Showing posts with label how to avoid being cheated. Show all posts
Showing posts with label how to avoid being cheated. Show all posts

Tuesday, October 22, 2019

Why Scammers Call You - Are You an Easy Mark?

If you are like most Americans, you receive frequent robocalls, personal calls and emails from potential scammers. The frequency of these calls may seem overwhelming. Some of them may even be initiated by seemingly trustworthy people.  For example, when you make a purchase or investment, you may occasionally encounter sales people who cross the line from offering legitimate sales assistance to suggesting deals which are outright fraud. At times, it may seem as if you are constantly under assault by criminals and you need to be suspicious of everyone.  You could be right.  You may have unintentionally become an easy mark for scammers.

Why you?  What is it about you that makes you especially vulnerable to being duped by dishonest people?  You may be surprised to know that the AARP Fraud Watch Network has done research on why certain people are targeted more easily and what personality traits they possess.  Once you understand your flaws, it will be easier for you to protect yourself.  Below are common weaknesses which make you more likely to become a fraud victim.

You May Respect Authority Figures Too Much

Some scammers try the approach of sending out official looking letters and emails, or they may call you and pretend to be officials with a government agency, such as the IRS, the police, Social Security or a court.  People should recognize that government agencies rarely call citizens, and almost never make a phone call as their first approach in dealing with a citizen.  They nearly always contact you first by mail.

In addition, if you are dealing with an agency such as the IRS, because of an issue such as unpaid taxes, they will never demand that you make an immediate payment.  Whenever you do make a payment, there are specific steps you must follow and only certain types of payments are allowed.  They NEVER accept  gift cards or similar methods of payment.  Let me repeat that.  If someone contacts you and says that you owe back taxes, a fee or a fine, no legitimate government agency will say that you must pay them immediately by using gift cards.  That should be your first red flag that something is very wrong.

If someone calls you and says they are from a government agency, tell them you only handle these transactions by mail and hang up.  When and if you do get an official looking letter, you should call the relevant agency using their official phone number listed on their website, NOT one which was given to you by a strange caller.  Be skeptical of any stranger who calls you unexpectedly, even if they say they are from a government agency.  If you have questions, call your local sheriff's department for guidance.

You Could be Too Trusting and a People Pleaser

There are many disadvantages of trying too hard to please other people, including the fact that it can simply be exhausting.  However, another disadvantage is that people pleasers tend to put their own judgement aside in order to follow the instructions of others.  For example, you may receive an email from someone pretending to be a friend or coworker.  They may give you unusual instructions, such as asking you to purchase gift cards, take photos of the front and back, and email the photos to them.  A more skeptical person might question why they would want you to do this.  However, believe it or not, people regularly fall for this scam.  By the time the victim realizes the person sending the email is not who they are pretending to be, the scammer has already used the photos you sent to purchase something with the gift cards.  Even when you think someone you know is asking you to photograph gift cards, don't do it.  There is a good chance it is a scam.

You May be Lonely and Seeking Friends Online

Scammers love lonely people.  The perfect mark is someone who willingly enters into a lengthy conversation over the phone with the scammer.  It doesn't take a lot of time to convince a lonely person that the stranger on the phone wants to be their friend.

An even more dangerous person could be someone you meet through social media or a dating website.  Thousands of lonely men and women have developed online relationships with strangers, "loaned" them money, "invested" in various schemes and otherwise been reeled in.  Some people have even lost thousands of dollars this way.  Below are some rules you should follow to protect yourself.

Never send money to someone you have met online, either through social media or a dating site.

Never invest in business deals with strangers, even if you have been conversing with them online for months.  Many of these scammers go for the "long game" and are willing to spend months emailing a large number of people until they find someone who will send them money.

Don't let loneliness cause you to become a victim.

You Could be Under Stress or Grieving and More Vulnerable

Be wary of phone calls from strangers, especially after a crisis, including a death in the family, a home fire, a flood or other disaster.  There are crooks who try to trick people into giving out their personal information during times of stress.  They may pretend to offer help, when they are really trying to steal any insurance or settlement money you could be receiving.  If you are feeling overwhelmed and get a phone call from someone who is offering to help, you may be tempted to lower your guard and tell them things such as your Social Security or bank account numbers, because you believe it is necessary in order to get federal aid or other assistance.  Be particularly suspicious whenever you are under stress.   Take your time, meet personally with the people from FEMA or the insurance company, do online research and gather information until you know exactly what you need to do.

