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

June 16, 2020

HOME IMPROVEMENT SCAMS

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

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

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

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

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

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

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

Do

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

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

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

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

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

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

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

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

Do nots

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

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

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

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

ATTRIBUTION: AARP

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

June 11, 2020

SMALL BUSINESS FINANCING FRAUD

Courtesy US Federal Trade Commission

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

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

Before you sign to obtain financing:

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

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

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

Court Case Federal Trade Commission v. Richmond Capital

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

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

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

June 9, 2020

COVID-19 DONATION SCAMS

Many generous persons wish to help unfortunate persons who have suffered through disasters such as the COVID-19 pandemic. Scammers know of and capitalize on that goodwill.

Scammers create sham charities mimicking the real thing. They reach you via telemarketing, direct mail, email and door-to-door solicitations. They create well-designed websites with deceptive names.

A few things to consider before you donate:

*Do some research. There are many good organizations to support. Search online for recommendations — and, when you have found one that is well thought of, check it out. Type the group or fund’s name into a search engine, plus the word “scam, “review,” or “complaint.”

*Consider how you pay. Real charities will not ask you to pay by cash, money transfer, gift card, or Bitcoin. If someone tells you to donate that way, consider donating elsewhere.

*Research crowdfunding. Legitimate funds that give real help may spring up right after a tragedy. But scammers put up crowdfunding pages and it can be hard to tell the difference.

*Slow down. If someone rushes you, slow down. Scammers want to get your money as soon as they can before you have adequate time to think about a request.

*Research online. The Federal Trade Commission recommends searching for a charity’s name or a cause you want to support with terms such as “highly rated charity,” “complaints” and “scam.” http://www.ftc.gov/charity.

*Check how watchdogs like Charity Navigator, CharityWatch and the Better Business Bureau’s Wise Giving Alliance rate an organization before you donate. Your state’s charity regulator can verify that the organization is registered to raise money there.

*Ask how much of your donation goes to overhead and fundraising. One rule of thumb, used by Wise Giving Alliance, is that at least 65 percent of a charity’s total expenses should go directly to serving its mission.

*Keep a record of your donations and regularly review your credit card account to make sure you were not charged more than you agreed to give or unknowingly signed up for a recurring donation.

Do not:

*Do not give personal and financial information like your Social Security number, date of birth or bank account number to anyone soliciting a donation. Scammers use that data to steal money and identities.

*Do not donate with cash, gift card or wire transfer. Credit cards and checks are safer when donation to a legitimate charity.

*Do not donate by text without confirming the phone number on the charity’s official website.

You can report any suspicious activity to the Federal Trade Commission: http://www.ftc.gov, or
call the AARP Fraud Watch Network Helpline: 877-908-3360.

#

 

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

June 6, 2020

UNEMPLOYMENT CHECK SCAM

Criminals are working to siphon off unemployment insurance payments intended for workers laid off due to the COVID-19 pandemic.

How the scam works:

Identity thieves use databases of personal information (likely obtained via data breaches) to create phony accounts on state unemployment insurance office websites. Once they successfully create an account, they have the benefits direct deposited into a bank account controlled by the scammer or an accomplice. The scammer then uses the deposited funds to purchase untraceable bitcoins, gift cards, or money orders.

If you have recently become unemployed, the following steps can help you reduce your risk of becoming a victim of this scam:

Log on and create a profile on your state unemployment office’s website as soon as you are laid off. This will reduce the window of opportunity for scammers to create fake profiles in your name and steal your unemployment benefits.

If you have already created a profile with your state unemployment office, log in and verify that no one has filed a claim in your name. If you have used a password on your profile that you have used on other accounts, change your password to something unique that you have not already used elsewhere.

If you receive communication that someone else has applied for unemployment benefits in your name, or your unemployment benefits claim was denied because someone else already applied, file a fraud complaint with your state’s unemployment office promptly.

You can place a credit freeze on your credit report with the three major credit reporting bureaus (Experian, Equifax, and TransUnion). If identity thieves have the personal information necessary to steal your unemployment benefits, they likely also have the information they need to take out credit or engage in other criminal activity. A credit freeze will prevent anyone from accessing your credit file until you unfreeze it with a PIN. For more information on credit freezes, refer to FAQ from the US Federal Trade Commission: http://www.ftc.gov.

Work from Home Schemes

If you are looking for work, beware of online ads or unsolicited email and text offers to participate in work-from-home job opportunities. Common schemes involve offers to be a mystery shopper, payment processing agent, money transfer agent, or other similar jobs where you are asked to allow deposits to be made to your personal bank account. These jobs do not exist.

If you have been affected by an unemployment benefits fraud or any other coronavirus-related scam, you can file a complaint at http://www.Fraud.org. You can help law enforcement bring scammers to justice.

ATTRIBUTION: Fraud.org

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

May 30, 2020

CHAIN LETTER SCAM

Courtesy US Federal Trade Commission

A chain letter, by any other name, is still designed and intended to steal money.

