SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

July 18, 2020

PHONY UTILITY SCAMS

Courtesy Federal Trade Commission

The latest scammer ploy is posing as representatives from utility companies to dupe people out of their cash and personal information by convincing them their utilities will be shut off if they don’t pay.

If you receive a call from someone claiming to be your utility company, here are some things you can do:

Thank the caller for the information. Then firmly tell them you will contact the utility company directly using the number on your bill or on the company’s website.

Even if the caller insists you have a past due bill or your services will be shut off, never give banking information over the phone unless you place the call to a number you know is legitimate.

Utility companies don’t demand banking information by email or phone. And they won’t force you to pay by phone as your only option.

If the caller demands payment by gift card, cash reload card, wiring money or cryptocurrency, it is a scam. Legitimate companies don’t demand payment by gift cards (like iTunes or Amazon), cash reload cards (like MoneyPak, Vanilla, or Reloadit), or cryptocurrency (like Bitcoin).

Tell your friends and loved ones about the scam so they can protect themselves. If you get a scam call, others in your community probably did. We know when people hear about scams, they’re much more likely to avoid them.

You can tell the Federal Trade Commission, www.ftc.gov. Your reports help the FTC and our law enforcement partners stop scammers.

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SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

July 14, 2020

POLITICAL ACTION SCAMS

Political Action Committees (PACS) are groups of like-minded individuals who raise and spend money on behalf of causes they support. Mostly, the cause is a political candidate or party, but not always.

PACs come to the fore at key election times such as the upcoming November elections for Congress and the US Presidency.

Many patriotic citizens want to contribute. That provides an opportunity for scammers to steal money or the contributor’s identity.

“Political action committees… are not the same as public charities, but some questionable actors from the charity world may be confusing donors into thinking otherwise,” says the organization Charity Watch.

Most of the victims of PAC scams appear to be small-time donors who agree to donate in response to tele-sales calls.

PACs are not subject to the same rigorous controls as charities That is an added incentive for scammers to steal money or identity. They can set up PACs and avoid detailed scrutiny, using them as a front for their fraudulent activities.

Some individuals pose as charities (which they are not). Others pretend they are from a local PAC. If given the opportunity they will take your money and run. Yet others are legitimate organizations who swallow up most, if not all, donations in salaries and “administration costs.”

Super PAC groups in recent years have been empowered by the courts to raise and spend money in unlimited amounts with little regulation.”

Is it a SCAM?

How can you tell if your PAC caller is legit or not? Often you cannot. But fast-talking scammers with high-pressure tactics to make you donate can be a red flag warning.

If you receive an unsolicited call, do not donate until you have had time to check legitimacy of the organization. Be skeptical of anyone claiming to be from a charity or raising money for a charity. You can also check them out at CharityWatch.org or CharityNavigator.org.

And if you want to contribute to a political cause, speak directly to the local PAC office of the party you want to support and ask them for details supporting their request.

ATTRIBUTION: scambusters.org

SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

July 11, 2020

MORE CORONAVIRUS SCAMS

Coronavirus scams are spreading nearly as fast as the virus itself. As of July 5, the Federal Trade Commission (FTC) had logged about 120,700 consumer complaints related to COVID-19 and stimulus payments.

Fraudsters are using the full suite of scam tools — phishing emails and texts, robocalls, impostor schemes and more — and closely following the headlines, adapting their messages and tactics as new medical and economic concerns arise.

Here are other types of coronavirus scams:

*Bogus cures. No vaccines or drugs have been approved specifically to treat or prevent COVID-19, the disease caused by the novel coronavirus.

*Teas, essential oils, cannabinol, colloidol silver and intravenous vitamin-C therapies are among supposed antiviral treatments hawked in clinics and on websites, social media and television shows as defenses against the pandemic.

*Supplies such as surgical masks, test kits and household cleaners, often in robocalls, texts or social media ads.

*Stimulus checks under the federal CARES Act and tens of millions of people newly unemployed, federal agencies are warning of a wave of schemes to steal government payments.

* Government agency imposters. Watch out for calls or emails, purportedly from government agencies, that use the term “stimulus” (the official term is “economic-impact payment”) and ask you to sign over a check or provide personal information like your Social Security number.

*COVID-19 Stock scams. The U.S. Securities and Exchange Commission is warning investors about fraudsters touting investments in companies with products that supposedly can prevent, detect or cure COVID-19. You should ignore phone calls or emails from strangers urging you to invest in a hot new coronavirus stock.

