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

December 17, 2019

WORK AT HOME SCAMS

WORK AT HOME SCAMS

Home-based business and work-at-home opportunity scams rank very high on the list of the top types of Internet fraud.

                                                PART I

There are two basic types of Work-at-Home and Home-Based Business scams. Scammers using both types are aiming at folks who want to make money from home, either by:

1.– Having you work from home, doing envelope stuffing, craft assembly, or other tasks where you are (supposedly) paid by a company as an employee.

There are certainly some legitimate telecommuting jobs, but work-from-home jobs are often just big scams.

2.– “Helping” you start your own home-based business, as a mystery shopper, network marketer, or other businesses where the only money anyone sees is the money the scammer pockets.

Why Are These Scams So Successful?

It all comes down to psychology. Besides the “make money fast” dream that many Internet newcomers fall prey to, home-based “opportunities” scammers mooch off the following groups:

*The Sick, Disabled, or Elderly: If you are elderly, ill, or have a disability, you may have problems landing a traditional job.

*The Stay-At-Home Mother: Whether you have a spouse or you’re single, you may be looking to supplement or create an income while raising children.

*The Low-Income or No-Income Family: You or your spouse may have just lost your job, and you feel desperate and anxious to find work as the bills pile up.

*The Person Without Higher Education: You’re not stupid or dumb — you just didn’t go on to college or university.

To summarize, these scammers are often preying on people without a lot of money.

                                                PART II

Noted Work-At-Home Scams:

*Craft Assembly Starter Kits. This scam encourages you to assemble toys, dolls, or other craft projects at home with the promise of high per-piece rates. All you have to do is pay a fee up-front for the starter kit… which includes instructions and parts. Sounds good? Well, once you finish assembling your first batch of crafts, you’ll be told by the company that they “don’t meet our specifications.” The scammer company is making money selling the starter kits — not selling the assembled product.

*Medical Billing. In this scam, you pay $300-$900 for everything (supposedly) you need to start your own medical billing service at home. You’re promised state-of-the-art medical billing software, as well as a list of potential clients in your area.

What you’re not told is that most medical clinics process their own bills, or outsource the processing to firms, not individuals. Your software may not meet their specifications, and often the lists of “potential clients” are outdated or just plain wrong.

*Email Processing. This is a twist on the classic “envelope stuffing scam”. For a low price ($50?) you can become a “highly-paid” email processor working “from the comfort of your own home.”

Now… what do you suppose an email processor does? If you have visions of forwarding or editing emails, forget it. What you get for your money are instructions on spamming the same ad you responded to in newsgroups and Web forums!

* “A List of Companies Looking for Homeworkers!”: In this one, you pay a small fee for a list of companies looking for homeworkers. The only problem is that the list is usually a generic list of companies, companies that don’t take homeworkers, or companies that may have accepted homeworkers long, long ago. If you send money, don’t expect to get it money back with this one.

* “Just Call This 1-900 Number for More Information…”: Don’t spend too much time (or money) on this one. 1-900 numbers cost money to call, and that’s how the scammers make their profit. Save your money — don’t call a 1-900 number for more information about a supposed work-at-home job.   

                                                PART III

*Typing at Home: If you use the Internet a lot, then odds are that you’re probably a good typist. How better to capitalize on it than making money by typing at home?

Here’s how it works: After sending the fee to the scammer for “more information,” you receive a disk and printed information that tells you to place home typist ads and sell copies of the disk to the suckers who reply to you. This scam tries to turn you into a scammer!

 “Turn Your Computer into a Money-Making Machine!”:  Well, this one’s at least half-true. To be completely true, it should read: “Turn your computer into a money-making machine… for spammers!” Once you pay your money, you’ll be sent instructions on how to place ads and pull in suckers to “turn their computers into money-making machines.”

*Multi-Level Marketing (MLM):  If you’ve heard of network marketers (like Amway), then you know that there are legitimate MLM businesses based on agents selling products or services. One big problem with MLMs, though, is when the pyramid and the ladder-climbing become more important than selling the actual product or service.

If the MLM business opportunity is all about finding new recruits rather than selling products or services, beware. The Federal Trade Commission may consider it to be a pyramid scheme… and not only can you lose all your money, but you can be charged with fraud, too!

                                                PART IV

*Chain Letters/Emails (“Make Money Fast”): If you’ve been on the Internet for any length of time, you’ve probably received or at least seen these chain emails. They promise that all you have to do is send the email along plus some money by mail to the top names on the list, then add your name to the bottom… and one day you’ll be a millionaire.

