Let’s all speak up about fraud

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2023’s National Consumer Protection Week begins on March 5 and lasts until March 11. This is a great opportunity to brush up on your fraud prevention skills. But more than just reducing your own risk, sharing what you know with friends, family, and colleagues can help reduce everyone’s risk. It’s good to keep yourself protected—it’s better to help a friend.  

While fraud can affect anyone, regardless of age and other demographic information, Fraud.org and the National Consumers League (NCL) are putting the spotlight on scams targeting older Americans. NCL’s upcoming podcast episode features Lizette Alvarez of the Washington Post and Debra Berlyn of Project GOAL who will discuss fraud prevention strategies for seniors and their families. Below are a few key points to keep in mind as we enter Consumer Protection Week. Be sure to listen to the full podcast episode premiering March 6 for more details on elder fraud.  

Don’t be ashamed of fraud 

Each year, scammers defraud millions of Americans. Given the stigma associated with these crimes, victims often feel embarrassed and ashamed. This leads to far too many incidents of fraud going unreported. As a result, impacted individuals are not connected with resources that can help them recover. It also leaves victims more vulnerable to be re-victimized, as scammers often prey on victims again and again. If you or someone you know has been a victim of fraud, encourage them to talk about what happened and report it to the proper authorities.  

How to help spot impersonation scams: stop and verify 

Imposter scams are one of the most common types of fraud reported to Fraud.org. A common set-up involves a scammer impersonating a family member of the victim over the phone and claiming that they require money to resolve an urgent issue (bond, doctor’s bill, etc.). Scammers are very adept at making these deceptions sound legitimate and a common tactic is to tell the victim that if they tell anyone else what is going on, something terrible will occur. 

A key way to avoid being a victim of an impersonation scams to remember two words: “Stop” and “Verify.”  

First, victims should understand that scammers want you to act quickly. on emotions like fear. By stopping, you give yourself time to take a pause and think through what you’re being asked to do. 

Second, victims should verify. If the scammer claims to be a loved one, call the relative or (in cases where the scammer may be impersonating a child) a parent of the relative. If the scammer is impersonating a bank or government agency, hang up and look up the phone number for that agency or company yourself and call to check whether what you’re hearing is accurate. 

While there’s no silver bullet for preventing imposter scams, learning to stop and verify the claims you’re hearing over the phone, email, or text can help save you from becoming a fraudster’s next victim. 

Share less online 

Phishing scams are not new. Fraudsters have been seeking login information and other sensitive credentials with deceptive emails, texts, and instant messages for years. However, with the proliferation of social media and other digital platforms, more information about our personal lives is publicly available than ever before. Dedicated scammers can use this information to create more convincing phishing attacks. Seemingly harmless information such as employment history, previous residences, or recent vacations may be used to compose a message that appears as if it were written by someone who actually knows you.  

To help reduce the risk of phishing, make sure and make your social media accounts on platforms like Facebook and Instagram private, so that only people you approve can see your profile information. On public social media accounts like LinkedIn, avoid sharing information like travel plans or family members’ names that scammers can use to create more effective phishing attacks. 

Don’t send money to recipients you haven’t met 

At Fraud.org, we hear heart-breaking stories of older adults who report losing their life savings to fraud. An important message to drill home is that if you have not met someone in person, you should be very wary of sending them any money. The is doubly true if you are being asked to send money via peer-to-peer money transfer services. (e.g., Zelle, Venmo, Cash App, or PayPal), bank account debit, wire transfer, or gift cards. 

Although scams can—and do—take place offline, fraudsters can easily hide their suspicious behavior when communicating remotely. Many forms of fraud, such as imposter scams and romance scams, are much more difficult (if not impossible) to conduct in person. Be extra cautious of solicitations sent digitally. 

Pass it on 

National Consumer Protection Week is the perfect opportunity to have conversations about fraud with those you know and love. If we all commit to sharing what we know with just one other person, we can put a real dent in the harm that fraud causes to far too many people. 

 

If you or someone you know has been a fraud victim, help yourself and other by reporting it! By using Fraud.org’s secure online complaint form, your complaint will be shared with our network of consumer protection and law enforcement agency partners. 

Travel fraud

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The thought of going to a warm vacation spot in the winter or visiting a foreign country is exciting. But what seems like a great deal may turn out to be a bad trip.

Stay safe. Be Informed.

  • Be skeptical of offers for “free” trips. Airlines and other well-known companies sometimes operate contests for travel prizes. However, there are also companies that offer “free” trips to try to lure people into buying their products or services. It’s never “free” if you have to pay something.

