September 2017 Edition: Jay White Senior Scam Alert

Legal Aid's Senior Scam Alert Newsletter

ATTORNEY JAY WHITE'S

SENIOR SCAM ALERT

Part of my work here at The Legal Aid Society of San Mateo County is to make sure you are aware of scams out there so you can protect yourself and help spread the word.

Every month I will be sending you information about the scams I have been made aware of.

If a senior you know needs legal advice or counsel about a scam,

please don't hesitate to call Legal Aid at 1-650-558-0915.

September 2017

Bogus Disaster Relief

The Better Business Bureau warns those who want to help victims of such recent disasters as Hurricanes Harvey and Irma, or the earthquake in Mexico, to be cautious when giving money or assistance to charities.

Fraudulent fundraising efforts frequently show up on crowdfunding sites.

"Everybody wants to donate; everybody's watching this terrible footage on TV [and] they want to help," says Better Business Bureau's Melanie McGovern. "But make sure that those are legitimate charities because sometimes scammers use social media just to tug at people's heart strings."

The best way to help is donate money to a reputable humanitarian organization that has a long history of responding to local, national, and international disasters. Be wary of unfamiliar charities, or organizations with copy-cat names similar to legitimate charity organizations. Many fake websites are set up after disasters to "raise money." All they are doing is stealing your personal information.

Find out if the charity is providing direct aid or raising money for other groups. You may want to avoid the middleman and give directly to charities that have a presence in the region. Check out the ultimate recipients of the donations to ensure that the organizations are equipped to effectively provide aid.

BBB provides a Wise Giving Guide to charities at http://give.org. The guide shows which charities are accredited by the BBB and whether they meet the BBB's 20 Standards for Charity Accountability. It is being regularly updated with links to legitimate charities that are aiding victims of these tragedies.

Publishers Clearing House Scam

A message purporting to be from the Publishers Clearing House may be a fake. As part of its legitimate business of marketing and advertising, the Publishers Clearing House may offer a prize to a lucky winner. But, it will not ask for money as a condition of receiving the prize. Scammers, however, use trickery in a phony attempt to obtain money from a purported prize winner. A winner's "'notice" may be by telephone, E-mail or in writing. If it requests money as a condition of receiving the prize, it is a scam.

A second method used by a scammer is by mailing a check in a large amount to the victim. A phony check in the amount of several thousands of dollars may be made payable to the victim. It includes instructions to deposit it in the victim's bank account. The victim is then to send a substantial amount to the scammer for some phony use such as payment of taxes or administrative purposes. Information that the check was phony may not be available from the bank until after the victim has sent money to the scammer. That leaves the victim responsible to the bank for the amount sent to the scammer.

Scammers may call claiming you've won the sweepstakes - but, to collect your prize, you need to send money to pay for so-called fees and taxes. Requiring payment to collect a prize is a scam.

Scammers will likely ask you to send money by Western Union or MoneyGram, by a prepaid card or gift card. Why? Because it's nearly impossible to trace that money - and you'll almost never get your money back.

If you think you've won a prize, here are a few tips from the US Federal Trade Commission:

Publishers Clearing House will never ask you to pay a fee to collect a prize. In fact, no legitimate prize promoter will ever charge you to win.
If anyone calls asking you to pay for a prize, hang up and report it to the FTC.
Never send money to collect a prize. It's a scam.
Publisher's Clearing House doesn't call ahead to say you've won.

Did you send money to a prize scammer, or know someone who has? Report the loss immediately to the company you paid through (Western Union, MoneyGram, the prepaid or gift card company).

And if this should happen, report it to the FTC: http://www.ftc.gov

Debt Relief Fraud

Debt Relief or Debt Management organizations prey on persons in need of debt relief. They offer to relieve a debtor by managing debts and paying creditors. They promise to pay, settle, or get rid of debts. Their scheme is to collect monthly payments from the debtor that purportedly will be placed in the debtor's account. They promise to make payment disbursements to all creditors, thus relieving the victim of worry.

A victim is not told that a substantial management fee is first taken from any deposit. This reduces the amount available in the victim's account. Because there is not enough money in the account to make full payments, not all creditors will be paid.

A victim depositor will likely not know that a creditor has not been paid. When creditors have not been paid within a reasonable time they will likely assign the creditor's account to a collection agency. The victim is to fend for himself or herself in court.

The US Federal Trade Commission (FTC) suggest that a person needing debt relief should consult a knowledgeable debt counselor or source for guidance before giving money to a so-called debt relief manager. No person or agency can guarantee that your creditors will forgive your debts if not paid. If not paid, a creditor will likely file a collection lawsuit.

The FTC requests that any complaints about debt managers be forwarded to www.ftc.gov for possible assistance. Your report could help stop a debt relief scam.

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