Actually, the only thing you might be one day is prosecuted for fraud. This is a classic pyramid scheme, and most times the names in the chain emails are manipulated to make sure only the people at the top of the list (the true scammers) make any money.

*Envelope Stuffing:

This is THE classic work-at-home scam. It’s been around since the U.S. Depression of the 1920s and 1930s, and it’s moved onto the Internet like a cockroach you just can’t eliminate.

There are several variations. You are promised to be paid $1-2 for every envelope you stuff. All you have to do is send money and you’re guaranteed “up to 1,000 envelopes a week that you can stuff… with postage and address already affixed!”

When you send your money, you get a short manual with flyer templates you’re supposed to put up around town, advertising yet another bogus work-from-home scheme.

Any scam victim can report it to the US Trade Commission at www.ftc.gov.

Attribution: scambusters.org

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

December 15, 2019

VETERANS SCAMS

Scammers are targeting US Veterans. Veterans who receive calls or recorded messages claiming to be from “veterans services” should have their guard up. Scammers may tell vets there is a new type of veterans’ home loan or other benefits.

The scammers often leave voice messages, following a script that goes something like this: “Your VA profile was flagged for two potential benefits to the changes in the VA program. These are time sensitive entitlements. Please call us back at your earliest convenience”.

The voicemail includes a fraudulent call-back number for “veterans services.” Potential victims who call the number are offered “benefits,” such as loan modifications to their mortgages, then asked for personal information, including social security numbers, dates of birth and bank account numbers.

Scammers who gain access to such information can use it to steal money from bank accounts or credit cards, or sell the information to other bad actors for use in identity theft fraud.

Other recurring phone scams preying on veterans include the “Update Your Military File” scam, the “Veteran Charity” scam and the “Veterans Choice Program”. Their purpose is the same. Obtain a veteran’s personal information—to steal the veteran’s money.

If you receive a call offering “services”, hang up immediately. If you receive a voice message, write down the callback number and contact law enforcement to report the scam. Also, help fight scammers by filing a complaint with the US Federal Communication Commission at www.fcc.gov.

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

December 8, 2019

HOLIDAY SCAMS

Scammers love holiday seasons. They know we’re busy, maybe a little stressed, and tend to be in a charitable frame of mind.

They will take advantage of our lack of focus as well as our desire to help those in need. It is their opportunity to steal our money or our personal information.

Things you should know:

• Scammers will set up fake websites or mobile apps that mimic those of known and trusted retailers, and offer items at a fraction of the usual cost. Their hope is you won’t notice the red flags (misspelled words, unencrypted websites, lack of information on returns, etc.), and you’ll jump to share your payment information.

•Scammers send fake emails from delivery services about packages being held pending delivery. The email directs you to click on a link that asks for your credit card or other personal information. Since many of us expect deliveries this time of year, it’s easy to catch us off guard.

•Fake charities:

Many legitimate charities make a big push at year-end for last-minute annual donations. Knowing this, Scammers make their own end-of-year push to line their pockets. They’re banking on our not taking the time to verify that what they are offering is a scam.

•Gift card racks:

Thieves can hit store gift card racks, scan the numbers off the cards, and then monitor them. As soon as the card is bought and activated, the scammers drain the funds. By the time your gift recipient tries to use the card, the money is long gone. 

What you can do:

•When shopping online or on a mobile app, make sure the retailer is who you think it is. And if a deal sounds too good to be true, it may indeed be a scam.

•Avoid the gift card rack and, instead, safely purchase gift cards directly from the store clerk or buy them online directly from the retailer.

•If you receive an email from a delivery company, closely review it — check the sender information, look for misspellings or other red flags.  Also, request delivery companies to require recipient signatures for deliveries to stop thieves from stealing packages from doorsteps.

•Before donating this holiday season, check the charity at charitynavigator.org or give.org, and make sure the charity will use your donations for good.   

When it comes to fighting fraud, vigilance is our number one weapon. We have the power to defend ourselves and our loved ones from scams.

Attribution AARP

December 5, 2019

BITCOIN SCAMS ON THE RISE

Bitcoin is a form of cryptocurrency. It is a virtual currency. It is based on math and exists only as numbers on the internet. It has value based mostly on supply and demand.

Earlier, scammers tried to get you to wire them money. Then, they demanded payment with gift cards. Now, scammers are luring people into paying them with Bitcoin.

