A Free Public Service

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

May 1, 2022

PIG BUTCHER ROMANCE AND CYBER SCAM

Courtesy Scambusters

ARRIVING NOW – THE “PIG BUTCHER” ROMANCE AND CYBER SCAM

The term “pig butchering,” is a translation of the Chinese sha zu pan, refers to the tactic of first fattening up the hungry (or even greedy) victim over an extended period and then moving in to take money when the hapless casualty tries to escape.

Pig butchering sounds gruesome, and it is. Not just for poor old pigs but also for the victims of a fatten-and-slaughter scam where online daters are subjected to a long, softening process of building up trust with the scammer before he moves in for the kill.

It’s a lethal combination of romance and cybercurrency scams, which is poised to sweep the US after huge successes for the crooks in China and other parts of Asia.

Organized crime gangs have hijacked and merged two of the fastest growing scams in the US — dating and cybercurrency — into a sophisticated fraud dubbed “pig butchering.” And the result is every bit as nasty as the name suggests. This time, carefully trained groups use sophisticated tactics and master scripts to convince their targets, who are often successful, savvy and well-educated Americans, into handing over their money.

HOW THE SCAM WORKS

The trick starts, as most romance scams do, on dating sites and social media, sometimes via email. The crook, may use a photo of an attractive person, or strike up a friendly online conversation. They present themselves as an easy-going, wealthy professional, often in the same walk of life as a target person.

But here’s a difference from regular romance scams: they initially don’t ask for your money. Instead, they mix in mention of profits and losses they are making each day in cybercurrency trading. They might do this for several weeks or months, while the relationship develops with general chit-chat and flirting.

The crooks use carefully written scripts designed specifically for the targets with psychological tactics that amount to brainwashing. Eventually, the target, or mark, either asks about the scammer’s supposed investment strategy or the crook introduces it into the conversation, which, by now, has moved to a messaging app like WhatsApp.

This leads to a fake but highly convincing cryptocurrency website and an app used for learning and trading. Sometimes, the victim is encouraged to buy currency on a genuine trading site first and then transfer the holding to the fake site.

The scammer may send daily buy or sell tips and the victim sees their apparent holding grow. In the initial stages, if they suffer a big loss, the crook says he will carry it, though, of course, the money is already in his pocket.

This tactic is designed to make the victim increasingly confident about the scammer, who is also conducting a romantic conversation on the side.

As the victim plows in increasingly larger amounts of money, guided by their new online “lover,” and see their on-screen portfolio seeming to grow, they eventually decide to try to take their profits. But they’re given a variety of reasons why that can’t be done. They may even be asked for more cash to “meet processing costs.”

THE RED FLAGS

What can you do to avoid getting caught out by this scam?

The actions you can take are similar to those for guarding against a regular dating scam, but you have to be extra vigilant against the persuasive charm of these crooks.

Their scam works so well because the gangs behind the scheme are so thorough and convincing. Some of them even have fake customer service reps trained to talk victims out of trying to cash out. They use training manuals, tailored scripts, and translation software to seem educated, articulate, and helpful.

Finally, do not send money!

Scams can be reported to US Federal Trade Commission, www.ftc.gov

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A Free Public Public Service

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

April 21, 2022

JOB OPPORTUNITY SCAMS

Courtesy Federal Trade Commission

Here are some common job and money-making scams:

Scammers post fake job ads for mystery shoppers, personal assistants, or caregivers. If you apply, they might send you a check, tell you to deposit or cash it, keep part and send the rest to someone else. The check is fake, and by the time the bank realizes it, the scammer has your money, and the bank will want you to repay the money you withdrew.

Business opportunity pyramid schemes.

Some might look like legitimate business opportunities that sell real products, but they’re scams. Pyramid scheme promoters may say you can change your life, — quit your job, even get rich — by selling the company’s products. That’s a misleading lie. Your income is based mostly on how many people you recruit, not how much product you sell. Eventually, most victims find they can’t sell enough inventory or recruit enough people to make money. They quit the program and lose everything they invested.

