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

October 28, 2020

POLITICAL SCAM  PACs  

What is a scam PAC?

Legitimate political action committees (PACs) are federally registered groups formed to raise and spend money to elect or defeat candidates or support a favorite cause.

 Scam PACs exist primarily to raise money for themselves. Scammers are eager to take advantage of your civic engagement by tricking you into contributing to a bogus political action committee.

If you are a person with strong political beliefs, you might be tempted  by a chance to give a few dollars to support a candidate who shares your views, or an organization that advocates on an issue you care about

Scammers may claim to support a particular politician or cause, but the vast amount of donor dollars goes to cover fundraising costs and enrich the organizers. They collect big salaries or run affiliated companies that charge the PACs inflated fees for services.

Some PAC scams imitate charity scams, soliciting money to supposedly support law enforcement officers, veterans or cancer research. Whatever the pitch, it is a scam.

Warning Signs:

*A PAC has a name that sounds more like that of a charity. PACs registered with the Federal Election Commission (FEC) are supposed to focus on political activity.

*The PAC’s website does not list the names of the people running it or provide contact information.

*A caller claiming to be a pollster or elections official asks you for personal or financial data.

Do’s

*Do go to a candidate’s official campaign website to learn about the candidate or to donate.

*Do check out a PAC before you donate. You can look up individual groups and get detailed information on their fundraising, spending and leadership at the websites of the Federal Election Committee, or the nonprofit Center for Responsive Politics.

*Do create a “refusal script” with potential responses to high-pressure fundraising requests. For example: “Let me review the organization and get back to you,” or, “I’ve already determined my donations for the year.”

Don’ts

*Don’t make donations or provide personal or financial information to organizations that contact you out of the blue.

*Don’t give in to pressure to contribute by a particular method. Scammers may push you to send a check, for example, ostensibly because it means processing fees will not be taken out of the donation but really because it makes it harder to dispute the charge.

*Don’t give to a PAC that does not ask about your citizenship status and employment. Real PACs do so because they are legally barred from taking donations from federal contractors and foreign nationals.

*Don’t provide private information to political canvassers. They should not ask for personal information other than whether you are registered to vote and who you plan to vote for. 

Have you experienced this scam?

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

ATTRIBUTION: AARP

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

October 23, 2020

RANSOMWARE SCAM  

What Is Ransomware?

Ransomware is defined as vicious malware that locks users out of their devices or blocks access to files until a sum of money or ransom is paid. Ransomware attacks cause downtime, data loss, possible intellectual property theft, and, in certain industries, an attack is considered a data breach.

Ransomware is a particularly devious type of malicious software, or malware. You can inadvertently download it onto your computer or device by clicking on an online ad, email or opening an attachment.

Some online scammers have combined ransomware with extortion, employing malware that generates a fake message purportedly from the FBI accusing victims of watching child pornography or downloading illegal files, and freezes victims’ computers until they pay a “fine.”

Nightmare Scenario

 You’re doing work, answering emails or browsing the web when suddenly your computer or mobile device stops working. A taunting message takes over your screen, informing you that some faceless internet villain has seized control of the machine and all your data. To get it back, the message claims, you will have to fork over a ransom, usually in a cryptocurrency such as Bitcoin.

Business Owners Victims

Small business owners should be especially vigilant. Nearly two-thirds of ransomware attacks reported to cybersecurity firm Beazley in the third quarter of 2019 targeted small firms. But cybercrooks are increasingly going after bigger fish.

Public Service Victims

Attacks against state and local government computer networks have severely affected public services in major cities.

Dos.

Do set your computer operating system, web browser and security software to update automatically so you’re always protected against the latest threats.

Do back up all your important data. You can do so to a portable drive, but consider also signing up for a cloud-based backup service that automatically backs up your files and saves previous versions so you can get them back unencrypted.

Do unplug portable drives from your computer when not in use, to lessen the chances that they, too, will be encrypted in a ransomware attack.

Do use an ad blocker program or browser extension to help protect your device from malware planted in web ads.

Do disconnect an infected computer from your home or office network to prevent ransomware from spreading to other devices.

