Free Public Service

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

August 12, 2022

PHONY MESSAGES

Attribution Federal Trade Commission

That unexpected text from the Postal Service (USPS), Costco, or The Home Depot telling you about an unclaimed package or a survey you can complete to claim a freebie is NOT from them. It is a scam.

There has seen an increase in reports from people receiving text messages that look like they are from well-known names like USPS, Costco, Home Depot and others.

Alert: They are from impersonators. The details vary, but the scammers are after the same thing: your money and your personal information.

 You may receive a text from scammers pretending to be USPS and asking you to confirm your debit card details so you can get an undelivered package. Or you might get texts about a chance to win a free gift card or a power tool. To claim your “reward,” you’re told to click on the link, answer some questions, and pay for shipping. Don’t do it.

No matter what the unexpected text says, the advice is the same:

Don’t click on links or respond to unexpected texts — including ones asking you to fill out surveys to get free items. If you think it could be legit, contact the company using a website or phone number you know is real. Don’t use the information in the text message.

Do not pay to get a package redelivered. The real USPS will not contact you about a delivery (unless you submitted a request first and give a tracking number) — and they’ll never demand payment to redeliver a package.

Have you spotted an impersonation scam? Report it at ReportFraud.ftc.gov.

A Free Public Service

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

July 26, 2022

DEBT RELIEF FRAUD

Courtesy AARP

When debt seems like a hole you will never climb out of, a phone call, email, website or ad promising to settle your liabilities for pennies on the dollar can be very tempting. But proceed with care: Some debt relief offers are scams that will dig you in even deeper.

There are reputable companies and organizations that can help you get out of the red. They can advise you on budgeting and money management, negotiate concessions with creditors or set you up with a plan to put away money each month to pay down your debts, usually over a period of years.

Scammers, on the other hand, offer sham “guarantees” to get you out of debt quickly and cleanly — and, crucially, “they ask you to pay them before they do anything for you,” says the Federal Trade Commission (FTC). That is illegal, and a big red flag that your would-be debt savior isn’t on the up-and-up. (Legitimate debt relief firms do charge for their services but can collect only when they get results.)

Some scammers will take your money and run; others will string you along, collecting payments and making promises while you fall farther behind on delinquent accounts.

Student loan debt, which has ballooned to $1.6 trillion and is a growing burden for older Americans, is an especially ripe market for fraudsters. They collect in advance and ongoing fees with bogus promises to enroll customers in government debt-forgiveness programs. Amid the economic anxiety caused by the coronavirus pandemic, consumers have been targeted by scam robocalls offering student loan repayment help and other debt assistance, the Federal Communications Commission reports.

Even with legit companies, debt settlement carries considerable risk. Many fake firms instruct clients to stop paying their debts, on the premise that this will compel creditors to negotiate a reduction. It might — but creditors are under no obligation to settle rather than, say, sue, and you could accrue interest, penalties and damage your credit score. Some  firms do not fully explain the potential consequences, according to the FTC. The commission encourages consumers to carefully weigh a range of options when looking for ways to dig out of debt.

Warning Signs:

A fake debt relief company asks for fees before it settles any debts.

The fake company guarantees it can eliminate your debt or reduce it by a particular amount in a set time.

The fake company advises you to cut off communication with creditors.

The fake company won’t send you information about its services unless you provide financial information such as credit card account numbers and balances.

Do’s:

*Do your homework on a debt relief service you are considering working with. *Search online and check with your state’s attorney general and consumer protection agency to see if the company has been the subject of complaints.

*Do know the disclosure requirements for debt settlement companies. Among other things, they must explain all fees for and conditions on their services, estimate how long it will take to settle each debt, and lay out the risks of stopping payments to creditors.

*Do be skeptical of claims that a “new government program” or change in the law will reduce, forgive or cancel student loans, credit card debt or other liabilities.

*Do consider other options for dealing with debt, such as negotiating directly with creditors or using a nonprofit credit counseling agency.

