A Free Public Service

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

Sember 28, 2022

SOCIAL MEDIA ACCOUNT HACKS

Attribution scambusters.org

Millions of users are hit every year by social media account hackers.

It’s one of the fastest growing and most alarming Internet crimes, with security experts estimating that somewhere between 20 and 40 percent of all social network accounts have been compromised at some point.

The number one way of hacking an account is simple: The crook poses as a friend of the intended victim asking for help accessing his own (the “friend’s”) account. The message includes a link the victim is supposed to click. But doing so enables the hacker to take over their account and even block access to the real user.

A hacked account can currently be sold on the dark web to scammers and identity thieves for around $50 – one of the most valuable pieces of stolen consumer information currently being traded by hackers.

Once a hacker has control of an account, they have access to the victim’s entire list of friends who will be targeted next.  It’s like a giant pyramid scheme where the number of potential victims multiplies with each account takeover.

Important actions you can take to protect yourself from a social media account takeover:

*If you receive a friend request from someone you’re already linked to, it’s almost certainly a hacking scam, so don’t click on the “accept” button. And then let your friend know.

*If the request comes from someone you know but who you’re not following, again don’t click to accept. Contact the person independently and check that they did

*Always use a strong and unique password for each social media account and use a second pass code or other type of multi-factor authentication (MFA) such as those sent via text messages.

 *Learn more about two-factor authentication from our earlier issue: https://scambusters.org/passwordsecurity2.html.

*If you learn of a data breach affecting your social media account, change your password immediately.

*Don’t download third party apps promoted on your social media account. They can be used to hack your account.

What to do if Your Account Has Been Hacked:

You want to regain control of your account as soon as possible. If the hacker hasn’t changed your password and you still have access to the account, change it yourself immediately.

If you’re locked out, you need to contact the network provider. Different sites have different ways of dealing with it. Search on the phrase “My ——- account has been hacked” (insert the media network name in place of the dashes) and look for results that are actually from the network company.

It’s also important to let your friends know, via email or a message service, to put them on the alert.

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A Free Public Service

SCAMS BULLETIN Host Jay White is an innactive atorney in San Mateo County, California.

September 21, 2022

ROBOTEXTS SCAMS

Attribution: scambusters

Spammers and scammers have stepped up their game with spam text messages called “robotexts”.

They may be only fishing for names of people interested in particular products, which they then sell to people who compile marketing lists.

Some of the signs to watch for include:

Phone numbers you don’t recognize or numbers longer than 10 digits-

Vague information that’s supposed to make you want to know more-

Questions that seem to come from someone you don’t know-

Misspellings that are intended to avoid blocking software-

Government departments (and many other organizations) don’t initiate contact via texts.

10 Key Actions to Protect Yourself:

Here’s what the Federal Communications Commission says you can do to protect yourself and help others from the robotext onslaught:

Don’t reply to suspicious texts; don’t even send a “STOP” response if you’re invited to do so-.

Don’t click on links or provide information about yourself.-

File a complaint to the FCC (https://consumercomplaints.fcc.gov/hc/en-us) and/or forward the text to SPAM (7726)-

Delete all suspicious texts.-

Consider installing an anti-malware app, and keep all device security software and operating systems up to date-.

Review text-blocking settings from your phone service provider and on the device itself-.

Both iOS (Apple) and Android phones have spam protection options built in.-

When you visit websites that legitimately require your name and phone number, check their privacy policies regarding text and info-sharing opt-outs.

If someone you know sends a text with a suspicious link that seems out of character, call them to make sure they weren’t hacked-.

If you get an unexpected text from a business you deal with, look up and visit their legitimate website and contact them.-

“The FCC prohibits autodialed text messages from being sent to your mobile phone unless you previously gave consent to receive the message or the message is sent for emergency purposes,” it says.

“The FCC has made clear that phone companies can block suspicious text messaging as a default policy.”

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A Free Public Service

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

September 9, 2022

VETERANS PENSION POACHING

Attribution AARP

 “Pension poaching” is a financial scam targeting veterans. It is perpetrated by shady advisers who promise to help former service members grow their retirement funds, or obtain extra benefits from the Department of Veterans Affairs (VA).