Don’ts

Don’t click links in emails without first checking them out. Hover your cursor over the link, so you can see if the internet address, or URL, looks suspicious.

Don’t open an email attachment unless you’re expecting a file from someone and you know it’s safe.

Don’t click pop-up ads offering free software products that remove malware from your computer. Some ransomware developers use pop-ups to transfer their programs.

Don’t go to websites that contain pornography, pirated movies or other unsavory stuff. Crooks often plant malware in those places.

Don’t pay a ransom to online crooks if your computer is attacked. They may up the price, then destroy your data or leave it encrypted anyway.

To sign up for Watchdog Alerts tips on avoiding scams, call the AARP Fraud Watch Network Helpline: 877-908-3360

ATTRIBUTION: AARP

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

October 17, 2020

REVERSE MORTGAGE SCAMS

A reverse mortgage is a type of loan that is designed to give homeowners access to the equity they have built up in their homes — basically, it is the property’s current value minus any outstanding loans or liens.

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

For scam artists, this can be a lucrative tool to fleece people age 62 and older out of large sums of money, or even their homes.

Available to homeowners age 62 and over, reverse mortgages are complex, and they can be risky. Fraudsters take advantage of that complexity to draw older homeowners into bad or outright bogus deals. They may market 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.

It is often a group effort, with unscrupulous mortgage brokers or financial advisers joining forces with corrupt appraisers, attorneys and loan officers. They will finagle an inflated appraisal of a home’s value, thus inflating the equity and the potential loan, and try to persuade the owner to take out a reverse mortgage. The team of crooks will handle the paperwork, close the loan and come up with a pretext to get the money or even take title to the house.

Warning Signs

A smooth-talking “broker” or lender uses high-pressure tactics to try to talk you into a reverse mortgage loan.

REMEMBER. The scammers bottom-line goal is simple: They want to put into their pockets the home equity you spent years building.

They claim the loan is safe because it is insured by the Federal Housing Administration (FHA). The FHA does insure some reverse mortgages, but that coverage does not protect the borrower; it is for the lender, in case of default.

Scammers do not 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 in order 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.

For more information call the AARP Fraud Watch Network Helpline: 877-908-3360

ATTRIBUTION: AARP

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

October 11, 2020

IDENTITY THEFT

Courtesy US Consumer Financial Protection Bureau

What is identity theft?

Identity theft occurs when someone steals your identity to commit fraud.

Stealing your identity could mean using your personal information such as your name, Social Security number, bank account number or credit card number without your permission

Identity thieves use that stolen information to rent apartments, get credit cards, or start other accounts in your name. You may not learn about the theft until you review your credit report or a credit card statement and notice accounts you didn’t open, charges you didn’t make, or until you’re contacted by a debt collector.

Information about how you can spot identity theft, report and recover from identity theft is available on  https://www.identitytheft.gov.

What do I do if I think I have been a victim of identity theft?

If you think you have been a victim of fraud or identity theft, contact one of the nationwide credit reporting companies and place a fraud alert in your credit report.

You can contact the three nationwide credit reporting companies, Equifax , Experian , and TransUnion with a fraud alert:

CALLING or MAIL

Equifax Alerts, (800) 685-1111    Equifax Consumer Fraud Division, PO Box 740256, Atlanta, GA 30374;

Experian Fraud Center, (888) 397-3742, Experian, P.O. Box 9554, Allen, TX 75013;

Transunion Fraud Alert, (888) 909-8872  TransUnion Fraud Victim Assistance Department, P.O. Box 2000, Chester, PA 19016.

A fraud alert requires any future creditors who check your credit report to take steps to verify your identity before opening a new account, issuing an additional card, or increasing the credit limit on an existing account based on your request. When you place a fraud alert on your credit report at one of the nationwide credit reporting companies, it must notify the others.

There are two main types of fraud alerts: initial fraud alerts and extended alerts.

INITIAL FRAUD ALERTS

To file an identity theft report, you must file either a police report or a report with a government agency such as the Federal Trade Commission, http://www.ftc.gov.  

You can place an initial fraud alert on your credit report if you believe you are (or are about to become), a victim of fraud or identity theft. Credit reporting companies will keep that alert on your file for one year. After one year the initial fraud alert will expire and be removed. You have the option to place another initial fraud alert at that time.