* Phishing texts. The FTC is warning consumers about phishing texts, supposedly from contact tracers warning you that you have been exposed to someone with COVID-19. The message includes a link that, if clicked, downloads malware to your device

* Phony information about coronavirus. Developing and testing vaccines for viruses takes a long time, and you will hear about them first from a legitimate source, such as the U.S. Centers for Disease Control and Prevention (CDC) or the World Health Organization (WHO).

Tips to guard against coronavirus scams:

*Avoid online offers for coronavirus-related vaccines or cures; they are not legitimate.

*Be wary of emails, calls and social media posts advertising “free” or government-ordered COVID-19 tests. Check the FDA website www.fda.gov for a list of approved tests and testing companies.

*Do not click on links or download files from unexpected emails, even if the email address looks like a company or person you recognize. Ditto for text messages and unfamiliar websites.

*Don’t share personal information such as Social Security, Medicare and credit card numbers in response to an unsolicited call, text or email.

*Be skeptical of fundraising calls or emails purportedly for COVID-19 victims or virus research, especially if they pressure you to act fast and request payment by prepaid debit cards or gift cards.

AARP’s Fraud Watch Network can help you spot and avoid scams. Call our toll-free fraud helpline at 877-908-3360 if you or a loved one suspect you have been a victim.

ATTRIBUTION:  AARP

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SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

July 8, 2020

IRS 2019 DIRTY DOZEN SCAMS

The US Internal Revenue Service issued its 2019 annual “Dirty Dozen” list of tax scams.

This year’s “Dirty Dozen” list highlights a wide variety of schemes that taxpayers may encounter at any time, although many may peak during tax-filing season. The schemes run the gamut from simple refund inflation scams to complex tax shelter deals. A common theme throughout all: Scams put taxpayers at risk.

Here is a recap of 2019 ‘Dirty Dozen’ scams:

*Phishing: Taxpayers should be alert to potential fake emails or websites looking to steal personal information. The IRS will never initiate contact with taxpayers via email about a bill or tax refund. Don’t click on one claiming to be from the IRS. Be wary of emails and websites that may be nothing more than scams to steal personal information. (IR-2019-26)

*Phone Scams: Phone calls from criminals impersonating IRS agents remain an ongoing threat to taxpayers. The IRS has seen a surge of these phone scams in recent years as con artists threaten taxpayers with police arrest, deportation and license revocation, among other things. (IR-2019-28)

*Identity Theft: Taxpayers should be alert to tactics aimed at stealing their identities, not just during the tax filing season, but all year long. The IRS, working in conjunction with the Security Summit partnership of state tax agencies and the tax industry, has made major improvements in detecting tax return related identity theft during the last several years. But the agency reminds taxpayers that they can help in preventing this crime. The IRS continues to aggressively pursue criminals that file fraudulent tax returns using someone else’s Social Security number. (IR-2019-30)

*Return Preparer Fraud: Be on the lookout for unscrupulous return preparers. The vast majority of tax professionals provide honest, high-quality service. There are some dishonest preparers who operate each filing season to scam clients, perpetuate refund fraud, identity theft and other scams that hurt taxpayers. (IR-2019-32)

*Inflated Refund Claims: Taxpayers should take note of anyone promising inflated tax refunds. Those preparers who ask clients to sign a blank return, promise a big refund before looking at taxpayer records or charge fees based on a percentage of the refund are probably up to no good. To find victims, fraudsters may use flyers, phony storefronts or word of mouth via community groups where trust is high. (IR-2019-33)

*Falsifying Income to Claim Credits: Con artists may convince unsuspecting taxpayers to invent income to erroneously qualify for tax credits, such as the Earned Income Tax Credit. Taxpayers should file the most accurate tax return possible because they are legally responsible for what is on their return. This scam can lead to taxpayers facing large bills to pay back taxes, interest and penalties. (IR-2019-35)

*Falsely Padding Deductions on Returns: Taxpayers should avoid the temptation to falsely inflate deductions or expenses on their tax returns to pay less than what they owe or potentially receive larger refunds. Think twice before overstating deductions, such as charitable contributions and business expenses, or improperly claiming credits, such as the Earned Income Tax Credit or Child Tax Credit. (IR-2019-36)

*Fake Charities: Groups masquerading as charitable organizations solicit donations from unsuspecting contributors. Be wary of charities with names similar to familiar or nationally known organizations. Contributors should take a few extra minutes to ensure their hard-earned money goes to legitimate charities. IRS.gov has the tools taxpayers need to check out the status of charitable organizations. (IR-2019-39)