Business coaching scams.

Offers for online business coaching programs promising guaranteed income with no experience, large returns, or a “proven system” are scams. They say their “experts” will teach you this “proven method” for building a successful business online. But if you invest thousands of dollars in a coaching program, you learn the scammers lied about how easy and lucrative the model would be, and you are left with nothing to show for your investment.

More information available.

Visit ftc.gov/scams for more information on spotting and avoiding scams, then share what you learned during #FinancialLiteracyMonth. If you see or lose money to a job or money-making scam, report it to the FTC at ReportFraud.ftc.gov.

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A Free Public Service

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

April 19, 2022

TAX DEBT RELIEF SCAMMERS

Courtesy Scambusters

TAX DEBT RELIEF SCAMMERS MAY CHARGE $25,000 – FOR NOTHING!

Debt relief “mills” cheat people who owe money to the IRS:

The IRS operates a program called Offer in Compromise (OIC), which enables taxpayers to request a debt write-down, but the rules are strict, calling for evidence of inability to pay. Scammers take advantage of it to steal money.

Scammers claim they can use the OIC Office to have the IRS slash your tax debt to “pennies on the dollar”. But they want you to pay upfront for their so-called service–which more than likely won’t save you a dime.

The fake “OIC mills” often charge fees running to as much as $25,000 to help with debt forgiveness claims. They may simply complete and submit an OIC application form. Other times, they just run off with the money.

The result is that victims often end up in a worse financial situation — out both the fees they handed over to the crooks plus potentially worsening debt problems with the IRS.

HOW TO APPLY FOR TAX DEBT RELIEF

What can you do if you have a tax debt problem?

First, don’t respond to those solicitations with pledges about how much you can save. If you think you need professional guidance, speak to a trusted financial adviser.

In the first instance, you can check whether you might qualify for debt relief by completing an online questionnaire.

That checks things like whether you have filed all current tax returns and if you’re up to date with needed estimated payments (if you have to make them). It also asks questions about current debt and income. The aim is to eliminate applications that simply would not qualify.

There’s no OIC charge for this, but taxpayers who do prequalify have to pay a $205 application fee directly to the IRS, although this can be overridden for very low-income taxpayers. If an application is rejected, the fee is unlikely to be refunded but at least that’s the extent of your financial exposure.

If the IRS thinks you can afford to pay your tax debt, it may suggest an installment payment program. Again, you can agree to this directly with the IRS. No need to pay someone else to do this unless you think you can’t do it yourself. Even then, make sure you know what a professional will charge you before you go ahead.

Contact: www.IRS.gov or OIC for more information.

A Free Public Service

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

April 13, 2022

IMPOSTER FRAUD

Courtesy Federal Trade Commission

What is an imposter?

An imposter is a person who pretends to be someone else.

Imposters are dishonest people who want to steal your money or your personal information.

They might call you on the phone or send an email or text pretending to be someone you know, like:

a family member

a friend

a person you feel like you know but have not met in person

Imposters may pretend to be working for the government – possibly the IRS. Imposters may pretend to be from a company you trust, like:

a company you do business with

possibly your electric company

a company that can fix your computer

a company that gives out prizes

a charity that asks for donations

Imposters might say:

they are calling from a tech support company about a problem on your computer

you owe money to the IRS or another government agency

you just won a prize but you have to pay fees to get the prize

a friend is in trouble and needs your help

you receive a check for too much money and you need to send back the extra amount

Gift card fraud:

Imposters might try to get you to pay them by asking you to buy a gift card or wire money. People who say you must pay that way are nearly always scammers trying to steal your money.

Never send money to people you don’t know – or when you are not sure if they are who they say they are.

A gift card lets you give someone money to spend in a store. You can buy gift cards at many stores – like Walmart or Target or CVS. You can also obtain them from an online store – like iTunes or Google Play or Amazon.

When you buy the card, you decide how much money to put on it. The card will have a store’s name on it. The store could be one you visit in person or online.

