How to Spot a Scam, and What to Do When You Do

Unscrupulous individuals are using advances in technology and increasingly creative approaches in their attempts to deceive you into giving them money or personal information they can use to steal your identity. Some will go so far as pretending to be a government official, a representative of your bank, or even a friend or relative.

So how do you know when someone is trying to scam you? There are telltale signs that can alert you to some of the most common scenarios.

Cold-call scam

Someone contacts you out of the blue — whether in person or by phone, text, mail, email or social media — and makes you an offer that seems too good to be true, or warns you of some imminent danger. They might tell you that you’ve won a free vacation, or that a relative has died and left you a large sum of money.

Easy money offer scam

You receive an offer to make easy money — maybe lots of it, and quickly. The offer might include a tight deadline (e.g., you have only a few hours to accept it or it’ll be gone forever).

Impersonating a family member scam

Someone pretending to be a family member (often a grandchild) calls and claims to be in jail, in the hospital, kidnapped, stuck in a foreign country or in some other dire situation and asks you to send money. Or, the caller might ask you to call another person for more details — supposedly the lawyer, doctor, police officer or kidnapper — and that person will tell you to send money. They’re counting on your emotions to cause you to act without thinking.

Investment scam

Someone you don’t know asks you to make an “investment” in a low-risk business opportunity that will give you a higher return than you’ll get anywhere else. (More information on how to spot an investment scam is available from the Financial Industry Regulatory Authority [FINRA] at finra.org/investors/how-spot-investment-scam-6-steps.)

Wire transfer request scam

You’re asked to pay up front for a product or service via wire transfer (e.g., through your bank or Western Union). Wire transfers give scammers immediate access to the money you send, and in most cases they can’t be undone.

Social Security scam

A caller poses as a Social Security investigator and tells you there’s a problem with your account. He or she asks you to “confirm” your Social Security number and other personal information.

IRS scam

You receive a recorded phone message advising you that you’ll go to jail or be fined a large sum if you don’t do as you’re instructed. One of the most popular scams of this type purports to be the IRS calling about an overdue amount you owe. The IRS will not initiate contact with you by telephone.

Tech support scam

You receive an unexpected call or email or a pop-up message telling you that your computer has been hacked or infected with a virus. You’re asked to provide your log in information or pay a fee to get rid of the virus. Tech support will not contact you unless you’ve called them first.

Debt relief scam

You receive an unsolicited offer for debt relief, mortgage assistance, a job, or a credit card or loan. Not all of these are scams, of course, but offers such as these warrant close inspection to make sure they’re legitimate.

International scam

Someone you don’t know reaches out to you from a foreign country for help.

Charity scam

A caller asks you to donate to a charity or organization you’re not familiar with and insists that you have to use your credit card.

Sheriff’s office scam

Someone calls pretending to be with the sheriff’s office and says you’re going to be arrested because you didn’t show up for jury duty. He or she asks for your Social Security number or credit card information.

Government grant scam

A caller says you’re eligible for a government grant to pay for education costs, home repairs, unpaid bills and so on. You’re then asked to pay a processing fee or provide access to your checking account so the grant money can be deposited.

Area code scam

You receive a call from a phone number that begins with one of the following area codes: 268, 284, 473, 664, 649, 767, 809, 829, 849 or 876. The caller hangs up after just one ring, hoping you’ll call back to see who it was. If you do, you’ll be calling an international number that will result in a hefty charge on your phone bill.

Common scammer tactics and solutions

Rather than asking you for money directly, sometimes scammers will ask you to provide your bank account information so they can “deposit” your winnings or your inheritance directly into your account. Sometimes they try to get enough personal information (often under the guise of making sure you can claim your prize) to steal your identity, which they will use to open credit card accounts and obtain loans. Sometimes they want your Social Security number to “report” your winnings for tax purposes.

You can reduce your risk of being scammed by downloading an app on your smartphone that will block spam calls. Some apps are free or have both free and premium versions, whereas others require a monthly subscription. Some only work on Apple devices or Android phones, and some are available for both types. TrueCaller, Hiya, RoboKiller, Should I Answer?, Call Controls and Mr. Number are just a few of the many call blocker apps available. There’s an abundance of information available online to help you decide which one will best suit your needs. If you don’t want an app, some cell phone carriers provide a service that identifies certain calls as “scam likely” or “nuisance call.”

Phishing, smishing and vishing

Phishing is a type of fraud in which scammers send messages asking the recipient for passwords or other personal information. Smishing and vishing are specific types of phishing that involve text and phone messages, respectively.

A common practice among scammers is to send an email that very closely mimics an email that a reputable company would send. The “fake” email probably includes the company’s logo and at first seems legitimate. But if you take a closer look, you’ll find misspelled words, poor grammar, possibly an unusual greeting (e.g., Dear Smith) and other indications that the email is not on the up and up. In many cases you can also identify a fake email by hovering your mouse over any links, including the one used with the sender’s name. If the box that pops up displays an odd address or one for a free email account (e.g., Gmail or Yahoo), it’s a good sign that the email is not from an authentic business.

The email might ask you to click on a link to change your password because your account has been compromised. Clicking on the link will take you to a website that looks legitimate, just like the email did, but is actually an imposter site. There, you’ll be asked to provide personal information that the scammer can use to gain access to your account. (For the record, a bank will never ask you to confirm your personal information by clicking on a link in an email.)

There are ways to help you determine whether you’re on a legitimate website. This can be useful in spotting scams and for making sure that a site is secure before you provide personal information — including your username and password.