*Excessive Claims for Business Credits: Avoid improperly claiming the fuel tax credit, a tax benefit generally not available to most taxpayers. The credit is usually limited to off-highway business use, including use in farming. Taxpayers should also avoid misuse of the research credit. Improper claims often involve failures to participate in or substantiate qualified research activities or satisfy the requirements related to qualified research expenses. (IR-2019-42)

*Offshore Tax Avoidance: Successful enforcement actions against offshore cheating show it’s a bad bet to hide money and income offshore. People involved in offshore tax avoidance are best served by coming in voluntarily and getting caught up on their tax-filing responsibilities. (IR-2019-43)

Frivolous Tax Arguments: Frivolous tax arguments may be used to avoid paying tax. Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims about the legality of paying taxes despite being repeatedly thrown out in court. The penalty for filing a frivolous tax return is $5,000. (IR-2019-45)

*Abusive Tax Shelters: Abusive tax structures including trusts and syndicated conservation easements are sometimes used to avoid paying taxes. The IRS is committed to stopping complex tax avoidance schemes and the people who create and sell them. The majority of taxpayers pay their fair share, and everyone should be on the lookout for people peddling tax shelters that sound too good to be true. When in doubt, taxpayers should seek an independent opinion regarding complex products they are offered. (IR-2019-47)

Courtesy: United States Internal Revenue Service

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SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

July 2, 2020

FOOD FRAUD

Food fraud is not new. But according to the U.S. Pharmacopeial Convention, https://view.usp.org, the amount of fake ingredients has increased by 60 percent in the last year.

Counterfeit foods range from lemon juice purporting to be “100% pure” to cheap oils, which are dyed and flavored for the purpose of being passed off as pricey extra virgin olive oil.

You will find these in your grocery store. It can include deceptive labeling, the lack of food purity, and more. For example, cheaper oils, such as hazelnut, palm and corn oil may be treated so that they can pass for olive oil. This can prove a grave threat to those who are allergic to these products.

So, what can consumers do?

Unfortunately, there are no foolproof steps to protect yourself from all food fraud. Less pricey categories of fish, for example, are often mislabeled as more expensive species. Even trained chefs, who handle the food every day, can be fooled and only DNA tests can reveal the substitution taking place. While there is nothing a consumer can do to ensure they never consume a fraudulent food, there are steps they can take to mitigate the risk.

Here are tips for cautious consumers:

If a price seems too good to be true, you could suspect something is wrong. There is a reason that particular brand costs less than all the others, and there’s a chance that reason is adulteration.

There is safety in brands that have a vested interest in keeping you as a consumer. They may have more of an incentive to stay honest.

When possible, buy raw ingredients rather than processed ones. For example, buy your own coffee beans to grind rather than buying ground coffee.

If you believe there is a food fraud you could speak your member of Congress. Also speak to Federal agencies, like the Food and Drug Administration www.fda.gov and Federal Trade Commission www.ftc.gov.  These agencies work on fraud issues and know that food fraud is an important issue.

Attribution: fraud.org

SCAMS BULLETIN Jay White is volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

June 27, 2020

CRYPTOCURRENCY BLACKMAIL SCAM

Courtesy Federal Trade Commission

 An email suddenly appears in your inbox. Someone is writing to say that they have access to your cell phone or your computer. And they are about to make your sensitive videos, pictures, or compromising information public.  Pay them money (a ransom), they say, using a cryptocurrency, like Bitcoin, and they will not expose the truth.

Have you received one of these emails? If so, you are not alone. The email is a part of a cryptocurrency blackmail scam that is been popping up for a while. But last month, the FTC saw another uptick in the number of reports of this scam.

We have said it before, but it is always worth repeating. The person behind these emails is a scammer. Do not pay him. He is using threats, intimidation, and high-pressure tactics to trick you out of your money.

And while the scammer may say that he knows about an alleged affair, a video, or something else that could embarrass you if it was made public, it is all fake.  In fact, it is also a criminal extortion attempt.

It is important that right away you report this type of scam to the FBI at http://www.FBI.gov.  And remember to tell the FTC at ftc.gov/complaint.

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SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

June 23, 2020

ONLINE PHARMACY SCAMS

Cost and convenience make online pharmacy purchases tempting. But placing an order can be hazardous to both your physical and financial health.

Buying prescription drugs online is not in itself illegal. But the U.S. Food and Drug Administration cautions to distinguish legitimate internet pharmacies from those posted by fraudsters and black marketers. There are many such fraudulent sites according to the National Association of Boards of Pharmacy (NABP). An estimated 95 percent do not comply with U.S. pharmacy laws or professional standards.