You May Have Been a Scam Victim in the Past, Making You a "Mark"

Did you know that people who have been victimized once are even more likely to be victimized again?  Once scammers know your weaknesses, they will actually sell your name to other scammers who will try new and different approaches to get their hands on your money.  Once you have been a victim of fraud, be extra careful for the rest of your life. 

You Could Be Too Confident that You Will Not Be Scammed

After reading articles such as this one, you may be absolutely confident that you would never fall for any of these tricks.  Do not get over-confident.  Many of the people who fall victim to fraud are intelligent, confident, well-read people who believe they know "all the tricks in the book."  However, the people who conceive of these scams are also intelligent and they put all their energy into thinking of new, creative ways to trick people. They know how to come across in different ways, depending on the scam. They might appear to be professional and businesslike, or caring and helpful.  They are able to be whoever they need to be.  They consider this their profession, not a hobby.  Be skeptical of anyone who approaches you for money.

Learn How to Protect Yourself from Scams

Without getting over-confident, pay attention to new scams in your area and learn how to protect yourself.

If you receive a call from a telemarketer or a robocall, hang up immediately.  Never give out information over the phone.  Never call back.  You could be calling a number that will charge you when you place the call.

Block the phone numbers of telemarketers so they cannot keep calling you using the same number.

Even if you have to block dozens of numbers, do not give up.  Telemarketing companies have a variety of numbers they can use, but eventually they will run out if you keep blocking them.

Immediately end online conversations with people who ask for money, no matter how convincing they are.  This applies to people who contact you through email, Facebook, Twitter or dating sites.  If they ask for money, no matter how convincing their story, do not send it to them. If you do it once, they will probably keep asking.

If you believe the request could be from a legitimate company, such as a local charity, ask them to mail their request to you.  That will give you more time to check them out and think about your decision to make a donation.  If they begin to call repeatedly, hang up and block their number.

If you receive a call from a government agency, look up the number for that agency online and call them directly.  Ask that they put any questions or requests for information in writing and mail it to you.  Consult the police or an attorney if they harass you, especially if you are suspicious about why they have contacted you.

Do NOT cash unexpected checks or prize money you receive in the mail.  Check with your local sheriff's department, district attorney's office, or your bank to see if it is legitimate.  NEVER mail money back to the person or company that sent you the check. A common scam is to tell you that you have won money, then they send you a check for more than you supposedly won, and they ask you to mail them back the difference.  By the time you discover that their phony check has bounced, you have already sent them your real check and they have cashed it.

Always read the fine print before entering into any business deal.  Consult an attorney to protect yourself as much as possible.

Be skeptical of any requests for money, no matter how sincere, even if it is put in the form of a "loan" or an "investment."  Discuss real investments with legitimate advisors such as your lawyer, tax accountant, or financial planner.  In addition, investigate possible investments online.  There is plenty of information about both legitimate and dishonest business deals online, if people are just willing to do the research.

Remember that if it sounds too good to be true, it probably is. 

For more information of financial planning, Social Security, Medicare, where to retire, common medical issues as you age and more, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional helpful articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  morguefile.com

Tuesday, May 9, 2017

Protect Yourself from Fraud and Scams

Retirees are extremely likely to become the targets of scams or fraud.  As a result, we must be extraordinarily careful about our interactions with businesses and people who contact us by phone or on our computer. We are continually bombarded with phone calls and emails from dishonest people who try to trick us into turning over our personal information or money.  Many of these scammers are very persistent and deceptive.  Sometimes it can be difficult to tell the difference between legitimate and fraudulent websites.  The only way to stop these scammers is to learn how to protect ourselves and then report the crooks who try to cheat us.

What are the Most Common Scams Against Seniors?

There are a number of ways in which scammers are able to cheat us.  They may call, pretending to be a grandchild in trouble, and beg for money.  They might win our confidence on an online dating site and ask us to "loan" them money to help them out.  They could impersonate an IRS agent and threaten us with jail if we do not immediately pay our back taxes, which they demand in the form of gift cards or other untraceable types of instant money.  Sometimes they ask for donations to official sounding charities.