Don’ts:

*Don’t pay a debt relief or credit counseling service fees in advance, even if they’re couched as “voluntary” contributions.

*Don’t believe guarantees. No company can ensure that it will reduce your debt by a certain amount or stop collection calls and lawsuits.

*Don’t let a company enroll you in a debt relief program without reviewing your financial situation with you.

*Don’t buy that a company can get negative information out of your credit file. If data on delinquency, defaults and other problems is correct, it stays on your credit report for at least seven years, by law.

More Resources:

The FTC and the U.S. Consumer Financial Protection Bureau offer background and advice on debt settlement, credit counseling and other ways to get out from under your financial liabilities.

Have you seen this scam?

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

Report debt relief scams to the Federal Trade Commission, online or at 800-382-4357.

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A Free Public Service

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

July 26, 2022

DEBT RELIEF SCAMS

A Free Public Service

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

July 25, 2022

REVERSE MORTGAGE SCAMS

A Free Public Service

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

REVERSE MORTGAGE SCAMS

July 25, 2022

REVERSE MORTGAGE SCAMS

Courtesy AARP

A reverse mortgage is a type of loan that is 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.

For certain 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 in their 60s and up out of large sums of money, or even their homes.

The borrower gets what is, in effect, a tax-free advance on their equity, in the form of a line of credit, receiving fixed monthly payments or a lump sum. For most reverse mortgages, you must use the proceeds to pay off your existing mortgage; the remainder of the loan comes due when the owner moves, sells the house or dies.

Available to homeowners aged 62 and over, reverse mortgages are complicated, and they can be risky. Fraudsters take advantage of that complexity to draw older homeowners into bad or outright bogus deals, marketing reverse mortgages in ads and “investment seminars” as a cure-all for financial worries in your golden years, providing “free” income or a means to delay filing for Social Security.

Scammers want to put into their pockets the home equity you spent years building.  

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.

*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.

*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.

Have you seen this scam?

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.

July 13, 2022

CATTLE FEED SCAM 

Courtesy Federal Trade Commission

 Ads for cattle feed at below-market prices? Stop. Check it out. That could be a scam.

Widespread drought, rising prices, and feed shortages in the Great Plains and Western U.S. have created a fertile field for cattle feed scammers. They take advantage of ranchers who are working to protect their livestock and their bottom line.

For instance, in Montana authorities are warning ranchers to treat with suspicion ads offering cattle feed at below-market prices. Ranchers report that shady dealers promising grain, hay, barley straw, and wheat straw at low prices are collecting hefty advance payments, but never delivering.

Investigators warn that bogus ads from feed scammers may show up in agricultural publications, on radio, and on social media. Dishonest sellers also may create professional-looking websites and videos to convince you that they’re legitimate.

To help protect from losses:

*Check out a seller before you buy. Search online for the company’s name plus words like “review,” “scam,” or “complaint.”

*Consider how you’re asked to pay. Don’t deal with a seller who requires payment by wire transfer, cryptocurrency, or gift card. That’s sure to be a scam.

*Go slow. Avoid high-pressure sales pitches that require you to “lock in” prices by paying for all or part of your order before getting delivery, particularly if you don’t know the seller.

*Talk with someone you trust. Before you pay, tell someone — a friend, family member, or neighbor — about the deal. Talking about it could help you realize it’s a scam.

Contact your state Department of Agriculture. Many states have hay support programs.

Did you spot a feed scam? Report it to your state Office of Consumer Protection. And please tell us, too, 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.

July 3, 2022

BLACK SALVE SCAM

Courtesy US Food and Drug Administration

Scammers are selling certain salves or creams containing an ingredient commonly known as “black salve”. The claim is it will cure cancer, boils, moles and skin tags or non-cancerous, growths of the skin. These claims are false.

Black salve is an alternative therapy increasingly chosen by patients to self-manage their skin lesions. Black Salve is an informal term not approved by FDA.

