Common phone and internet scams and ways to stop them

Older adults are increasingly the targets of scammers who use deception and fear tactics to convince the elderly to send money or provide personal account information. Make sure your loved ones are aware of these common type of scams.

Recognizing Common Phone and Internet Scams

Phone and internet scams are pervasive and constantly evolving, making it essential to stay informed about the latest tactics used by scammers. Common phone scams include robocalls claiming to be from government agencies, tech support frauds, and lottery scams. Internet scams often manifest as phishing emails, fake online shops, and social media scams.

Grandparent Scam

Scammers often target older adults. In this increasingly common scam, a fraudster calls a grandparent pretending to be a grandchild in trouble. The scammer will typically use the grandchild’s name and is usually crying. This makes it harder to recognize the grandchild’s voice or plays to someone hard of hearing. Scammers may also pose as a lawyer or police officer with the loved one that’s in trouble or jail.

These scammers plead for the grandparent to immediately wire money or overnight a check, money order, or gift card. They may also insist that the grandparent not tell anyone for fear of upsetting them. Many will immediately jump to the assistance of their grandchild and won’t ask questions until later.

Tech Support Scams

Tech support scams convince people to pay for technical assistance or programs on their computers. The scammers are typically pushy and pretend to know your problem, collect your money, and potentially ask for personal or account information. They may use a legitimate software company name. If you didn’t initiate the call for help, don’t pay or give the caller any information. Never give out your account passwords. Only scammers ask for this information.

SOFTWARE SCAMS

If you’re using your computer or tablet, a warning could appear on your screen: “Virus detected! Call now for a free security scan to repair your device.” If you call the number they provide, scammers may try to remotely access your computer to run a diagnostic test, sell you worthless services, or install malicious software that can steal your personal information. This is another type of tech support scam.

Don’t provide access to your computer or give out any account passwords. Legitimate companies never ask for this information. If you need computer help, go directly to a person or business you know is trustworthy.

IRS Telephone Scam

According to the Internal Revenue Service (IRS), an imposter typically calls a consumer telling them that they must immediately pay the taxes they owe. Scammers can specifically target individuals and say that if they don’t pay the tax bill or follow their instructions, they will face serious penalties. They will list consequences like arrest, shutting off utilities, or revoking driver’s licenses. Callers are frequently insulting or hostile to scare their potential victims. Don’t believe their fake threats and don’t be pressured into providing personal, financial or account information.

Lottery and Sweepstakes Scams

In this scheme, scammers call, email, or text consumers congratulations on winning a lottery, drawing, or sweepstakes, which the consumers usually have not entered. The scammer asks the “winner” for an upfront payment to cover processing fees or taxes. Or, the scammers may send a letter with an authentic-looking but phony “claim certificate” or “check” as an advance to pay the winnings.

Bankers are generally aware of this scam and how to spot fraudulent checks. But if you deposit a phony check, the financial institution might hold you responsible for repaying the entire amount of the fraudulent check. This is true even if you sent some of the money to the scammer.

Tips to Avoid Phone and Internet Scams

Fraudsters can be very convincing in manipulating victims. If something seems unusual, don’t feel pressured to make any rash decisions without contacting someone you know and trust first.

Pay attention to warnings from your banker if they tell you that a request sounds like a scam. Your bank may have encountered similar scams in the past and don’t want you to fall victim.
Scammers often claim an emergency, hoping you will respond quickly without checking out the situation first. If something seems unusual, check it out.
Before offering your help to someone who claims to be a grandchild (or any other relative/friend), be sure to telephone your grandchild or his/her parents at a number you know to be valid to find out if the request is legitimate. If a caller claims to be from an established organization such as a hospital, a charity, or a law enforcement agency, look up the number of the organization yourself.
Never provide your account passwords. Legitimate businesses will not ask for them.
Consider it a red flag if the caller insists on secrecy. Never allow anyone to discourage you from seeking information, verification, support and counsel from family members, friends or trusted advisers before you make a financial transaction.
You usually cannot win a sweepstakes or a lottery that you did not enter.
Never “pay to play.” A legitimate sweepstakes will not ask for money upfront. Be suspicious of any pressure to send funds via wire transfer or a pre-paid reloadable card.

Warning Signs of Potential Scams

Recognizing the warning signs of scams can help you avoid falling victim to fraud. One of the primary indicators is an unsolicited contact, whether via phone, email, or social media. Genuine companies typically do not reach out unprompted, especially for sensitive matters.

Scammers often create a sense of urgency, pressuring you to act quickly without thinking through your decision. Be wary of any message or call that demands immediate action or payment. Additionally, if an offer seems too good to be true, it probably is. Scammers use attractive deals to lure in unsuspecting victims.

Look out for requests for personal information or payment through unconventional methods, such as gift cards or wire transfers. Reputable organizations will not ask for sensitive information in this way. Pay attention to poor grammar, spelling mistakes, and generic greetings in emails or messages, as these are common signs of phishing attempts.

Staying Informed and Vigilant in the Digital Age

Staying informed about the latest scams and tactics used by fraudsters is essential in protecting yourself. Sign up for alerts from reputable sources, such as the FTC or your financial institution, to stay updated on new scams. Educate yourself and your family about common scam techniques and warning signs.

Cultivate a healthy skepticism when dealing with unsolicited contacts or offers. Take the time to verify the legitimacy of any unexpected communication or deal, and do not be afraid to ask questions. Trust your instincts; if something feels off, it probably is.

Regularly review your financial statements and credit reports for any unusual activity. Early detection of unauthorized transactions can help you mitigate the damage and take action quickly.

Resources for Reporting and Recovering from Scams

If you fall victim to a scam, it is important to take immediate action to minimize the damage and recover. Contact your bank or credit card company to report any unauthorized transactions and request a freeze on your accounts if necessary. Change your passwords and enable additional security measures on your online accounts.

Report the scam to the relevant authorities, such as the FTC, IC3, or your local consumer protection agency. Provide as much detail as possible to help them investigate and take action against the scammers.

Seek support from trusted friends, family, or professional services if needed. Being targeted by a scam can be a distressing experience, and it is important to have a support system in place to help you recover emotionally and financially.

By following these tips and staying vigilant, you can protect yourself from common phone and internet scams and safeguard your personal information in the digital age. Please share this information with your friends or family to help them avoid falling victim.

Information Sources

Federal Trade Commission Consumer Information > Scams

IRS Tax Scams Consumer Alert Website

Warn Your Friends About Tech Support Scams (Federal Trade Commission)

Post updated. Originally published August 2018.