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

August 8, 2020

FAKE PAPER CHECK SCAMS

Paper checks create an opportunity for scammers to steal your money through a variety of fake check scams. Their approaches differ, but crooks have the same basic kicker: They want you to deposit a fake check in your bank account, then for some phony reason return a portion of the supposed funds to them.

Con artists run numerous variations on this scheme:

One common ruse is the over-payment scam. You place something up for sale in a newspaper classified ad or online post. Someone makes an offer and sends you a check — perhaps even a cashier’s check, which seems extra-safe. The check is for considerably more than what you charged for the item. The “buyer” will pretend it is a mistake and ask you to deposit the check and refund to them the over payment.

Crooks exploit the fact that banks must make funds from a deposited check available to the account holder within days. But it can take the bank longer to discover that the check is fake. When the check bounces, you have lost whatever you sent the scammer. Worse yet, you will be responsible for returning to the bank the money you withdrew.

You may receive a letter, with a fake check enclosed, saying you have won a foreign lottery, but you must wire a portion of the winnings back to cover taxes, fees or other charges.

In each case, when the check bounces you have lost what you gave the scammer.

These scams remain popular with fraudsters because they are easy to pull off. With the help of a scanner and a good printer, a crook can fabricate a bogus check — even a bank draft, certified check or cashier’s check — that is hard to distinguish from the real thing. Some fake checks even contain authentic-looking watermarks.

Warning Signs:

*A prospective buyer of something you placed for sale sends you a check for more than your asking price.

*You receive a check in the mail for lottery winnings you can only claim by wiring back some of the money in advance. No legitimate sweepstakes or lottery requires payment to play or collect a prize.

*A check purporting to be a grant or scholarship requires you to send money in advance to offset “administrative expenses”.

Dos

*Do suggest that a buyer who wants to pay you for an item or service by check use a safer alternative — for example, an online peer-to-peer service like PayPal.

*Do ask for checks to be drawn on local banks or banks with local branches. That way, you can visit the bank to make sure the check is legit before depositing it. If you do accept a check from an out-of-town bank, call the bank before you deposit the check to verify that it is genuine.

*Do examine checks carefully. Scammers can meticulously duplicate genuine checks, but some make mistakes, such as using an incorrect routing number for a bank or putting a check number in the upper left corner that does not match the one at the bottom.

*Do back out of a sale if the buyer pressures you to wire back funds.

*Do wait at least two weeks for it to clear after you deposit a check from an unfamiliar source before you withdraw or spend money from it.

Do nots

*Don’t accept a check that’s made out for more than the price of the item or service you’re selling. Insist that the buyer make out a new one for the correct amount.

*Don’t rely on a phone number for a bank that a seller prints on a check. If you want to call to authenticate the payment, look up the bank’s number on its official website.

*Don’t wire money to people you don’t know.

*Don’t give in to pressure to move fast on a payment to secure a job or supposed financial windfall. If a deal is legitimate, it will still be available after the check clears.

You can report any scam to the AARP Hotline 877-903-3360 and the Federal Trade Commission www.FTC.gov.

ATTRIBUTION: AARP

 

 

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

August 3, 2020

SWEETHEART SWINDLE SCAM

Online dating can be fun and convenient. But falling for a sweetheart swindle can be costly. Be wary of “friends” you meet online who develop a relationship with you only to con you out of hundreds or even thousands of dollars.

Falling in love with a con artist has consistently been ranked as one of, if not, the most expensive scams for the victims. The con artist may claim to be interested in the victim romantically. When the victim responds, their new “friend” may tell them a story about how they are located far away from the victim, often overseas.

As the relationship develops and false trust is built, the “friend” asks the victim to send money to help them out of some fake situation. They may claim that they need the money to visit the victim, for medical bills, to get out of jail, or some other phony reason. If the victim agrees to pay, there will inevitably be more requests for money to cover other fictitious expenses until the victim comes to realize it is a scam and stops paying, or worse, runs out of money.

How can you spot a romance scam and avoid falling victim?

Here are red flags that the person you are dealing with is after your cash, instead of your heart:

*They request that you wire money or to cash a check or money order for them.

*The “relationship” becomes romantic extremely quickly, with quick pronouncements of love or close friendship.

*They claim to be a U.S. citizen who is abroad, very wealthy, or a person of important status.

*They claim to be a contractor who needs your help with a business deal.

*They make excuses about not being able to speak by phone or meet in person.

*They quickly ask you to communicate via email, instant messaging, or text messaging instead of the online dating sites’ messaging services.

*They claim to be an American but make frequent spelling or grammar mistakes that a native English speaker would not.

If you have been approached by someone you think could be a romance scammer, or if you have already fallen victim, DON’T keep speaking with that person. Ignore their emails, phone calls, IMs, or other communications. Instead, use the online dating site’s abuse flagging system to mark the account as suspicious and file a complaint at www.Fraud.org.

