Scammers are always trying to con victims out of their information and money. They are, unfortunately, often successful. Scammers are expert impersonators, using sophisticated technology and their best acting skills to convince you they represent a business, institution or government agency you may trust. They also tend to prey on the most susceptible victims, including those who are down on their luck or are exceptionally naïve and trusting.
To help you achieve it, we’ve put together this guide about recognizing the signs of fraud and protecting yourself from scams.
Five red flags of scams
While the details surrounding the way a scam plays out can vary greatly, most follow a similar theme. They try to get victims to share personal information or to pay for a service or product that doesn’t exist. Here are five ways to spot a scammer:
- They ask for detailed information before agreeing to process an application.
- They insist on a specific method of payment.
- They send a check for an inflated amount to a seller or “employee,” and then ask the victim to mail them the extra money. Of course, the original check will not clear.
- You can’t find any information about the company the caller allegedly represents.
- You’re pressured to act now.
Who are the targets?
Scammers usually cast a wide net to ensnare as many victims as possible. However, lots of scams focus on a subset of highly vulnerable targets. Here are some of the most common targets of scams:
- The unemployed. The internet makes it easy for scammers to learn that you’re looking for a job. If you’re job hunting, be careful not to respond to any emails offering you a “dream position” you never applied for or even knew about.
- The aging. Older people are another favorite target for scammers. Retired individuals often spend lots of time online, making them more vulnerable to scams. Also, as relative newcomers to the online world, they may be less aware of the dangers lurking on the internet.
- Children. Sadly, the youngest members of society are another huge target pool for scammers. Children are naturally trusting and will more readily share information with strangers, which can then be used to steal their identity. Small children will likely not be checking their credit for years, which means a stolen identity can go unchecked until the child grows into a young adult. By that time their credit can be wrecked, almost beyond repair.
What do scams look like?
Here are some of the most common scams:
- Cyberhacking. In this scam, hackers gain remote access to your computer and proceed to help themselves to your personal information.
- Phishing scams. Scammers bait you into sharing personal information via a bogus job form, an application for a service they allegedly provide or by impersonating a well-known company or government agency.
- Mystery shopper. A bogus company will “hire” you to purchase a specific item in a store and then report back about the service experience. Before you get started, though, you’ll have to pay a hefty fee, which you’ll never see again.
- Job offers. Scammers “hire” you for a position and then scam you by sending you an inflated check, as detailed above.
- Sweetheart scams. A scammer pretending to be an online lover will con you into sharing your personal information and/or sending them money and gifts.
- Fraudulent investments. Scammers reach out to potential investors with information about lucrative investments that don’t exist.
10 ways to protect yourself from scams
- Never share personal information online.
- Don’t open unsolicited emails. If you already have, don’t click on any embedded links.
- Never send money by insecure means to an unknown party.
- Protect your devices by using the most up-to-date operating systems, choosing two-factor authentication and using strong, unique passwords for every account.
- Choose the strongest privacy settings for your social media accounts.
- Keep yourself in the know about the latest scams and learn how to protect yourself.
- Educate your kids about basic computer safety and privacy.
- If you have elderly parents, talk to them about common scams and teach them to protect themselves.
- If a government agency or a company calls and asks you to share personal information, tell them you’ll contact them on your own.
- Never accept a job or pay for a purchase or service without researching the company involved.
Above all, remember the golden rule of scams: If it’s too good to be true, it’s probably a scam.
Get into the habit of checking for the latest scam alerts on a regular basis. Once an individual falls prey to a scam, full financial recovery can take years. It’s best to protect yourself from scams before they happen by educating yourself and asking Forrit Credit Union for help.