It seems we hear about fraudulent schemes in the news regularly, but sometimes these stories hit closer to home than we expect! Scams targeting the elderly are unfortunately a common tactic of criminals, with a Willits resident (not a CFCU member), being duped out of $100,000 in a tech impersonation scam!
It can be easy to dismiss these scams as never happening to you, but scammers have been known to take their time gaining the trust of their victims and preying on emotions like loneliness or fear. It is important to know the warning signs of a scam to protect yourself and your loved ones.
Also called the “grandparent scam”, criminals will attempt to impersonate family members in order to gain the immediate trust of their potential victims. Someone might receive a call or text from someone claiming to be their grandchild, saying they need funds urgently for late rent, a broken car, or even a medical emergency. Preying on family emotions, they might even instruct their victim to not tell anyone!
These types of scams can be especially dangerous in the age of Artificial Intelligence (AI). Using deep fakes and voice-cloning, calls and videos can look extremely realistic.
It is a good idea to come up with a secret passphrase that only close family members know in case you need to verify someone’s identity.
Romance scams are a specific type of impersonation scam, where the fraudster will pretend to be a love interest, often making initial contact via social media, dating sites, or a ‘wrong number’ text. This is also commonly called ‘catfishing’, where someone pretends to be someone else online.
These types of scams progress as the fraudster gains their victim’s trust and encourages them to send money or invest in phony cryptocurrency.
Tech support and government impersonation scams often use fear to trick victims into sending money or revealing sensitive information like passwords and social security numbers. They can range from popups on a dangerous site claiming something is wrong with your device to threatening phone calls or text messages.
Be sure to update your devices and apps to the latest software so you have the latest security enhancements and consider cybersecurity software that can help block malicious websites.
Like other phishing scams, also remember to not act hastily, and take time to verify the sender of the message. Look for phishing signs in the message or reach out to the company directly using a verified contact channel, not by replying to the suspicious message or phone call.
Finance scams, similar to tech support and other impersonation scams, are when someone claiming to be from your financial institution requests passwords, security codes, or other sensitive information to fix a ‘problem’ with your account. Remember that most financial institutions, including CFCU, will never request your password over the phone, through email, or through text!
Finance scams can also include unsolicited offers for amazing rates on loans or ‘guaranteed’ returns on an investment.
While there are many different ways that fraudsters will attempt to reach you, there are also many tell-tale signs that can alert you to a potential scam. Below are a few of the key signs to look out for.
The biggest sign you might be being scammed is not only being asked for money, but also the method of sending the money. Scammers typically request gift cards or wire transfer. This is because there is no identification required to accept the funds, and items like gift cards have little protection compared to something like a credit card. Cryptocurrency is also a common request as it is not as regulated as normal currency.
There have also been reports of scammers sending ‘couriers’ to pick up cash as well.
Fraudsters will often pressure potential victims to click links or send money by using urgent or even threatening language, sometimes claiming an account will be frozen, data will be lost, or even an arrest warrant was issued!
On the flip side, fraudsters can present too-good-to-be-true offers or ‘winnings’ from contests or sweepstakes, emphasizing that you must act now in order to claim your ‘prize’.
Both of these scenarios are common examples of how fraudsters might pressure potential victims to take action.
It is important to know how different agencies or companies may attempt to contact you in legitimate cases.
Typically, government agencies will not reach out to you via unsolicited phone calls, email, or text messages.
With financial institutions and other companies, be sure to inspect the message and look for any phishing signs. Be especially wary of texts or emails that come from unknown numbers that contain links. Remember to never share any personal or sensitive information until you are certain you have verified that the sender is legitimate. Often times, legitimate companies and financial institutions will not request passwords, account numbers, or other sensitive information over text, phone call, or email.
Below are some common scam warning signs identified by the Commodity Futures Trading Commission that relatives and friends should be aware of.
If you suspect that a relative or friend may be being scammed, be patient as you broach the subject with them. Scams can happen to anyone, and they can make a victim feel angry, embarrassed, or afraid of the consequences.
The easiest way to avoid scammers is to just not engage with them. If a message, phone call, or email seems suspicious in any way, the best thing to do is not reply, or just hang up. Take the time to verify the sender and the information by reaching out to the proposed sender directly. Do not reply to the message or redial the number; reach out using verified contact channels.
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