An initial fraud alert requires that a potential creditor take reasonable steps to make sure the person making a new credit request in your name is you. If you provide a telephone number, the lender must call you or take reasonable steps to verify whether you are the person making the credit request.

When you place an initial fraud alert in your file, you are entitled to order one free copy of your credit report from each of the nationwide credit reporting companies. These free reports do not count as your free annual report from each credit reporting company.

EXTENDED ALERTS

You can place an extended alert on your credit report after your identity has been stolen and you file an identity theft report.

When you place an extended fraud alert in your file, you are entitled to order two free copies of your credit report from each nationwide credit reporting company over a 12-month period.

An extended alert is good for seven years. An extended alert requires that a potential creditor contact you in person or through the telephone number or other contact method you designate to verify whether you are the person making the credit request.

SECURITY FREEZES

Under federal law you can freeze and unfreeze your credit record for free at the three nationwide credit reporting companies – Experian, TransUnion, and Equifax. A security freeze also called a credit freeze, stops new potential creditors from accessing your credit file and others from opening accounts in your name, until you lift the freeze.

There is an exception. The federal law requiring free security freezes does not apply to someone who requests your credit report for employment, tenant-screening, or insurance purposes.

Unlike fraud alerts, if you place a security freeze with one credit reporting agency it will not notify the other credit reporting companies. You must contact each credit reporting company individually if you would like to place a security freeze with all three nationwide credit reporting companies.

Because most businesses will not open credit accounts without checking your credit report, a freeze can stop identity thieves from opening new accounts in your name. Be mindful that a freeze does not prevent identity thieves from taking over existing accounts.

ATTRIBUTION: US Consumer Financial Protection Bureau

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

October 3, 2020

PACKAGE DLIVERY SCAM 

Scammers are increasing their use of the fake package delivery scam. In a typical scam of this type, consumers receive a text message, email, or phone call informing them that they have a package waiting for them, or that the delivery service (e.g., FedEx, UPS, or USPS) was unable to deliver. 

To have the package delivered, the consumer asked you to click on a link and “verify” personal information, or supply payment information (like a credit card or bank routing number). In other cases, the scammers’ messages may direct recipients to a phony authentic-looking website (for example, a phishing site that looks like an Amazon customer satisfaction survey).

These delivery messages can be quite convincing—but they are fake and generated by scammers trying to extract valuable information from consumers. As consumers come to rely more on e-commerce for day-to-day needs, they may be more likely to assume these messages are legitimate.

Here are the steps you can take to reduce your risk:

*Do not click on any links or attachments in text messages or emails claiming to be from a package delivery service. If you receive a phone call from someone claiming to be with a package delivery service, hang up. Do not press “1” (or any other number) to be connected to a representative.

*If you do click on a suspicious link, do not supply any personal information such as your Social Security number, mailing address, credit card number, or bank account routing information, even if it is just to “verify” your identity.

*Do not be alarmed by language in text messages, emails, or phone calls that claim your response is “urgent.” This is a common tactic that scammers use to get you to act before thinking.

*If you are unsure whether you have a package waiting for you, go the delivery service’s website (e.g., amazon.com, usps.com, or ups.com) for verification.  

If you suspect that you have become a victim, report it immediately. You can file a complaint at Fraud.org via their secure 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.

ATTRIBUTION: www.fraud.org

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

September 27, 2020

PYRAMID SCAMS

Hard financial times are luring more people than usual into money-losing pyramid schemes.

Invitations by names like Blessed Bloom, Gifted Circle or Secret Sister may sound promising.  It could be attractive if you need money.  But it is a get-rich-quickly pyramid scheme.

Pyramid schemes work on the promise investors will receive back a profit on their money.  In fact, money received from later investors is used to pay back money to earlier investors under a false pretense of earned profit. Later investors receive nothing when scammers take the money and the scheme collapses.

The way the scam works is that a person is invited, usually by someone they know, to put in their money and then to find eight other people whom they invite to do the same thing.  They, in turn, must find another eight participants.  And so on.

