Scams are becoming more common, more sophisticated, and more convincing. However, by knowing a few key warning signs can prevent yourself from becoming a victim.
According to guidance from the Federal Trade Commission (FTC), most scams follow familiar patterns that are designed to create urgency, gain your trust, and get you to act under pressure.
Impersonating business you know and trust
One of the biggest red flags is when someone pretends to be from an organization you recognize. Scammers often pose as government agencies like the IRS or Social Security Administration, or even as well known businesses such as utility companies, tech support, or even charities. They may even “spoof” phone numbers so it looks like the call is coming from a legitimate source.
Pressure tactics: urgent needs
Another common tactic is creating a sense of either panic or excitement around an “urgent” event. Scammers might claim there’s a virus on your computer, suspicious activity on your account, or a legal issue you must resolve immediately. Or they make a more positive approach by telling you’ve won a prize or lottery but need to pay a fee to claim it. Both approaches are designed to catch you off guard.
Pressure tactics: loss of service
Pressure is a key part of most scams. Scammers want you to act quickly before you have time to think or verify their story. They may threaten arrest, legal action, loss of services, or insist you stay on the phone while taking action. Legitimate organizations, however, will always give you time to make informed decisions.
Payment: crypto, wires, payment apps, and gift cards
Scammers using pressure tactics will often push for payment through methods that are difficult to trace, like cryptocurrency,wire transfers,payment app(zelle, cash app,apple pay,etc.), or gift cards. In some cases they may even send a fake check and ask you to return a portion of the money. These methods make it nearly impossible to recover your money once it’s gone.
To protect yourself, avoid sharing personal or financial information in response to unexpected calls, emails, or texts. Even if a message looks real, do not click on links, and do not use contact information provided in the message. Instead, go directly to a trusted website or phone number you have on file instead. Additional tips to protecting you and your family from fraud:
1) Block unwanted calls and text messages.
2) Be sure your passwords are secure and updated frequently.
3) Set up 2 factor authentication when possible.
3) Never share your personal information with anyone.
4) If you are being pressured, stop the conversation, and speak with a family member, neighbor, or friend.
If something feels off, pause and talk to someone you trust. Taking a moment to step back can help you spot a scam before it’s too late.
5) Report fraud immediately.
And if you encounter or fall victim to a scam, report it to your credit union and other financial institutions immediately. You should also report fraud to the FTC to help protect others.
Sources:
ftc.gov
https://consumer.ftc.gov/articles/how-avoid-scam#avoid
By: Elisa Rode
Kearley CEO and chief strategist
