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

December 25, 2020

CONSUMER STIMULUS PAYMENT SCAMS

Courtesy US Federal Trade Commission

Here’s what you need to know about the stimulus payments and how to avoid scams related to these payments.

Who will get money?

Adult U.S. residents that meet established income limits are eligible to receive money from the government. This includes:

Taxpayers – people who filed a federal tax return for 2018 or 2019.

Retirees – people who get Social Security, Railroad, or other retirement benefits.

Beneficiaries – people who get public benefits like SSDI, disability, or veterans’ benefits.

Non-filers – people who do not have to file a federal tax return, including people who made no income or made less than $12,200 (or $24,400 for married couples).

If you get Social Security or Railroad Retirement benefits, have a qualifying child, and didn’t file a return in 2018 or 2019, you have to take action by noon ET on Wednesday, April 22 to add the $500 per eligible child to your payment. See details from the IRS.

What to do

Most people don’t have to do anything to get their money because the IRS will use the same payment method – direct deposit, Direct Express debit card, or paper check – used to send you your tax refund, Social Security, retirement, or other government benefits money. If the IRS doesn’t have your direct deposit information, you can go to the “Get My Payment” feature at irs.gov/coronavirus and let them know where to send your direct deposit.

If you don’t usually file a tax return, go to irs.gov/coronavirus to access the “Non-filer” portal and to figure out what, if anything, you have to do to claim your money.

To check on the status of your payment, you can now use the “Get My Payment” feature at irs.gov/coronavirus.

Avoiding stimulus payment scams:

Scammers are using these stimulus payments to try to rip people off. They might try to get you to pay a fee to get your stimulus payment. Or they might try to convince you to give them your Social Security number, bank account, or government benefits debit card account number.

4 tips for avoiding a Coronavirus stimulus payment scam:

*Only use irs.gov/coronavirus to submit information to the IRS – and never in response to a call, text, or email.

*The IRS won’t contact you by phone, email, text message, or social media with information about your stimulus payment, or to ask you for your Social Security number, bank account, or government benefits debit card account number. Anyone who does is a scammer phishing for your information.

*You don’t have to pay to get your stimulus money.

*The IRS won’t tell you to deposit your stimulus check then send them money back because they paid you more than they owed you. If that happens it is a fake check scam.

Report scams to the Federal Trade Commission at ftc.gov/complaint.

To keep up with the latest scams, you can sign up for the FTC’s consumer alerts.

ATTRIBUTION:  http://www.ftc.gov

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

December 17, 2020

SECRET SISTER GIVING SCAM 

Giving and receiving gifts during the holidays is a popular practice.  Sharing presents with friends and family is one of the highlights of the season.

Unfortunately, scammers are once again looking to take advantage of our love of gifting—and receiving—with the “secret sister” scam. 

Pyramid Scheme

The “secret sister” scam is a type of pyramid scheme. Pyramid schemes are illegal because they are based on efforts to recruit new people into the scheme, not actually sell or exchange anything of value. Eventually, all pyramid schemes collapse when they run out of new recruits, leaving the vast majority of those who joined with nothing in return. These schemes may also violate state anti-gambling laws since they can resemble illegal chain letters. 

The scheme usually begins with a festive Facebook post or a text message, or email encouraging friends to join in on the giving by sending “just one” gift (often a book, bottle of wine, or a gift card) to a “secret sister.” The friendly message guarantees that participants will receive at least one (and maybe dozens) of gifts in return. These messages may also have phrases like “happy mail,” “for the good of the sisterhood,” “holiday gift exchange,” or similar wording. 

To keep the “secret sister” chain going, the message invites the recipient to share the invitation with friends and family by entering their personal information (e.g., name, mailing address, email address) and the contact information of the people you hope to recruit into a list online. People who send you these messages may not even know it’s a scam.

In truth, the only people receiving a gift in this scheme are scammers. If you personal information, even information as seemingly innocuous as name and mailing address, you could increase your risk of identity fraud. And if you mail a gift to someone you don’t know, chances are that it will just go to a scammer looking to enrich themselves, not someone you know.

While it may seem like you’re just doing something friendly with people you know and trust, by circulating these messages you may be helping to perpetuate an illegal scheme. If you or someone you know receives a “secret sister” message, here are some tips to stay safe and avoid being a victim:

*Ignore the message. The “secret sister” scam works because people engage with it and share it with friends and family. Don’t be another link in the chain. If someone you know sent you the invitation, let them know that it’s a scam.

