On-line and phone scams continue to grow with one goal in mind – to separate you from your money.
Scams primarily are centered on one premise — trying to convince you that something made up
is actually true. As people become more aware of scams, they do a pretty good job of protecting
themselves. Nonetheless, that has not stopped the scammers from coming up with more
inventive ways to bilk consumers.
The most recent consumer research shows scams in 2022 cost people almost $9 billion dollars
in losses, up 30% from 2021. The dollar amount from fraud also continues to grow with an
average loss of $650 in 2022 compared to $500 in 2021. Older adults are the target of many of
these scams. The median loss for those 80 or older was $1,674, or approximately three times
the loss of those ages 20 to 69.
How can you protect yourself from being scammed?
– Be wary when a company, government agency, or individual unexpectedly contacts you,
either by phone or email. Scammers can do what’s called spoofing to make their call or
message look like it’s coming from a legitimate source. Contact the business or agency
directly to find out if the contact was legitimate. If it’s not, it’s best to delete the
communication.
– Don’t be pressured into taking quick action. Take time to carefully think through what is
being asked of you. That’s why scammers pressure you to act immediately. They don’t
want you to slow down and think more critically, and they certainly don’t want you
checking in with a trusted friend or family member. Take the time to investigate before
proceeding.
– Don’t let scammers use scare tactics to motivate you to do something you’ll regret.
Scammers might tell you a loved one is in danger or that your computer has been
hacked. Or it could be someone you meet on Facebook who asks for financial
assistance. Scammers will make up any story or emergency and tell you to pay
immediately or face arrest or financial ruin. Regardless of what you are being told, take a
breath and go to the source for verification.
– Don’t be taken in by the “you’ve won a sweepstakes drawing”. A common part of
sweepstakes and lottery scams is to let you know you’ve won a prize, but you must pay
a fee in advance to collect it. Nonetheless, don’t reveal any banking information and do
not be pressured into buying gift cards and giving the scammer the numbers off the back
of the card.
– Do not share any sort of personal information, especially passwords, authentication
codes, date of birth, Social Security number, or bank account numbers. Scammers will
often use your personal information to steal your identity.
– As noted above, be careful if you’re being pressured to wire money or pay by gift card.
This is undoubtedly a scam. Scammers love gift card payments because they’re readily
available, virtually untraceable and easily converted to cash. When you use payment
apps or purchase a gift card, you can lose out on the buyer protection offered by other
payment options, like your credit card.
Here are the most common schemes used by scammers.
– Romance scams. In these schemes, someone misrepresents themselves, often online,
as a potential romantic partner. As the relationship builds, a financial need will arise, like
purchasing a plane ticket or dealing with a medical emergency. Don’t fall for it!
– Investment scams. This scam involves the scammer tricking you into giving them
money by promising big payouts with little to no risk — usually by investing in
cryptocurrency, real estate or precious metals and coins.
– Tech support scams. It can start with a phone call or pop-up box that suggests your
computer has an urgent issue. The scammer may impersonate companies like Apple,
Microsoft or Norton. They typically ask for payment information to fix the problem.
– Imposter scams. These scams start with an unsolicited phone call, email or text. They
can pose as someone you’d trust, or they may even pose as a family member. Whoever
the imposter, the message will be urgent, and they’ll eventually ask for money or
personal information.
– Lottery and sweepstakes scams. As noted earlier, this scam exploits the eagerness to
win a fabulous prize. The message in the initial contact is a congratulations, but there’s a
catch: You’ll be asked to pay a fee or taxes to claim your big prize. Again, to create
urgency, a deadline for responding will be included.
What should you do if you feel you or a loved one is a victim of fraud?
First, acknowledge how vulnerable this can make someone feel. Victims can struggle with
feelings of embarrassment or that they should have known better. So, be patient and remember
scammers are good at what they do, and almost everyone has some vulnerability that can be
exploited. By reporting it, you can help prevent others from being victimized. You can also:
– File a police report
– Alert the Federal Trade Commission at reportfraud.ftc.gov
– Contact the FBI Internet Crime Complaint Center at ic3.gov
– Report it to your state attorney general.
– If it involves Social Security, call the Administration’s fraud hotline at 800-269-0271.