• First, check the address bar at the top of website. See if the URL (the address of the site you’re on) begins with https://. The “s” after http indicates that your communication with the site is private and encrypted, but it does not guarantee that you won’t be scammed. A site with an address that begins with http:// is not secure. It may be safe enough for browsing, but do not provide any personal information on such a site.
• While you’re looking at the address bar, see if there’s a green padlock to the left of the URL. This indicates that you are definitely connected to the website whose URL appears to the right of the padlock — in other words, your connection hasn’t been intercepted. In some browsers, you can click on the padlock for more information about the website security certificate.
• While you’re at it, see if the name of the company or organization appears in green immediately to the right of the green padlock (before the address that begins with https://). If so, you can be assured that the website you’re on is using an Extended Validation certificate, which requires a much more rigorous identity verification process.
• If you’re on a website that asks for login information and/or financial information (e.g., to make a purchase), look for “trust seals” from companies and organizations such as the Better Business Bureau, Google, PayPal, McAfee and Norton. These seals might appear on the homepage or a page that asks for your personal information, such as “shopping cart” page.

Dos and don’ts to protect yourself from being scammed

New scams seem to crop up daily, and even smart, tech-savvy people can be fooled. Fortunately, there are guidelines you can follow to safeguard your privacy and identity.

DON’T:

• Send money or give out your personal information — such as your bank account numbers, usernames and passwords, PINs, driver’s license number, Social Security number, date of birth, etc. — in response to an unsolicited phone call, text, email or pop-up message on your computer screen
• Reply to suspicious emails or click on any links in them
• Download any attachments in suspicious emails
• Call phone numbers that are provided in suspicious emails or texts
• Answer phone calls from numbers you don’t recognize (and don’t automatically rely on caller ID — scammers can fake that, too)
• Install software on your computer unless you’re certain it’s authentic; it could be malware that will infect your computer
• Give anyone remote access to your computer unless you know you can trust them (e.g., you initiated contact with customer support for a computer problem)
• Press a number when directed to do so during a robocall sales pitch, even if you’re told you can speak to a “live” person or be removed from the call list — instead, hang up and report the call to the Federal Trade Commission (FTC)
• Use public computers or WiFi hotspots to access online banking or send personal information

DO:

• Verify that messages were sent by the person or business that is claiming to have sent them, if you have doubts
• Use the phone numbers on your bank cards, bills or statements to verify that an email from the company is legitimate, rather than calling a phone number provided in the email
• Be careful when accepting payment for items or services you’ve advertised online; even a cashier’s check is not guaranteed to be safe anymore
• Be extremely wary of giving anyone your bank information if they tell you they want to make a deposit into your account
• Conduct additional research if you are interested in an offer you receive; many times, a quick search online with the right keywords or a reverse number lookup site can reveal a scam
• Realize that scammers can be very convincing and very patient as they work to reel you in
• Exercise caution before accepting a free trial offer; companies often require you to provide payment information up front and then bill you monthly until you cancel the service
• Be careful on websites that have a lot of ads and pop-ups
• Beware of offers for free upgrades
• Trust your internet browser when it warns you not to go to a website
• Verify the authenticity of charitable organizations before donating: go to charitynavigator.org or www.charitywatch.org
• Shred your bills, account statements and other important documents before discarding them
• Be careful about how much personal info you share on social media platforms; scammers can use your address, date of birth and photos to target you or create fake IDs
• Use password protection for your mobile devices and computers
• Update security software as it becomes available
• Password protect your WiFi network connection

What to do if you’ve been scammed

• Call your bank or credit card company immediately and explain what happened. Use the number on the back of your card or a recent statement. They will put a hold on your account to block any further charges and issue a new card.
• Notify the police and file a report. Use the non-emergency number for your local police department. (You’d report a theft that occurred on the street or in your home, wouldn’t you?)
• File a fraud alert with the three major credit bureaus (Experian, TransUnion and Equifax). They will add a note to your credit file to let anyone who tries to pull a credit report know that you’ve been a victim of fraud.
• Consider placing a security freeze on your credit reports, which can help keep thieves from opening accounts using your identity.
• Monitor your credit score. Many monitoring services are available. Some, such as Credit Karma, offer basic monitoring services free of charge. Most of the companies that provide comprehensive monitoring services require a monthly subscription. It’s a good idea to do some research before making your decision — NextAdvisor offers a comparison chart to get you started.
• Update your anti-malware software and scan your computer to see if it has been infected.
• Call the AARP Fraud Watch Network hotline at 877-908-3360 to learn what else you can do to protect yourself. This service is available to anyone.
• Report the scam to the Federal Trade Commission at ftc.gov/complaint (or call 877-382-4357) and at USA.gov/stop-scams-frauds. If appropriate, you can also report it to your state attorney general’s office, the state’s consumer protection agency and the Better Business Bureau.
• Report fake websites to Google, Mozilla or Microsoft.

It can be unsettling to think about the many ways in which scammers try to take your money or gain access to your personal information. This post only covers some of the most common ones. But, it helps to know that you can take steps to protect yourself. You can start by signing up at ftc.gov/scams to receive free scam alerts.

With the right tools and knowledge, you can keep your money and personal information safe from any scams you might encounter — and that will help you maintain a happy independent living lifestyle throughout your retirement.

Whether connecting Sun Health At Home members to vetted home maintenance vendors or providing community residents with a worry-free lifestyle, Sun Health Communities makes safety and security a priority. To learn more about independent living as a Sun Health Community resident or Sun Health At Home member, contact Sun Health Communities today.