You may be invited to play “The Circle Game,” join a “Blessing Loom,” or jump on a “Money Board”? These are some of the names for an online scam that’s making the rounds at a time when millions of people are out of work and scraping for cash. It promises a big return for a modest investment.

Do not fall for it. You’re virtually guaranteed to lose your money, or pull in friends and family who will lose theirs.

Also known as the “Mandala Game,” “Blessing Circle,” “Infinity Loom,” “Giving Circle,” and by other names, the scam is a chain letter-type of pyramid scheme. While versions vary slightly, the one we’re hearing about most promises that you’ll collect $800 for an investment of $100 and, at the same time, help bring good fortune to someone else by recruiting them to join.

Here’s how it works.

You see a post or get a direct message on Instagram, Facebook, or other social media. It invites you to join the Circle or Loom by sending $100 through PayPal or another digital payment service to the person whose name is at the center of an octagon-shaped playing board. Your payment gets you one of eight spots on the outer ring of the board and a chance to move towards the center by recruiting other people to join. As more people join, your board changes and the number of playing boards expands. Eventually, you’re supposed to land at the center of a playing board and collect $100 from each of eight new recruits on the outer ring. That’s when you leave the game or start all over again with another $100 payment.

What’s the harm? Like other types of pyramid schemes, these chain letters depend on recruiting new people to keep money flowing into the enterprise. There are no products sold or real investments creating profits. Once players run out of new recruits to bring into the game, the money dries up and everyone waiting to reach the center comes up empty handed.

If you get an offer to join an online game like this, beware ­– it’s a scam. The warning signs? Promises that you will make money by paying in yourself and recruiting others to do the same. If the offer comes from a friend or family member, warn them.

And, if you’ve paid someone to join this game, please tell us: ftc.gov/complaint. Your report can help us protect others from a scam.

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

May 29, 2020

NIGERIAN SCAMS

Nigeria is home to a wide variety of online fraud variants. They are all designed to wrongfully take a victim’s money. Nigeria has a track record of being home to e-mail scammers since the 1990s.

A Nigerian e-mail scam usually results in a victim being convinced to take leap of faith, transferring money online in anticipation of receiving a valuable good or service. In most cases, the victim does not receive anything.

How Nigerian Scam E-mails Work

A scammer may send the victim an e-mail message telling the victim that the scammer is in communication with the representative of the estate of a deceased Nigerian prince. The victim is told they have been chosen to inherit a certain amount of wealth from the “prince.” The victim is asked to send a few thousand dollars as a gesture of goodwill and pay expenses before the full sum is distributed. Once the scammer receives the money from the victim, the “prince” disappears without a trace.

A scammer may represent himself as being in questionable possession of a large amount of gold. It can be obtained for a very low price that would allow a purchaser to realize a big gain. The gold would be shipped to the victim after the victim has paid the requested amount. No gold will be delivered.

A scammer purports to be an attorney representing the estate of a victim’s relative who died in Nigeria. The victim is told they are entitled to a large distribution from the estate. First, however, the victim must send money to cover attorney fees, medical, funeral and other expenses. No such relative existed.

Caution is advised in response to any Nigerian communication requesting money.

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.

May 22, 2020

ZOOMBOMBING

“Zoom” is the name of a suddenly popular video chat app that allows multiple people to remotely join a conversation. It was designed for business use. It has become a boon for employees required to attend virtual meetings while working from home.

“Zoombombing” is a new crime spawned by hackers bent on invading or disrupting video conferences in many places.

Services other than Zoom could be vulnerable. Microsoft has a popular professional product called Teams, while Facebook recently joined the fray with its own version of multi-person video called Messenger Rooms.

How It works:

Hackers drop in on Zoom conversations and often disrupting them with insults and threats. They have thrown up pornographic images on participants’ screens. They can threaten security.

Tips aimed at organizers to counter the Zoombombers:

Tell your participants not to publicize the meeting, especially with links, on social networks.

Be cautious and aware of all meeting participants. Make sure you know them and why they are there.

Do not allow participants to join the meeting before you do — or to hang around afterwards.

Use the software’s “waiting room” feature, that allows you to review participants before virtually opening the door to them.

For meetings where not everyone is known, do not allow use of virtual backgrounds (downloaded from the Internet) because intruders might use them to post inappropriate messages.

Your safety feature may allow you to place a would-be participant on “hold” and unable to take part until you have established their credentials.

Be wary about how you name meetings. Zoombombers are good at guessing them and sneaking in, especially if you use family or business names. Zoom has its own mechanism for generating meeting names that you can use.

Consider using entry passwords. They are a must for meetings that include children.

Once meetings are in action, there are several controls available to organizers including the ability to mute one or more participants, turning off whiteboard sharing and disabling file transfers during chat, to prevent Zoombombers from sending malware to others taking part.

