A Free Public Service

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

June 16, 2023

Attribution: Ftc.gov

What is Medicaid?

Medicaid is a public insurance program, created in 1965, that provides health coverage to low-income families and individuals, including children, parents, pregnant women, seniors, and people with disabilities.  It is funded jointly by the federal government and the individual states.  As a result, Medicaid eligibility and benefits can and often do vary widely from state to state.

During the pandemic, states had to keep people enrolled in Medicaid so they didn’t lose their insurance. Now that the health emergency declaration is over, that requirement has been phased out — which means people eligible for Medicaid have to re-enroll in their state’s program or find new insurance, if they’re not eligible.

So, where do the scams come in?

When big changes affect millions of people, scams will follow. That means people who’ve been on Medicaid — including people of modest means, children, older adults, pregnant women, and people with disabilities — will be targeted by health insurance scammers.

Here’s what to know:

Medicaid won’t charge you to renew or enroll. You may get a call, text, or email from your state Medicaid agency to renew your enrollment in your state’s program. But the real Medicaid program won’t ask for money or personal information like your credit card or bank account number. Learn more about eligibility for Medicaid in your state at Medicaid.gov (scroll down to find the link to your state’s Medicaid agency).

Visit HealthCare.gov to compare insurance plans, coverage, and prices. HealthCare.gov lets you compare prices on health insurance plans, check your eligibility for healthcare subsidies, and begin enrollment. HealthCare.gov will ask only for your monthly income and your age to give you a price quote.

If anyone asks for your bank account or credit card number to give you a quote for health insurance, that’s a scam. Don’t give it.

Scammers try to sell you medical discount plans that are not major medical. Phony Medical discount plans charge a monthly fee for supposed discounts on some medical services or products from a list of providers. They’re not a substitute for health insurance, though some legit plans do give actual discounts. But others just take your money for very little in return. If you’re considering one, find out if your doctor participates in the plan. Check what coverage it gives for major events. And be sure to get the plan’s details in writing before you sign up. If anyone pressures you to sign up quickly say, “no, thanks.”

If you think you’ve spotted a scam, tell your friends and family about it so they can protect themselves. Then tell the FTC at ReportFraud.ftc.gov and your state attorney general.

                                                                                               #

A Free Public Service

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

June 15, 2023

MEDCAID FRAUD

Attribution: Ftc.gov

What is Medicaid?

Medicaid is a public insurance program, created in 1965, that provides health coverage to low-income families and individuals, including children, parents, pregnant women, seniors, and people with disabilities.  It is funded jointly by the federal government and the individual states.  As a result, Medicaid eligibility and benefits can and often do vary widely from state to state.

During the pandemic, states had to keep people enrolled in Medicaid so they didn’t lose their insurance. Now that the health emergency declaration is over, that requirement has been phased out — which means people eligible for Medicaid have to re-enroll in their state’s program or find new insurance, if they’re not eligible.

So, where do the scams come in?

When big changes affect millions of people, scams will follow. That means people who’ve been on Medicaid — including people of modest means, children, older adults, pregnant women, and people with disabilities — will be targeted by health insurance scammers.

Here’s what to know:

Medicaid won’t charge you to renew or enroll. You may get a call, text, or email from your state Medicaid agency to renew your enrollment in your state’s program. But the real Medicaid program won’t ask for money or personal information like your credit card or bank account number. Learn more about eligibility for Medicaid in your state at Medicaid.gov (scroll down to find the link to your state’s Medicaid agency).

Visit HealthCare.gov to compare insurance plans, coverage, and prices. HealthCare.gov lets you compare prices on health insurance plans, check your eligibility for healthcare subsidies, and begin enrollment. HealthCare.gov will ask only for your monthly income and your age to give you a price quote.

If anyone asks for your bank account or credit card number to give you a quote for health insurance, that’s a scam. Don’t give it.

Scammers try to sell you medical discount plans that are not major medical. Phony Medical discount plans charge a monthly fee for supposed discounts on some medical services or products from a list of providers. They’re not a substitute for health insurance, though some legit plans do give actual discounts. But others just take your money for very little in return. If you’re considering one, find out if your doctor participates in the plan. Check what coverage it gives for major events. And be sure to get the plan’s details in writing before you sign up. If anyone pressures you to sign up quickly say, “no, thanks.”

If you think you’ve spotted a scam, tell your friends and family about it so they can protect themselves. Then tell the FTC at ReportFraud.ftc.gov and your state attorney general.