*Flag the message. Certain social media platforms allow users to report suspicious messages. On Facebook and Instagram, for example, there is usually a button with three dots at the top of messages that allow for a post to be reported as suspicious.

*Don’t share personal information. Providing personal information to someone you do not know can increase the risk of identity fraud, even if it’s something as seemingly trivial as a name and email address.

*If you suspect that you or someone you know has become a victim of the “secret sister” scam or any other fraud, report it at once. You can file a complaint at Fraud.org via their online complaint form. They will share your complaint with their network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars.

ATTRIBUTON: fraud.org

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

December 11, 2020

5G PHONE SCAM 

5G is the new cellular phone technology that is currently being rolled out across the US. The aim of 5G is to make cellular communications, clearer, faster, and more reliable.

But 5G Phone confusion opens scam floodgates. Scammers use tricks when they spot the opportunity that flows from rumors and differences of opinion. Fake news has been mixed into the debate, So, it is no surprise that some people are genuinely scared.

The controversy has increased because some people believe the 5G towers, which handle the advanced communications, or even the phones that use them, emit dangerous levels of radiation. Scammers prey on concerned people whose fear and uncertainty make them vulnerable.

A recent 5G scam is a spurious claim that a new available device can eliminate or shield the electromagnetic waves emitted from cellular towers. There are reports crooks have been selling them for up to $400 apiece.

The most common of these devices plug into USB ports on computers, laptops, and all manner of mobile devices. The sellers claim it can neutralize electromagnetic emissions.

The scammers use fancy names and jargon words like “quantum” and “hologram” to try to convince victims of the device’s tech pedigree. In fact, says tech reporting site The Verge, it is just a cheapo, regular USB memory stick.

The Verge advises: “Please don’t waste your money on this piece of junk and remember: Radio waves can only spread computer viruses, not human ones.”

ATTRIBUTION: scambusters.org

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

December 7, 2020

FAKE CALLS FROM APPLE AND AMAZON

Courtesy US Federal Trade Commission

December 7, 2020

Scammers are calling people and using the names of two well-known companies, Apple and Amazon, to rip people off.

Here is what you need to know about these calls.

In one version of the scam, you receive a call and a recorded message that says it is Amazon. The message says there’s something wrong with your account. It could be an alleged suspicious purchase, a lost package, or an order they can’t fulfill.

In another twist on the scam, you receive a recorded message that says there’s been suspicious activity in your Apple iCloud account. They may falsely say your account has been breached.

In both scenarios, the scammers say you can conveniently press 1 to speak with someone. Or they give you a phone number to call. Do not do either.

It’s a scam. They’re trying to steal your personal information, like your account password or your credit card number.

If you receive an unexpected call or message about a problem with any of your accounts, hang up.

Do not press 1 to speak with customer support

Do not call a phone number they gave you

Do not give out your personal information

If you think there may be a problem with one of your accounts, contact the company using a phone number or website you know is real.

If you receive a call you think is a scam, report it at ReportFraud.ftc.gov.

ATTRIBUTION: ftc.gov

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

November 28, 2020

DODGING FRAUD DURING PANDEMIC

The US Justice Department has advice for dodging fraud during the pandemic.

It advises:

1. Independently verify the identity of any company, charity or individual that contacts you regarding COVID-19.

2. Check the websites and email addresses offering information, products or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov,” which is the legitimate website of the Centers for Disease Control and Prevention (CDC).

3. Be wary of unsolicited emails offering information, supplies or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the public this way.

4. Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.

5. Make sure the anti-malware and antivirus software on your computer is operating and up to date.

6. Ignore offers from suspicious sources for a COVID-19 vaccine, cure or treatment. Remember, if a vaccine becomes available, you won’t hear about it for the first time through an email, online ad or unsolicited sales pitch.

7. Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.

8. Research any charities or crowdfunding sites soliciting donations tied to COVID-19 before making a donation. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name, or if it has reputable-looking seals or logos on its materials. For information online on donating wisely, visit the Federal Trade Commission (FTC) website.

9. Be wary of any business, charity or individual requesting payments or donations in cash or by wire transfer, gift card or using the mail. Don’t send money using these payment methods or channels.

10. Be cautious of “investment opportunities” related to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand.

More information about avoiding investment fraud is provided by the U.S. Securities and Exchange Commission www.SEC.gov and by AARP Fraud Helpline (877) 908-3360.

ATTRIBUTION: AARP

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

November 23, 2020

DEEP FAKE VIDEO FRAUD

Fraudsters are combining a pair of already wicked scams — deep fake videos and ransomware — into a single threat that will strike fear into the hearts and minds of victims.