Each person who “joins” is asked to send money to the person who invited them, usually via an online app, which often makes it nearly impossible for anyone who realizes they’ve been duped to get their money back.

The best way to avoid this scam and other pyramid schemes is to ignore easy-money or get-rich-quick promises, especially those that claim to multiple your money in return for recruiting others to take part.

“Pyramid scheme promoters may go to great lengths to make the program look like a business, such as a   legitimate multi-level marketing (MLM) program,” says the Security Exchange Commission.  But “there’s only one possible mathematical result.”  Financial disaster for all but a few.

You can see the SEC’s general guidance on pyramid schemes here:  https://tinyurl.com/SEC-pyramid

The US Federal Trade Commission advises “Just don’t send money”. http://www.ftc.gov.

ATTRIBUTION:  scambusters.org

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

September 19, 2020

DISASTER SCAMMERS

Shameless scammers prey on your kindness during disasters. They want to  help themselves to your money.

People have lost their livelihoods from wildfires, hurricanes, civil unrest and a global pandemic that has claimed its own devastating share of deaths and cost

Scammers are competing with legitimate charities, attempting to take advantage of your generosity. So, as you open your heart and wallet to help people and causes, be sure to consider these tips for safe giving:

*Never let anyone rush you into donating. Pressuring you to act right away is something that scammers do.

*Do not assume the charity appeals you see online or on social media are legitimate, even if someone you know sends them to you. If a group sounds legit, know that some scammers use names that sound like real charities, only they are not.

*Before you donate, research the name of the organization or cause. Search their name online, plus the words “scam,” “fraud,” or “complaint.”

*Find out if the charity or fundraiser is registered in your state. Check with your state’s charity regulator to find out. If the charity is not registered it likely is not legitimate.

To find more tips on how to spot and avoid charity scams go to ftc.gov/charity. And if you think you have spotted a fake charity, report it to the FTC at ftc.gov/complaint.

ATTRIBUTION: Federal Trade Commission

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

September 16, 2020

SCAMS PROTECTION TIPS

Courtesy Consumer Financial Protection Board

How can I protect myself and others I care about from fraud and scams?

There are several steps you can take to protect yourself and others.

Criminals and con artists use many scams to target unsuspecting people who have access to money. Consumer scams happen on the phone, through the mail, e-mail, or over the internet. They can occur in person, at home, or at a business.

Here are tips to guard against scams:

*Do not share numbers or passwords for accounts, credit cards, or Social Security.

*Never pay up front for a promised prize. It is a scam if you are told that you must pay fees or taxes to receive a prize or other financial windfall.

*Do not allow yourself to be rushed. After hearing a sales pitch, take time to compare prices. Ask for information in writing and read it carefully. Watch out for deals that are only “good today” and that pressure you to act quickly.

*Avoid high-pressure sales tactics that do not allow you time to read a contract or get legal advice before signing. Also, do not fall for the sales pitch that says you need to pay immediately, for example by wiring the money or sending it by courier.

*Too good to be true? Ask yourself why someone is trying so hard to give you a “great deal”. If it sounds too good to be true, it probably is.

You can enter your phone number on the National Do Not Call Registry. Go to http://www.donotcall.gov  or call (888) 382-1222. If you have been a victim you can file a complaint with the US Federal Trade Commission, www.ftc.gov/complaint.

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

September 12, 2020.

FAKE WATCHES SCAM

Crooked watchmakers are making it tougher than ever to spot a fake watch post.

Fake luxury watches from the likes of Rolex, Omega, Cartier, Tag Heuer and Patek Philippe are objects of desire. They are not only stunning pieces of jewelry, some are sound investments.

Most of the fakes target the established Rolex-type luxury upper end of the market. Fakery is taking place at the top of the market and is most costly. Three quarters of those 40 million fake watches produced every year are labeled as Rolex models.

If you are planning to buy a luxury watch, especially a pre-owned model, here is a guide:

*If you can, buy only from an established and reputable dealer. If buying from an individual, insist that the watch, including the movement, is inspected by an expert.

*Check the model online. Does the one you are planning to buy match the detailed description and illustrations of other same-model watches?

