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

March 11, 2020

MORE CORONAVIRUS SCAMS

The Federal Trade Commission (FTC) and U.S. Food and Drug Administration (FDA) have sent warning letters to seven companies allegedly selling unapproved products that may violate federal law by making deceptive or scientifically unsupported claims about their ability to treat coronavirus (COVID-19).
Warning letters were sent to the following companies:
1) Vital Silver, 2) Quinessence Aromatherapy Ltd., 3) N-ergetics, 4) GuruNanda, LLC, 5) Vivify Holistic Clinic, 6) Herbal Amy LLC, and 7) The Jim Bakker Show.
The recipients are companies that advertise products—including teas, essential oils, and colloidal silver—as able to treat or prevent coronavirus.
The FDA considers the sale and promotion of fraudulent COVID-19 products to be a threat to the public health. “We don’t need this situation where companies are preying on consumers by promoting products with fraudulent prevention and treatment claims” said FTC Chairman Joe Simons.
Anyone having knowledge of such illegal activities are urge to report it to the Federal Trade Commission, http://www.FTC.gov, or Food and Drug Administration, http://www.FDA.gov.

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

March 2, 2020

TAX IDENTITY THEFT

What is tax identity theft? It happens when someone uses your Social Security number (SSN) to file a phony tax return and collect your refund. You may not find out it has happened until you try to file your real tax return and the IRS rejects it as a duplicate filing.
IRS imposters are scammers who pretend they’re calling from the IRS. They claim you owe taxes and demand that you pay right now, usually with a gift card or prepaid debit card. They threaten you’ll be arrested or face other bad consequences if you don’t pay. But it’s all a lie. If you send the money, it’s gone. When this happens, it is called Tax Identity Fraud.
To fight against tax identity theft:
*Protect your SSN throughout the year. Don’t give it out unless there’s a good reason and you’re sure whom you’re giving it to.
*File your tax return early in the tax season to give criminals less time to use your information.
*Use a secure internet connection if you file electronically, or mail your tax return directly from the post office.
*Research the reputation of a tax preparer thoroughly before you hand over personal information.
*Check your credit report at least once a year for free at http://www.annualcreditreport.com to make sure no one has opened a new account in your name.
*Take precautions to protect your identity. If you lose your wallet, or it is stolen, it offers a scammer an opportunity to steal your identity using your Social Security Number (SSN) or other personal information.
*When filing electronically avoid public networks such as a local coffee shop or McDonalds.
*If you plan to mail in your tax return, mail it through a reliable source like the post-office, or official postal box.
*Once you’re done with documents that contain sensitive information, be sure to SHRED them. Or, if you have documents you need to keep, be sure that they are kept in a secure location.
*If you’re expecting your W-2s and haven’t received them, and your employer indicates they’ve been mailed, or it looks as if it has been previously opened upon delivery, contact the IRS immediately at http://www.irs.gov.
Attribution: http://www.ftc.gov

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

February 22, 2020

DEBT RELIEF SCAMS

When credit card or other debts are burdensome, a phone call, email, website or ad promising relief may be welcome. A promise 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 deeper in debt.

There are reputable companies and organizations that can help you get out of the red. Some can advise you on budgeting and money management. They nay 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. Crucially, “they ask you to pay them before they do anything for you,” says the Federal Trade Commission (FTC). That’s 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 crooks will take your money and run; others will string you along, collecting payments and taking a “Management Fee” from each payment.

Bogus firms may instruct victims to stop paying their debts, on the premise that this will compel creditors to negotiate a reduction in the amount owed. This is misleading and risky. Creditors are under no obligation to settle rather than sue. These bogus firms don’t fully explain the potential consequences of being sued by creditors who are not paid. In the meantime, you could accrue interest and penalties and damage your credit score.

Warning Signs:

*A debt relief company asks for fees up front, before it settles any debts.

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

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

*The 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 believe a claim that a company can remove negative information from your credit file. If data on delinquency, defaults and other problems is correct, it stays on your credit report for many years, by law.

Attribution: AARP.org

Courtesy US Federal Trade Commission

February 14, 2020

Coronavirus: Scammers follow the headlines

Scammers are taking advantage of fears surrounding the Coronavirus. They’re setting up websites to sell bogus products, and using fake emails, texts, and social media posts as a ruse to take your money and get your personal information.