Deep fake videos are fabricated with software that makes an individual seem to be saying and doing things they have never done. Examples have been seen in recent derogatory election campaign videos.

Mostly, it is used to lock up the data in a PC or an entire network until the user pays a ransom. But now a leading Internet anti-malware firm is warning it could be used to blackmail with the threat of posting a deep fake video online, showing a victim in some compromising situation.

The fear has increased because new Artificial Intelligence (AI) software makes it easy to generate deep fake videos without any expertise. It has been defined as a type of malicious software that automatically generates a fake video, which shows the victim performing an incriminatory or intimate action and threatens to distribute it unless a ransom is paid.

Victims may falsely be told if they pay up the video will be permanently deleted. But blackmailers nearly always hang on to their “evidence” so they can come back and ask for more money.

Malwarebytes notes:

Internet security firm Malwarebytes has latched onto the threat, warning, “If something like this can be automated, you can bet that more bad actors with little to no background in programming will use the technology. The potential for this campaign to destroy a target’s reputation is exceedingly high. It does not matter whether a video of someone is real or doctored to look real. “

Here is how it works:

 First, the scammer tricks the victim into installing malware on their PC. Then they “scrape” (steal) video and voice samples of the victim.

Alternatively, they scrape their raw materials that are publicly available online — for example, posted on social media. The crook uses the new software to superimpose elements from the scrapes onto a created phony video so it looks like the victim who is committing whatever act is depicted.

The image does not always have to be a video. It can be a still photo showing the victim in an embarrassing situation.

If the scammer has access to the victim’s PC, the horror unfolds with a typical ransomware countdown screen giving the victim a specific time in which to pay the ransom–or have the video posted online.

It is also possible the blackmail demand could be sent by email, along with a link to the deep fake video, again with a specific ransom time demand. In this case, clicking the link not only accesses the video but also downloads the ransomware while the victim is watching.

In either case, the crook usually demands payment by untraceable cybercurrency, most probably Bitcoin. Or they may ask for the ransom payment to be wired–again untraceably.

The best way to avoid this scam is to do your best to ensure the crooks cannot get their hands on your images. That means using privacy settings on your social media accounts that allow only friends to see your photos.

Plus, do not click on email and text links in messages that suggest someone has blackmail material about you, even if the message seems to come from a person you know.

You can do an audit of your current photos and videos online and who has access to them, suggests blogger Jovi Umawing. Weed out public-facing photos as much as you can or set them to be viewed by certain groups in your pool of contacts. If they are not photos you posted yourself, simply un-tag yourself, or ask your contact to take them down.

ATTRIBUTION: scambusters.org

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

November 18, 2020.

HEALTH INSURANCE FRAUD    

Having personal health insurance can provide a welcome degree of comfort for the future.

But obtaining the right health plan can feel like navigating a maze, with bewildering coverage and cost choices. Most insurance policies contain much “fine print” that is not easily understood. Shady fraudsters count on confusion to sell insurance products and health services that deliver far fewer benefits than promised — or none at all.

These schemes proliferate when health care is in the news and on our minds. The coronavirus pandemic has brought robocalls and phishing emails peddling bogus “corona insurance” supposedly covering COVID-19 treatment.

Fraudsters try to convince you they have a simple solution to the complexity and expense of being covered. They cold-call potential victims or generate leads through websites, using paid advertising to get to the top of search results. They claim to offer “comprehensive” health plans that meet “Obamacare” or “Trumpcare” requirements.

Some crooks wrongly use the names and logos of well-known insurers or even AARP. People who respond are then peppered with misleading promises of full coverage with low premiums, deductibles and copayments. The resulting policies will likely turn out to be, at best, far skimpier than advertised and at worst outright fakes.

Often, victims are tricked into buying medical discount plans, in which they pay a monthly fee for reduced prices on specific services and products from participating health care providers. Some discount programs are legitimate, but as the Federal Trade Commission (FTC) warns, they are not a substitute for health insurance.

Scammers impersonate representatives of the government-run health insurance marketplace. They will tell you they need personal information to verify an application or that they can help you choose the right plan — for a fee. This is an attempt to steal your identity.

Warning Signs

High-pressure sales pitches that push low-cost plans or offer special rates if you sign up right away.

Claims that a plan is licensed under ERISA, the federal Employee Retirement Income Security Act. That is incorrect.  Insurance companies are licensed by the states, not by any federal body.

A plan requires you to join an “association” or “union” to get covered. These may be fake organizations designed to create the illusion that you are buying group health insurance.

Someone contacting you about health coverage claims to be from the government. No government representative will ever try to sell you insurance.

