Thank you to Melanie Hazim from the NJ Division of Consumer Affairs for a very timely talk about scams and frauds. Whether it is the holiday season, the aftermath of a natural disaster, or just another normal day, the threat of being a victim of a scam or fraud is always high. As technology advances, so do the tactics of scammers and fraudsters so it is important to be aware of the latest trends to help protect ourselves; knowledge is the best defense! So let’s put on our detective hats and make friends with skepticism as we look deeper into the seedy world of scams and frauds!
The Basics
Scams and frauds are around us everyday, from unsolicited phone calls and texts, to spam emails, to websites, and even the traditional con-man on the street. The advent and advancement of technology has made the art of scams and frauds more sophisticated, more ubiquitous, and more damaging. It can often be difficult to spot a scam or fraud as they can be disguised as coming from legitimate organizations, programs, or individuals. Phone number and email spoofing, hidden links, and fake, organizations or websites are just a number of ways that scammers try to conceal their true intentions and trick us.
Generally, scammers and fraudsters are after 1 of 2 things: your money or your personal information, sometimes both. Some key signs that you might be targeted include immediate payment, high-pressure situations, threats, asking for personal information, or vague/uncertain questions or responses. If you are ever prompted to provide access or information related to your financial accounts, provide personal information or answer security questions, make sure that you are dealing with a trusted representative or individual
The Types
There are so many different types of scams and frauds, but they can almost always be divided into 2 categories: fear-based and excitement-based. Fear-based scams use high-pressure and stressful situations with intimidation tactics to try and force you to comply with their requests. Popular types of these scams include IRS scams, the Grandparent scam, or technology scams. They will often pretend to be from a reputable organization or a government entity and threaten arrest, criminal charges, or hold devices or information ransom unless payment is made immediately, often requested in the form of gift cards or cryptocurrency.
Excitement-based scams prey off of our more positive emotions like joy, happiness, and social connection. These types of scams include lottery/free money scams, romance scams, or job scams. The promise of big payouts is very enticing and unfortunately, many people fall for them. You may be asked to send a small amount of money to pay taxes or winnings or there was an overpayment of “free money” that you need to pay back when cashing a check; nothing in life is free! Or perhaps you met someone online and developed a close friendship or romantic relationship, but they are constantly asking for money for different things. People can pose as recruiters for real or fake companies and prey on your excitement of getting a new and high-earning job, only to steal your money or personal information. Never let your emotions cloud your thinking!
The Remedies
The best remedy is to never be a victim in the first place. If you see a phone number you don’t recognize, don’t answer; if it’s important, they will leave a message. You can check with your cell phone provider to see if they offer any spam blocker services to help limit the number of calls or texts you get. Never open an email, attachment, or text message that you do not recognize; if you are unsure, contact the person or organization in the message directly using a phone number or email that you know is legitimate. If you do open a message, look for typos, grammatical mistakes, hidden links (hover over hyperlinks to see the real link address), or other things that look suspect. If you are looking for an individual or company to perform a service (home improvement, beauty care, etc.), ask for a copy of their professional license, check their references, and contact the Division of Consumer Affairs to confirm that their license is active and in good standing.
If you are the victim of a scam or a fraud, be sure to report it immediately to your local police department, the NJ Division of Consumer Affairs or Bureau of Securities (depending upon the nature of the scam/fraud), and the Federal Trade Commission. It is only through complaints and reporting that these organizations can open investigations; it important to note that there are monetary thresholds that must be met for the FTC or FBI to initiate an investigation. Also, be sure to notify your bank of any missing money or fraudulent transactions and contact the three credit bureaus immediately (TransUnion, Equifax, and Experian). Unfortunately, in most instances, your money will be gone. It is also very difficult to prosecute these types of crimes because they often occur from outside the United States or the digital trail is so well-hidden. While that may sound hopeless, it is recommended to pursue every recourse with every applicable government entity and financial institution to achieve the best possible outcome.
More Information
If you would like more information on scams and frauds, please visit the NJ Division of Consumer Affairs or the Federal Trade Commission. If you have any questions or would like help in identifying if you were a victim of a scam or fraud, please contact Melanie Hazim at HazimM@dca.njoag.gov or 973-504-6348. You can view a recording of the webinar at https://youtu.be/KJv3JUVicc4.
