“Who is going to believe a con artist? Everyone, if she’s good.” Andy Griffith
Fraud is a big business. According to a 2022 report by the U.S. Federal Trade Commission, Americans reported losing nearly $8.8 billion to fraud, an increase of over 30% in 2021. The most common schemes were impostor scams, followed by online shopping scams and those that involved prizes.
Anyone can get scammed.
However, there are telltale signs, tip-offs that you are being scammed. Things scammers do, and things scammers say. And there are actions you can take to protect yourself.
Let’s review.
- Scammers pressure you to act immediately. They want you to act before you have time to think, before you have time to check out their story. They try to keep you on the phone. You must act now.
- Scammers tell you there’s a problem. You’re in trouble with the government. You could get arrested. Someone in your family had an emergency. There’s a virus on your computer. They’ve noticed suspicious activity on your account. Your account is on hold because of a billing problem. You need to confirm some financial or account information.
- Scammers tell you that you’ve won a prize. You won money in a lottery or sweepstakes, but have to pay a fee to get it. They have a coupon for a free stuff. You’re eligible for a refund.
- Scammers tell you there’s a conspiracy. Don’t trust anyone, they’re in on it. Say only what I tell you to say. Don’t talk to anyone else.
- Scammers offer you romance. You’re attractive. You’re desirable. Let’s talk. Let’s meet.
- Scammers tell you what to do with your money and how to pay. Move your money to protect it. Buy gold. Buy gift cards. Pay with Bitcoin. Withdraw cash and send it to this address or give it to this courier.
- Scammers pretend to be with an organization that you know: the government, your bank, the phone company, the electric utility, or a charity asking for donations.
In addition to following the recommendations in this blog as a whole, here are some simple actions you can take to protect yourself:
- Monitor your bank accounts and credit cards regularly for fraudulent charges.
- Freeze your credit report. Opt out of credit offers. And check your credit report at least annually. I discussed this in a prior post.
- Setup your phone to decline calls from people you don’t know. If the call is legitimate, they can leave a message. You can validate the message before you return the call.
- Don’t click on links in email or text messages. If you believe the email or text is legitimate, contact the sender through a verified website or phone number.
- Be careful what you post online. Scammers may exploit information that you post to conjure up a more believable scam.
- Never provide personal or financial information in response to a request you did not expect.
- Use a credit card rather than a debit card for online purchases. Credit card companies actively monitor your account for fraud. (Pay the card off at the end of the month.) Virtual credit cards offer even stronger privacy protection. I will discuss them in a later post. For now, prefer a credit card to a debit card.
- When in doubt, stop and talk to someone that you trust. Don’t hesitate to just hang up the phone.
- If you suspect a scam, report it to the FTC at: https://reportfraud.ftc.gov
- If you are a victim of identity theft, you can find help at: https://www.identitytheft.gov.
Forewarned is forearmed. Be vigilant. Don’t get scammed.
Next, I will discuss malware protection.
Information provided in this post is subject to the disclaimer in the first post of this series.