Do’s

Do compare rates. Premiums for comprehensive coverage that are far lower than what you see elsewhere are probably bogus.

Do confirm with your state insurance commissioner that a plan provider is licensed.

Do insist on seeing a statement of benefits or a complete copy of the policy before you sign.

Do learn the difference between medical discount plans and health insurance. The FTC offers guidance. Ask specific questions to make sure you know what you’re getting, http://www.ftc.gov.

Do research an association or union named in an insurance pitch. Look for a U.S. street address and phone number, and for evidence of activity other than selling health insurance.

Do check out an unfamiliar company that says it sells plans through a major insurer such as BlueCross/BlueShield. The affiliation should be confirmed with the big-name insurer.

 Don’ts

Don’t enter personal information on a website in exchange for a price quote. You likely are setting yourself up for identity theft or a barrage of sales calls.

Don’t keep talking to a sales agent who gives vague or evasive answers to coverage questions or tells you the details are “in the brochure.”

Don’t sign up for a plan if the bar or price seems too low — for example, if you are not required to get a physical or provide a medical history. Some scam sites claim you can get insurance by just filling out a form.

Don’t give bank account, credit card or personal information, or make a payment, in exchange for assistance in getting coverage. Help navigating the health insurance marketplace is available free. Go to HealthCare.gov and click “Find Local Help.” Real health insurance marketplace representatives will not ask you for personal or financial data.

More Resources

If you suspect there is a health insurance scam, file a complaint with the Federal Trade Commission www.ftc.gov, or call 877-382-4357. Also, report to your state insurance department.

HealthCare.gov, the official Affordable Care Act website, has information on preventing and reporting suspected Health Insurance Marketplace scams.

You can call the AARP Fraud Watch Network Helpline: 877-908-3360

ATTRIBUTON: AARP

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

November 16, 2020

SOCIAL MEDIA SCAMS     

Fraudsters are committing fraud on popular social networks like Facebook, Twitter and Instagram. Many online shopping scams originate with deceptive social media ads, usually on Facebook or Instagram says the US Federal Trade Commission.

Crooks intend to have you send money or click on malware-loaded links. They may simply put a social media spin on older online frauds. Your social feeds are as likely as your email spam folder to be full of fake corporate giveaways, bogus investment tips, nonexistent government grants, supposed sweepstakes winnings and ads for questionable health aids.

There’s more

Romance scammers create legitimate-looking profiles on social media and use them to woo potential victims (a practice known as catfishing). Their purpose is to obtain personal information and eventually money after establishing a romantic relationship.

Be wary of strangers who attempt to forge close bonds or romantic relationships on social media. if they start asking for money—cut off all contact!

And be cautious about innocent-sounding queries about your high school mascot or first car. Con artists know these are common security questions used by banks and financial firms use to protect accounts.

Warning Signs

Ignore posts and ads that offer super low prices on popular name-brand goods or free trials of miraculous health and beauty aids. If a discount or product claim seems too good to be true, it probably is not true.

Ignore all posts that ask for money, even if they appear to be from someone you know.  

Think carefully before you post information about yourself and your whereabouts. Hackers can use personal information for identity theft, and a seemingly innocuous vacation photo can signal to criminals that your home is empty.

You can report a scam by calling AARP Fraud Watch Network Helpline: 877-908-3360

ATTRIBUTION: AARP.ORG

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

November 13, 2020

CAR BUYING SCAMS

Car buying is a gamble. If you buy a used one, you’re betting that it won’t quickly let you down. If you buy a new one, you don’t know if you bought a lemon or if you overpaid. A lot of crooks are ready to scam both car buyers and sellers.

A scam can be disarmingly simple. For example, in a recent New York incident, a fake buyer and a would-be seller met up and took a vehicle for a spin. Partway through the drive, the pair stopped and got out to inspect the vehicle, leaving the engine running. Then the scammer jumped back in and drove away, injuring the owner as he tried to stop the theft.

There have been incidents in which a phony buyer out on a test drive with an owner has pulled a gun and ordered the owner out — basically a gunpoint hijacking.

Another common fake buyer trick is a version of an advance payment scam in which the seller receives a dud check for the car being sold.  Extra dollars may be added to be forwarded to a third party to pay for phony shipping and insurance. In this case, the scammer is relying on the victim to wire this additional sum back to them before the fake check is identified.

Scammers target buyers by luring them into paying for autos they never receive, receiving flood-damaged vehicles, having a rolled back odometer or disguised vehicle title.