A phony person can use the card to buy things there. The card can be used just by having the numbers that are on the back of the card.

Reports can be made to www.ftc.gov.

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A Free Public Service

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

April 4, 2022

HEALTH PRODUCTS SCAMS

Courtesy US Food & Drug Administration

Bogus product! Danger! Health fraud alert!

You will never see these warnings on health products, but that’s what you ought to be thinking when you see claims like “miracle cure,” “guaranteed results,” or “vaccine alternative.”

Health fraud scams have been around for hundreds of years and play on the desire for a quick or miracle cure. The snake-oil salesmen of old have morphed into the deceptive, high-tech marketers of today, preying on people’s desires for easy solutions to difficult health problems—including Alzheimer’s, arthritis, cancer, diabetes, memory loss, sexual performance, weight loss, and Coronavirus Disease 2019 (COVID-19), influenza and other infectious diseases.

According to the Food and Drug Administration (FDA), a health product is fraudulent if it is deceptively promoted as being effective against a disease or health condition, but not scientifically proven safe and effective for that purpose.

Fraudulent products not only can’t deliver on their baseless promises—they could cause serious injury, or even death. Besides wasting money and delaying potentially life-saving diagnosis and scientifically tested and proven treatments, fraudulent products sometimes contain hidden drug ingredients that can be harmful when unknowingly taken by consumers.

Scammers are clever:

Scammers promote their products with savvy marketing, often using tactics that target specific populations via the web and email, but also by word-of-mouth, newspapers, magazines, TV, and direct mail. Health fraud scams run rampant on social media sites and closed messaging apps, such as Signal, Viber, WhatsApp and Facebook Messenger — even local convenience stores.

Rip Off Tips

Here are tips to help you identify rip-offs:

*One product does it all. Be suspicious of products that claim to cure a wide range of diseases. The agency continues to send warning letters and take enforcement action as appropriate against companies marketing fake cure-all products. These miracle cures don’t exist – they’re bogus – and the only thing these companies are selling is false hope.

*Personal “success” testimonials. Fake success stories, such as, “It cured my diabetes” or “It immediately stopped my COVID-19 infection,” are easy to make up and are not a substitute for scientific evidence. Reviews found on popular online marketplaces and social media can be fake.

*Quick fixes. Few diseases or conditions can be treated quickly, even with legitimate products. Beware of language such as, “Lose 30 pounds in 30 days,” “protects from viral infections,” or “eliminates skin cancer in days.”

*“All natural” cure or treatment. Don’t be fooled by descriptions like “all-natural cure.” Such phrases are often used in health fraud as an attention-grabber to suggest that a product is safer than conventional treatments.

*“Miracle cure.” Alarms should go off when you see this claim or others like it such as, “new discovery,” “guaranteed results,” or “secret ingredient.”

*Conspiracy theories. Claims like “This is the cure our government or Big Pharma doesn’t want you to know about” are used to distract consumers from the obvious, common-sense questions about the so-called miracle cure.

Even with these tips, fraudulent health products are not always easy to spot. If consumers are tempted to buy an unproven product or one with questionable claims, they should check with their doctor or other health care professional first.

Submit Adverse Event Reports to the FDA

Consumers experiencing adverse reactions to a product should submit voluntary reports to the FDA using: http://www.fda.gov.

Call FDA at 1-800-FDA-1088 to report by telephone.

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A Free Public Service

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

March 28, 2022

UKRAINE CHARITY FRAUD

Courtesy ftc.gov–AARP

A Free Public Service

March 28, 2022

Scammers take advantage of others’ misfortunes. When scammers spot a crisis like that in Ukraine they will take advantage to ply their hateful trade.

Many generous people want to support the Ukrainian people. If you’re one of them, use extreme caution!

You may feel pressured by e-mail, text, social media or even in person to act immediately. That is a Red Flag!

Do Research

 Do research first to make sure your donation will go where you want it to go. Research resources include www.give.org; www.charitywatch.org; www.charitynavigator.org; www,ft.gov/charity.

