Scammers are constantly finding new ways to steal your money. You can reduce your chances of becoming a victim by learning what to watch for and what steps to take to keep yourself, your loved ones, and your money safer. Here are 10 scams to watch out for:
1. Bank Imposter Scams
Imposter scammers pretend to be someone from your bank in order to gain access to your account information. You may receive an email or text, supposedly from your bank, saying, “We received a request to make changes to your bank account. If you did not authorize these changes, please verify your identity by clicking on the link below to insert your account number and PIN.” Or you may receive a call from someone claiming to be with the bank’s fraud department reporting suspicious activity on your credit card. Again, they request further information, such as your credit card number. These types of requests should be danger signs because your bank already has all the information about your account and your credit card number.
What to do:
- Recognize the red flags in texts or emails: a “from” email address that doesn’t look right (hover over to make sure), typos or unusual grammar, urgent language, hyperlinks or attachments.
- Never click on hyperlinks or open attachments.
- Don’t rely on caller ID for phone calls. It can be easily faked.
- Before you take any action, call the phone number on the back of your debit card to report the request and either verify that it’s legitimate or report it as a fraud attempt.
2. Imposter Scams Asking for Money
Imposter scammers try to convince you to send money by pretending to be someone from an organization you know or trust, like a police department, federal government agency, or charitable group. They may say you owe money and insist that you use a credit or debit card right away to clear the debt, or they may ask you to use a card to make a donation to their charity.
What to do:
- Remember, caller ID and “from” email addresses can be faked.
- Before giving any money or disclosing any personal information, verify that the request is legitimate. Look up the phone number or website of the agency to see if they actually contacted you.
- If you receive a call asking for donations to a charity, ask for detailed information about the group. Then, look it up through their website or a trusted third-party source to confirm that the charity is real. If you wish to donate, you should be able to do so on their website.
3. Debt Collection Scams
Debt collectors are hired by creditors to contact people about legitimate debts they owe. But scammers who pose as debt collectors may try to convince you to pay for debts you don't owe or ones you’ve already paid. After someone dies, scammers may check obituaries and contact the deceased’s relatives, posing as a debt collector.
What to do:
Don’t give out any personal financial information until you can verify that you owe the debt and that the caller is authorized to collect it.
4. Debt Settlement and Debt Relief Scams
Debt settlement or relief companies often promise to renegotiate, settle, or in some way change the terms of a person's debt to a creditor or debt collector. Dealing with debt settlement companies can be risky and could leave you even further in debt.
What to do:
Avoid doing business with any company that guarantees they can settle your debts, especially those that charge upfront fees before performing any services. Instead, you can work with a free or nonprofit credit counseling program that can help you work with your creditors.
5. Foreclosure Relief or Mortgage Loan Modification Scams
These schemes aim to take your money or your house, often by making a false promise of saving you from foreclosure. Scammers may ask you to pay upfront fees for their service, guarantee a loan modification, sign over the title of your property, or sign paperwork you don’t understand.
What to do:
If you are having trouble making payments on your mortgage, a HUD-approved
housing counselor can help you assess your options and avoid scams.
6. Lottery or Prize Scams
Scammers may call or email to tell you that you’ve won a prize through a lottery or sweepstakes and then ask you to make an upfront payment for fees and taxes. In some cases, they may claim to be from a federal government agency.
What to do:
Avoid providing any personal or financial information, including credit card or Social Security numbers, to anyone you don’t know. Also, never make an upfront payment for a promised prize, especially if you are required to make immediate payment.
7. Money Mule Scams
If someone you don’t know sends you money and asks you to forward or transfer the money, you could be fueling fraud by serving as a money mule: someone who receives and moves money that came from victims of fraud. While some money mules know they’re assisting with criminal activity, others are unaware that their actions are helping fraudsters. Money mules may be recruited through online job or social media posts that promise easy money for little effort.
What to do:
Don’t agree to receive or send money or packages for people you don’t know or haven’t met. Also, be aware of jobs that promise easy money. Learn more about the red flags and what to do if you’re a victim of a money mule scam.
8. Mortgage Closing Scams
Mortgage closing scams target homebuyers who are nearing the closing date on their mortgage loan. The scammer attempts to steal the homebuyer's closing funds – for example, their down payment and closing costs – by sending the homebuyer an email posing as the homebuyer's real estate agent or settlement agent (title company, escrow officer, or attorney).
What to do:
These schemes are often complex and appear as legitimate conversations with your real estate or settlement agent. When you’re about to close on your home, identify trusted individuals who can confirm the process and payment instructions. Then, write down their names and contact information so you can reach out to them directly.
9. Romance Scams
In a romance scam, a new love interest tricks you into falling for them in order to get money from you. Romance scams may start in a few different ways, but are very prevalent online. The scammer may spend time getting to know you and developing trust before asking you for a loan or for access to your finances.
What to do:
Be smart about who you connect with and what information you share online. Don’t share sensitive personal information, such as bank account or credit card numbers or a Social Security number, with a new love connection.
10. Wire or Money Transfer Fraud
Scammers may use money wire transfers to steal your money. One example of wire transfer fraud is the "grandparent scam,” where a scammer poses as a grandchild or a friend of a grandchild and says they’re in a foreign country and need help. Once a money transfer is picked up, there is very little you can do to get your money back.
What to do:
Never transfer money without making sure that the person you’re trying to help really needs your help and is who they say they are. You can do this by reaching out to the person yourself, using the contact information you already have for them. If you made a money transfer to a scammer, contact the bank or wire company immediately and ask if it can be reversed.
Reporting a fraud or scam
If you’re a victim of a scam, you can report it to the authorities by:
- Submitting a complaint online with the Federal Trade Commission
- Contacting your local police or sheriff's office
- Reporting it to your state attorney general
Fraud schemes have been around for centuries, but technology is making it easier than ever for scammers to reach out to potential victims and gain access to their wallets. Safeguard your personal and financial information and keep yourself informed about scams that may be targeting you and your loved ones. For more information about scams, consult the Fraud section of Nevada State Bank’s Two Cents blog.