According to the FTC, there were approximately 3.1 million consumer complaints regarding scams in 2017. For the first time ever, the number of reported imposter scams outranked those of identity theft scams, falling second only to debt collection scams. According to the report, more scam artists than ever are impersonating government bodies, an extremely illegal undertaking. So, why risk it? Because it’s effective.
According to another report released by the FTC, imposter scams accounted for a whopping $328 million lost consumer dollars. While many of these scams involve individuals pretending to be government bodies, several of them involve individuals pretending to be loved ones in trouble, tech support or anyone, really, who’s not who they say they are. While it is a common belief that elderly individuals are more susceptible to such scams, recent reports reveal that it is actually millennials that are more gullible. That said, when elderly individuals do fall for scams, they generally lose much more money than their younger counterparts. This is likely because they have more to lose.
There are dozens of scams out there that everyone, and not just the elderly or millennials, needs to be aware of. This post highlights those scams so that you can better protect yourself and your hard earned money.
1. The Mail That Never Was
So, you remember applying for that credit card months ago, being approved and being told that your new card was on the way, but it’s now been weeks or even months and you wonder if maybe the company you applied for either forgot about you or scammed you. While either could be true, there is a more plausible reason, and a more likely one: somebody stole your credit card. Because a pin was never set for it, the scammer set the pin his or herself and racked up substantial debt in your name, a debt he or she has no intention of ever paying.
How to Avoid This Type of Scam: You can avoid this type of scam by requesting that the credit card be delivered via certified mail, or by asking your postmaster to hold all mail for you so that you can pick it up in person. When the card arrives, let the postmaster know that he or she is free to release your mail for delivery once more.
2. The Request for Help
If you receive an urgent email from a friend, family member or acquaintance informing you that they’re in some kind of trouble and need funds immediately, be wary. You are likely the victim of a scam in which your loved one or friend’s email account was hacked. When you transfer the funds, you won’t be transferring them to your friend as you thought; rather, the money will go directly into the scammer’s account.
How to Avoid This Type of Scam: For one, note that most people who need “urgent help” will phone or text you, not email you. Not enough people use email as the main form of communication for it to make sense in an “urgent situation.” Second, if you do receive an email of this nature and think it may be legitimate, reach out to the friend directly. If you cannot get ahold of him or her via phone or text, reach out to someone who can. If all else fails, schedule a money order to be picked up or deposited WITH IDENTIFICATION ONLY. Go through a reputable banking institution.
3. The Free Wifi
You’re at an airport, cafe, bar or other public location and you need to connect to the internet. You spot the “free wifi” and wonder about your luck. You connect and think all is good. But the truth is that everything is far from “good.” Not only have you granted the scammer access to all your personal information, but now your “free wifi” will spread to others who will think they are just as lucky as you once thought you were. The only way to disable this wifi is to get a new device.
How to Avoid This Type of Scam: If you don’t recognize the name of the free network (as in “Logan International Airport Hotspot”), don’t connect. If the establishment that you’re in doesn’t boast “free wifi,” chances are that it doesn’t have it. When in doubt, pay for access. Last but not least, update your antivirus software regularly, and keep your firewall turned on.
4. The Unrealistic Job Offer
Job searching sucks, end of story. It’s both tedious and emotionally draining. If you ever want to see how much rejection you can handle, spend a month sending out resumes and cover letters to no avail. Now THAT’S a morale killer. If you’ve been through this, you know the pain, which also means that you know what it’s like to receive that REALLY GREAT job offer – you know, the one that seems too good to be true? You’re promised a guaranteed weekly stipend of at least $500 with a potential for more. All you have to do is “process accounts” from the comfort of your own home. You don’t even need to go through an interview – the job is yours! To get started, set up your bank account and forward any money that comes into it. So simple, right?
WRONG. You are being USED as a “money mule.” You just spent months sending out customized cover letter after customized cover letter just so that you can earn $12-$15 an hour. You’re HONEST. Fraudsters prey on people like you and use you to move the money they earn via criminal activity.
How to Avoid This Type of Scam: Don’t take a job offer without first going through an interview (that’s fishy in and of itself), and don’t give out your bank account information to anyone. Most companies that perform direct deposits have employees fill out a number of documents that are certified or confidential, and most online companies make transfers via PayPal or some other online app. IF you consider taking such a position, know that intentionally laundering money carries a prison sentence of up to 25 years. So there’s that.
5. The Hijacked ATM
You withdraw money from the ATM as usual and receive your money. Your receipt shows you have a nice little nest-egg built up. You walk away happy. BUT THEN, you receive an alert from your bank the next day saying that you’re in the red, or embarrassingly, you go to buy a candy bar at the gas station and are declined. That’s impossible, you think, because you just checked your account yesterday. But it is possible…
You are the victim of the tampered ATM scam. It’s so simple yet so profitable for scammers to pull off. All they have to do is put a skimming device in the area through which you swipe your card. All of your data is captured and, as if to add insult to injury, a pinhole camera is used to catch you entering your PIN. The fraudsters now have everything they need to create a dummy card and draw from your account.
How to Avoid This Type of Scam: Unfortunately, it can be very difficult to avoid this type of scam, as there are no outward signs of the devices. That said, you can avoid falling victim to such a scam by going into your banking institution to draw money instead of drawing from an ATM. If that’s not an option, go to a gas station or grocery store and purchase a small item (a candy bar costs less than most ATM fees), and ask for cash back. Most cards have CHIP readers these days, and CHIP is designed to be fraud-resistant.