The emails and posts may be promoting awareness and prevention tips, and fake information about cases in your neighborhood. They also may be asking you to donate to victims, offering advice on unproven treatments, or contain malicious email attachments.

Here are some tips to help you keep the scammers at bay:

Don’t click on links from sources you don’t know. It could download a virus onto your computer or device. Make sure the anti-malware and anti-virus software on your computer is up to date.

Watch for emails claiming to be from the Centers for Disease Control and Prevention (CDC) or experts saying that have information about the virus. For the most up-to-date information about the Coronavirus, visit the Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO).

Ignore online offers for vaccinations. If you see ads touting prevention, treatment, or cure claims for the Coronavirus, ask yourself: if there’s been a medical breakthrough, would you be hearing about it for the first time through an ad or sales pitch?

Do your homework when it comes to donations, whether through charities or crowdfunding sites. Don’t let anyone rush you into making a donation. If someone wants donations in cash, by gift card, or by wiring money, don’t do it.

Be alert to “investment opportunities.” The U.S. Securities and Exchange Commission (SEC) is warning people about online promotions, including on social media, claiming that the products or services of publicly-traded companies can prevent, detect, or cure coronavirus and that the stock of these companies will dramatically increase in value as a result.

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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.

February 11, 2020

SUGAR DADDY SCAM

With Valentine’s Day around the corner, love is in the air at dating websites of all sorts. But there’s a new twist on romance scams that is preying on profile holders at “sugar daddy” dating websites.

It’s a growing trend where younger women and men (who call themselves sugar babies) look for an older “sugar daddy” or “sugar momma”. They are seeking someone to pay them cash or pay off their credit card accounts. This is, in exchange for companionship (which may or may not involve sexual relations).

If a new romantic interest persona offers to pay off one or more of your debts (such as credit card balances, student loans, rent, etc.), there’s a strong probability it’s a scam.

Here’s how the scam works:

A scammer approaches a user who is looking for a sugar daddy or sugar momma on dating websites or social media platforms. The scammer poses as a prospective sugar daddy and nurtures a relationship, ultimately offering to pay off the credit card balance of their sugar baby victim. If the victim agrees, the sugar daddy scammer will obtain the victim’s credit card account credentials and then deposit phony funds into the victim’s account, appearing to have paid off the debt.

Once this is done, the scammer—still playing the role of sugar daddy—demands that the victim purchase gift cards (such as Apple iTunes cards, Google Play cards, or Steam cards) that can be redeemed remotely as a thank you to their new patron. Any funds deposited on the gift cards is quickly drained by the scammer.

Sugar babies who refuse to buy gift cards have been met with abusive, threatening, or even black-mailing responses from the new friend and often caved to the pressure.

Caution:

Never share sensitive photographs, text messages or personal financial identity information such as bank account or social security numbers with a sugar daddy or other online suitor.

Finally, you can help other consumers avoid this scam by filing a complaint at Fraud.org via our secure online complaint form.

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.

January 31, 2020

MICROSOFT WINDOWS UPDATE SCAM

Those of us who use Microsoft Windows are so used to getting messages about Windows updates that we probably don’t give them a second thought.

If you receive an email notification that reads, “Install Microsoft Windows update now!” or “Critical Microsoft Windows Update!” you might be inclined to take it seriously.

But that’s not the way Microsoft works. Microsoft does not send out such E-mail messages. Updates take place either in the background automatically, or you receive some kind of onscreen notification of an impending update.

The phony email may have an attachment with a single line urging you to install the latest critical update from Microsoft.  It’s a scam.

The attachment is actually a malware-bearing file that will likely lock up your PC and probably demand a ransom. It’s an attempt to trick users into following bogus links.

To guard against this scam — be ultra-wary about clicking or tapping links or attachments in such messages.

A call to Microsoft Support at 1-800-642-7676, or E-mail WEHELP@microsoft.com, might confirm it is a scam.

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.

January 27, 2020

CREMATION DIAMONDS SCAMS

Creating a memorial diamond from the cremated ashes of a loved one sounds like a brilliant idea for a meaningful tribute to their lives. But you need to exercise caution if this idea has appeal to you.