Scammers can also trick us by sending fraudulent emails from sites which look similar to the official sites of our bank or credit card company.  They might download malware on our computer and lock us out, until we pay a ransom.

It seems as if the different ways scammers can attack us are endless and they are continually coming up with new approaches.  We have to continually be vigilant.

How to Protect Ourselves from Scammers

While there seems to be no limit to the variety and creativity of the scams which threaten your financial security and peace-of-mind, there are steps you can take to make yourself less vulnerable.

1.  Ask plenty of questions if a family member calls and asks for money.  No matter how much of an emergency it appears to be, make sure you are actually talking to your relative and not a complete stranger.  We have told our adult children and grandchildren not to get their feelings hurt if they ever call asking for money and we pepper them with questions.  We explained to them there are very aggressive scammers who pretend to be members of a family and beg for financial assistance ... often while "crying" so it is difficult to identify their voices.  As a result, we would need to ask numerous questions before sending anyone money.  These questions might include where they went to school, their best friend's name, or their address as a child.  We have also told our family members we would call them back on their cell phone and discuss the request with other family members, to make sure the request is legitimate.

2.  Be suspicious if an "authority figure" calls and demands money.  Whenever a stranger calls pretending to be an IRS agent, the manager of your bank, or an representative from your credit card company, do not provide them with information they should already have such as your credit card number, date of birth or full Social Security number.  If you are in doubt, hang up and call the company or business directly, using the official customer service phone number for your bank or credit card company. The IRS will never unexpectedly call you demanding an immediate payment.

3.  Do not send money to strangers you "meet" online.  No matter how compelling or sad their story is, there is no way for you to verify they are telling you the truth.  Be suspicious, even if they show you "evidence."  Many of these scammers work in groups and they are very good at vouching for each other or producing realistic looking documents.

4.  Be very slow to send money to anyone.  Just because someone else seems to be having an emergency, you do not have to rush to send them money.  Take your time.  Whenever you consider sending money to someone, even a relative, discuss the decision with other family members. If necessary, call the police or the U.S. State Department and ask for their help in confirming that the situation is legitimate, particularly if the "crisis" is occurring in another country.  

5.  Never click on links in emails which are sent by strangers.  You should only click on links in emails sent by friends if you are expecting the link.  Your friend's email service could have been hacked.  Email links can allow scammers to take over your computer remotely.  Once they do, they can find anything you may have on your computer ... banking information, contacts, photos, passwords, etc.  For example, I have told my friends that if they send me a joke or interesting story and I have to open a link to read it, I will not open the link unless I am expecting them to send me this information.  We can't be too careful.

6.  Be careful about what you say on social media.  Make sure your Facebook posts have a privacy setting of "Friends only."  Do not reveal too much about yourself; especially do not give details about where you live and then announce when you are out-of-town.  Some people make it far too easy to be robbed.  In addition, be careful of the social media questionnaires which ask personal information about you such as your birth date, place of birth, maiden name, etc.  Combined with other information about you which is publicly available online, dishonest people can easily steal your identity.

7.  Make sure your computer is as safe from intruders as possible.  Although any computer can be hacked, some people make it far too easy.  Use both antivirus and anti-spyware software.  Keep your computer software updated.

8.  If you receive harassing phone calls, block the number.  No matter how lonely you may be, talking to strangers on the phone is not safe, no matter how old you are.  They may have done their research on you before making the call, including looking up your first name and the names of family members.  They may pretend to have met you and try to gain your confidence, before tricking you into making a "donation" to a worthwhile cause or asking for money for some other purpose.  Keep phone calls from solicitors, charities and other strangers short.  Hang up on them, if necessary.  We always tell phone solicitors that we do not conduct business over the phone, and then quickly end the call.  After the call, we block the number so they cannot keep calling back.

Finally, if you believe you have been cheated or tricked by a scammer, take the time to report the incident to the police.  If the scammer was pretending to be from the IRS, your bank or another business, notify the government agency or business involved so they can help you prevent this from happening to someone else.

If you are interested in learning more about handling finances in retirement, where to retire, common medical issues, Social Security, Medicare and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional articles.

Watch for my book, Retirement Awareness, which is being published by Griffin Publishing and will be available in 2018.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  Photo property of author.