 Salve products containing corrosive ingredients, including black salve, are dangerous and not approved by the U.S. Food and Drug Administration.

The FDA is warning consumers not to use any salves or other topically applied products that list any of the following potentially dangerous ingredients: sanguinarine, Sanguinaria canadensis, or bloodroot, alone or in combination with zinc chloride.

It is also sold under such names as Skinprov, drawing salve, red salve, Cansema, bloodroot, Indian Herb, Hawk Dok Natural Salve, Black Drawing Ointment, and many others. The product comes in many forms including salve, paste, cream and poultice (soft, moist material applied to wound).

Watch out for the following red flags:

Salve products may come with any of  the following names: black salve, drawing salve, red salve, Cansema, bloodroot, Indian Herb, Hawk Dok Natural Salve, Black Drawing Ointment, and many others.

Other Things You Can Do to Stay Safe

Contact your health care professional or dermatologist if you have any concerns about skin cancer or other skin-related issues. Be sure to tell them about any products, including herbal or other “natural” products, that you may be using for any skin-related issues.

Do not use black salve or salve products that contain sanguinarine, Sanguinaria canadensis, or bloodroot, alone or in combination with zinc chloride, as an alternative to proven medical therapies. This can result in permanent disfigurement, in the worst case, death.

To report adverse events or side effects related to the use of these products, health care professionals and consumers can:

Complete and submit an online report at MedWatch Safety Information and Adverse Event Reporting Program, or

Call 1-800-332-1088 to request a reporting form, then complete and return to the form to the address on the form, or by faxing it to 1-800-FDA-0178.

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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A free Public Service

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

May 20, 2022

CROWDFUNDING SCAMS

Courtesy scambusters

Crowdfunding is a way to raise funds for a specific cause or project by asking a large number of people to donate money, usually in small amounts, and usually during a relatively short period of time, such as a few months.

Crowdfunding is a $17 billion a year business in the US. Scammers tug at your heartstrings with stories of war victims or people desperately needing money for healthcare.

The war in Ukraine is fueling a huge rise in crowdfunding scams, robbing Americans and people who genuinely need help of millions of dollars. The advent of disasters and emergencies like Ukraine  have opened the floodgates for scammers.

Popular sites like GoFundMe, Kickstarter (mainly used for business projects), and Indiegogo, are trying to spot and remove the crooks but they’re fighting an overwhelming tide of scams.

Scammers use names of legitimate organizations to imply they’re backing a funding campaign.

Furthermore, it’s now easier than ever to set up an individual crowdfunding site independent of the big players. Crooks can buy a perfectly legitimate software kit that does all the work for them.

Many are easily moved by some of the stories that accompany individual campaigns.

HOW TO AVOID CROWDFUNDING SCAMS

Be cautious about donating to a friend’s Facebook funding appeal. Check with them first.

Educate yourself. Check if the crowdfunding organization provides guidance on scams — and read it. For example, GoFundMe offers help here: GoFundMe Trust & Safety.

Beware of campaigns that ask for donations in cryptocurrency/cybercurrency. Such payments are untraceable.

If you don’t know the individual or have never dealt with the charity, research their cause carefully. Have they been involved in other funding campaigns? What happened then?

Read any small print in the funding blurb to discover, for example, whether all donations go directly to helping the individual or charity or whether a proportion pays for administration costs.

Don’t act impulsively. Think before you donate.

Read the comments from other donors on the funding page. Be alert to warning signs from disgruntled givers.

Don’t assume that a site naming an individual in need of help necessarily has the victim’s blessing or that your money will find its way to them. If it doesn’t explicitly have their approval, don’t give.

If you want to donate to a disaster relief program, identify and research the organization behind it and, if you’re satisfied it’s genuine, donate directly to them.

If you suspect you’re a victim of a crowdfunding scam, notify whichever platform it was on and tell the Federal Trade Commission, http://www.ftc.gov

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