ATTRIBUTION: Fraud.org

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

July 30, 2020

ROBOCALL COVID-19 SCAMS

Courtesy US Federal Communications Commission

As the COVID-19 pandemic continues to impact the United States, phone scammers have seized the opportunity. They are using robocalls and call-back scams to offer free home testing kits, promote bogus cures, sell health insurance, and promise financial relief. They are out to steal money or sensitive personal information.

The World Health Organization (WHO) is urging everyone to be wary of phone calls and text messages that purport to be from WHO asking for money or your account information.

Robocalls purporting to offer free virus test kits are an effort to collect consumers’ personal and health insurance information. Others are marketing fake cures and asking over the phone for payment.

Another robocall message purports to be from the U.S. Department of Health, warning of an outbreak “in your area.” The message recommends getting a vaccine and offers to connect you to a “health advisor.”

Fraudsters are also preying on personal financial fears tied to the pandemic. The Federal Communication Commission (www.fcc.gov) is aware of robocall scams with COVID-19 themed work-from-home opportunities, debt consolidation offers, and student loan repayment plans.

Many consumers are receiving checks as part of the federal government response to the coronavirus. No government representative will call or text you to verify your personal information or bank account details to “release” the funds. The Treasury Department expects most people to receive their payments via direct deposit to the address that department has on file from prior tax filings.

Small businesses are also receiving scam calls about virus-related funding or loans and online listing verification.

The FCC offers the following tips to help you protect yourself from scams, including coronavirus scams:

*Do not respond to calls or texts from unknown numbers, or any others that appear suspicious.

*Never share your personal or financial information via email, text messages, or over the phone.

*Be cautious if you are being pressured to share any information or make a payment immediately.

*Scammers often spoof phone numbers to trick you into answering or responding.  Remember that government agencies will never call you to ask for personal information or money.

*Do not click any links in a text message. If a friend sends you a text with a suspicious link that seems out of character, call them to make sure they were not hacked.

*Always check on a charity (for example, by calling or looking at its actual website before donating.

*For more information about scam calls and texts, visit the FCC Consumer Help Center and the FCC Scam Glossary. You can also file a complaint about such scams at http://www.fcc.gov/complaints.

*The Federal Trade Commission and the U.S. Food & Drug Administration have also posted consumer warnings about fake websites and phishing emails used to promote bogus COVID-19 products.

If you think you have been a victim of a coronavirus scam, contact local law enforcement and the Federal Communication Commission, http://www.fcc.gov.

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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 24, 2020

COMMON SCAMS

Courtesy US Consumer Financial Protection Bureau.

Scammers are constantly finding new ways to steal your money. You can guard against crooks and scammers if you know what to look for.

Debt collection scams

Legitimate debt collectors may contact you to collect on debts you owe. But there are scammers who pose as phony debt collectors to get you to pay for debts you don’t owe, or that have already been paid. Do not give financial information to anyone until you can verify the debt.

Debt settlement and debt relief scams

Debt settlement companies say they can renegotiate, settle, or in some way change the terms of a person’s debt to a creditor or debt collector. The Federal Trade Commission offers information about when a debt settlement offer may be a scam, http://www.ftc.gov.

Foreclosure relief scams

Foreclosure relief or mortgage loan modification scams are schemes to take your money or your house – often by making a false promise of saving you from foreclosure.

If you are having trouble making payments on your mortgage, a Housing & Urban Development (HUD) www.HUD.gov  approved housing counselor may be able to help you assess your options and avoid scams. If you think you may have been a victim of a foreclosure scam you can contact the Federal Trade Commission, www.ftc.gov. or the AARP Helpline number 877-908-3360.

Grandparent scam

If you receive a call from someone who sounds like a grandchild or relative asking you to wire or transfer money or send gift cards to help them out of trouble, it is likely a scam.

Imposter scams

Imposter scammers try to convince you to send money by pretending to be someone you know or trust like a sheriff, local, state, or federal government employee, or charity organization. Remember, caller ID can be faked. You can always call the organization or government agency and ask if the person works for them before giving any money.

Mail fraud

Mail fraud letters look real, but the promises are fake. A common warning sign is a letter asking you to send money or personal information now to receive something of value later.

Mortgage closing scams

Mortgage closing scams target homebuyers who are nearing the closing date on their mortgage loan. The scammer attempts to steal the homebuyer’s closing funds—for example, their down payment and closing costs—by sending the homebuyer an email posing as the homebuyer’s real estate agent or settlement agent (title company, escrow officer, or attorney).

Lottery or prize scams

Scammers will call or email congratulating you on being a winner. You may be asked for an upfront payment for fees or taxes. Similarly, a scammer might ask you to pay money in advance to get sweepstakes prize winnings.

Wire or money transfer fraud

Scammers use money wire transfers to steal your money. One example of a wire transfer fraud is one related to the “grandparent scam.” Once a money transfer is picked up, there is little you can do to get your money back. If someone you don’t know asks you to wire money, it is a red flag.

To report a scam, you can submit a complaint to the Federal Trade Commission http://www.FTC.gov. Other options include contacting your local police or sheriff’s office or your state attorney general to report the scam. Also, you can visit the National Association of Attorneys General, www.naag.org, or call the  AARP Hotline 877-908-3360.

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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 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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