Questionable Creation Methods.

Real diamonds are made of carbon. So are manufactured versions. Technically, the process involves super-heating a small amount of the ashes, in an open heat-resistant container, to more than 5,000 degrees Fahrenheit, until carbon in the ashes transforms to graphite.

This is added to other chemicals and a tiny piece of real diamond known as a seed. They’re all heated again and put under extreme pressure to create the final crystal, which can then be cut and polished.

Diamond expert Grant Mobley is quoted as saying these services “are nothing more than a scam.” Further, “While these companies may be manufacturing synthetic diamonds that look like natural diamonds, they are not always using ashes from your loved ones to do so. In fact, the carbon that is left over from cremation is not nearly enough to produce a synthetic diamond and is not in the correct form.”

It is a Disputed view.

Manufacturers claim they get more than enough carbon from cremated ashes to grow the gems. But the naysayers argue that the temperature of normal cremation furnaces is higher than that required to destroy the carbon-bearing substances. The makers claim the opposite — that furnace temperatures are lower than those that destroy carbon.

More Research Needed.

Clearly, there needs to be further research before the issue is finally settled. In the meantime, if a memorial diamond is something you might consider after losing a loved one, weigh the arguments before making your decision. For more information visit the website http://www.CremationDiamondReport.com.

Before you spend money with any ‘memorial’ diamond company, the http://www.JewelryAdjuster.com site. It advises, “we ask that you review all available information to make an informed and well thought out decision.”

You might also check out a report from the cremation industry’s trade organization: http://www.TurningAshestoDiamonds.com – How Much Should You Pay?

Finally, as You Intended.

You can treat the memorial diamond as what it is — a product you have made to remember them, just like a tombstone or other memorial. However, it would be rather expensive — several times the price of a same-size real diamond.

Attribution: http://www.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.

January 23, 2020

FORMJACKING SCAM

Online forms are used extensively as an easy way of doing business online. But there is a downside: Formjacking is a fraudster’s recent ID Theft Weapon.

Everyone who’s ever filled out an online form could be a target for formjacking. It does what its name suggests — hijacks forms. Hackers “inject” code into forms on legitimate websites. This causes the page to release to the fraudster confidential information entered on the form.

The tactic is used mainly to steal credit card information. The stolen data are often sold on to a dark web trader for re-sale to anyone who wants it. But it’s also been discovered in online job application forms.

A challenge is that it’s often not possible for a user — or even a victim firm — to tell if a form has been infected with malicious code, since it otherwise behaves normally.

Defensive Actions:

* Check your credit card statement for discrepancies when it comes in every month, but try to monitor you card balance as often as possible, especially if you have recently filled in an online form where you had to disclose personal and confidential information.

* Check your credit scores frequently from http://www.AnnualCreditReport.com. You can also pay for other firms to actively and continuously monitor your records in real time and highlight any unusual activity.

* If you wish, you can freeze your credit records with Experian and the other “big three” agencies. This will stop anyone who has your details from opening new lines of credit in your name. However, you will also have to unfreeze it if you want to open or extend a credit account.

*To learn how to freeze your records, see a guide from the Federal Trade Commission: www.ftc.gov/ Free Credit Freezes Are Here. Freezes (and unfreezes) are free. You can also freeze the records of your children.

*Keep your Internet security software up to date as security companies are working actively on detection and highlighting form hijacking. Many programs can already identify some of them, and as updates are installed, you should be able to cut your risk of falling victim.

*If you suspect or discover you’re already a victim, notify your bank or card company immediately. You can also add a regular or extended fraud alert, which isn’t the same as a freeze.

Your best strategy is to stay vigilant and watch for signs that your data has been compromised.

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.

January 20, 2020

FAKE COMPUTER SUPPORT TECHNICIAN

Fake technicians claim your computer or mobile device is dangerously ill and needs an immediate, costly repair. These fraudsters are out to steal your money or your identity, not repair your machine.

How it Works:

You get an unsolicited phone call or email purporting to be from a big tech company, or you see a pop-up message on your screen warning that a virus or other malicious program has infected your device, and you need to call a certain number right away.