Phony Charity organizations

Check out the organization. Search online for the name of the group, plus words like “review,” “scam,” or “complaint.” See if others have had good or bad experiences with the charity.

How will your money be spent?

If someone calls asking you to donate, ask how much of your donation will go to the program or person you want to help. If they can’t provide that information any donation you make would be at risk.

If you’re donating through social media, be sure which organization your donation will go to. Check whether there are fees, and how quickly your money gets to the beneficiary. And if you can’t get answers quickly, consider donating in other ways.

You may be pressured to act quickly, and pay through a payment app, by text, purchasing gift cards and sharing numbers off the backs. That is a Red Flag.

Distressed Friends or Relatives

This long-established scam is perfectly tailored toward the situation in Ukraine now.

The crooks may call using a vague introduction like “It’s me” in hopes the victim will guess the name of someone they know. Then they’ll spin a story about being on a business trip or vacation in Ukraine when they were trapped. They will ask for the money to be sent by one of the wiring services.

If this happens to you, always ask the name of the caller rather than giving them information. Then check on the real location of that person via friends or relatives. If you can’t confirm their whereabouts, it’s almost certainly a scam.

Scammers set up fake websites claiming to be involved in helping Ukrainian victims of the battles.

Social media sites like Facebook are their favorite hunting grounds.

Often, scam charities use realistic sounding names and feature dramatic photos from war zones. They may want you to wire cash or use cybercurrency to donate, both of which are untraceable after the money is sent—and lost.

Or they may ask you to pay by credit card and then use your card details for identity theft, with which they’ll either max out your account or sell it to other crooks.

The best way to avoid Ukraine charity scams is to contribute only to established, reputable charities like the Red Cross. Even then, you need to be sure you’re dealing with the genuine organization by searching online for their website and starting from there.

Watch out too for street and shopping mall collectors with donation buckets or boxes. Unless you know the collector personally, it is next to impossible to know if they’re genuine. 

Other versions of Ukraine scams will likely emerge in the coming weeks. The best policy is that when you see or hear the name “Ukraine,” beware and think carefully before donating.

Learn more at ftc.gov/charity.

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A Free Public Service

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

March 13, 2022

MILITARY SCAMS

Courtesy Federal Trade Commission

Scammers will try to rip off anyone, including military personnel. The FTC’s military dashboard compiles five years’ worth of reports from servicemembers, veterans, and military families. From January 2017 through September 2021, military consumers told the FTC about more than 961,000 reports related to fraud, identity theft, or other consumer issues.

Scammers follow the money — and as a servicemember, you get a steady paycheck from Uncle Sam. After you leave the service, scammers try to trick you out of your hard-earned benefits. Some scammers even try to gain your trust and lower your guard by claiming they are from a military affiliation.

For both servicemembers and veterans, the top two categories of fraud reported in the past five years involved imposter scams. While all kinds of impersonators might target the armed forces, recent reports show that impersonators pretended to be from a government agency or a legitimate business.

But no matter what the story is, if someone contacts you out of the blue, remember:

Don’t give personal information or money to anyone who calls, texts, emails, or direct messages you on social media. Keep your Social Security, bank account, debit and credit card numbers to yourself.

Never make a payment to someone you don’t know, especially by gift card, mobile payment apps, money transfer, or cryptocurrency. Only scammers will demand you pay that way.

Scammers are always changing their tactics, so it’s important to be alert for anything that is looks suspicious. Tell the FTC your story at ReportFraud.ftc.gov, or in Spanish at ReporteFraude.ftc.gov.

A Free Public Service

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

March 9, 2022

UKRAINE SCAMS

Courtesy Scambusters—ftc.gov

Experience from past conflicts tells us Ukraine scammers are waiting to snare us, and they won’t necessarily come from Eastern Europe.

When scammers spot a crisis in the world, they are there to take advantage. It’s true millions of generous people want to support the Ukrainian people. If you’re one of them, use extreme caution!