                                                                                               #

A Free Public Service

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

June 14, 2023

A Free Public Service

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

June 8, 2023

PHISHING SCAM

Attribution: scambusters.org

Phishing is the fraudulent practice of sending email or other messages purporting to be from reputable companies to induce individuals to reveal personal information such as passwords and credit card numbers.

Emails are the most popular way for crooks to try to trick you into revealing confidential information, like sign-on details and account numbers, and sometimes to get access to your computer to upload malware. Scammers also use both SMS text messages and automated phone calls.

Scammers send out billions of random messages every day designed to steal information from you, just like an angler casts a net or line far and wide. They know that, statistically, sooner or later they’ll get a “bite” and land their catch.

Most commonly, phishing emails use links or attachments that are designed to either take you to a bogus sign-on page or to install malware onto your PC.

Here are some of the tactics the scammers use:

*They make addresses seem legitimate by disguising them. *They may use a long string of letters that includes the name of the legitimate company. *They may use address shorteners, which hide the real address. *They may substitute a letter with a similar character or add a letter or hyphen that you won’t spot at first glance.

*They use the same design, colors, and logos as the companies they’re impersonating.

*They try to rush you into clicking links or making a phone call by striking a note of urgency, such as a looming deadline, product shortages, or use of dramatic words like “WARNING.”

*They take advantage of current news stories, especially about disasters, to pretend they’re trying to help those affected.

*They harvest information about you from social media sites, so they make it seem like they know you, to lower your suspicions.

To Protect Yourself:

*Common sense is your best ally to beat phishing email scammers, but there are other things you can do to stay safe.

*Check the accuracy of the email address, looking for some of the red flags listed above. *Hovering your mouse over the sender’s address, without clicking, should reveal it in full. *Consider using a free address checker such as https://email-checker.net

*Be wary about opening any email from an unknown sender. Certainly, don’t click on links from unknown senders.

*Don’t be fooled by a personal text that mentions something about you or seems to come from someone you know. Scammers are now using artificial intelligence to build this personalized wording into mass email attacks.

*Check for spelling and grammar mistakes.

* Although rarer than it used to be, poorly worded text on a page is still a potential scam warning sign. A quick and easy way to do this is to paste the text into a checker like Language Tool (https://languagetool.org/)

*If an official-looking email ends with a common domain name address like “gmail.com” or “outlook.com,” it’s probably fake. Reputable organizations have their own domain names like “amazon.com.”

*Don’t panic if the tone of the message urges you to act quickly. Stay calm and check things out using the tips in this issue.

*Don’t respond if an email openly asks you for confidential information, often by saying they need to confirm your details.

*Be especially alert for emails that seem to come from the most commonly impersonated companies like courier firms, social media sites, and tech companies.

*If the message requests money or other types of donations for a charitable cause, don’t give until you’ve checked them out. For guidance on this, see our earlier issue at https://scambusters.org/charity.html

Don’t forget that using and keeping updated Internet security software is one of the best ways of filtering out spam and scam emails.                    #

A Free Public Service

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

June 1, 2023

UNWANTED SUBSCRIPTIONS

Attribution: Federal Trade Commission

Many subscription offers are tempting, especially if they offer a free trial period before you commit. But what if you’re getting a magazine subscription you never ordered? How do you stop it?

The FTC is hearing from folks who are being charged for subscriptions they don’t want and never ordered. When contacted, some magazines stall and say that people must speak to a different company. People also report getting error messages when they try to cancel online.

Do this to stop a subscription service you’re enrolled in:

First, know that you never have to pay for something you didn’t order. If you get it in the mail, you never have to return it. If, somehow, they got your billing info without your approval, that unauthorized debiting —is a crime.  Report it to Fraud.ftc.gov.

Contact the company that runs the subscription you want to cancel. If the company has instructions on how to cancel, follow those. Keep a copy of your cancellation request, along with notes about any conversations you had and how and when you canceled.

Watch your bank or credit card statements. Check for charges on your debit or credit card after you canceled the subscription. If a company won’t stop charging your account after you’ve tried to cancel a subscription, file a dispute (also called a “chargeback”) with your credit or debit card.

To do:

Online: Log onto your credit or debit card online account and go through the dispute process.

By phone: Call the phone number on the back of your card and tell the company why you’re filing a dispute.

Follow up with a letter to your credit or debit card company listed disputes or errors.

If you’ve been charged for a subscription you didn’t agree to, report it to the FTC at ReportFraud.ftc.gov or your state attorney general.

                                                                                             #

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.

                                                                                             #

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.

                                                                                             #

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.

                                                                                   #

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.

                                                       #