  • Know exactly what’s included. A “free” or incredibly cheap trip may have hidden costs. For instance, the cruise may be free, but you have to pay to fly to the departure point and stay in a hotel at your own expense. Or you may have to endure a long, high-pressure sales pitch for a timeshare or travel club membership as part of the trip.

  • Realize that the deal may not be as good as you think. You may find that a travel offer requires you to make reservations through a specific company and that the costs are higher than they would be if you used your own travel agent or made the arrangements yourself. Or the offer may be valid only if you bring a companion along at full fare.

  • Be aware of restrictions. Often the best travel deals are only available for off-peak times, not during school vacations, holidays or other popular travel dates. You may find it hard to get the promised price for the dates that you want to travel, or there may be no space available on those dates at all.

  • Confirm the arrangements. If transportation and hotel are included in the travel package, ask how to contact those companies and confirm with them directly that the reservations have been made.

  • Do your own travel research. It’s easy to get information from a local travel agent and other sources such as trusted Websites and the Internet. You may be able to get the trip you want for far less than the “bargain” price a company is offering.

  • Pay with a credit card. Fraudulent travel operators take the money and run, and even legitimate companies can suddenly go out of business. Protect yourself by paying with a credit card so you can dispute the charges if the promises aren’t kept.

Find Fraud Alerts related to this scam here.

Avoiding sales calls

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Tired of calls from strangers trying to sell you something? Bothered by shady characters offering deals that are too good to be true? You can’t eliminate unwanted calls completely, but you can reduce the number your receive.

Stay safe. Be Informed.

  • Sign up for the national “do not call” registry. It’s easy and it’s free! Call (888) 382-1222, TTY (866) 290-4326 from the phone number you want to register. Unfortunately, registering by phone may not work if you live in a residential complex that uses a PBX phone system. But you can also register online at https://www.donotcall.gov/. The “do not call” system will send a response to that address with a link that must be clicked on within 72 hours to complete the registration.

  • Your registration will not expire.  Telephone numbers on the registry will only be removed when they are disconnected and reassigned, or when the consumer chooses to remove a number from the registry. You can confirm that a number is on the registry and the registration date through the toll-free number or Web site. If your number changes or is disconnected, you’ll need to re-register. You can also take the phone number off the “do not call” registry anytime via the toll-free number or Web site.

  • Some callers aren’t covered. Nonprofit groups, charities, political organizations, and survey companies don’t have to use the national “do not call” list. But when charities use professional fundraisers to call, they must honor your request not to call again.

  • Some companies can still call you. Even if your number is on the registry, companies can call if: you purchased something from them or made a payment within the previous 18 months; you asked about a product or service or submitted an application in the past 3 months; or you have a “personal relationship” as a friend, relative or acquaintance. But you always have the right to tell them not to call again.

  • Be careful what you sign. Companies can also call with your written permission, so look at contracts, order forms, contest entry forms, and other things you sign carefully to make sure you’re not agreeing to be called without realizing it. You can withdraw consent anytime by saying, “don’t call me again.”

  • It may take a while to notice fewer calls. Telemarketers check the national “do not call” registry every 31 days, so it may take that long before your number is removed from their calling lists.

  • If your number is on a state “do not call” list, it may also be on the national registry. Not all states have their own “do not call” lists, but some that do are transferring the numbers on their lists to the national registry, others aren’t. The “do not call” Web site has information about how specific state “do not call” laws relate to the national registry.

  • If you don’t sign up for the national “do not call” registry, you still have rights. You can tell companies not to call you again on a case-by-case basis. Keep a record of their names and the dates of your requests.

  • Enforce your rights. If telemarketers ignore the fact that your number is on the registry or your request not to call again, report them through the “do not call” toll-free number or Web site. If telemarketers violate your federal “do not call” rights you may file a claim for $500 per violation (the court can triple that amount if the company knowingly broke the law). Note their names and the dates of the calls.

Find Fraud Alerts related to this scam here.

Prizes and sweepstakes scams

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Congratulations! You’ve won a car, valuable jewelry, cash, or some other fabulous prize! Is this really your lucky day, or is your luck about to take a turn for the worse? Be cautious before you claim your big prize or sweepstakes win.

Stay safe. Be Informed.

  • Never pay to play. It’s illegal for a company to require you to buy something or pay a fee in order to win or claim a prize.

  • Buying something doesn’t improve your chances of winning. It’s illegal for a company to even suggest that your chances will be better if you make a purchase.

