Beware of Frauds and Scams

 

Not a week goes by, it seems, when we don’t hear about the hacking of a large third party data base that stores our personal information for its clients (e.g., hospitals and employers) without our knowledge or consent. This makes us vulnerable to online scams and fraud in general.

 

Below are important things to know to avoid becoming a fraud victim:

¨    Nobody is Immune- Scams can happen to anybody regardless of age, income, educational level, etc. That said, older adults are often targeted because they have more wealth and are generally less tech savvy than younger generations. For example, the 352 area code in central Florida is a prime target because it includes a large older adult community called The Villages.

 

¨    Decision Rules are Helpful- Here are three examples. 1. Do not answer the phone if you do not know who is calling. Let it go to voice mail and block the number. 2. If someone cold calls to “verify your identity,” hang up. 3. Don’t “sit on it” if you think you were defrauded. Act immediately to report a scam by calling your bank, credit card company, and/or local police department’s non-emergency number. In other words, get help immediately!

 

¨    Common Fraud “Red Flags”- Here are three examples. 1. Banks, the IRS, Social Security, and Medicare will not call you to “verify information.” 2. If there is actually a warrant for your arrest, authorities will come to get you; they will not ask you for information or money. 3. Requests to pay fees for prizes or to “fix’ fake crimes are common giveaways, as are requests to send money using Bitcoin ATMs, prepaid debit cards, and the numbers on gift cards.

 

¨   Grandchild Scam Methods- A victim gets a call claiming to be from a grandchild in trouble. Perhaps a realistic snippet of their grandchild’s voice is harvested from social media or created using artificial intelligence (AI). A red flag for a grandparent scam is the fake “grandchild” saying something like “I’m badly injured….please talk to this person [fraudster].” The best protection is checking it out. If you are a grandparent, call your grandchildren or their parents.

 

¨   “Love” Can Hurt (Financially)- Romance scams often go on for months so fraudsters “build a bond” before asking victims for money. They often begin on social media and dating apps where fraudsters tell victims they want to get to know them. Connections are also made via  online games such a poker and “Words With Friends.” After a while, they will try to speak to victims on the phone and may send a fake photo. There may even be talk of a future wedding. Fraudsters then ask for money with an excuse such as medical bills or paying for a plane ticket. Experts advise ceasing all communication and never sending money to people you meet online.

 

¨   Fake Shopping Deals- This is where fraudsters pretend to be a legitimate business (e.g., Walmart, Talbots) and bait people with extremely low prices, often with fake ads on social media. They then take victims’ personal information and money but never send ordered items. The best way to avoid this scam is to only click on online shopping links that you search for.

    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.