By Jason Scuglik
Not a day goes by without hearing about another person falling victim to a scam. It is disheartening to learn about individuals losing significant amounts of money to fraudsters. According to the Global Anti-Scam Alliance, only 4% of victims manage to recover their losses, underscoring the importance of proactive measures against scams. My goal is to help by raising awareness about scams and shedding light on the tactics used by scammers to steal money or personal information.
Scams can happen to anyone
Foremost, remember that being scammed does not make someone foolish or gullible. With vast amounts of personal data already compromised and sold to criminals, scams can appear alarmingly authentic. Many scammers are skilled at building trust before exploiting their victims. The days of easily identifiable scams, characterized by poor grammar or foreign accents, are behind us. Modern scammers often leverage advanced tools, such as artificial intelligence (AI), to create convincing narratives.
Scams and Fraud, from USA.gov
How We Can Help You: Scams and Safety, from the FBI
Scam and Fraud Tips and Info, from the Wisconsin Department of Agriculture, Trade and Consumer Protection
Common tactics used by scammers
Phone scams
Many scams begin with a phone call, often from an unfamiliar or deceptively local number. Scammers use techniques like “neighbor spoofing,” where the incoming call number resembles your own. While it may feel impolite, the best course of action is to avoid answering such calls. Engaging with scammers can lead to direct manipulation, or worse, your number being flagged as active and targeted repeatedly. If you do answer and suspect foul play, hang up immediately. You don’t owe courtesy to a thief.
Text message scams
Text messages may claim to be from a friend with a new phone number, a package delivery service with an issue, or a retailer notifying you of a contest win. Regardless of the context, avoid responding or clicking on any links. The safest approach is to delete the message without engaging.
Recognizing red flags
Scammers often use high-pressure tactics to rush their targets into action. They may claim there is limited time to seize an opportunity or to address an urgent problem. The intent is to prevent you from critically evaluating the situation. Be cautious of anyone insisting on secrecy, such as advising against consulting loved ones or financial institutions. Scammers may also ask for unconventional payment methods, such as gift cards, under the guise of fines or fees. Remember, no legitimate organization or government agency accepts gift cards as payment.
What to do if you suspect fraud
If you believe you have been scammed, take the following steps:
- Inform your advisory team: Reach out to your financial institution and investment advisor to secure your accounts and mitigate potential risks.
- Share your experience: Educating others about your experience can help prevent them from falling victim.
- Contact law enforcement: Notify your local authorities, who can collaborate with other agencies to investigate and address the fraud.
- Stay informed: Regularly update yourself on the latest scams by consulting trusted resources.
By staying vigilant and informed, we can collectively work to reduce the impact of scams and protect others from becoming victims.
Jason Scuglik is information systems administrator at Landaas & Company, LLC.
(Heads Up is an occasional alert on consumer and investment scams.)