Here are ways scammers are trying to get you to pay with Bitcoin:

* Blackmail Scam. Someone says they know about an alleged affair, or something else embarrassing to you, and demands payments with Bitcoin or another cryptocurrency in exchange for keeping quiet.

* Online Chain Referral Schemes. This type of scam works like a chain letter: someone promises that you’ll make money if you pay into the scheme. But, in a twist, these scammers say you have to use cryptocurrency to pay for the right to recruit other people into the chain…so that you’ll then be rewarded with more cryptocurrency. Except you won’t be rewarded. Instead, you will lose money.

* Bogus Investment and Business Opportunities. Someone might offer you investment and business opportunities that promise to make big money for you, or give you financial freedom. You may be offered a guarantee to make money.  But remember, only a scammer will guarantee that you will make money — in dollars or in cryptocurrency.

From an investment perspective, there are actions you can take to avoid falling victim to a cryptocurrency scam:

*Don’t make investment decisions based on the word of someone online.  Work with a trusted financial adviser.

*Before you trade on a cryptocurrency exchange, check out their reputation. How long have they been operating as a legitimate entity?

*Check that there is a business plan for any cryptocurrency offering.

Scammers might use threats, intimidation, and high-pressure tactics to get you to pay right away. But, that’s not only a scam. It is also a criminal extortion attempt. Report it to the local police, the FBI, and the FTC at ftc.gov/complaint.

Attb: Federal Trade Commission

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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.

December 6, 2019

GOOGLE PLAY GIFT CARDS SCAM

Gift cards are popular targets for scammers. Many scammers specifically want payment via Google Play gift cards.

The scam may begin with a phone call purporting to be from the Internal Revenue Service. The caller’s voicemail may say that the victim owes the IRS and that, if not paid, their bank accounts and Social Security would be frozen—maybe threaten an arrest warrant.

With the holiday season approaching, it’s likely that scammers will ramp up their activity even more.

It is important to know that Google Play gift cards can only be used to purchase apps, movies, books, and other video game or app-related purchases through the Google Play store. Don’t be misled. If anyone ever asks you to pay them with a Google Play gift card, it’s a scam.

Five common Google Play gift card scam entry events:

*IRS and government agent imposter

*Tech support

*Family emergency

*Discounted goods or services

*Email requests

Protect yourself and your loved ones. Scammers may discourage you from speaking to or answering questions from store associates, colleagues, friends, or family members.

Scammers may dictate which store you should purchase Google Play gift cards from (e.g., Target, Walmart, CVS, etc.).

Don’t purchase gift cards and share the redemption codes with the requester over the phone or in writing. If you do, your money will likely gone.

You can report a scam to the Federal Trade Commission on its website www.ftc.gov, or directly with Google by phone at the toll-free U.S. phone number (1-855-836-3987).

The bottom line is that any time you are asked to pay someone with a Google Play gift card in exchange for goods or services, it is a scam. It is also a violation of Google Play’s Terms of Service to use Google Play gift cards to pay for anything outside of the Google Play Android app store.

Attribution: Fraud.org

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SCAMS BULLETIN Host Jay White is a volunteer attorney who serves low income seniors in San Mateo County, California.

November 20, 2019

GAS PUMP FRAUD

GAS PUMP FRAUD

Watch out for card skimming at the gas pump.

The Federal Trade Commission is warning drivers about skimming scams at the pump. Skimmers are illegal card readers attached to payment terminals.  These card readers grab data off a credit or debit card’s magnetic stripe without your knowledge. Criminals sell the stolen data or use it to buy things online. You won’t know your information has been stolen until you get your statement or an overdraft notice.

Here are a few tips to help you avoid a skimmer when you gas up:

*Make sure the gas pump panel is closed and doesn’t show signs of tampering. Many stations now put security seals over the cabinet panel. If the pump panel is opened, the label will read “void.”

*Look at the card reader itself. Does it look different from other readers at the station? For example, the card reader on the left has a skimmer attached; the reader on the right doesn’t.

*Try to wiggle the card reader before you put in your card. If it moves, report it to the attendant. Then use a different pump.

*If you use a debit card at the pump, run it as a credit card instead of entering a PIN. That way, the PIN is safe and the money isn’t deducted immediately from your account.

*If you’re really concerned about skimmers, pay inside rather than at the pump.

*Monitor your credit card and bank accounts regularly to spot unauthorized charges.

If your credit card has been compromised, report it to your bank or card issuer. Federal law limits your liability if your credit, ATM, or debit card is lost or stolen, but your liability may depend on how quickly you report the loss or theft.  

