Beware of Scams, Learn to Recognize Red Flags and Avoid Them

These days, it seems like consumers must be constantly vigilant about scammers trying to take advantage of them. There are endless scams being used to rob innocent people of their money, assets and peace of mind, including schemes related to taxes, investments, real estate, social security, utilities, senior citizens, romance, funerals, package delivery and many more.

Older adults, in particular, are targeted by scammers, but people of all ages can fall victim to fraud. Scams are being carried out through phone calls, mail, text messages, emails, fake websites, social media, online ads and even by going door-to-door.

To avoid being exploited, it’s important to recognize the red flags of scams. The Georgia Consumer Protection Division and the Federal Trade Commission offer tips and information to help consumers make wise choices and avoid being conned.

RED FLAGS OF SCAMS

To protect against scams, the Georgia Consumer Protection Division warns consumers to look out for these red flags:

Someone contacting you unexpectedly and asking you to provide personal or financial information or to pay money to receive a prize, utilities, services, etc.

High-pressure or scare tactics, such as telling you a loved one is in danger, your computer has been hacked or threatening to arrest you if you don’t act quickly

Insisting that you make a payment through gift cards, prepaid cards, wire transfer, cryptocurrency (e.g. Bitcoin) or gold/precious metals

Promises that seem too good to be true, including get-rich-quick

TYPES OF SCAMS

REAL ESTATE SCAMS: Good Morning America recently reported on a mortgage scam in which a couple trying to buy a home was tricked out of their downpayment money. They received an email, which they mistakenly thought was from their mortgage company, asking them to wire the funds for their downpayment. They didn’t catch the minor misspelling in the email address, and when their broker never received the money, they knew it had been sent to someone else. They quickly called the police and were fortunate to recover most of their money. Before sending a downpayment, experts recommend that homebuyers should call their mortgage broker and realtor to verify that emails are legitimate and immediately call the police if they think fraud has occurred.

IMPOSTER SCAMS: With imposter scams, con artists pose as someone you trust, such as well-known businesses, government agencies or charitable organizations, to trick you into paying them money. Here are some examples:

IRS SCAM: The caller claims to be an IRS agent and says the consumer owes money to the IRS and will be arrested if they don’t pay immediately.

SOCIAL SECURITY SCAM: Someone calls claiming to be a Social Security Administration (SSA) employee or a law enforcement officer and tells the consumer their Social Security account has been suspended because it’s been linked to criminal activity. The consumer is asked to pay money and/or provide their Social Security number to reactivate their account.

MEDICARE SCAM: A fraudster, who claims to be from Medicare, contacts the consumer and tries to get them to share their Social Security number, Medicare number or financial information so they can steal their money or commit identity theft. They might say they’re sending “free” medical equipment and the consumer must pay the shipping fee. Or, they threaten to cancel Medicare coverage unless personal information is provided.

UTILITY SCAM: Posing as a representative from the local gas or electric company, the con artist may call or knock on the consumer’s door, claiming they have an unpaid balance and threatening to shut off services if not paid immediately. They might introduce themselves as utility contractors and say they’ve been hired to replace a meter for a fee and insist on payment to avoid a disruption in service.

GRANDPARENT SCAM: Pretending to be your grandchild, one of his or her friends, or a law enforcement officer, the scammer calls with an urgent situation requiring that money be sent immediately. For instance, the grandchild has been arrested and needs bail money or became ill while traveling and needs to return home.

ROMANCE/CONFIDENCE SCAMS: Scammers use photos of other people and create fake online profiles on social media or dating websites. They’re typically charming, profess their love quickly and claim they’re living or working abroad to avoid meeting in person. When they earn the victim’s trust, they ask for money for emergencies, hospital bills or a plane ticket to meet you, and then they disappear.

FUNERAL IMPOSTER SCAM: Fraudsters search obituaries for funeral details, such as the name of the deceased, names of the surviving family members, date and location of the funeral, and the name of the funeral home. Then, they contact the grieving family, claiming to be from the funeral home and possibly using spoofing software so the name and/or phone number of the funeral home appears on the caller ID. The scammer claims that a final payment is due, and the funeral will be canceled if not received immediately.

ORDER CONFIRMATION AND FRAUDULENT TRANSACTION SCAMS: The consumer receives a text message or automated call from someone claiming to represent a major retailer (such as Walmart or Amazon) requesting confirmation of a recent purchase. The consumer is instructed to click on a link or press a certain number if they didn’t authorize the transaction. Then, they’re asked to provide account credentials or payment information so the account can be “credited.”

In other instances, a fraudster poses as a bank or company and calls or emails saying that fraudulent activity has been detected on the account. To confirm that transactions weren’t made by the consumer or to reinstate the account, consumers are asked to provide personal information, such as their email address, debit or credit card number, PIN number and/or login information either directly to the caller or by clicking a link or dialing a phone number.

PACKAGE DELIVERY SCAMS:

The consumer receives a text or email that appears to come from a well-known shipper, such as FedEx or UPS, saying a package couldn’t be delivered and providing a link to track the package or confirm delivery preferences. If the consumer clicks on the link, they’ll be asked to pay for taxes or custom fees and to enter payment information or their Social Security number. However, the package doesn’t exist, and the scammer could also have installed malware onto the electronic device.

WAYS TO PROTECT AGAINST SCAMS

Reduce unwanted telemarketing calls by adding your number to the Do Not Call Registry at donotcall.gov. If your number is on this list, telemarketers are prohibited from contacting you. Any telemarketer who ignores the Do Not Call Registry is either disreputable or a scammer.

Victims should report financial fraud to the financial institution or retailer and request a hold to be placed on the account and a replacement debit or credit card. Consumers should also check their credit reports at annualcreditreport.com and contact credit reporting agencies to place a fraud alert and a security freeze on their accounts: Experian.com, TransUnion.com and Equifax.com.

For information on consumer advice and scams, visit the Federal Trade Commission’s Consumer Advice website page at https://consumer.ftc.gov/.