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(From the Financial Literacy Blog) – Fraudsters and scammers are ever-evolving and deceptively clever in their attempts to obtain peoples’ money and personal information. In today’s modern society, people are more connected than ever before. With smartphones, social media platforms, and other digital tools that offer quick and easy communication, people are seemingly in near-constant contact with others. Fraudsters are taking advantage of this by targeting individuals with imposter scams.
What Is an Imposter Scam?
An imposter scam is when a fraudster pretends to be someone else—a government official, police officer, credit union or bank employee, friend, or family member—with the intention of obtaining an individual’s money or personal information. Victims of these scams can be contacted through a phone call, text, email, or other messaging channel.
What Are Some Examples of Imposter Scams?
Government Impersonation Scams: The fraudster may pretend to be an Internal Revenue Service (IRS) agent, immigration officer, or law enforcement official. When an individual is contacted, the fraudster may claim that they owe money or have committed a crime. The threat of legal action or arrest is communicated unless immediate payment is made.
Tech Support Scams: An imposter pretends to be from a well-known and trusted technology company such as Apple, Samsung, Microsoft, or others, and tells the victim their device has a virus or other technical issue. They offer to fix it for a fee and may even request remote access to the device. Once that access is granted, the scammer can steal sensitive data, such as banking details or personal information.
Romance Scams: In this scam, a fraudster will create a fake online profile on a dating website or social media platform and begin communicating with their victim. Over time, trust is built, and the victim thinks they’ve found love online. Eventually, the imposter requests money for some methodically thought-out reason, such as needing to cover travel expenses so they can finally meet in person. However, the victim never meets their online love, as they never existed.
Friend or Family Impersonation Scams: Imposters contact victims, posing as a family member or close friend in a crisis. For example, a fraudster may call a grandparent and pose as their grandchild. They could say they’ve been in an accident or have been arrested and they need immediate financial help, exploiting the victim’s desire to help their loved one.
Work Scams: A fraudster may impersonate a high-ranking employee such as the President or CEO at the victim’s place of work. The fraudster then instructs the victim to transfer funds to a fraudulent account, as they’re on work trip and lost their wallet.
How Can People Avoid Imposter Scams?
Verify Identities: Before sending money or personal information to anyone—even if they are trusted—people should verify their identity. Scammers can now falsify caller ID numbers, so if money is requested from friends or family, people should hang up and call them back directly to confirm it’s actually them.
Don’t Rush: Acting in urgency is a warning sign of a scam. Scammers want you people act quickly and make payments without taking the time to think the situation through. If someone threatens arrest, legal action, or any other consequences if they aren’t paid immediately, it’s likely a scam. Scammers know that fear can lead to poor judgement.
Be Suspicious of Unusual Payment Methods: If someone is asked to send a payment via a wire transfer, prepaid card, or cryptocurrency, they should not do it. These methods are nearly untraceable, and once the money is sent, it’s usually gone for good.
Trust Their Instincts: If something seems suspicious or too good to be true, people should trust their instincts. Scammers frequently exploit emotions like fear, greed, or sympathy to manipulate their victims into sending money. People should remain cautions and skeptical and shouldn’t be afraid to question or refuse requests that seem suspicious.
In conclusion, avoiding imposter scams requires a combination of skepticism, caution, and proactive measures. By following these tips and staying informed, people can reduce their safeguard themselves against deceptive schemes.