  • Don’t believe that you have to give the company money for taxes on your prize. Taxes will be deducted from your winnings or you will pay them directly to the government.

  • Guard your credit card and bank account numbers. No legitimate sweepstakes company will ask for this information. Your social security number may be required for tax reporting purposes if you have won. Don’t provide that information unless you’re absolutely sure that you entered the contest and that you know the company operating it.

  • Be on guard for imposters. Some con artists use company names that are identical or very similar to well-known, legitimate sweepstakes operators. Tell them that you’ll get back to them and contact the real companies to ask if there is any connection.

  • Be wary of offers to send you an “advance” on your “winnings.” Some con artists use this ploy to build trust and get money from your bank. They send you a check for part of your “winnings,” instructing you to deposit it and then wire payment to them for taxes, bonding, or some other phony purpose. The bank tells you the check has cleared because the normal time has passed to be notified that checks have bounced. After you wire the money, the check that you deposited finally bounces because it turned out to be an elaborate fake. Now the crooks have your payment, and you’re left owing your bank the amount that you withdrew.

  • Get the details in writing. Legitimate sweepstakes companies will give you written information about how a contest works, including the odds of winning, the value of the prizes, the fact that no purchase is necessary, and an explanation that buying does not improve your chances of winning.

  • Don’t be fooled by official-looking advertisements. It’s not necessarily legitimate just because the envelope is marked “urgent” and the contents look impressive. One clue that you haven’t really won is if the letter was sent at bulk mail rates. That means that thousands of other people are receiving the same thing. Although many scammers send letters congratulating you on your winnings, pop-ups and emails are becoming more common among scammers.

  • Be especially cautious about foreign sweepstakes companies. Many fraudulent sweepstakes companies that target U.S. consumers are located in Canada or other countries, which makes it much more difficult for law enforcement agencies to pursue them.

  • Remember that con artists lie. It’s hard to imagine that there are people who are so cruel that they will tell you you’ve won something when you haven’t, but it’s true.

Find Fraud Alerts related to this scam here.

Lottery scams

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You get a call or letter informing you that you can win millions in a foreign lottery. Is this your lucky day? Nope, it’s most likely a scam that’s preying on your excitement to claim a big prize.

Stay safe. Be Informed.

  • Crooks take advantage of our natural desire to win. You see state lotteries and other contests advertised all the time. Why shouldn’t it be your turn to win? So when someone presents the chance to play a foreign lottery, it may seem like the perfect opportunity.
  • It’s illegal to use the mail or telephone to play lotteries across borders. U.S. law prohibits it, not only across national borders but state lines as well. So you could end up being accused of illegal activities just by participating.
  • No matter how official these solicitations look or sound, they’re not real. Sometimes the lotteries actually exist, but invitations to play don’t come from governments that operate legitimate lotteries or anyone connected to them. And there is no way of assuring that you’ll ever get the tickets you pay for or, in the unlikely event that you win, you’ll be able to collect the money. The crooks will simply pocket it.
  • Joining a lottery “club” won’t improve your chances of winning foreign lotteries. Con artists claim that pooling your money with other people means you can buy more tickets and have more chances to win. But the odds of winning remain tiny, and you still don’t know if tickets will actually be bought or if you’ll ever be able to collect.
  • Be cautious when giving out your credit card or bank account numbers. As many people know, crooks can use that information to make unauthorized charges or debits to your accounts, in some cases repeatedly. It is always better to call the actual company to verify the person requesting your information is authorized to do so.
  • Lottery scammers often insist the money be wired to them. That makes it quicker for them to get it and harder to trace.
  • Your chances of recovering money from foreign crooks may be even worse than of actually winning a lottery. Most lottery scams are perpetrated by con artists in other countries, sometimes using U.S. addresses to disguise their real locations. Differences in legal systems, difficulties of conducting investigations in other countries, and expenses and other complications involved in pursuing cross-border fraud make the chances of getting your money back very, very slim.
  • The only guarantee is that you’ll end up on more “sucker lists.” When you respond to a lottery solicitation, you identify yourself as a potential victim, resulting in many more offers for lotteries and other fraudulent money making opportunities.

Find Fraud Alerts related to this scam here.

Fake merchandise

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Online shopping is becoming a convenient alternative for those to like to shop in the comfort of their own home, any time of the day or night. But while there are many legitimate companies online, there are also fraudulent sellers out to cheat consumers.

Stay safe. Be Informed.

