes actually do, tell employers and family about the borrower’s debt situation. In some cases, they pose as debt collection agencies to add pressure on the victim.

*Safeguards Against urgent Payday Loan Scams

When money is needed urgently, borrowers may not take the time either to explore alternative sources of cash or to research payday lenders to ensure they’re dealing with a legitimate firm.

*It’s crucial to get advice and to educate yourself.

For example, you can quickly learn a lot from an online visit to the Consumer Financial Protection Bureau (see https://tinyurl.com/37tt8tvf). Other useful resources include the Center For Responsible Lending (https://www.responsiblelending.org/) and the nationwide network of financial experts you’ll find at 211.org, which claims to have helped more than 20 million consumers with their money woes.

Here are more actions you can take to safeguard against payday loan scammers.:

*Steer clear of upfront charges. Fees are usually added to the debt and collected when it is repaid at the end.

*Research the reputation of any lender you’re considering dealing with. Scam victims sometimes report their experience online and to consumer organizations like the Better Business Bureau. And legitimate lenders have to be licensed and registered with your state. So, check all of these places.

*If you know people who have already used payday loans, ask them about their experience.

*Speak to your employer or bank and explore other loan options like credit unions.

*Read all documentation carefully. If it’s thin on the ground or doesn’t explain things properly, look elsewhere.

*Don’t give your bank, employment, and other confidential information to anyone until you know you can trust them.

*If you get an unsolicited call offering a loan, hang up. Same goes for spam ads and emails. Ignore them.

*Beware of extended loan periods. More repayment time means more interest.

Don’t yield to high pressure tactics urging you to refinance.

*If you get a notice about unpaid debts, don’t ignore it. Lenders are legally required to give you a written “validation notice.” So, ask for one and dispute it if it’s not accurate.

If you know or suspect you’ve been scammed or are being targeted by a crook, report it to the police, your state consumer department and the US Federal Trade commission, FTC.gov.

Before you need to ask for a payday loan, make sure you know how they work and where to safely get them.

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A Free Public Service

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

March 28, 2024

CAREGIVER JOB SCAM

Attribution: US Federal Trade Commission

Is it a caregiving job or a scam?

As a nanny or caregiver, you know that families and employers trust you to take care of their children or older adults. It’s the same trust that scammers want to build with you when they post ads for fake jobs to steal your money and personal information. So how do you spot the scam?

Here’s how it works. You see an ad for a job, maybe at a job site, and apply. The phony “employer” sends you a check upfront and tells you to deposit it. “Keep part of the money,” they say, and send the rest to buy supplies or even toys for the children in your care. Don’t do it!

While the position seems real, it’s not. It’s a scam. Days later, you’ll find out from your bank that the check was fake, and you’ll lose any money you sent. Then you’ll be stuck repaying the money to the bank.

Here are more ways to spot and avoid phony nanny or caregiver jobs:

*Don’t send money to someone who says they want to hire you. An honest employer will never send you a check and then tell you to send them, or someone else, part of the money. That’s a scam.

*Don’t feel pressured to act immediately. Scammers want you to act without having time to think about what information you’re giving. Before you provide personal or financial information to a prospective employer, check out their story. *Search online to see if others report problems with this phony employer.

*Talk to someone you trust. Before you give any personal information, describe the offer to them. What do they think?

Report job scams to the job site and to 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.

March 20, 2024

MONEY REFUNDS from FTC

Attribution: Federal Trade Commission   

Did you pay Benefytt, which also did business as “MyBenefitsKeeper,” for a health plan or product that didn’t deliver the comprehensive insurance coverage the company promised?

You might be receiving some of your money back.

The FTC will return nearly $100 million dollars to Benefytt victims who paid for health plans the FTC says were falsely marketed as comprehensive health insurance or an “Obamacare” plan under the Affordable Care Act (ACA).

Here’s what to know about refunds:

Victims who paid Benefytt $1,000 or more between 2017 and 2022 may get some money back. If so, checks will be mailed automatically and should arrive within the next two weeks.

If you receive a check, you should cash or deposit it as soon as possible. Refund checks expire after 90 days.

For more information or questions, call the refund administrator, Epiq Systems, at 888-574-3126.

