Scams, Schemes, & Fraud: Tips From Law Enforcement

 

I recently attended two separate programs about consumer fraud, The speakers included a county sheriff, non-profit agency representatives, and state attorney general’s office staff.

 

Below are take-aways from these presentations to help you avoid becoming a fraud victim:

Romance Scams- In 2022, nearly 70,000 people reported a romance scam and losses hit a shocking $1.3 billion to the Federal Trade Commission. Program speakers advised taking any new relationship- especially a virtual one- slow, asking lots of questions to get to know the other party, and looking for inconsistent answers and excuses for why not to meet in person.

 

Phone Scams- There are many varieties: “grandparent” scams requesting money for a grandchild in need, fake charities, pretexting calls purporting to come from a bank or government agency (e.g., the IRS), and fake lotteries and sweepstakes. One speaker advised the following: “Don’t answer phone calls with an unfamiliar number. Let it go to voice mail.”

 

Top Three Scams- The top scams being reported to authorities include 1. AI powered scams (e.g., the use of just 5 seconds of someone’s voice for use in scams such as grandparent scams), 2. Funeral scams (pretexting a funeral home and contacting bereaved families to request money for services), and 3. Tech scams (via pop up messages on a computer with malware links or phone calls claiming to come from companies such as Apple, Google, and Microsoft).

 

Card Skimming- Skimming devices illegally installed on gas pumps or ATMs are used to collect information from the magnetic strip on credit and debit cards to commit crimes. Tips to protect yourself include making transactions inside, using machines closest to physical buildings, and looking for signs of tampering such as loose parts. At gas pumps, paying with cash, credit cards (zero liability policies), or “tap and go” is recommended. If you must use a debit card to pay, experts advise using the “credit card” option instead of entering a PIN.

 

Evergreen Fraud Advice- The following statements are true anywhere, anytime, for anyone:

¨   Legitimate lotteries do not collect credit card data and charge handling fees for prizes

¨   Do not send money to “cold callers” (phone, e-mail, etc.) who you do not know

¨   Do not purchase gift cards or wire money for payments. Instead, Stop. Think. Go Home

¨   If you suspect possible fraud, say something; the worst that can happen is you are wrong

¨   Real technology companies do not contact people out of the blue to request money

¨   If something sounds fishy, walk away, hang up, or delete. Don’t engage with fraudsters.

¨   Monitor bank and credit card statements regularly to quickly identify suspicious activity

¨   Taxpayers can get a PIN (from the IRS) to reduce the risk of being defrauded on their taxes

¨   Vigilance, caution, and time (don’t be rushed into decisions!) are key protective factors

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.