Rogue pharmacies often represent themselves as Canadian, exploiting its reputation as a haven of low-cost medications. They may traffic in products that are misbranded, expired, ineffective, toxic and laced with opioids and other dangerous substances. Some are tied to organized crime as reported by the nonprofit Center for Safe Internet Pharmacies (CSIP).

Threats:

In a new twist on prescription drug frauds, crooks posing as Food and Drug Administration (FDA) or Drug Enforcement Administration (DEA) agents, contact people who purchased medications online or by phone and threaten them with arrest unless they pay “fines” immediately.

Warning Signs:

*You receive unsolicited emails or social media posts promising deep discounts on well known drugs.

*A pharmacy site allows you to buy medications without a prescription.

*The site offers to ship internationally.

*The supposed pharmacy is located outside the United States, or its website does not list a location.

Do:

*Do get your prescriptions from a licensed brick-and-mortar drugstore whenever possible.

*Do make sure an online seller is licensed. The FDA, the National Association of Boards of Pharmacy (NABP) and the Center for Safe Internet Pharmacies (CSIP) offer tools for   finding safe and legal online pharmacies.

*Do check that the site has a U.S. address and phone number.

*Do look for sites with a “pharmacy” domain or a VIPPS (Verified Internet Pharmacy Practice Sites) logo.

*Do know your meds. If you notice anything different or unusual in the packaging, appearance, smell, taste or texture of drugs you bought online, consult your pharmacist.

Do not:

*Do not judge a pharmacy website as credible just because it looks slick and professional. Pharmaceutical scammers are adept at creating convincing online storefronts.

*Do not buy unless the pharmacy requires a prescription from your own doctor and has a licensed pharmacist you can consult.

*Do not give credit card or other payment information unless you are sure the pharmacy site is secure.

*Do not give money or financial information in response to a letter or phone call purportedly from the FDA or DEA. It is almost certainly an extortion scam. Those agencies do not send warnings to or demand money from individual consumers.

ATTRIBUTION: AARP

SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

June 17, 2020

GUARD AGAINST HACKERS

Courtesy Scambusters.org

Hack-proofing your home may seem like a complicated business. But a few key actions can help you eliminate or reduce most of the risks.

Here are 5 key steps you can take:

1. Install and regularly update your Internet security software. We always start with this because it’s by far the most effective safety action you can take. But make sure your software doesn’t just stop viruses. You also want one that sets up and manages a firewall, software that can prevent intruders breaking through.

A good product can intercept most current hack attacks. Which one to buy? All the leading names like Norton, Kaspersky, and McAfee come with good reputations and frequently change places at the top of the ‘best of’ table.

Beware if you’re researching this online, as some list operators order software according to who will pay them the best affiliate marketing fee for recommending them. Instead, try an independent review site like this: https://tinyurl.com/best-security-list

Let your software do its job automatically but, every now and then, run an all-system or deep scan that you usually have to start manually.

2. Use unique passwords on your system. That goes for your PC log-on, your router and anything else that calls for an access code. Never use the defaults that come with devices you buy, especially modems, routers, and alarm systems. Hackers know all of them. Then, of course, you should change passwords regularly, in case your current ones fall into the wrong hands.

3. Keep your systems up to date. Many hardware manufacturers, like those who make burglar alarms, routers, monitoring cameras (including those used in the nursery) and, of course, computers, regularly update their firmware (the intelligent chips built into them).

But they don’t automatically tell you. Most hardware, like routers, cameras, and home ‘assistants,’ have apps that enable you to access the way they work. Use these and select something like “check for updates.”

If you register your device with the maker when you first buy it, chances are high they will notify you of any updates. So, don’t pitch that registration card.

The same applies for software programs, which are frequently updated not just for new features but also to add in security modifications.

If you don’t know how to access these devices, check with the manufacturer’s website.

4. Disconnect from the Internet. If you have a home network that enables you to switch off Internet access, the rest of your network itself — that is, the parts inside your home — can remain active. If you’re not likely to be using the Internet for a while and you have this ability, use it.

However, be cautious. If you have a home security monitoring system or cameras, this may only work via the Internet. If you switch that off, your attempt at improving security will backfire.

But, even if you don’t want to switch off, you should consider unplugging devices that aren’t in use. And if you sell them, give them away, or toss them, always do a factory reset. Devices normally have a factory reset button. But if yours doesn’t and you don’t know how to reset, again check with the manufacturer’s website.