The FTC never requires you to pay money or give account information to cash a refund check. Anyone who contacts you and says they’ll help you file for a refund or get your money back — if you pay them first — is a scammer.

Before you sign up for health coverage or products:

Compare plans, coverage, and prices at a trusted source. HealthCare.gov and state marketplaces are the first stop for information about comprehensive, ACA-compliant health insurance coverage.

Find out more about the seller. Ask for the name of the agent and the agency that’s offering you a plan. Search online for the names plus “complaint,” “scam,” or “fraud.” Read what others are saying.

Check with your state insurance commissioner’s office to see if they have a license and find out if there are complaints. If they don’t have a license, what they’re selling is not insurance.

Resist pressure to make a decision on the spot. Legitimate health plans won’t pressure you to make a decision on the spot, and they’ll always give you a chance to compare their plan with other options.

Report scam or fraud attempts to FTC.gov.

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A Free Public Service

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

March 11, 2024

VERIFICATION CODE SCAM

Attribution: US FTC.gov

When you log into your bank or credit card account, you might get a text message or email with a verification code. You then enter it at the login screen to confirm it’s really you. That’s a form of two-factor authentication that adds a layer of security to your account — and keeps would-be scammers and hackers out.

Your account password and a verification code work together, like the lock on your doorknob and a deadbolt lock. If you unlock the doorknob but not the deadbolt, you can’t get in. Likewise, if you know the account password but not the verification code, you can’t get in.

The same goes for scammers trying to get into your account. To break into your account, scammers need both keys. That’s why they try to trick you into sharing your verification code.

Scammers pretend to be someone you can trust, and say they’ve discovered a problem with one of your accounts — or that someone’s using your identity. They may know some things about you and sound very convincing. They may even be very sympathetic to your problem: offering to help you set things right … and then asking for your verification code to get into your account. If you give them the code, they can log into your account and transfer all the money out of your savings or investment accounts.

Never give your verification code to someone else. It’s only for you to log into your account. Anyone who asks you for your account verification code is a scammer.

If you’re worried there’s a problem with your account, contact your bank, credit union, or investment advisor directly. Use a number you trust, like the one on your statement or in your app. Never use the number the caller gave you; it’ll take you to the scammer.

If someone asks you for your verification code, don’t engage. Hang up. Block their number. Stop texting them. Then report them 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.

March 10, 2024

CREDIT CARD DEBT SCAM

Attribution: US FTC.gov

Are you looking for ways to pay off credit card debt? Offers to help you cut down or wipe out your debt might sound like a perfect solution, but dishonest debt relief scammers will take your money and do little or nothing to help.

 So how do you guard against scammers?

If you’re having trouble keeping up with payments, it can help to make a budget. Use a worksheet to help you figure out where your money goes and if there are ways to cut your spending. If you’re already behind on your bills, don’t wait. Call your creditors and explain your situation before a debt collector gets involved. Try to work out a payment plan with lower, more manageable payments.

Learn to spot scammer debt relief companies that make all kinds of promises to get your money upfront:

^Never pay anyone who tries to collect fees from you before they do anything to help you deal with your debt. That’s illegal.

*Don’t share your financial or personal information with someone who calls unexpectedly, offering to help you settle your debts. That’s probably a scammer.

*Don’t do business with anyone who guarantees you results from a “new government program” for a fee, or tries to enroll you without first reviewing your financial situation.

*Who can help? You could work with credit counseling program to help you manage your money and debt. Look for these services at credit unions, universities, military personal financial managers, and U.S. Cooperative Extension Service branches. Many of these organizations offer services with low fees, but make sure you ask how much they’ll charge you.

Learn more at ftc.gov/debt

Suspect a debt relief scam? Tell the FTC at ReportFraud.ftc.gov.

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Attribution: US Federal Trade Commission

A Free Public Service

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

March 6, 2024

Recovering from what is now the largest wildfire in Texas history will be a long process. If you’ve been displaced by the fire, or your home or business was damaged, you’re probably trying to figure out what to do next. Here’s some advice to help you get started.

