Stop the Scam: Tips and Tricks for Recognizing and Stopping Scams

March 9, 2023 is National Slam the Scam Day sponsored by the Social Security Administration (SSA).  The goal of this day is to raise awareness that bad actors exist and they use multiple tactics to try to steal money, obtain personal information from individuals, or infect devices with malware.

For information on the scams specifically identified by the Social Security Administration, please visit the SSA website. There you will find not only the types of scams currently in use, but also how to identify a scam, protect yourself from becoming a victim, and report the scam directly to the SSA.

But Wait, There’s More…

It goes without saying, protecting your assets and personal data is a number one priority for Modera. We, along with the custodians we work with, have layers of technology in place to help keep your financial and personal information locked away from nefarious activity and harm. Because we value you, our clients, we want to share some additional information that will help you stay safe with online interactions such as personal email and social media. Read on to learn about common types of scams and how to steer clear of them.

What is a Scam?

In short, a scam is a dishonest scheme where a victim, believing it is for a trustworthy recipient or purpose, is manipulated into sending money or divulging personal information (social security number, passwords, bank account number). Scams sometimes involve unknowing individuals in third party money laundering schemes where the victim serves as an intermediary between another victim and the fraudster. The origin of a scam often starts via a phone call or social media. Other times it is an email or text made to appear as though it is from a legitimate source, friend, business, or family member.

Unfortunately, the Federal Trade Commission received 2.4 million fraud/scam reports in 2022 amounting to almost @8.8 billion dollars in loss and reported that one in 10 adults is a victim of a fraud or scam every year[1]. Here are some of the types of scams that exist and what to look out for to make certain you or someone you care about doesn’t become a victim.

Romance Scam:

Looking for love online can lead to financial heartache if you are not careful. There are plenty of wonderful people to meet but also a large number of fraudulent dating profiles out there. And it is not just dating apps. Any social media app with messaging or chat capability can be an avenue for a scammer to target an individual in an attempt to gain their trust and prey on their vulnerability and finances.

Romance scammers use messages and avoid in-person meetings. They may tell you they live out of state or are out of the country on business. They will ask leading personal questions to help them in their manipulation like “Are you looking for a lifetime commitment?” so they can tailor their response to best suit what you want to hear. They will say all the “right things” and lavish praise and affection very soon into the “relationship.” After an emotional connection is established, the scammer will express the desire to meet in person. But when the time comes to do so, a crisis will arise, such as an accident, a health or employment situation, or a bad business deal, that requires funds that they can’t access. Which is where you come in- a quick loan in exchange for a false promise of repayment.

How to protect yourself:

• Be wary of recently created profiles and people who are unwilling to meet in person or speak on the phone.
• Take it slow and ask plenty of questions. Listen for red flags and consult a family member or friend for their opinion when something seems off.
• Right click on the profile photo to use the browser’s search feature to determine if the profile photo was copied from somewhere else, or if that person has been identified in other fraud claims or goes by other names.
• Do not share personal information with someone you only know online like phone number, address, bank, etc.
• Do not send or accept money in any form.

Sweepstakes/Lottery Scam:

While we would all love hitting that lottery jackpot or getting a fancy new car for free, the odds of that email or phone call informing you that you are a lucky winner being legitimate are slim to none. Especially when you are asked to cover the taxes, customs or some other fee to collect your prize or when you are required to supply your bank account and other personally identifying information so that your winnings can be deposited.

How to protect yourself:

• Do not wire money, mail cash or a check, or give cryptocurrency or a gift card to anyone asking for money in order for you to collect your prize. A legitimate lottery or sweepstakes would not do this.
• Do not deposit a check from any contest into your account until you have done research. Contact the Better Business Bureau and use the internet to search the name of the sender. If the source asks you to deposit the check and then send some funds back, this is another red flag. Legitimate awards will come in the form a certified check and it’s best to verify that check with your bank.

Government Impersonators:

These scammers claim to be from some kind of government agency such as the Social Security Administration (SSA) as previously mentioned, Medicare, the Internal Revenue Service (IRS) or law enforcement. These scams may be initiated by email, but very often they start in the form of aggressive phone calls. Sometimes these criminals have just enough information about you to sound legitimate. The SSA/Medicare fraudster will call and demand payment or risk losing Social Security or Medicare benefits, and often require you to divulge your social security number or Medicare ID. An IRS impersonator will claim you owe taxes, threaten to have you arrested or your accounts frozen if immediate payment isn’t made. A law enforcement scammer may pretend to be a sheriff and claim that you have unpaid fines from a missed court date or jury duty or some other manufactured infraction that requires immediate payment or else jail.