*Check documentation. Beware if the watch comes without certification that should include a serial number.

*Check the price. Look at auction reports and other online data. Experts say if the price is more than 20% below the going rate, it is probably a fake.

*Check the “feel.” If there are sharp edges or the watch feels lighter than it should, it is a scam. Look for the hallmark if it is gold.

*Check the tick. Luxury watches are barely audible, reflecting the refined quality of moving parts. A loud tick signals a fake.

*Do not be rushed. Be on your guard if the seller is trying to pressure you for a quick deal — a common tactic used by scammers.

Fake Apple Watches and Fitness Trackers:

Scammers are also busy producing knockoffs of smart watches like Apple’s (though some might say the cost of Apple watches puts them in the luxury bracket too!). They may not have Apple branding but in many other respects they look like the genuine item.

It has been reported Apple’s top selling watches are being cloned in China and sold at knockdown prices of $60 to $80.

Here are GeekModo’s suggested actions you can take if you are buying the genuine item:

*Check the thickness. Counterfeiters struggle to match Apple’s 10.5 mm.

*Check that the digital crown control is at the top right of the device.

*Check the heart sensors on the back — they should be circular, arranged in a diamond pattern.

*Check the functionality. Does the device have all the right apps?

*Check the packaging. Apple is known for the quality of its packaging, which tends to be minimalist and mostly white.

Fake Fitness Monitor:

It is not just in the luxury market where watch counterfeiters are at work. They are turning fake wrist-worn digital electronics into a booming business.

Recently arriving from China are cheap fitness monitors with a dangerous fake element — a phony heart rate monitor. Discovered only during the past few weeks, these devices, which sell for $10 or even $5, basically guess at your heart rate based on how much you are moving.

Fake watch or fitness scams can be reported to US Federal Trade Commission. WWW.FTC.GOV.

ATTRIBUTION: http://www.scambusters.org

SCAMS BULLETIN Host Jay White is a volunteer attorney in San Mateo County, California.

September 8, 2020

BACK TO SCHOOL SCAM

“Back to school” means a variety of things: traditional in-person classes, all-virtual classes, or hybrid models of the two. Chances are that getting new clothes for first-day-of-school photos is on the to-do list. Young clothing shoppers are being targeted in a new scam. 

Scammers target Gen Z and Millennial customers with names like Depop, Poshmark, ThreadUp, and LetGo.  These apps typically connect buyers and sellers of secondhand merchandise, especially fashion items or in-demand technology accessories like headphones or cell phone cases.

In a typical scam, scammers posing as legit sellers post deeply discounted merchandise (think luxury fashion, the latest sneakers, or in-demand technology like gaming consoles). As shoppers show interest, the scammer urges the user to complete the transaction outside the platform’s built-in payment system.

Scammers often ask buyers to use P2P payment apps like PayPal’s Friends & Family, Zelle, or CashApp or even less secure payment methods like gift cards or wire transfers. Scammers seek victims willing to complete payment this way because it is harder for a transaction to be disputed when it occurs off the selling platform. 

Whether you are a Gen Z’er shopping for the must-have fashion of the fall, or are just looking for a deal, here are tips you can use to spot and avoid these scams:

*Always pay via the platform’s preferred payment methods. If a seller asks you to pay another way, even if it’s to “avoid fees,” chances are that it’s a scam.

*Check the prices on similar merchandise on the app and on other apps. If that Louis Vuitton handbag or Supreme hoodie you’re interested in is listed at a fraction of the cost of similar items elsewhere, there’s a high likelihood it’s a scam. 

*Beware of sellers who do not have any customer reviewers, or who have only positive feedback. If there is no feedback it could point to a scammer who has created multiple accounts and is churning through them as the older ones get banned. Someone who has only positive feedback could be paying accomplices to write bogus reviews. You can look for balanced reviews and see how sellers have handled negative feedback from customers.

If you are scammed, report it promptly to the platform sponsor. While the platform sponsor may not be able to get your money back for you, reporting the scam can help other users avoid falling victim.

You can file a complaint at Fraud.org via a secure online complaint form. We will share your complaint with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars. ATTRIBUTION: www.fraud.org.