If you call, a “technician” asks for remote access to your computer, and once in, shows you some files that “prove” you have a major problem.  Even though there is no problem.

The “technician” says they can fix your problem for a fee, and then may offer you a monthly subscription to keep your device safe. 

The scammer may ask you to pay by purchasing a gift card and providing the account number and PIN, or request payment by wire transfer—a sure sign that it’s a scam. If you refuse to pay, the vengeful scammer may deliberately damage vital parts of your computer.

What You Should Know:

Big tech companies like Microsoft or Apple say they don’t call customers out of the blue to warn them of problems on their devices.

The files the “technician” may show you on your computer are completely benign and need no repair.  

If you send payment the scammer may call back months later and offer you a refund for some phony reason, asking for your bank account information to deposit the money; this is a ruse. 

What You Can Do:

*Screen incoming calls with an answering machine or voice mail, and once you listen to the message, decide if it warrants a call back.

*If the caller claims you have a problem with your computer or the software on your computer, it is a scam, so don’t engage or return the call.

*If you get a pop-up that freezes your screen, shut down your computer and restart it.

*Keep your security software, browser and operating system up to date.

*If you think your device is infected, have it checked out by a reputable source; most big box electronics retailers offer tech support services.

*If you realize you’ve fallen victim to this scam, and you’ve paid by credit card, promptly contact your financial institution to dispute the charge and to cancel any monthly fees you may have agreed to pay.

Your best weapon against fraud is vigilance. You have the power to protect yourself from most   scams.

To report scams, call AARP’s Hot Line 877-908-3360. Or, file a report with the Federal Trade Commission at ftc.gov/complaint.

Attribution: AARP.org.

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

January 18, 2020

TIME-SHARE RESALE SCAM

Be wary when someone offers to help you sell your part-time vacation property. The typical time-share resale scam works something like this:

You get a call from a supposed broker who’s seen your “for sale” ad online and claims to have a buyer lined up and ready to make a deal. The caller might even provide a name and phone number for the fictitious buyer, who confirms his or her interest.

The scammer sends you a signed purchase document that looks legitimate. It then asks you to provide a credit card number or make a wire transfer to cover any number of bogus “sale expenses”. This may include taxes, maintenance fees, closing costs, escrow and title services, or an upfront fee for the resale company.

You may be promised a refund of some or all costs when the deal closes. But the deal never closes. The scammer has simply pocketed your money, which could run into the thousands of dollars. By the time you realize you’ve been swindled, it may be too late to dispute any credit card transaction. And you’re still stuck with the time-share.

These schemes can be lucrative. A convicted time-share scammer stated that over one three-month period he collected almost $500,000 from his victims.

But you can take some precautions to guard against being victimized.

There are Warning Signs:

Any unsolicited approach by an alleged reseller, particularly one who promises a handsome return on the sale.

A resale company that claims your area is hot and they’re overwhelmed with potential buyers seeking time-shares.

A reseller promises to modify or cancel your contractual obligation with the resort with which you have a time-share.

The American Resort Development Association www.arda.org, an industry group, advises owners to be skeptical of such claims.

 Do’s:

*Do ask your resort if it has a resale program, rather than relying on a cold-calling stranger to make a deal. Does the resort have any restrictions, fees or other limitations on time-share sales?

*Check with the Better Business Bureau and your state’s consumer protection office to see whether a resale company has a history of complaints.

*Read the fine print. Go over a sales contract carefully to make sure it matches all the reseller’s promises.  If the terms aren’t what you were led to expect, don’t sign.

*Be realistic about what you expect to make from a resale, and be skeptical of a seller who guarantees a big return. Don’t assume you’ll recoup your original investment, especially if you’ve owned the time-share for only a few years or it’s not in a well-known resort.

Don’ts:

*Don’t agree to anything on the phone. Do a background check on the resale company before going further.

*Don’t pay fees upfront. The Federal Trade Commission (FTC), www.ftc.gov recommends doing business with a reseller that collects fees only after the sale goes through.

*Don’t overlook alternatives to selling, even if you’re tired of your time-share. For example, the Better Business Bureau suggests looking into exchange programs that allow you to trade with owners of time-shares in other locations.

Attribution: AARP.org