The fake merchandise scam category covers a wide variety of fraud. Most of them include a seller posting an item online (typically high-dollar clothing, shoes, or electronics) at Craigslist or an auction site such as eBay. These regularly pricey items are being listed for a fraction of the typical price and seem like an attractive deal, but actually turn out to be scams. The unscrupulous seller takes your money but never sends you the item you paid for, because they never had it to begin with! Or worse, the classifieds website only exists to harvest consumers’ payment card or personal information to be used by scammers to purchase merchandise elsewhere or commit identity theft.

Other examples of fake merchandise scams are magazine sales—where someone offers you a great deal on new subscriptions or to renew your current ones. But it could be a con artist trying to trick you into spending more than you realize or paying for magazines that you’ll never receive. Or maybe you find an unbelievable deals on computer hardware and software on the Internet But most likely the offer will turn out to be too good to be true. Since these items are expensive, it pays to play it safe when you buy online.

Follow these tips below to practice safe online buying habits.

  • Do a price-check for similar merchandise before trusting an unknown online retailer, especially one advertising on Craigslist. If the price listed is far below traditional online retailers (think Amazon, Best Buy, Zappos) for a piece of popular merchandise (such as wireless phones, game consoles, sneakers, or designer clothing), the “deal” could easily be a scam.
  • Know who you’re dealing with. If the seller is unfamiliar, check with your state or local consumer protection agency and the Better Business Bureau. Some Web sites have feedback forums, which can provide useful information about other people’s experiences with particular sellers. Get the physical address and phone number in case there is a problem later.
  • Look for information about how complaints are handled. It can be difficult to resolve complaints, especially if the seller is located in another country. Look on the Web site for information about programs the company participates in that require it to meet standards for reliability and help to handle disputes.
  • Be aware that no complaints is no guarantee. Fraudulent operators open and close quickly, so the fact that no one has made a complaint yet doesn’t meant that the seller is legitimate. You still need to look for other danger signs of fraud.
  • Be skeptical about incredibly low prices or rebates that promise to cover the entire cost of the product. The goods may not exist at all, or the seller may be on the verge of going out of business and never deliver the promised merchandise or rebate.
  • Understand the offer. A legitimate seller will give you all the details about the products, the total price, the delivery time, the refund and cancellation policies, and the terms of any warranty.
  • Resist pressure. Legitimate companies will be happy to give you time to make a decision. It’s probably a scam if they demand that you act immediately or won’t take “No” for an answer.
  • Be cautious about unsolicited emails. They are often fraudulent. If you are familiar with the company that sent you the email and you don’t want to receive further messages, send a reply asking to be removed from the email list. However, responding to unknown senders may simply verify that yours is a working email address and result in even more unwanted messages from strangers. The best approach may simply be to delete the email.
  • Beware of imposters. Someone might send you an email pretending to be connected with a business or create a Web site that looks just like that of a well-known company. If you’re not sure that you’re dealing with the real thing, find another way to contact the legitimate business and ask.
  • Guard your personal information. Don’t provide your credit card or bank account number unless you are actually paying for something. Your social security number should not be necessary unless you are applying for credit. Be especially suspicious if someone claiming to be from a company with whom you have an account asks for information that the business already has.
  • Pay the safest way. Credit cards are the safest way to pay for online purchases because you can dispute the charges if you never get the goods or if the offer was misrepresented. Federal law limits your liability to $50 if someone makes unauthorized charges to your account, and most credit card issuers will remove them completely if you report the problem promptly. There are new technologies, such as “substitute” credit card numbers and password programs, that can offer extra measures of protection from someone else using your credit card.
  • Check out who’s behind the website you’re shopping at. Take a look at the “contact us” page. If there’s no telephone number to call, or if the number doesn’t work when you call, it could be a scam. Check out the registration details of the web domain at WHOIS.net. Is the website registered in the U.S.? Try calling the phone numbers for the domain’s administrative and technical contacts. If they don’t work, or you are routed to a domain registration company’s support line, it could be a scam.
  • Don’t shop at a website that lacks the SSL padlock. Legitimate online retailers should protect the information you share on the site with Secure Socket Layer (SSL) encryption. You can tell if a site uses SSL by the padlock that shows up to the left of the website’s URL in your browser’s address bar. If you don’t see the padlock, shop somewhere else.

If you’ve been scammed, or suspect the person you’re dealing with online is a scammer, file a complaint. Fraudsters can only be stopped if we all work together to share our experiences and raise the alarm. Filing a complaint at Fraud.org only takes a few minutes, but helps arm our network of more than 90 law enforcement and consumer protection agency partners with the information they need to shut down scam artists.

Find Fraud Alerts related to this scam here.

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