How to protect yourself:

• Do not wire money, mail cash or a check, or give cryptocurrency or a gift card to anyone asking for money. These payment methods make it nearly impossible to get your money back. Most importantly, these agencies would never demand payment like this or threaten your freedom.
• Do not share any private or financial information with anyone claiming to be from a government agency. Hang up and call the agency directly to determine if the contact was legitimate.
• Do not always trust an email address or caller ID as these are easily spoofed. Also, do not click on any links in emails or text messages. If possible, report the scam to the real agency.

Investment Opportunities:

These scammers contact their victims through all platforms, claiming to be a friend of a friend and may even “friend” you on social media. They offer you a once-in-a-lifetime opportunity, with incredible gains and little risk. They may ask for a wire transfer to an overseas account, knowing it will be nearly impossible for anyone, including law enforcement, to get that money back for you.

How to protect yourself:

• Do not give in to the pressure to act immediately on any investment opportunity.
• Verify their legitimacy via the state securities regulator or Financial Industry Regulatory Authority (FINRA).
• Do not fall for claims that “people like you” have already invested or feel obligated to invest if you have been given gifts or special treatment.
• Get all the details of the investment in writing and then do your own research.
• Absolutely contact your Modera advisor before doing anything regarding investing. That is why we are here.

Technology or Fraud Support:

We all know enough about cyber security breaches and scams to be fearful of it happening to us. Scammers prey on this fear. A tech support scammer may call or send a pop-up message to your phone, claiming to be an antivirus company, allege your computer is compromised and ask you to contact them. They will request remote access to your computer, run a fake test and then claim to find viruses and malware, just to sell you bogus repairs and services. A fraudster employing a “refund scam” will claim you are owed a refund, once again request access to your computer and have you sign into your bank account. At that point they steal your money or claim to have overpaid you and request payment back in the form of a wire or gift card. Having been granted access to your computer also gives the criminal the opportunity to install malware so that they can continue to steal from you and have access to your information.

How to protect yourself:

• Do not give anyone remote access to your computer.
• Do not purchase software or other services from a company you do not know or are unsure of.
• Do not trust caller ID as phone numbers are easily spoofed. Hang up and call the company directly to determine if the contact was legitimate.
• Do not call a number supplied in a pop-up alert. Real antivirus programs will not contact you this way.
• Do not click links in these pop-ups, even those that say, “click here to close this window.” When you restart your browser do not open previously closed sites if prompted to do so.
• Do not give anyone claiming to be from a subscription service or anyone claiming to have a refund for you any of your financial information or access to your computer.

Business Email Compromise:

We all depend on email to conduct our personal and professional business. Business email compromise (BEC) exploits this dependency and is one of the most financially damaging online crimes. In this scam, while appearing to be from a known source, a criminal will send an email making a legitimate request. For example, you may receive an email from a criminal posing as someone in your office requesting that you purchase several gift cards and then supply the serial numbers for them. A scammer may email you posing as person you think you know from payroll asking for your account information for your direct deposit. Before you know it, those gift cards are used or your bank account is hacked. But how?

Spoofing email accounts (using a legitimate looking name with a slight variation) is common and can trick you into thinking you are communicating with an authentic individual. Spear-phishing emails appear to be from a trusted sender and try to get you to reveal confidential information about company accounts and other private data that will help them carry out a variety of BEC schemes. Malware can be sent in emails by criminals disguising themselves via spoofing which ultimately allows them to access critical data such as passwords and account information.

How to protect yourself:

• Verify all payment, purchase and account number change requests in person or by phone call to a number known to you. Do not click on links in any email asking you to enter or verify any payment information.
• Do not share personal information on social media such as pet names or your birthday which can allow a savvy criminal to guess your passwords or answer your security questions.
• Scrutinize email addresses for spoofing, especially if they contain links, ask for sensitive information or request payment.
• Do not download attachments from unknown sources.

Vigilance is Key

If you are contacted by an individual, “company” or an alleged government agency and something feels threatening, a little strange, or too good to be true, trust your gut. Take your time to do the due diligence required to verify any and all claims and requests. If you find yourself in a situation like these scenarios, please call us. We are always here to help you and eager to do our part in keeping you and your finances safe and secure.

Sadly, scams are real and can be financially and emotionally devastating. We all need to stay vigilant, so please feel free to share this information with family and friends.

For more information, checkout the FBI safety resources and the FTC consumer advice on scams.