5. Replace outdated equipment. Devices manufactured say five years ago may not have adequate built-in security, even if you update the firmware. This is particularly the case with routers, which experts say should be replaced after five years.

And make sure your router is set to the highest security level (usually referred to in your router app as WPA2). Also, set up a separate guest network if you regularly have visitors who need to use your network. Check the manual or maker’s website for details on how to do this.

It’s probably never going to be possible to 100% hack-proof your home, but following these few simple steps will protect you from all but the most determined and expert hacker.

ATTRIBUTION: scambusters.org

SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo, California.

June 16, 2020

HOME IMPROVEMENT SCAMS

Crooks posing as contractors show up on a homeowner’s doorstep uninvited. They may say they happened to be doing work in the neighborhood and noticed that your house needs some repairs too. They will offer to fix your roof, repave your driveway or perform other repairs or renovations, for what sounds like a low price.

When that happens, be wary. The smiling fix-it man or woman at your door might turn out to be an unscrupulous contractor or an outright con artist, out to fleece you with a home improvement scam.

Shady contractors will often ask for payment up front. If given money, some take it and disappear. Others will do shoddy work or claim to have discovered some hidden problem in your house that needs immediate attention. They demand more money to complete the job (a dishonest variation of the sales tactic known as upselling).

Con artists look to prey on homeowners when they are vulnerable. If your house has been damaged by a storm or natural disaster, a scammer may show up and try to persuade you to sign over the payment from your insurance company. Some crooks seek out older homeowners with memory or cognitive problems, hoping to con them into paying multiple times for the same work.

What you can do to guard against being victimized by a home repair scammer:

Beware of persons who say they stopped by because they just happen to be in your neighborhood. The good ones are usually too busy to roam around in search of work.

Be skeptical if a person says he can offer a lower price because he will be using surplus material from another job.

Do

*Contact your state contractors’ license bureau to learn if the person has a contractor’s license.

*Do insist on seeing references. The Federal Trade Commission (FTC) recommends asking the contractor for names and addresses of past customers.

*The FTC also suggests asking the contractor for permission to visit a job currently in progress.

*Do require a bid in writing, and compare bids from multiple contractors before agreeing
to any work.

*Do check the Better Business Bureau (BBB) website to see contractors’ ratings and
whether any complaints have been filed against them.

*Do get a written contract before you pay any money and before the work starts.

*Do read the fine print. The BBB says a contract should include a detailed description of the work, material costs, start and completion dates, and warranty information.

*Before you make the final payment, verify that all work has been completed to your satisfaction, any subcontractors or suppliers have been paid and the job site has been cleaned up.

Do nots

*Do not put down a big deposit. By law in some states the maximum a homeowner must pay in advance is 10% of the total price before the job is completed.

*Do not pay cash. The FTC recommends using a check or credit card, or arranging
financing.

*Do not automatically take the lowest bid. Some contractors cut corners to come in lower than competitors. The FTC recommends that if one contractor’s estimate is significantly less than those of competitors, ask for an explanation.

*Do not let the contractor arrange financing for you. The FTC warns that you might be tricked into signing up for a home-equity loan with hefty fees or a high interest rate, or one in which the lender pays the contractor directly, giving him or her little incentive to finish the job or do it properly.

ATTRIBUTION: AARP

SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

June 11, 2020

SMALL BUSINESS FINANCING FRAUD

Courtesy US Federal Trade Commission

Small business is an important engine in the US economy. But small companies and organizations can be targets for deceptive funders and outright scammers.

Some financing companies lie about their terms, break the law, use terrible debt collection practices, and leave businesses in worse financial conditions than before.

Before you sign to obtain financing:

Read the proposed contract. Read the “fine print” that likely will not be displayed for easy reading. If there is anything you do not understand, ask for clarification.

Find out what the consequences will be if you cannot make payments on time. Then get the answer in writing before you sign.

As an alternate source of funding, check out funding options for your business at the US Small Business Administration’s website: http://www.sba.gov.

Court Case Federal Trade Commission v. Richmond Capital

People also signed a legal document called a confession of judgment. This document let Richmond Capital go to court and get a judgment — without any objection or response from the person — if they stopped paying or breached certain provisions of the contract. But according to the complaint, Richmond Capital used these confessions of judgment to go after people’s assets in circumstances not permitted by their financing agreements. What’s worse, Richmond Capital allegedly threatened violence when people did not pay. The FTC asked the court to make Richmond Capital stop these practices and refund people’s money.

You can tell the FTC.gov about any dishonest practices you experience.