You don’t have to give immediately. Do research first to make sure your donation will go where you want it to go. Your generosity can make a difference any time you give — especially if you take a few minutes to make sure your donation goes where you mean it to. Learn more at ftc.gov/charity.

Phony Charity organizations

Check out the organization. Search online for the name of the group, plus words like “review,” “scam,” or “complaint.” See if others have had good or bad experiences with the charity. And see what charity watchdog groups say about that organization.

How will your money be spent?

Ask, for example, how much of your donation will go to the program you want to help? If someone calls to ask you to donate, they should be able to answer those critical questions.

Ask who’s requesting you to donate.  Don’t assume a request to donate is legitimate because a friend posted it on social media. Your friend might not personally know the charity or how it spends money.

If you’re donating through social media, be sure which organization your donation will go to. Check whether there are fees, and how quickly your money gets to the beneficiary. And if you can’t get answers quickly, consider donating in other ways.

Scammers Target Americans

The conflict in Ukraine may seem a long way from your doorstep but you can be sure, in at least one way, your security is likely to be threatened: by scammers!

Here are schemes that will likely target Americans in the coming weeks — even if there are serious moves toward peace in Ukraine.

Distressed Friends or Relatives

This long-established scam is perfectly tailored toward the situation in Ukraine right now.

Victims receive a message by phone, text or email, seemingly from someone they know, who will say they’re trapped in the war zone and urgently need money to escape.

They will ask for the money to be sent by one of the wiring services because that’s  how you might send cash in such a dire situation.

Usually, the crooks will phone, using a vague introduction like “It’s me” in hopes the victim will guess the name of someone they know. Then they’ll spin a story about being on a business trip or vacation in Ukraine when they got trapped.

If this happens to you, always ask the name of the caller rather than giving them clues and then check on the real location of that person via friends or relatives.

If you can’t confirm their whereabouts, it’s almost certainly a scam. If you wire money it will be lost.

War Victim Charities

Scammers set up fake websites claiming to be involved in helping Ukrainian victims of the battles. This is exactly what happened during the conflict in Syria.

Social media sites like Facebook are their favorite hunting grounds.

Often, scam charities use realistic sounding names and feature dramatic photos from war zones. They may want you to wire cash or use cybercurrency to donate, both of which are untraceable after the money is sent.

Or they may ask you to pay by credit card and then use your card details for identity theft, which they’ll either sell or max out.

The best way to avoid Ukraine charity scams is to contribute only to established, reputable charities like the Red Cross. Even then, you need to be sure you’re dealing with the genuine organization by searching online for their website and starting from there.

Watch out too for street and shopping mall collectors with donation buckets or boxes. Unless you know the collector personally, It’s next to impossible to know if they’re genuine.  

Depending on the direction this conflict takes, Ukrainian versions of other well-known scams will likely emerge in the coming weeks. The best policy is that when you see or hear the word “Ukraine,” beware and think carefully before acting.

Learn more at ftc.gov/charity.

A Free Public Service

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

February 17, 2022

LATE THREATENING SCAMS

Courtesy Scambusters

Late Scams That Threaten YOU Right Now

Every day, scores, sometimes hundreds, of scam reports pass across our research desk. Some of them are ingenious and many of them follow a pattern that relates to current issues.

Here’s a look at top scams happening right now.

TAX SCAMS

With tax reporting season in full swing, crooks have lined up a full collection of scams to catch out the unwary.

The IRS reports that crooks are using text, emails, and phones to trick people with messages and bogus links relating to returns and refunds.

There’s a particular risk of unemployment fraud in which scammers file claims for benefits in the names of people whose identity has been stolen.

CYBERCURRENCY SCAMS

There has been a jump in the fast-moving and poorly-regulated virtual currency marketplace scam this year. 

One of the biggest scams active right now is an SMS text phishing trick targeting the world’s biggest cybercurrency exchange, Binance. Victims are taken to a phony sign-on page where their personal details are stolen and then used to drain the account.