• Find out what your home, business, health, or other insurance policies will pay for if you had to evacuate and can’t access your home or business. Some will cover costs for temporary shelter, clothing, and other items.
• Replace lost or damaged legal documents you misplaced or left behind. This chart will help you if you’re unsure of where to go for what.   
• Contact creditors, landlords, and utilities right away. Explain how the fire has affected you. In times of disaster, they may be willing to defer your payments, waive late fees, and offer other ways to help you regain your financial stability.

When you’re ready to focus on rebuilding or making repairs to your home or business, start by knowing how to spot the scammers:

• Don’t hire anyone who shows up claiming to offer recovery services but demands cash or advance payments. That’s a scam.
• Never pay to get government assistance. Anyone who wants you to pay to get money or a grant from FEMA is a scammer. Instead, download the FEMA Mobile App to get alerts and information.
• Learn more about how to spot and avoid other disaster-related scams at ftc.gov/WeatherEmergencies.

Spot a scam? Tell the FTC at ReportFraud.ftc.gov.

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A Free Pub;ic Service

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

March 6, 2024

PROTECT YOUR MONEY SCAM

Attribution:  US Federal Trade Commiswsion

People are losing big money to scammers running complicated scams. The scams usually involve someone supposedly spotting fraud or criminal activity on one of your accounts, offering to help “protect” your money, sometimes asking you to share verification codes, and always telling you to move money from your bank, investment, or retirement account. And every bit of it is a scam.

To help protect people you care about, and their life savings, share this advice on how to stop these scammers in their tracks.

Never move or transfer your money to “protect it.” Your money is fine where it is, no matter what they say or how urgently they say it. Moving it means you’ll lose it, not protect it. Someone who says you have to move your money to protect it is a scammer. Period.

Never share a verification code. Ever. Banks use these codes in online banking to prove you’re really you. If you share that code, the scammer can use it to prove they’re you. No caller — especially someone from your bank’s fraud department — will ever ask for the verification code. That’s always a scam.

Stop and check it out. If you’re worried, call your real bank, broker, or investment advisor. Use the number you find on your statement — never the number the caller gave you, which will take you to the scammer.

Report it. If you get a call like this, tell your bank or fund right away. Especially if you moved money or shared a verification code. Then tell the FTC: ReportFraud.ftc.gov.

Scammers keep switching stories and making the scam more complicated. And if you think your bank or investment fund will protect you, think again. To help give you the tools to spot this scam and protect your savings, we’re kicking off a series to break down the anatomy of this scam. Watch this space and keep spreading the word.

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A Public Service

March 1, 2024

HOW TO KNOW IF YOU’VE BEEN SCAMMED

Attribution: scambusters.org

If an online social media, shopping, or financial account has been taken over, the first thing you’ll likely know is when you discover someone is pretending to be you, spending your money, or posting on your Facebook or other account.

As we explained last week, you may be the victim of a data breach or have been tricked into giving away your sign-on details.

But if someone hacks your home network or mobile device, it may not immediately be so obvious. However, good security software can run deep scans of your entire system. Running this manually and regularly is good practice and may be the quickest way to identify trouble.

More Scam Reports:  Travel Scams: 10 Tips to Avoid Getting Taken

Here are some other signs that might suggest you’re the victim of a digital break-in:

Your system or device is running way slower than it used to.

Your devices seem to be overheating and even shutting down.

The battery on your mobile device drains a lot faster than it used to.

On a computer, the hard drive activity light is constantly on.

You keep getting unexpected screen pop-ups.

People say they received messages from you that you didn’t send.

Your browser home page unexpectedly changes.

You have toolbars you didn’t install or agree to.

Programs open or shut without you doing anything.

Your electric bill soars (due to “botnet” or cyber currency mining activity).

Your Wi-Fi network suddenly becomes sluggish and unreliable.

Some of your files inexplicably disappear.

Passwords don’t work because someone has changed them.

These signs don’t prove you’ve been hacked but they should raise enough concern for you to thoroughly check things out.

In particular, frequently monitor your credit records and financial and shopping accounts for early warning signs that crooks are at work in your digital backyard.

You might also consider subscribing to online monitoring services that constantly check your accounts and the dark web for threats to your internet security.

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