The schemes often involve financial maneuvers that can backfire and actually disqualify veterans from needed benefits, or tie up their savings in investments that earn lucrative fees for the advisers.

A common form of the scam starts with a scammer sending mail solicitations, or showing up at a senior center or assisted living facility, offering to help ex-military members apply for a VA program called Aid and Attendance (A&A).

Only veterans with limited earnings and assets are eligible for A&A.

Scammers might recommend setting up a trust to transfer your retirement assets to family members. But that could get you disqualified by the VA or for Medicaid.  

Or a sham adviser might urge you to use retirement savings to buy an annuity. But these insurance products aren’t right for everyone, the Federal Trade Commission (FTC) warns.

Warning Signs

A financial adviser tells you that you’re entitled to additional benefits simply because you’re a veteran.

An adviser guarantees that they will get you an enhanced VA pension.

Do’s

*Do check the VA’s searchable database to see whether an attorney or financial professional is VA-accredited and has the required training to complete and submit claims.

*Do run a background check on any professional who promises to boost your VA benefits (see “More Resources” below).

*Do carefully read all contracts and other paperwork related to an investment or application. If you don’t understand something, get an explanation in writing.

*Do discuss any proposed pension or investment moves with a trusted friend or family member before taking action.

*Do beware of advisers who offer free food. Some rogue operators offer lunch or snacks to draw veterans to “financial seminars.”

*Do apply directly to the VA if you think you’re entitled to Aid and Attendance benefits (see “More Resources” below). There’s no cost for the forms and no fees to apply.

Don’ts

*Don’t trust an organization or individual that contacts you out of the blue and offers to assist you with a VA claim.

*Don’t hesitate to say “no” if an adviser pressures you to act fast.

*Don’t be swayed by a name. Words like “veterans” or “military families” in an organization’s name doesn’t necessarily mean it’s legitimate, the FTC says.

*Don’t settle for vague or evasive answers. If a financial professional won’t definitively answer your questions, walk away.

If you’ve been approached or victimized by a pension poacher, file a complaint to the FTC, online http://www.ftc.gov, or by calling 877-382-4357.

For information you can trust on VA pension options, visit the department’s Pension page and eBenefits portal or contact your state veterans-affairs office.

For lawyers, contact your state’s bar association, which can tell you if the person has been the subject of any ethics complaints.

For insurance agents selling annuities, contact your state insurance regulator.

Have you seen this scam?

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

Report it on AARP’s Scam-Tracking Map

Sign up for Watchdog Alerts for more tips on avoiding scams.

A Free Public Service

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

August 26, 2022

Student Loan Foregiveness Scams​

As of mid-2022, about 43 million people, including 8.9 million age 50 and older, had outstanding federal student loans, with the average debt burden topping $37,600, according to data from the U.S. Department of Education’s Federal Student Aid office (FSA).

At the same time, the student debt landscape is undergoing big changes. On Aug. 24, President Joe Biden announced a plan to forgive up to $20,000 in student debt for millions of borrowers. For those who still have outstanding loans, federal repayments are set to resume Dec. 31 after a nearly three-year pandemic moratorium. Many have new payment arrangements amid a reshuffle of student loan servicers (companies contracted by the government to manage repayments).

Scammers take advantage of circumstances like these. They barrage borrowers with robocalls, emails, texts and social media messages touting sketchy strategies to quickly reduce monthly payments or procure loan forgiveness.​

Some of these schemes involve sham debt relief companies of the kind that also target people in arrears on mortgages, credit cards or medical bills. Other scammers pose as student loan servicers or representatives of the U.S. Department of Education.

The common thread is that they will solicit an upfront payment or request personal information, like your FSA account credentials or Social Security number, supposedly to secure your freedom from student debt.

Dodgy debt relief companies​

There are legitimate companies and organizations that can help you navigate the complexities of the student loan system — for example, by sifting through myriad federal and state repayment and forgiveness programs to see if you qualify. Their tips and tools may save you time and money.

But remember that there’s nothing a debt relief company can do to reduce or restructure your student debt that you can’t do yourself, for free, by contacting your loan servicer or the Department of Education.

Student debt scammers claim special skills to get you a more affordable repayment plan or “exclusive” access to loan consolidation or cancellation programs.

