Scams & How to Keep Yourself Safe
Scams are on the rise and are getting more sophisticated, and it's crucial to stay informed about their latest tactics. Scammers will use various channels to get to you including phone calls, emails, text messages, and even social media. They often pose as trusted entities like banks, government agencies, or even loved ones in distress. It's really essential to be aware of these tactics they use to protect yourself effectively.
The following are examples of scams out there and ideas of how to protect yourself. Be aware however, these are just examples and it’s key to not focus on the exact details, but the methods and tactics so you can recognize a scam if you faced with one.
1. Fake Bank Fraud Alerts. In this scam, you may receive a text message or even a phone call that appears to be from your bank or credit union, where you are being alerted to suspicious activity on your account. The message may urge you to call a number that is provided in the text or follow a link provided where you are asked to verify your account details. Often, the link or phone number were created by the fraudsters and will take you to them versus your real financial institution. Once you visit this site or call the number the scammers capture your personal information and use it to drain your account.
Do this instead: If you receive such a message, always contact your bank directly using a number from their official website or your bank statement.
Remember, your bank will never ask you for your account information over the phone, so a request like this is an automatic red flag. You NEVER want to give out your personal information over the phone.
2. Payment scam. In this scenario, you may have someone who is asking to do work for you and they claim your payment isn’t going through. They will often push and get you flustered or they may even become frustrated and perhaps even make threats. Eventually they will ask for your log in information so they can take of it themselves. Sometimes, they go the opposite route and take on a sweet demeanor so that you trust them and believe they will handle it for you out of kindness. Either way, they will take your information and access your accounts.
This also will happen with items for sale. The seller claims payment isn’t going through and asks you to try several ways. When in fact, the payments did go through and they then disappear. This is often done using peer-to-peer payment apps where there is no recourse for the buyer.
Do this instead: NEVER ever give out your personal banking information.
For shopping, always make sure you are using legitimate sites to purchase and check the protections in place for buyers like return policies.
3. IRS Impersonation Scam. Here the scammers call or email you, claiming to be from the IRS and claiming you owe back taxes. They often will then threaten legal action, or arrest, or that they will seize your assets if you don't pay immediately. They try to scare you into doing what they ask. And they will want you to use something like a prepaid debit card, gift card, or wire transfer or something that can’t be traced.
Remember: The IRS will never call you demanding immediate payment without first sending a bill in the mail. And they won’t for ask for payment with the mentioned methods. If you receive a call like this, the best thing is to hang up and report it to the Treasury Inspector General for Tax Administration.
4. Tech Support Scam. You might receive a pop-up message on your computer or a phone call from a tech company claiming your computer has a virus. They will offer to fix it for either payment and/or access to your computer to clear the virus. Then of course, once they have access, they can then steal your personal information or even install malware in order to continue to access your computer. A legitimate tech company won’t contact you this way. Generally, if there is an issue with your computer, they won’t know unless you call for help.
Do this instead: If you encounter this scam with a pop-up window, then just close it. If you have antivirus software, run it and see if it detects anything. And if you are truly concerned that something is wrong, bring your computer to a authorized repair company.
5. Online Shopping Scam. Here scammers create fake websites or listings, often on legitimate platforms where they offer perhaps high-demand products at low prices. But your purchase is made on a fake site, where the scammers are able to capture your information as well as the money you paid for the fake product with.
This could also happen with an email that looks like it’s from a legitimate retailer you use. Again, the link is fake.
Do this: When you reach the site, ensure the url is correct an begins with https. If it’s a new store to you, look for reviews and make sure the payments are secure before making the purchase.
6. Job scam. With employment seekers on the rise, it seems this scam is growing right along with them. And of course, when you need a job, there is a sense of urgency and hope and these scammers exploit that. These scams typically involve fake job postings on legitimate job boards or on social media platforms, and they pose as recruiters or employers offering very attractive positions. Once the victim applies, they may be asked to provide personal information, asked to pay for training or background checks, or to cash fraudulent checks. Common red flags include job offers without an interview, requests for payment upfront, or the use of an unofficial email address.
Do this. Job seekers should research the company thoroughly, if you can, verify job the postings through official company websites, and of course, be cautious of any employer asking for sensitive information or money especially over the phone or before you’ve been hired. Work from home jobs make this even more difficult since you often never go to an office.
7. Romance Scam. Scammers create fake profiles on dating sites and social media, and they build a relationship with their targets over weeks or months. Once they've gained your trust, they fabricate some kind of sob story needing money for an emergency, to travel, or a business opportunity. And they may even position the ask as something that will be good for the victim, like them finally being together to something to tug at their heart strings. They often ask for money through wire transfers or gift cards which is always a red flag.
A completely new wrinkle with this scam is the use of AI. There is a report of a victim who received a presumed AI generated image and video from the fraudster. The male in the image held a piece of paper that contained the words “I am for real stop doubting me.” The video used the victim’s name and proper verbiage that helped enhance trust of the victim.
Do this: Always be cautious when someone you’ve only met online asks for money, and never send money to someone you haven't met in person. Be cautious of people who you’ve never had an on camera conversation with either.
And just a bit more about AI. The use of AI is growing. We are seeing reports of fraudsters using AI generated videos and images to commit identity fraud as well. In one instance, the fraudsters applied for a credit card at a financial institution and used AI generated videos when required to pass a video verification process. They then went in person to submit an ID and to open the account.
This one is going to be much harder to combat.
Do this: Regularly checking your credit report and statements will become increasingly important to catch any issues early and report them.
As we said, these are just a few examples of the scams out there and new ones seem to appear all the time. The best defense is to stay informed, and truthfully, you have to be skeptical of unsolicited requests for money or personal information, and of course, verify any suspicious communication independently through legitimate channels or sources. Don’t be afraid to hang up and then verify the information being requested. Don’t let them get you flustered. You have the right to say no and protect yourself.
BONUS TIPS:
Use strong, unique passwords for your accounts. Don’t use the same password for everything! This will prevent basically someone from being able to access multiple accounts with one successful breach. Consider using a password manager that can generate passwords and then store them.
Monitor your accounts regularly. Check your bank and credit card statements frequently for any unauthorized transactions. Many financial institutions offer fraud alerts, so sign up to receive notifications of suspicious activity. If you spot anything unusual, report it immediately.
Keep your software and devices updated. Ensure your computer, smartphone, and other devices have the latest security updates and antivirus software. Scammers often exploit vulnerabilities in outdated software to gain access to your information.
Educate yourself and others. Stay informed about the latest scams. Follow the news or other resources. You can also use resources like the Federal Trade Commission (FTC) and or the Better Business Bureau or other reputable sources. Also consider sharing this knowledge with friends and family, especially those in your life that may be especially vulnerable, like seniors, teens or those folks in your life that are particularly trusting.
By following these tips and suggestions, you can really significantly reduce your risk of falling victim to financial scams. Remember, staying vigilant and informed is your best defense. If you have questions about the legitimacy of something, ask.