Prevalent Fraud and Types of Scams
I recently attended a presentation that was put on by the Troy Chamber of Commerce on Financial Crime. I did not realize how widespread and prevalent scams have become. There are many types of fraud and with technology accelerating and enabling scams more than ever, it is important to recognize some of the common tactics that are used on you and your loved ones. Scams are a type of fraud where a criminal uses schemes or tricks to cons someone out of money. Scammers try to trick you out of money by using false pretenses. Scams are on the rise, and the perpetrators frequently go after seniors. These types of scams show up in many shapes and forms and rely on you being caught off guard and trusting the scammer’s assumed authority. Scams can come to you in a variety of ways and being able to spot them is the key to staying safe. We hope that by becoming familiar with the many types of scams you will avoid becoming a victim and take precautions to prevent and protect yourself from this sort of activity.
Phone Call Scams
There are several scams that use phone calls. One of these scams is a person claiming to be from the IRS. The scammer will tell you that you have an outstanding balance and need to pay this amount immediately or you will be imprisoned. This scam, like many others, uses a common fear, in this case to be imprisoned. Know that the IRS does not call; instead, they send a letter explaining the problem. If you ignore these notices the IRS could seize your bank account, but the IRS must first send notices by mail before taking collection actions. Government Agencies do not call, text, email or contact you on social media and if you receive any of these it is likely a scam. Another sign of a scam is the urgency to send money or give your personal information immediately. If this happens hang up, delete the email or text, or stop any communication.
Emergency Scams
The “Emergency” or “Grandparent” phone call scam. An individual will call an unsuspecting grandparent claiming to be their grandson or granddaughter. In most cases the caller will claim there is an emergency and request money be sent (wired) to them immediately.
There is also a parents or grandparents kidnapping scam. With this scam they call you and tell you that your relative has been kidnapped and if you do not send money something bad will happen. They know your name, they will tell you by name that they have your child or grandchild, and you will hear this person’s voice, asking you to help them. They may even have spoofed your relative’s phone number. Spoofing is where a scammer makes it appear they are calling from a trusted number. With the advent of AI, scammers can create a video or copy a loved one’s voice. They will make threats and try to get you to react based on fear. What you need to do is hang up. You can then call and check on your relative. Knowing your loved one is safe is all you need to avoid this scam.
Some types of scams want to get a recording of you saying yes. This type of scam a person calls you and says, “Hello? Hello? Can you hear me?” They want you to say, “Yes.” If they can get you to say ‘yes,’ they can use that recording elsewhere to make it appear that you have consented to charges on your credit card.
Another very popular call scam is the lottery/sweepstakes scam. Here the scammer will tell you that you have “won” and need to provide account information or make a payment to claim your winnings. This is just a ploy to obtain more personal financial information or funds from you.
Banking Scams
There can be banking scams where they spoof your bank’s phone number. If you receive a phone call from your bank, tell them you will call them back. They will try to keep you on the phone, and this is how you know it is a scam. Your bank may call you for a variety of reasons, but they are aware these scams happen, so they won’t have any issues with you calling back. Do not use any phone number they give you for a call back. Instead, go to the bank’s website and get the customer service number from there, or even stop in at your local branch. Tellers can check into your account to see what you were contacted about.
Texting Scams
You can also get scams via text messages. Scammers send fake text messages to trick you into giving them your banking information, account number or social security number to use this information maliciously. This information can also be sold to other scammers. Some scams want you to click on a link in a text message. These links might be for claiming a prize, receiving a low interest credit card, or maybe a student loan pay plan. Some of the common text message scams are messages that claim to have noticed some suspicious activity on your account, a package delivery notification, an invoice telling you to contact them to verify a transaction you did not authorize, a request for help from a friend asking you to send money or gift card. If you click on some of these links it could install malware on your phone that steals your personal or financial information without you knowing. I recently received one that said that I had a package from USPS or UPS (I no longer remember which it was). It was odd because I did not recall ordering anything to be delivered. They requested me to click a link. Never click any links in your text messages and delete these messages.
Email Scams
Email scams are very common. If you look at the originating address you can get a clue that it is a scam. Messages that start with “You have been selected” is a good indicator of a scam. It is recommended that you install spam detection software or just do not open emails that you are not expecting. For example, if you did not just book a trip through Kayak, then an email from “Kayak” saying there are issues with your trip booking would be a scam. Emails that claim to be from Apple or Microsoft warning of a virus are also going to be scams. Neither of these companies monitor your computer for viruses. The only company that should be alerting you to viruses is one you are paying to do it. Another tip for cybersecurity is to update your passwords frequently and to use different passwords. Database hacks are frequent and if you use the same password for multiple years in multiple locations, you expose yourself to the risk of using a compromised password.
It is important to safeguard your personal information and only give out information to reputable sources. Never give out information unnecessarily, especially in response to any unsolicited message, e-mail, or phone call. Often, these scammers may threaten you to act impulsively and immediately. Remember, that if it needs to be done immediately then it is a sign of foul play. It is always important to be able to call someone you can trust to tell them about the potential scam. Here at National Benefit plans, we care about our clients and do not want to see them get harmed by predatory scammers.
You might be asking yourself “How do these scammers choose me to contact?”. Sometimes they contact people randomly or they can purchase a marketing list, telephone list or find your information on social media sites. There is public information providing all the names of people living at an address or associated with them. If you do get scammed, then you should report the incident to your local police department. These scams can be reported to the Federal Trade Commission (FTC) who uses this information to investigate and bring cases against scammers. They also share the information with 2800 other law enforcement agencies. The Better Business Bureau offers a scam tracker that is a free tool allowing you to report suspected scams and search a database to see if similar scams have been reported. In 2022, the BBB Scam Tracker helped consumers avoid losing $21 million to scammers.
Being scammed can have emotional consequences, such as sadness, shame, or depression. Don’t let this happen to you!
https://www.bbb.org/scamtracker/lookupscam
https://consumer.ftc.gov/scams
For over 30 years, NBP has been dedicated to the well-being of clients and the success of agents by always striving to do the right thing and caring for everyone as if they were family. We have offered the best national and local carriers offering top-notch, affordable healthcare coverage for individuals, families and groups, including supplemental Medicare plans.
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