If you send money the scammers might simply pocket it and vanish. But some continue the con and assume “management” of your loan, collecting your monthly payments but keeping most or all of the money instead of paying down your debt.

Several millions of borrowers may be eligible for a measure of automatic debt forgiveness under the Biden administration’s new plan. Existing federal forgiveness programs can erase part or even all of outstanding student debt under certain circumstances or conditions — for example, if you go into public service work or suffer a total and permanent disability.​

There are legitimate programs that have complicated rules and may require years of regular payments or steady employment in certain fields before you qualify to have your loan terms changed.

CAUTION

• Do visit the Department of Education’s StudentAid.gov site for free information on getting help with federal student loans.
• Do contact your loan servicer to learn about and apply for repayment and forgiveness programs, at no cost.
• Do check out a debt relief firm before giving it information or signing any agreements. Ask your state consumer protection office about the company and use the Better Business Bureau’s directory to look up reviews and complaints.
• Do be skeptical of calls and emails claiming to be from or affiliated with the Department of Education. Scammers impersonate or feign ties with government agencies, sometimes appropriating official titles or logos to appear legitimate. 
• Do log in to your FSA account and change your ID if you think it’s been compromised, and contact your loan servicer to make sure no unwanted actions were taken on your loans.

Have you seen this scam?

• Call the AARP Fraud Watch Network Helpline: 877-908-3360
• Report it on AARP’s Scam-Tracking Map

Sign up for Watchdog Alerts for more tips on avoiding scams

Free Public Service

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

August 12, 2022

PHONY MESSAGES

Attribution Federal Trade Commission

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

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

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

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

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

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

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

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

A Free Public Service

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

July 26, 2022

DEBT RELIEF FRAUD

Courtesy AARP

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

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

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

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

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

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

Warning Signs:

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

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

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

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

Do’s:

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

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

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

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

Don’ts:

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

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

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

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

More Resources:

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

Have you seen this scam?

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

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

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A Free Public Service

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

July 26, 2022

DEBT RELIEF SCAMS

A Free Public Service

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

July 25, 2022

REVERSE MORTGAGE SCAMS

A Free Public Service

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

REVERSE MORTGAGE SCAMS

July 25, 2022

REVERSE MORTGAGE SCAMS

Courtesy AARP

A reverse mortgage is a type of loan that is designed to give people access to the equity they’ve built up in their home — basically, the property’s current value minus any outstanding loans or liens — without having to sell it.

For certain older homeowners, a reverse mortgage can be a way to supplement retirement income, consolidate debts or cover expenses like health care. For scam artists, they can be a lucrative tool to fleece people in their 60s and up out of large sums of money, or even their homes.

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

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

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

Warning Signs:

A broker or lender uses high-pressure tactics to try to talk you into a reverse mortgage.

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

They don’t disclose the fees, conditions and risks that come with taking out a reverse mortgage, including the possible loss of the home, which serves as collateral.

Do’s:

*Do get information on reverse mortgages from reputable sources, such as HUD or the Federal Trade Commission.

*Do talk to a trusted financial adviser or attorney before you sign anything. If the reverse mortgage is a federally insured Home Equity Conversion Mortgage (HECM), as most are, you are required by law to meet with a government-approved counselor.

*Do be wary if someone selling home improvement services suggests taking out a reverse mortgage to pay for renovations or repairs.

*Do be suspicious of claims that a reverse mortgage will get you free income or a free home.

*Do know that you usually have the right to cancel a reverse mortgage within three days after closing.

Don’ts:

*Don’t respond to unsolicited advertisements pushing reverse mortgages.

*Don’t sign any loan paperwork that you don’t completely understand.

*Don’t buy other financial products, services or investments to obtain a reverse mortgage.

*Don’t take out a reverse mortgage using just one spouse as the borrower. A reverse mortgage in one borrower’s name comes due when that person dies, and the surviving spouse could face collection proceedings and lose the home.

Have you seen this scam?

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

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A Free Public Service

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

July 13, 2022

CATTLE FEED SCAM 

Courtesy Federal Trade Commission

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

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

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

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

To help protect from losses:

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

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

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

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

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

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

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