SOCIAL MEDIA

Scams are perpetrated on social media like Facebook, Twitter, and Instagram. A favorite haunt for the crooks is Facebook’s Marketplace, which members use to sell stuff locally.

One of the biggest Marketplace tricks currently in operation is the shipping insurance scam. Crooks pretend to be buyers but demand that their target pays for insurance upfront, after offering a mouthwatering price for the item being sold. They pay but, of course, there’s no sale.

Another big, new social media scam is a pyramid scheme in disguise. It’s a “book exchange” scheme in which participants supposedly send out one book and get 36 back in return.

Big offenders right now are fake technical support and call center reps, mostly based on the Indian sub-continent.

IMPERSONATORS

Scammers impersonate utility company reps or law enforcement with threats of supply cuts or arrest if they don’t pay immediately. Or they may pretend to be government officials offering phony loans and grants.

COVID SCAMS

Two years on from the outbreak of COVID, scammers have been stepping up their campaigns of false remedies, fake face masks, and more.

So far this year, phony testing programs have taken the spotlight. These are often run from vans that set up business near genuine testing stations. Visitors are asked to provide confidential information by filling in a form that may then be used for marketing or even identity theft. The perpetrators may go through a routine similar to testing but victims rarely, if ever, get the results.

Fake testing kits that simply don’t work are also being sold online.

ROBOCALLS

Have you noticed a big rise in the number of automated calls to both your cell phone and landline in recent weeks? Or, more importantly, an increased number of voicemails that you didn’t even hear going through?

According to the Federal Communications Commission (FCC), these “ringless voicemails” are being used to try to get around existing bans on robocalls

Furthermore, they’re not only a nuisance in themselves but they can also result in overflowing voicemail inboxes, so important legitimate callers may not be able to leave messages.

The FCC wants to ban these ringless messages or impose the same requirement for consumer consent that currently applies to other robocalls.

MONEY TRANSFERS

The popularity of mobile payment apps like Zelle, Venmo, and many others has attracted thousands of scammers and some clever ways to trick people into allowing access to their accounts or to simply fool them into transferring their money to the crooks.

Current scams include fake pet breeders demanding successive payments via Zelle for non-existent puppies and kittens; get-rich-quick schemes promoted in online videos (“send $500 and get $5,000 back by the end of the day”); and sales of supposed tech equipment at knock-down prices.

Money transfer scammers also impersonate victims’ banks and persuade them to transfer money to themselves for security reasons.

Reversing scam transactions can be difficult or, in some cases, impossible.

A Free Public Service

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

February 7, 2022

IDENTITY THEFT

Courtesy US Federal Trade Commission

When identity theft happens, it’s hard to know where to begin. That’s why the FTC created IdentityTheft.gov, a one-stop resource for people to report identity theft to law enforcement and to get step-by-step instructions on how to recover from any type of identity theft.

The first step in avoiding identity theft, or stopping the damage, is placing a fraud alert on your credit report. This makes it harder for a thief to open new credit in your name, and lets you get free copies of your credit report from each of the three credit bureaus. Next, read through your reports and note any accounts or transactions that don’t belong. Then, go to IdentityTheft.gov.

When you report at IdentityTheft.gov, you’ll answer questions and give details about what happened. Include information about any problems you spotted on your credit reports. IdentityTheft.gov will use that information to create your personalized Identity Theft Report, which shows that someone stole your identity, and recovery plan with step-by-step advice to help you fix problems.

Your Identity Theft Report, recovery plan, and sample letters from IdentityTheft.gov will help you repair problems caused by identity theft. Your recovery plan may tell you to:

close new accounts opened in your name

remove charges made on your existing accounts

contact the three credit bureaus to correct your credit report

consider an extended fraud alert or credit freeze

check your credit reports regularly. Through April 2022, you can check your reports every week for free at AnnualCreditReport.com.

Learn more about protecting your identity and recovering from identity theft at ftc.gov/idtheft.

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