6. The Tax Refund
You receive a letter in the mail letting you know that your tax refund is ready and that you can claim it by following the provided link and entering your bank account information. Everything has become so simple these days, hasn’t it?
Nope. They’ve become far more complicated.
The IRS works in mysterious ways, but this is not one of them. If you follow the link and enter your bank details, you’re actually giving your information to a scammer.
How to Avoid This Type of Scam: The IRS either direct deposits your refund with the information you provided when you filed or they send a check. That’s it. They do not use fancy links and apps to make things easier for you, as that is not the IRS’s M.O. If you get a letter in the mail that suggests otherwise, toss it in the trash.
7. The Failed Parcel Delivery
You receive an email from the U.S. Postal Service informing you that a parcel you sent out can’t be delivered and that if you cannot collect it within 30 days the package will be destroyed. They advise you to print off a label to redeem your package. Never mind that you don’t remember sending out a package, you click the link anyway to prevent such a fate from befalling your imaginary mail. Now that you’ve saved your non-package, you’ve destroyed your computer and personal data.
When you clicked the link for the label, you granted access to dangerous ransomware. The software can be used to look at locked files and even destroy them. The only way you can regain control of your device is if you pay the fraudsters.
How to Avoid This Type of Scam: If you didn’t send a package, don’t click the link and send the email directly to your spam folder. If you did send a package, either look up the tracking number you purchased along with postage or, if not applicable, call the post office directly and speak to a representative. If they don’t have information about the undeliverable package, then you are the victim of a scam.
8. The Overseas Job Offer
You get a really great offer overseas and all you have to do to get started is give the recruiter the funds necessary to purchase your visa, plane ticket and other expenses. You do that. Congratulations! You just paid thousands of dollars for…nothing. And quite possibly handed over your personal information in the process.
How to Avoid This Type of Scam: If you get an overseas job offer in which the “employers” asks you to pay for your own relocation expenses and without ever meeting in person, run.
9. The Speeding Ticket
You get an email from a governing body informing you that your vehicle’s been caught speeding. The email requests that you click the link to download a photo and confirm that it was, in fact, you, behind the wheel. You do so and, unbeknownst to you, ransomware is downloaded to your computer. You must then pay the scammers to get back the files they encrypt.
How to Avoid This Type of Scam: Don’t click the link. Law enforcement agencies don’t send emails – they send people to your door or letters to your mailbox. If you got a speeding ticket, you’ll either know because you were stopped or because you receive your ticket in the mail.
10. “Like Farming”
You’re on social media when you see a very attractive offer from a well-known brand. Maybe it’s for a free plane ticket, or maybe it’s for a free outfit. All you have to do to claim the offer is “Like” the post. You like it. Instead of entering for a free outfit or ticket or discount, you’ve actually entered into a pool of victims whose information is now being generated and sold to other fraudsters.
How to Avoid This Type of Scam: If an offer seems too good to be true, it probably is. If you want to know for sure, go to the brand’s OFFICIAL PAGE (note: scammers create fake pages all the time) and look for the offer there. If it’s not there, it’s not real.
11. The Love Interest
You finally find The One on one of the dozens of dating apps you’ve tried but that have failed to yield any results. You’re ecstatic (Does this mean you won’t be an Old Maid after all?!). Turns out, they fall for you too. You guys talk for weeks or months via the app, and then one day, they ask to take your relationship beyond the virtual and into the real world. You want that more than anything, too, so when they ask you to wire money so that they can come visit you, you readily agree. You transfer the money and wait to receive the travel confirmation. It doesn’t come, and it never will. You have been scammed, and sadly, the love of your life never really existed. We’re sorry.
How to Avoid This Type of Scam: If you’re going to use online dating apps, be smart about it. Check the background of anyone you agree to meet up with, and whatever you do, don’t wire money to someone you don’t know. If he or she wants to see you bad enough, they’ll find a way to pay for the tickets on their own.
12. The Computer Problem
You receive a call from your internet service provider, and wouldn’t you know it, the same company that usually takes hours to get a hold of detected a problem on your behalf! Your computer is sending error messages its way, but the good news is, the issue is easily fixable. All you have to do is grant them remote access. You do, and now you’ve just handed all control of your computer over to a scammer.
How to Avoid This Type of Scam: If you receive a phone call like this, ask the person on the other end of the line if it’s okay that you call them back. They may try to give you a phone number – ignore this. Call your internet provider directly and ask to speak with tech support. Explain the issue that was explained to you. If it’s legit, they’ll know what you’re talking about. If it’s not, they’ll tell you what you already know: you’ve been scammed.
13. The Bogus Check
You are offered a job (again, it’s one that seems too good to be true!), and are offered a check in advance of your first payday. Wonderful! But then, once you cash the check, you receive a second email informing you that you’ve been overpaid and that you must return the money via an online transfer before the check has a chance to bounce. You schedule the transfer, assuming that you’ll still have what was “owed to you” to fall back on. When you check your account the next day, you discover that you were never paid at all and, instead, that you paid the “employer.” You are the victim of a scam.
How to Avoid This Type of Scam: Don’t accept checks from random individuals, especially those whom you’ve never met. Don’t accept a job offer from an employer that hasn’t even bothered to interview you. And when a position seems too good to be true (as in, you get paid before you even start), walk away.
Avoiding many of these scams requires common sense, but others, like the Hijacked ATM or the free wifi, are a little more difficult to detect. Hopefully, by being aware of these scams, you can take measures to protect yourself and inform others.
Please SHARE this with your friends and family.