Escrow scam

A recent report has identified a surge in car-purchase and escrow scams. This scam is used to persuade a buyer to deposit money with a supposed escrow company that will hold the cash until the buyer receives the car and then pass the payment to the seller.

The problem is that the escrow company doesn’t exist, or at least it’s a fake operation set up by the scammer. So, when the victim sends the money, it goes straight into the scammer’s pocket.

The situation is worsening as more people opt to buy online. Scammers are also using self-isolation or lockdowns as an excuse for refusing to meet the potential buyer. Instead, they convince the victim that using an escrow will ensure the seller gets paid and the buyer is happy.

Warning Signs

Common warning signs of this con trick include extremely low prices; claims of a family death, divorce or military deployment forcing an urgent sale; excuses so the “seller” avoids meeting the would-be buyer or letting them see the vehicle; claims that the deal is secure because of escrow or some type of (non-existent) guarantee from the likes of eBay, Craigslist, Facebook Marketplace or even Amazon.

Even if you can’t easily see the vehicle, you can pay a legal car inspection service to view and report on it.  You can insist you have an opportunity to personally inspect the title.

If you want to use an escrow service, insist that you be allowed to make the company choice.

The most effective way to avoid nearly all of these tricksters is to deal only with someone you can meet face-to-face and who has a vehicle and a title you can inspect. No matter what the story or how tempting the prices, never buy from an individual sight unseen.

You can learn more about fraudulent escrow sites here: https://tinyurl.com/escrow-fraud and read the full BBB report, which includes examples of the car buying con tricks, here: https://tinyurl.com/BBB-cars

ATTRIBUTON:  scambusters.org

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

October 31, 2020

FREE TRIAL OFFER SCAM

Courtesy US Federal Trade Commission

Free Trial Offer. “Try It Now… For Free!!!”

A chance to try something out for free? What have you got to lose?

If you’re interested in a particular product or service, an opportunity to try it before you buy might seem like a no-brainer.

Caution: Read the fine print!

 What starts as a free trial — or for a very low cost — might end up costing you real money.

The Federal Trade Commission, the nation’s consumer protection agency, wants you to know that some companies use free trials to sign you up for more products — sometimes lots of products — which can cost you lots of money as they bill you every month until you cancel.

Whether it’s for a teeth whitener, vitamin or kitchen gadget, all free trials eventually end. If you don’t want to buy what you’ve tried, you may need to cancel or take some other action before the trial is up. If you don’t, you may be agreeing to buy more products.

Some dishonest businesses make it tough to cancel, hiding the terms and conditions of their offers in teensy type, using pre-checked sign-up boxes as the default setting online, and putting conditions on returns and cancellations that are so strict it could be next to impossible to stop the deliveries and the billing.

The “free trial” might come with a small shipping and handling fee. You think you’re only paying a couple of dollars, but you’re really giving over your credit card information, resulting in much higher charges after the trial.

Strings Attached

Other “free” offers enroll you in clubs or subscriptions. For example, a company might offer you an introductory package of free books, CDs, magazines or movies. If you sign up, you may be agreeing to enroll in a club that will send you more products and bill you until you cancel, or to a subscription that’s automatically renewed each year.

So how can you avoid the costs that might be hiding in free trials?

Research the company online. See what other people are saying about the company’s free trials — and its service. Complaints from other customers can tip you off to “catches” that might come with the trial.

Look for small print that sets terms and conditions for the offer. That includes offers online, on TV, in the newspaper, or on the radio. If you can’t find terms and conditions, or can’t understand exactly what you’re agreeing to, don’t sign up.

Watch out for pre-checked boxes. If you sign up for a free trial online, look for already-checked boxes. That checkmark may give the company the green light to continue the offer past the free trial or sign you up for more products — only this time you have to pay.

Mark your calendar. Your free trial probably has a time limit. Once it passes without you telling the company to cancel your “order,” you may be on the hook for more products.

Look for info on how you can cancel future shipments or services. If you don’t want them, do you have to pay? Do you have a limited time to respond?

Read your credit and debit card statements. That way you’ll know right away if you’re being charged for something you didn’t order.

If you see charges you didn’t agree to, contact the company directly to sort out the situation. If that doesn’t work, call your credit card company to dispute the charge. Ask the credit card company to reverse the charge because you didn’t actively order the additional merchandise.

Where to Complain

If you’ve been wrongly charged for a free trial offer, report it to the FTC: http://www.ftc.gov/complaint. You also can contact your local or state consumer protection agency and file a complaint with the Better Business Bureau.

ATTRIBUTION: US Federal Trade Commission—www.ftc.gov