If you experience a scamming incident, report it to http://www.FTC.gov.

Attb: FTC

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

November 17, 2019.

PESKY FINE PRINT  

Contract Small Print Gotchas!

We have all been there. Contracts are full of fine print that is tedious to read and can cost you big bucks. Buried within the language are many legal words and phrases that should serve as a red flag to potential hassles or rip-offs.

 Here’s a list of common phrases in contracts and service agreements that you should look for before signing any paper or sending money.

1. “Free” — Rarely is anything free. If you aren’t paying for the product, you likely are the scammer’s product — your information may be sold to advertisers who will barrage you with online solicitations. Or, you may be committing to pay later.

2. “Free trial” It’s often accompanied by phrases like “We will not charge your credit card [until 30 days from now].” This enters you into a game of “Will you remember to cancel on the 29th day?”

3. “Six months Introductory Price.” This is a variation of the free trial game. For example, $39 a month for cable TV sounds good to you in January, but if it’s increased to $137 per month by August because you did not remember to cancel in July, is that a good deal?

4. “Automatically Renews” Such clauses mean you keep paying even if you don’t realize it or want the service anymore. Sure, if you want the convenience of automatic renewal, it can work for you. But beware if such an arrangement is tucked in the fine print without your knowledge.

5. “Fees” Compare late payment fees and other penalty charges when shopping. The cost of such a mistake shouldn’t be unreasonable.

6.”Restocking Fee” Sales folks will talk you into taking a product home to try it and promise that you can bring it back for a refund. But restocking fees can be steep — 15 percent for electronics, for example.

7. “Extended Warranty”. Consumers can find extended warranty costs snuck into monthly payments. The value of such warranties is debatable, but consumers should always be fully informed about the cost.

8. “Not Covered”. Many warranties are full of exclusions that can lead to disappointment. For example, in cars, “wear” parts like brake pads usually aren’t covered.

9. “Void the Warranty”. Sometimes, warranties become useless if consumers break terms that make them “void,” such as getting an electronic gadget wet.

Legal loopholes:

10. “Mandatory Arbitration”. If a product injures you or you feel misled, you can’t sue in a court of law; you must submit to arbitration.

11. “Limitations for Suit”. This may shorten your window for potential lawsuits.  Check terms and conditions to understand any abbreviation of time period.

12. “Hold Harmless and Indemnify”. Watch out for this. These words can give corporations the potential to force a consumer (or worker) to pay the company’s legal fees in the case of a lawsuit.

Attb: AARP                              #

SCAMS BULLETIN Host is Jay White.

November 11, 2019

LOTTERY and SWEEPSTAKES SCAMS

According to the Federal Trade Commission, lottery and sweepstakes scams are one of the most common consumer frauds operating today. Scammers can be very convincing. Who wouldn’t want to win big!

Here is how it works:

You get a card, call, or email telling you that you won a lot of money! Maybe it’s a lottery, sweepstakes, or some other prize. The person calling is excited and can’t wait for you to get your winnings.

But here’s what to expect next:

They tell you there’s a fee, sometimes it is for taxes, customs duties or some other bogus charge. You must pay it before you can receive your winnings. They may ask for your bank account information, or ask you to send money via a wire transfer, or to purchase gift cards and provide the card numbers. Don’t do it!

Do not give money to anyone on their promise to give you something in return. If you send money you lose money instead of winning it.  Don’t expect to receive a big prize. Instead, you will likely get more requests for money, and more false promises that you won big.

Elderly persons are more vulnerable to scams. They frequently are targets of lottery and sweepstakes scams.

FTC’s tips to fight against lottery and sweepstakes scams:

*Do not give money to strangers.

*Do not give your personal information to strangers.

* Keep your money – and your information – to yourself. Never share your financial information with someone who contacts you.  And never wire money to or share gift card numbers with anyone who asks you to do so. Both payment methods are a sure sign of a scam.

* Fake check scam. If you receive a check for a large amount of money with instructions to deposit it in your bank account and send back a check “to cover expenses” or some other bogus use-don’t do it!

* If you receive a fake check and you deposit it in your account, your bank may not discover it is fake for several days. In the interim, if you write a check on your account, not knowing the fake checked has bounced, you could end up owing your bank the amount of your check you wrote on your account.    

Pass this warning information on to a friend. You probably know someone who could use a friendly reminder.

If you spot a scam, report it to the FTC at ftc.gov/complaint. Your report can help FTC investigators identify the scammers and stop them before they steal someone’s hard-earned money.

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