For a full Consumer Reports article, visit www.https://www.consumerreports.org/video-conferencing-services/how-to-prevent-zoombombing/

ATTRIBUTION: scambusters.org

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

May 17, 2020

PHONY FUNERAL NOTIFICATION

Scammers have reached a new low. They are sending bogus emails with the subject line “funeral notification.”

The message appears to be from a legitimate funeral home, offers condolences, and invites you to click on a link for more information about the upcoming “celebration of your friend’s life service.” But instead of sending you to the funeral home’s website, the link sends you to a foreign domain where the scammers can download malware to your computer.

Malware, short for “malicious software,” includes viruses and spyware that get installed on your computer without your consent. These programs can cause your device to crash and can be used to monitor and control your online activity. Criminals use malware to steal personal information, send spam, and commit fraud.

If you receive an email about a friend or loved one having passed away, the Federal Trade Commission, the nation’s consumer protection agency, says hit Delete. Do not click on the link. You may then want to contact the funeral home or family directly to verify or discredit the information.

Tips to reduce your risk of downloading unwanted malware and spyware:

*Keep your security software updated.

*Don’t click on any links or open any attachment in emails unless you know who sent it and what it is.

*Download and install software only from websites you know and trust.

*Make sure your browser security setting is high enough to detect unauthorized downloads.

*Use a pop-up blocker and do not click on any links within pop-ups.

*Resist buying software in response to unexpected pop-up messages or emails, especially ads that claim to have scanned your computer and detected malware. That is a trick crooks use to spread malware.

*Back up your data regularly.

ATTRIBUTION: US Federal Trade Commission, http://www.ftc.gov.

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

May 15, 2020

SMARTPHONE STALKERWARE SCAM

Cyberstalkers have a new weapon in their efforts to virtually follow their victims — stalkerware.

Online stalking has been defined as the use of the Internet for monitoring and, often, harassing an individual. It involves all kinds of sinister motives, including scamming victims, stealing their identity, blackmailing, bullying, and intimidation.

Using stalkerware, scammers can see all the things you see on your smartphone, hear all the things you hear, pinpoint your physical location, and even remotely control your camera and microphone,” explains Malwarebytes’ Wendy Zamora.

Your calls can be intercepted, eavesdropped on, and recorded — all without your knowledge as the smartphone owner. Information can then be reported back to the scammer.

Stalkerware is available openly. It may be deceptively promoted as software for parental monitoring of teens. Or, for its ability to keep an eye on activities of spouses and other partners.

Getting Around Built-in Security:

Stalkerware programs have been able to avoid built-in security on some smartphones during installation. Scammers  can sometimes skirt the law by appearing to have a legitimate purpose.

State and federal authorities rely on laws that were not originally written to defend against cyberstalking. That makes it difficult to legally tackle the stalkerware criminals.

What to Do:

You could install protective security software on your smartphone. Many smartphone owners have anti-malware software on their PCs but not on their smartphones.

It is not always easy to know if stalkerware apps have been installed on your smartphone. Presence of snooping stalkerware could be signaled by a surge in your phone’s data usage, or if your battery drains quicker than usual.

Guidance in avoiding cyberstalkers is offered at https://scambusters.org/cyberstalking.html.

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.

May 13, 2020

INVESTMENT SCAMS

Prudent investment is a common means of increasing wealth. But there is always risk in investments. A con artist will tell you otherwise. You should know there is a risk before you invest.

Beware of promises that you will make big profits fast. No one can accurately predict how an investment will produce profit. Often the investments that promise the greatest pay-off have the most risk.

Investment guidance from a licensed professional should be obtained to minimize risk.
Investment considerations:

*Get the details in writing. Legitimate companies will be happy to give you all the information you need.

*Do not agree quickly. Pressure by anyone to act immediately is a sign of fraud.

*Understand your investments. Do your educational homework before you invest. Know differences between stocks and bonds, margin accounts, cash accounts, options, futures, mutual funds and certificates of deposit.

*Do not act on testimonials or suggestions from strangers. Someone who appears to want to share a friendly tip about a great investment opportunity may be a con artist trying to lure you into an investment scam.

*Be especially wary of investments in commodities. Crooks often promise that the value of investments in coins, precious metals, artwork, oil leases, gemstones, and other commodities will rise. The truth is the value of these types of investments can go up or down significantly.

*Steer clear of “offshore investments.” These are often promoted to avoid taxes. You will likely still be liable for taxes, and the investments themselves are usually very risky.

*Be cautious about emails for investments. Many unsolicited emails are fraudulent.

*Take the time to check out investment offers. A good place to start is with your state securities regulator. Other resources for information to help you make wise investment decisions include: U.S. Securities and Exchange Commission, 800- 732-0330; the North American Securities Administrators Association, 202-737-0900; and the National Futures Association (for investments in commodities), 800-621-3570.

Attribution: fraud.org