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WHAT IS A SCAM?

SCAM

A scam is when someone convinces you to take action – to give up money or information. Scams may be committed by a stranger or someone who pretends to be a friend.

  • A scam is a dishonest scheme of any kind that tricks someone into giving up their money or belongings.
  • Scammers often have numerous interactions with the unsuspecting person.
  • Examples include tricking someone into sending money or providing their personal financial information to a con artist.
  • If the scam succeeds, the target’s money is gone, and usually so is the scammer.

HOW SCAMMERS WORK

A scammer can be a stranger, a “new” friend or acquaintance, or even someone you know well. One common theme is that scammers often contact you unexpectedly and can quickly gain trust.

  • Scammers pinpoint vulnerabilities and can quickly gain trust. They build a rapport, develop relationships, and pretend to care.
  • They might appeal to emotions like sympathy, curiosity, fear, stress, or loneliness. For example, scammers play on fear (your grandchild is in jail), love (they quickly befriend you and want to marry you), or surprise (you won the lottery). This type of psychological manipulation is sometimes called “social engineering.”
  • Scammers know the art of telling a good story and how to make a lie seem real. They can be very believable – even very smart people get fooled!
  • They are insistent and convincing, refusing to take “no” for an answer. They make the situation seem urgent and make aggressive demands. They might use a sense of urgency to push you into sending wire transfers, checks, money, or gift cards.
  • Scammers might insist on secrecy. They take advantage of people who hesitate to ask for help or feel ashamed to report a scam.

Scammers can use information gathered online or on social media to send you misleading emails, texts, or letters, or call you with a story. They can also use the latest technology to make their attempts seem almost indistinguishable from legitimate communications. Other online dangers include:

  • Posting travel dates and photos
  • Posting family details
  • Use of dating websites
  • Sharing details on church or hobby groups

People may be most at risk of being scammed or defrauded if they:

  • Have a “can-do” attitude and tend to act quickly to get things done
  • Are in a vulnerable or busy time of life
  • Let their guard down and forget to be vigilant against scams and fraud

Make sure you check the backgrounds of new caregivers, service providers, nonprofits, or new friends. If you think someone is trying to financially exploit you or commit fraud against you, delay the request for money and talk to someone you trust.

Always slow down and check in with your instincts if you think you’re the target of a scammer. Call someone you know and trust to discuss before proceeding or giving out T

Types of scams

The list of possible scams is long, but most share a few common traits.

  1. They involve someone who is pretending to be someone else or represents a business or the government. These are called impostor scams.
  2. They are often unexpected and contain some type of emotional appeal – fear, love, curiosity, or even greed.
  3. They involve someone asking you for your personal or financial information or for you to send money.

These are some of the most common types of scams.

Impostor scams
Gift card scams
Sweetheart or romance scams
Friend or family member scams
Tech support scams
Payment scams
Phone lender scams
… And more

TIPS FOR AVOIDING FRAUD AND SCAMS

Learning about scams is one of the best ways to prevent scams from happening to you and those you love. You can learn more and sign up for consumer alerts from the Federal Trade Commission at consumer.ftc.gov.

Things to remember:

  • If it sounds too good to be true, it probably is.
  • Winning the lottery requires playing the lottery. If you didn’t play the lottery, you didn’t win the lottery!
  • Do your homework before donating to any charity.
  • Double-check or get a second opinion on home or car repairs before work is done.
  • Resist free drawings that require providing personal information.
  • Before you give anybody money, slow down and double-check with a trusted person.

IF YOU HAVE BEEN SCAMMED

If you think you or someone you know is being scammed, report it to local authorities. You can also report it to the Federal Trade Commission at consumer.ftc.gov. The FTC shares reports with law enforcement partners, and it helps them build a case against scammers and educate the public.

Contact your financial institution. They might be able to reverse a fraudulent credit card charge or wire transfer, reimburse an unauthorized withdrawal, or provide other assistance.

And remember: You are not alone! Don’t be embarrassed or afraid to report the scam or suspected scam. Talk to someone you trust and seek emotional support.

BANK POLICIES AND PROCEDURES

Financial institutions have policies to help protect you from fraud. Here are some processes and procedures they use to authenticate their customers:

Identification: When you make a transaction at the teller window, the teller will typically ask you to provide two forms of identification.

Teller: The teller may ask you specific questions about yourself to confirm your identity — in other words, to make sure that “you” are really “you”!

ATM/Debit card reader: You may be asked to swipe your ATM or debit card and enter your PIN while you’re standing at the teller window.

One-time passcodes: Financial institutions may verify online transactions using one-time passcodes sent to a known device, such as a cell phone.

Note: If you plan to move, update your address with the United States Postal Service and give your bank your new address. They’ll send you a notice at your “old” address to confirm you really made this request — not a criminal trying to steal your mail and identity.

To learn more, visit https://handsonbanking.org/resources/fraud/