How to Protect Yourself and Your Family from Financial Scams

“Grandma, I’m in jail and I need you to wire $10,000 for bail,” a deepfake scammer once told my grandmother. Technology can make the voice of a scammer virtually indistinguishable from that of a loved one. That, paired with time-pressure tactics, can leave victims too scared to think logically.

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In this case, luckily, my grandmother texted me immediately and I assured her the call was not real. This is how to protect yourself and your family from financial scams.

Know The Signs and Common Tricks

If someone contacts you, even if they claim to be with an organization that you do business with, you should approach that interaction with caution. They will dangle some sort of bait, which is often money or something of value. Then, they start requesting your personal information and demanding some form of upfront payment for the thing of value.

Here are some of the most common scams, per the Federal Bureau of Investigation:

• Spoofing and Phishing: Scammers send emails and texts designed to trick you into providing sensitive information.
• Ransomware: Scammers send nefarious links or files that attack your device, allowing scammers to access your data and potentially take over your device.
• Charity and Disaster Fraud: Following a high-profile disaster, scammers can set up fake charities and encourage people to donate through emails, social media, crowdfunding, and cold calls.
• Job Scams: Particularly popular in the cryptocurrency space, scammers pretend to be employees of legitimate companies, only to end up requiring victims to pay their own money to finish the job.
• Government Impersonation Scams: Scammers pose as employees of the Internal Revenue Service, Social Security Administration or other organization, demanding payment or personal data.
• Romance Scams: Scammers meet victims looking for a romantic connection on dating apps or websites, only to end up requesting money for emergencies or personal situations.
• Grandparent Scams: Scammers pose as a relative of the victim, pretending to be injured or in trouble, demanding quick payment.
• Timeshare Fraud: Scammers contact timeshare owners and convince them to pay large sums of cash, thinking it’s related to their timeshare.

If you suspect fraudsters trying to scam you, you should cut off communication and report the incident to the Internet Crime Complaint Center.

Take Time to Verify

If time pressure is being put on you to act, step back and understand that a few minutes are not going to be the difference between life and death. Once you have that space, you may be able to spot red flags that were not apparent in your heightened state of heightened emotion.

If the fraudster is someone posing as a family member, you can ask personal questions and not just take the scraps of details you’re given. Additionally, you can establish a safe word in your family. If the fraudster does not know the safe word, you will know the call is not legitimate.

Call a Known Number

If someone is calling you from your family or another known organization, you should reach out to the family member or organization using a known phone number, not the contact number you may have received from the caller in question. This ensures that you get in contact with the correct party, even if the scammer is spoofing the phone number to look familiar.

Protect Your Data

At this point, because of the volume of data breaches over the years, some of your information may be accessible to many nefarious individuals. If you have online accounts with many organizations, this means no two passwords should match. Each password should be unique to the website so that if your data is breached at one organization, your data is safe at the other organizations. Additionally, use the one-time passcode option wherever possible so that even individuals who can access your passwords cannot get into your accounts.

If you suspect credit fraud or identity theft, you may want to freeze your credit. This protects your data and prevents fraudsters from opening any debt in your name. Credit freezing is both free and does not affect your credit score.

Conclusion

More and more, the presence of scammers and fraudsters is becoming a daily reality of our lives. Knowing the signs of scams, common tricks, tips to avoid becoming a victim yourself, and taking steps to protect your personal data can protect you and your finances from criminals.

By Cicely Jones, Contributor